Salary compression can be caused by _. a. recession b. inflation c. economic depression d. all of the above e. none of the above

Even during recession, salary increases being frozen but never compressed. It is usually in rare cases where the company is really going through a rough economic conditions and ask the employees to help adjusting their salaries a bit.. However, when things get better, that will be repaid back....

None of the above.

Agreed with Mr. Patel, Mr Vrindavan and Mr. Pathiyil, None of the above. Thank you.

Salary compression can be caused only by having a bad boss over you!

inflation

Option E- None of the above

I think it is none of the above. 

Salary compression can be caused by economy recession.

None of the above!

Salary compression mainly occur when supply and demand is out of sync i.e. when the need for a particular skill set exceeds the availability, and more, when the internal compensation structure becomes old one, and non-aligned with the external market data.

 Salary compression has many causes:

• Annual salary increase budgets have been modest for20 years—somewhere between2 and4 percent has been the norm—yet candidates changing jobs or companies expect raises of more than2 to4 percent, and thus the salaries of new hires can exceed that of incumbents.

• Reorganizations change peer relationships and can create compression if jobs are not reevaluated.

• In some organizations, certain departments or divisions may be relatively liberal with salary increases, market adjustments and promotions while others are not.

• Some employers have overlooked their HR policies designed to regulate pay, paying new hires more than incumbents for similar jobs under the mantra of paying what it takes to get the best talent.

• Because of the weak job market, many organizations have found it easy to hire people who had already done the same work for another organization, eliminating the need for training. Rather than hiring people with high potential and developing them for the long term, they have opted for people who could “hit the ground running,” regardless of their potential.

• In the case of mergers and acquisitions, if the organizations have not been properly integrated, compression may exist in the newly combined organization.

I believe none of the above should be a cause for Salary Compression