Pay compression occurs when the range of pay differences among individuals with different levels of experience and performance in the organization becomes small.

Question

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Pay compression occurs when there is a smaller range of pay differences among employees in an organization, leading to employees with different levels of experience and performance earning similar amounts of pay. This can occur for various reasons such as wage freezes, minimum wage increases, or when new employees negotiate higher starting salaries than existing employees.

Pay Compression Occurs When the Range of Pay Differences Among