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How Pay Compression Wipes Out Your Raise

How Pay Compression Wipes Out Your Raise

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Lucas and Luna break down pay compression — the hidden phenomenon where new hires earn nearly as much as experienced employees, effectively wiping out your annual raise. They explore a concrete case from the accounting industry where a Big Four firm's 2025 incoming class got starting salaries within 4 percent of what third-year seniors made, triggering a quiet wave of departures. The hosts explain the difference between internal and external compression, how companies try to fix it with spot equity grants and market adjustments, and what you can do when you suspect you're compressed. They discuss the market dynamics as of mid-2026, where labor demand in professional services is still hot enough to make compression a recurring issue. A must-listen for anyone who has ever felt like their tenure wasn't being rewarded. #PayCompression #SalaryNegotiation #CompensationStrategy #AccountingIndustry #BigFour #InternalEquity #MarketAdjustments #SpotEquity #TotalComp #Retention #LaborMarket #ProfessionalServices #CareerAdvice #SalaryBenchmarking #HRStrategy #Careers #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo
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