Which of the following best describes 'wage rate compression'?

Wage rate compression occurs when the salary difference between employees with varying levels of experience or tenure diminishes, often resulting in new hires earning salaries that are similar to or close to those of more experienced employees. This phenomenon can arise due to various factors such as market conditions, compensation policies, or a focus on attracting talent with competitive starting salaries.

In this context, option A accurately captures the essence of wage rate compression, as it highlights the minimized pay discrepancies between seasoned employees and new hires. This can lead to dissatisfaction among long-term employees who may feel undervalued considering their experience and contributions to the organization.

The other options do not accurately depict wage rate compression. Adjusting salary grades yearly, training only for newly hired employees, and linking professional development to immediate salary increases address different aspects of compensation and employee development rather than the specific issue of wage compression itself.