What is an advantage of a two-tier wage system?
A) It helps move jobs out of the country.
B) It helps eliminate jobs without any legal hassles.
C) It helps reduce labor costs without cutting employees' existing salaries.
D) It helps provide more pay to new employees.
E) It provides better standards for benchmarking.

Question

Quizplus · Accepted Answer

A two-tier wage system helps reduce labor costs without cutting existing salaries, by offering new employees lower wages and benefits. This can be beneficial for the company as it allows them to stay competitive while still retaining experienced employees with higher salaries. However, it is important to note that this can also lead to conflicts and morale issues between different tiers of employees.

What Is an Advantage of a Two-Tier Wage System