Salary Compression in Faculty Salaries: Identification of a Suppressor Effect

Abstract

Typically, regression approaches have been used to study salary equity problems. In a university salary prediction study, one of the predictor variables that entered the equation was years of service. Although this variable had only a very low correlation with salary, it made a significant contribution to predicting salary levels. An analysis of number of years of service revealed that it was acting as a negative suppressor. This suppressor effect was interpreted as salary compression, or the failure of the organization to recognize seniority (continuation at the institution) with adequate compensation increases while meeting current market values for lower ranked individuals hired into the institution.

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