Define solutions for wage rate compression

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Question: There is a situation : A company hired someone from outside at competitive wages which was just less that $3000 what his/her senior was earing. A company has no money to increase the salary of senior employee. They explained her to consider her benefits. But, she said she does not care about benefits. She wants to give resignation.

Basically this is a problem of wage rate compression in the problem. Can you please provide solutions for wage rate compression? Presently company has no money to increase her pay.

Reference no: EM132739367

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