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Love this! I’ve been fascinated with this topic and I appreciate your perspective!

Thanks Joe - great to hear from you!

I believe some salary compression is warranted. I've never understood why we base all compensation on percentages. . . this leads to the opposite of compression and happens in periods of diminished labor demands. The compression is a correction. Additionally, many college grad hires have skills needed for technology advancement in many industries, skills the experienced hire may or may not have. This warrants the premium salaries being paid to graduates, but does not warrant adjustments to all.

Thanks for the great comments and observations, Deb. Agree that sometimes the salary squeeze between new hires and tenured employees that raises the compression alert can be entirely appropriate - especially in situations where the premium salaries reflect new skills and tech acumen which the company now needs and experienced employees may not have. HR and compensation pros need to ensure they understand the circumstances around compression "issues" before suggesting/approving pay adjustments - as the differentials may indeed be entirely appropriate. And then, there is the thoughtful and honest communication to those involved/impacted which must happen.

Appreciate your reading and commenting!

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