Salary compression occurs when the pay differences between differently qualified professionals are too inconsequential to qualify as equitable. The term may apply when to the pay differentials between supervisors and subordinates, new versus experienced professionals in the same position, salary midpoints in job grades. As an example, salary compression may occur when a manager who just finished training receives comparable pay to a manager who’s been with the company for 10 years. Salary compression is considered especially evident in the educational realm where experienced instructors and new instructors frequently receive comparable salaries despite significant differences in educational credentials and professional experience.
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