The situation in which senior employees' salaries are lesser than recruited employees, called?
Correct answer: D. salary compression
- A. bonuses compression
- B. incentive compression
- C. aligned reward strategy
- D. salary compression
Explanation
Salary compression occurs when newly hired employees receive pay equal to or higher than that of experienced senior employees, often because market rates rise faster than existing salaries. The other compression terms are not standard compensation concepts.
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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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