Salary compression is a result of?
Correct answer: C. inflation
- A. monetary funds
- B. interest rate
- C. inflation
- D. deflation
Explanation
Salary compression occurs when inflation or strong market wage increases raise new employees’ starting pay close to that of experienced employees. This narrows the pay difference between new and longer-serving staff.
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About Human Resource Management
Human resource management deals with acquiring, developing, rewarding and retaining employees within an organisation. It includes job analysis, recruitment, selection, training, performance appraisal, compensation, career planning, labour relations and workplace discipline. Recruitment attracts applicants, while selection evaluates them and chooses the most suitable candidate.
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