Pay inversion happens when a new employee is hired at a higher salary than a current employee performing the same or similar work with equal or greater experience — often due to rising market rates.
Official Extract:
"Pay inversion occurs when newly hired employees are paid more than existing employees in comparable roles, creating internal pay inequities."
(Source: HRCI PHR Content Outline 2024–2025, Total Rewards Section, Pay Structures and Market Competitiveness)
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