Which of the following is NOT an idea that organizations may incorporate in an attempt to minimize the problem of wage-rate compression?
A) giving larger increases to more-senior employees
B) emphasizing pay-for-performance
C) providing equity adjustments for employees hardest hit by pay compression
D) linking all employees' pay more tightly to the CPI

Question

Quizplus · Accepted Answer

Linking all employees' pay more tightly to the CPI would not address the issue of wage-rate compression. Instead, it would maintain the existing pay structures and potentially exacerbate the problem by giving the same percentage increase to all employees, regardless of their current pay level. A, B, and C are all strategies that can be used to address wage-rate compression by providing higher pay increases to employees with lower salaries or longer tenure, or adjusting pay to bring it in line with market rates.

Which of the Following Is NOT an Idea That Organizations