Salary inversion refers to situations in which the starting

salaries A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. F ...

for new recruits to an organization increase faster than those for existing employees, and consequently junior employees out-earn their senior colleagues. It typically happens in areas where the demand for suitably qualified professionals exceeds the supply of such professionals in the market. For example, the

information technology Information technology (IT) is the use of computers to create, process, store, retrieve, and exchange all kinds of data . and information. IT forms part of information and communications technology (ICT). An information technology system (I ...

(IT) industry in recent years has experienced this phenomenon. Salary inversion is also common amongst university faculty in certain fields in which the global demand for qualified academics is increasing rapidly. Here, salary inversion occurs when

universities A university () is an institution of higher (or tertiary) education and research which awards academic degrees in several academic disciplines. Universities typically offer both undergraduate and postgraduate programs. In the United States, t ...

lack the resources to raise existing professors' salaries while continuing to hire new faculty, and may legally constitute a form

age discrimination Ageism, also spelled agism, is discrimination against individuals or groups on the basis of their age. The term was coined in 1969 by Robert Neil Butler to describe discrimination against seniors, and patterned on sexism and racism. Butler def ...

References

External links

* http://www.byuaccounting.net/mediawiki/index.php?title=How_do_I_avoid_salary_inversion%3F * https://web.archive.org/web/20110720112626/http://sbaweb.wayne.edu/~absel/bkl/.%5Cvol33%5C33am.pdf * http://www.inc.com/magazine/20090401/how-hard-could-it-be-employees-negotiate-pay-raises_pagen_2.html * http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1061&context=workingpapers

Inversion Inversion or inversions may refer to: Arts * , a French gay magazine (1924/1925) * ''Inversion'' (artwork), a 2005 temporary sculpture in Houston, Texas * Inversion (music), a term with various meanings in music theory and musical set theory * ...

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