When the pay differences among individuals with different levels of experience and performance becomes small,this is referred to as __________.

Question

Quizplus · Accepted Answer

Pay compression occurs when the pay differences among employees with different levels of experience and performance are small. This can happen when pay levels are stagnant, resulting in minimal or no increases in pay over time, or when new hires are brought in at higher salaries than long-term employees.

When the Pay Differences Among Individuals with Different Levels of Experience