Pay compression = when employees who’ve been in a job for a long time make less than new hires

We’ve talked before about how pay compression can make employees feel disengaged and unappreciated - employees tend to have a belief that their employer is paying them fairly in comparison to their peers, and ideally they are… but, if they see that you aren’t asking for a higher salary but a new hire is, pay compression can happen.

You need to be negotiating your salary, ensuring your internal increases align with market rates, and if they aren’t, be willing to job hop and get a bigger increase from an external opportunity (if pay is important to you!).

Have you experienced pay compression? Let us know!

#shorts

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