If older employees are being paid less than their value to the firm, their compensation is being backloaded.

Question

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If an older employee is being paid less than what they are worth to the firm, it means their compensation is being backloaded. This term refers to a situation in which an employee's salary is structured such that they receive a lower salary early in their tenure, with the expectation that their salary will gradually increase as they gain experience and seniority. In this context, the term "backloaded" refers to the fact that the bulk of the employee's compensation is paid later in their career, rather than upfront.

If Older Employees Are Being Paid Less Than Their Value