Wage compression refers to the phenomenon where the wage differences between employees within an organisation or labour market narrow, resulting in a smaller pay gap between high- and low-skilled workers. This can occur due to various factors, including market forces, regulations, and organisational policies.

Compensation management is a strategic approach to providing monetary and non-monetary rewards to employees to attract, retain, and motivate them. It is an essential aspect of human resource management as it directly influences employee satisfaction, engagement, and productivity.

A 401(k) retirement plan is a type of employer-sponsored, tax-advantaged retirement savings account that allows employees to contribute a portion of their pre-tax earnings to invest in various assets, such as stocks, bonds, and mutual funds.