Pay Compression Is the Phenomenon of Employees with Less Seniority

question 119

True/False

Pay compression is the phenomenon of employees with less seniority making a higher salary than high-performing employees with greater seniority.

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Definitions:

Market Rate Of Return

The average rate of return on investment that is expected by investors in the market, typically based on historical data.

Replenishes

Refers to the process of filling up or restoring inventory or supplies to their optimal levels.

Optimal

The most favorable condition or level of efficiency that a system, selection, or outcome can achieve under given constraints.

Collection Float

The time interval between when a payment is deposited and when funds become available in the company’s account, affecting cash flow.