Pay Compression Most Likely to Develop When

Pay compression most likely to develop when:

A) employee skill levels increase faster than managerial skill levels
B) the market rate for starting salaries increases faster than organizations can give raises to existing employees
C) an organization's internal resources are over-utilized so that new employees need not be hired
D) the external market changes sorapidly that new employeesare actually paid more thanexperienced employees
E) existing employees earn more than new entrants in an organization