Indeed, it may even be possible for a newcomer just starting out in an organization to be paid a higher salary than an individual who has been working for the organization for a year or two. To the extent that this knowledge is known among employees, then, again, the possibility for resentment and disappointment is likely to increase. Organizations sometimes have little remedy in the event of pay compression. On the one hand they have respond to market shifts to continue to hire at a competitive level. At the same time, internal resources may be such that organization's can't maintain pay increases at the same rate that the market rate is increasing. This situation may require organization to provide other kinds of rewards, such as intangible benefits like recognition, or simply face the consequences of disgruntled employees leaving because they feel that they are being underpaid relative to newcomers in the organization.