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Recruiting and retention strategies are interconnected, as the same perks that attract new talent can also increase employee satisfaction. Employers face challenges in staying competitive in the current talent market, exacerbated by inflation. Pay compression can arise when hiring pressures undermine retention efforts, resulting in similar pay for employees despite differing factors. Transparent compensation practices can help build a fair workplace that retains top talent. This episode explains pay compression, what employers can and cannot do to address it, and offers solutions to fix this issue. Pay compression occurs when there is minimal pay distinction among employees despite relevant factors.
