When Is Pay Compression MOST Likely to Develop

question 44

Multiple Choice

When is pay compression MOST likely to develop?

• A) When employee skill levels increase faster than managerial skill levels
• B) When the market rate for starting salaries increases faster than organizations can give raises to existing employees
• C) When an organization's internal resources increase faster than it is able to hire new employees
• D) When the organization can provide monetary rewards more easily than intangible benefits
• E) When existing employees make more than new entrants in the organization

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Definitions:

Logic Model

A systematic and visual way to present and share the perceived relationships among the resources, activities, outputs, and outcomes of a program or intervention.

Activities

Tasks, actions, or operations that are carried out as part of a process or to achieve an objective.

Outputs

Refers to the results or products generated by a system, process, or project.

Program Goals

Objectives set by a program that outline the desired achievements or outcomes to be accomplished within a specific timeframe.