Entry-level engineers at A-1 Manufacturing are paid as much as engineers who have been with the firm for five years.Which of the following best describes the situation at A-1?
A) single-rate pay system
B) competency-based pay
C) union representation
D) salary compression

Question

Quizplus · Accepted Answer

D)Salary compression occurs when less experienced employees are paid as much as or more than employees who have been with the organization a long time as a result of a gradual increase in starting salaries and limited salary adjustment for long-term employees.Salary compression continues to be a major challenge for compensation managers.

Entry-Level Engineers at A-1 Manufacturing Are Paid as Much as Engineers