I'd guess they're saying that if you're in an environment where making staffing changes can be legally challenging, you might opt to keep people on a tight leash at low salaries. You could in theory I guess hire someone low comp within a box, watch them, promote them quickly, and expand their latitude if they turn out to be high preformers. I don't know much about highly regulated labor markets so no clue if this exists in reality, but I suppose it's not impossible.