Which of the following is the primary cause of salary compression?

Question

Quizplus · Accepted Answer

Salary compression is primarily caused by inflation, which causes the cost of living to rise and ultimately reduces the purchasing power of the affected employees. As a result, newer employees may start at a higher pay scale than more experienced employees, causing compression in pay scales within the company. Taxes, interest rates, collective bargaining, and government regulations may also play a role in salary compression, but they are not the primary cause.

Which of the Following Is the Primary Cause of Salary