Pay Compression Most Likely to Develop When

question 45

Multiple Choice

Pay compression most likely to develop when:

• A) employee skill levels increase faster than managerial skill levels
• B) the market rate for starting salaries increases faster than organizations can give raises to existing employees
• C) an organization's internal resources are over-utilized so that new employees need not be hired
• D) the external market changes sorapidly that new employeesare actually paid more thanexperienced employees
• E) existing employees earn more than new entrants in an organization

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