When companies raise the pay floor, entry-level workers might suddenly make almost as much as longtime employees. “I felt unappreciated.”
, increases that are rippling through firms and prompting employers to rethink pay for existing staffers.
So-called wage compression—when pay for new hires or entry-level staff approaches what longtime staff or senior colleagues make—poses a financial and management challenge for employers, and has gained new urgency as companies fight to attract and retain employees amidWhen companies announce pay increases for entry-level jobs, they also send signals to their internal workforces, said Diane Burton, academic director of the Institute for Compensation Studies at Cornell University’s ILR School and...
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