Pay Inversion
What pay inversion means
Pay inversion occurs when a new employee earns more than an experienced employee doing comparable work.
Pay compression: the pay gap becomes smaller.
Pay inversion: the usual pay relationship reverses.
A simple example
An experienced worker earns $20.50 per hour. A new hire doing comparable work starts at $22 per hour. The new hire earns $1.50 more per hour.
Check what is being compared
Compare duties, responsibilities, skills, shifts, location and benefits. A difference in pay alone does not explain why it exists.
A practical next step
Ask how your employer sets starting pay and reviews existing employees' pay. Bring examples of your responsibilities and experience, and ask what would support a pay review.
Read about pay compression and preparing for a pay conversation ›