Salary Compression — Comp + Coffee: Ep. 20

It’s easy to feel trapped when we’re scrambling to fill hot jobs.

New positions keep coming, and existing positions keep opening. And to top it off, there isn’t enough talent to go around.

What’s a compensation pro to do?

Pay new hires almost as much as—or more than—long-term employees and managers?

It’s called salary compression, and it’s more common than you think.

We see it most in hot talent markets and at times of high company growth. Sometimes, it impacts entire companies—other times, it affects only specific departments.

But here’s the big question: Is salary compression avoidable?

Do we have to pay more than the market rate to attract talent? Do we need to push our budget just to fill roles?

One thing’s for sure—salary compression can be tricky to navigate. We address it head-on in the most recent episode of our podcast, Comp + Coffee, where we chat with Payfactors’ Director of Human Resources, Jo Rego.

We tackle:

  • How (and why!) salary compression happens
  • How you can prevent it from happening
  • How you can fix it after it happens

P.S.: We have a lot of exciting stuff coming up on Comp + Coffee—you won’t want to miss out. Make sure to subscribe and rate us 5 stars!