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A Strategic Guide To Pay Compression
When Your Best Employees Earn Nearly The Same As New Hires
Pay compression is more than just numbers on a spreadsheet—it's about people. When experienced employees discover their pay barely exceeds that of new hires, the impact ripples through your entire organization: increased turnover, decreased productivity, potential legal risks, and a workforce that questions fairness.
If you've ever wondered why seasoned employees are leaving or why team morale seems low despite competitive starting salaries, pay compression might be the culprit you haven't identified yet.
It's time to mitigate the hidden threat to your workforce that's costing you talent, morale, and money.
Download our free white paper, "Addressing Pay Compression: Strategies and Best Practices"
Learn more about building sustainable, fair compensation practices.
Developed in partnership
Go Beyond Identifying Problems & Discover:
The Complete Analysis Framework
Learn how to evaluate factors that contribute to compression:
External factors- Market Pricing
- Geographic Practices
- Economic Environment
- Salary Structures
- Promotion Practices
- Performance Metrics
Implementation Strategies:
Budgeting methodologies that won't break your budget
Documentation requirements for legal protection
Communication frameworks for your different audiences
Special considerations for tipped employees
The Compliance Connection
Understand how pay compression intersects with legal compliance, pay equity laws, and transparency requirements.
Learn critical knowledge for mitigating risk while maintaining fair compensation practices from trusted, experienced HR consulting experts.
Let’s Get Started
Take the next step towards meeting your financial goals with an REDW advisor.
Tools You Can Use Immediately:
- Step-by-step compression analysis action plan
- Data requirements checklist for effective analysis
- Communication templates and FAQ frameworks
- Timeline and prioritization strategies for remediation
Why does this matter for your organization?
The business impact is significant. Organizations experiencing pay compression see higher turnover rates, reduced employee engagement, and increased legal risks. But when addressed strategically, you can turn this challenge into a competitive advantage for talent retention and organizational culture.
Your Partners in Compensation Strategy
Comprehensive Compensation Studies
Our comp studies help you understand where you stand in the market and identify potential compression issues before they impact your workforce.
Job Description Creation & Management + Job Classification Analysis
We provide a suite of services and strategic support to ensure your compensation structure aligns with your organizational goals.
Move Beyond Analysis to Action with REDW
Our trusted and experienced compensation experts are here to help you implement tailored strategies for your specific needs.
Ready to tackle pay compression strategically?
This comprehensive guide provides the essentials you need to identify, analyze, and address pay compression in your organization.
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Complete analysis framework & methodolgy
Step-by-step implementation strategies
Ready-to-use templates & checklists
Communication strategies for all stakeholders
Legal compliance considerations
For you, this isn't just about fixing a problem.
It's about building sustainable, fair compensation practices that support your people and your business goals.
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© 2025 REDW LLC. All rights reserved.