__________happens when starting salaries for new hires exceed the salaries paid to experienced employees.
A) Comparable worth
B) Wage rate compression
C) Compensation equity
D) Pricing equity

Question

Quizplus · Accepted Answer

Wage rate compression happens when there is only a small difference in pay between new hires and experienced employees, leading to employees becoming dissatisfied with their pay and creating difficulty in retaining experienced employees. Comparable worth is a concept that suggests that different jobs that require the same skills and qualifications should be paid equally, regardless of gender or race. Compensation equity is the idea that employees should be paid fairly for the work they do. Pricing equity is the notion that businesses should set prices for their products and services that are fair and reasonable for both the business and the consumer. None of these concepts directly address the issue of new-hire salaries exceeding those of experienced employees.

__________Happens When Starting Salaries for New Hires Exceed the Salaries