Which of the following compensation strategies perpetuates inequity in the workplace?
A) Cafeteria-style benefits
B) Incentive pay systems
C) Two-tier wage systems
D) Gain-sharing
E) None of these

Question

Quizplus · Accepted Answer

Two-tier wage systems perpetuate inequity because they create two levels of pay for employees doing the same work, with new hires typically receiving lower wages and benefits than existing employees. This creates a cycle of inequality where some employees earn less for the same work, resulting in decreased motivation and engagement. Cafeteria-style benefits, incentive pay systems, and gain-sharing can all be used to promote equity in the workplace by offering employees the opportunity to choose benefits and rewarding them based on their contributions.

Which of the Following Compensation Strategies Perpetuates Inequity in the Workplace