Pay Compression (aka Wage Compression) - Common in the Silicon Valley but also evident in other geo areas and industries, refers to a situation where the pay differences between employees with varying levels of experience, skills, and qualifications become significantly smaller. This often happens when new hires are offered salaries close to, or even the same as, those of more experienced employees.
Pay / Wage Compression impacts engagement, morale, can result in increase employee churn.
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