The Graded Model of Salary Increase A Solution to the Problem of Salary Compression and Inversion in Faculty Salaries

摘要

As suggested by the equity theory, salary compression and inversion could lead to negative attitudinal and behavioral consequences. The purpose of this study is to propose a model of graded salary increase, which is aimed to tie salary increase rates with tenure of faculty members. The results of this study showed that the graded salary increase model overall solves or at least eases the problem of salary compression and inversion.