In 2002, a firm hired several college graduates for sales jobs at a yearly salary of

$42,000 plus travel expenses. By 2006, most of these people were making a salary of

$46,500 to $47,000 a year, plus travel expenses.

In 2006, the same company hired more graduates and paid them $45,500 a year, plus travel expenses. This was the salary being offered to qualified college grads for entry-level sales jobs in this company’s industry in 2006. Thus, the people with no experience received almost the same pay as those with four years’ experience.

Discuss the problems involved in this situation and suggest remedies.