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Which of the Following Is True of Pay Compression

Question 6

Multiple Choice

Which of the following is true of pay compression?


A) It is the process by which all employees' pays decrease significantly in an economic downturn.
B) It occurs when the employer groups employees with different pay grades together.
C) It is frequently a result of labor market pay levels increasing faster than current employees' pay adjustments.
D) It occurs when pay differences among individuals with different levels of experience and performance become large.

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