Question

Jennifer, an account manager in an automobile company, has a previous work experience of six years and has become one of the best employees of the company in the two years since joining. However, she resigns her job when she finds out that most of the new employees of the company, who have only two or three years of experience, get the same salary as her. In the given scenario, Jennifer most likely resigned due to _____.

Answer 1

The correct answer would be, Pay Compression.

She resigns her job when she finds out that most of the new employees of the company, who have only two or three years of experience, get the same salary as her. In the given scenario, Jennifer most likely resigned due to Pay Compression.

Explanation:

Pay Compression is also called the Salary Compression. When there is a situation where many employees having different skills and experience levels are given the same salary, or the salary with a very little difference, this is called as the Pay Compression.

Pay Compression is usually seen in organizations. People who have more expertise, experience, better educational certifications, are paid with a little difference with the other employees. This creates a sense of underestimation, which most competent employees can't handle.

So is the case with Jennifer. She resigned her job when she came to know that other employees with the less level of skills and experience as her are paid almost the same. This is called as the Pay Compression.

Learn more about Salaries structures at:

brainly.com/question/1492151

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