Is pay compression becoming the biggest issue at senior levels in accounting? With market rates rising quickly, newer hires sometimes come in close to long-tenured employees. Curious whether people think this fixes itself over time or permanently distorts comp.

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Most of the time you have to change jobs or get a promotion. No firm will just give an existing Senior more money based on market rate alone.

This has been a problem for decades, but there aren’t a lot of people staying at senior. As a result, this problem kind of fixes itself when people get promoted.

This is why many people will change jobs every few years, to avoid the salary compression issue. For many people, to get the bigger pay bump (over the annual merit pay increase), you will have to chase the promotion or pay raise by getting a job at another company.

Longevity at one company will, more than likely, cost you money in the long term.

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