Which of the Following Is True of Pay Compression

question 6

Multiple Choice

Which of the following is true of pay compression?

• A) It is the process by which all employees' pays decrease significantly in an economic downturn.
• B) It occurs when the employer groups employees with different pay grades together.
• C) It is frequently a result of labor market pay levels increasing faster than current employees' pay adjustments.
• D) It occurs when pay differences among individuals with different levels of experience and performance become large.

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Definitions:

Hub-And-Spoke

A system used in transportation and distribution in which all traffic moves along spokes connected to a central hub, optimizing efficiency.

Point-to-Point

A direct connection or travel route between two specific locations without any intermediate stops or transfers, commonly used in transportation and telecommunications.

Critical Mass

Critical mass is a state or point at which a system or organization becomes self-sustaining or sufficiently large to maintain a certain status or level of activity.