New CDL drivers are being hired above five-year incumbents because the market moved, and veterans are being told to "be loyal." What compensation strategy should the CHRO recommend?
Select an answer to reveal the explanation.
Short Explanation
Telling a five-year driver to be loyal while the new kid makes more is how a garage empties. Compression is a math problem, not a pep talk. Budget an adjustment that puts veterans back ahead without making the next hire impossible.
Full Explanation
Pay compression is a retention-strategy failure, not a morale issue. When new-hire rates overtake incumbents, a funded compression-adjustment plan restores internal progression while preserving the market rate needed to fill vacancies. Recognition trinkets, hiring freezes that leave routes empty, or demoting veterans do not repair the structure. SPHR 4.2 expects the compensation strategy to retain talent, not lecture it.