One solution to the problem of pay compression is to institute:

Question

Quizplus · Accepted Answer

Equity adjustments involve increasing the pay of employees who are experiencing pay compression in relation to their peers or in comparison to the market rate. This solution addresses the root cause of pay compression, which is the lack of differentiation between pay levels for employees at different levels in the organization. Merit-pay increases and salary caps may exacerbate the problem by further reducing pay differentiation. Compensation concentration is not a recognized solution to pay compression.

One Solution to the Problem of Pay Compression Is to Institute