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Preferred term

pay compression  

Definition

  • Pay compression is present when individuals with more years of experience receive pay rates nearly equal to (compression) or less than (inversion) individuals with fewer years of experience. Pay compression most commonly occurs when demands from the external labor market push the starting salaries of organizational newcomers to pay levels that are similar to those of existing employees. [Source: Encyclopedia of Career Development; Pay Compression]

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https://concepts.sagepub.com/social-science/concept/pay_compression

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