264 Human Resources Management for Public and Nonprofi t Organizations
more experienced employees) or the salaries of jobs fi lled from within the
organization. Compression occurs in most public and nonprofi t organiza-
tions. For example, ten years ago, the starting salary for county probation
offi cers might have been $ 26,500. Today, probation offi cers hired ten years
ago might be making $ 40,000, while new probation offi cers might start at
salaries around $ 36,500. The pay differential between an employee with
ten years of experience and a new employee is compressed because of
market wages.Grade Creep Grade creep is a form of classifi cation infl ation. That is,
supervisors and incumbents request that positions be reclassifi ed to the
next highest grade so that the incumbent receives higher compensation
despite no change in job tasks or responsibilities. Grade creep typically
results when incumbents are at the top of their pay level and no other
mechanism exists to increase their pay.Pay Differentials Employee equity addresses pay differentials within the
same position. It recognizes that employees who possess the same job title
and responsibilities often perform at different levels of productivity or pro-
fi ciency, making different contributions to the agency ’ s mission.
In the public sector, seniority is fre-
quently used to differentiate pay. More senior
employees receive higher wages regardless of
their performance. For each year of service,
employees ’ salaries are automatically increased
to the next grade step to reward their years of
service to the organization. This is why the
administrative specialist in step 3 receives a
lower salary than his coworker at step 8. The problem with seniority - based
differentials is that longer tenure does not necessarily translate into more
effective performance.
If seniority is the only system in place to differentiate pay, organizations
may fi nd it hard to attract and retain competent employees. Employees
who believe that their pay is low after comparing their inputs and level
of pay to other employees in similar positions will become less motivated
over time. Dissatisfi ed employees are prone to fi le more grievances, to be
absent more frequently, and to search for higher - paying positions elsewhere.
Employers must have in place different strategies to address employee
equity concerns.The problem with seniority -
based differentials [in pay]
is that longer tenure does
not necessarily translate into
more effective performance.