Words / P / Business

pay compression

noun

C1CEFR level
65/100Rarity: rare
TechnicalRegister

The situation where newer or junior staff earn nearly as much as longer-serving or senior colleagues.

Aggressive market offers created pay compression so severe that a new hire now out-earns the manager onboarding her.

Similar: salary compression

Topic: Human resources in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Human resources