Employees have varied perception regarding the concept of two tier jobs. On one hand as postulated by Balliet (1984), some employees especially those in the high-tier appreciate the concept of two tier wages because it avoids the issue of laying off employees. In essence, such employees have the opinion that two tier wages is a better option for enhancing job security and reduce employee lay off and retrenchment. However, some of the employees within the low tier brackets feel that the two tier …show more content…
Further Research: Look into current events, scholarly research, and even financial analysts ' reports for information on two-tier wage systems and their outcomes in various industries (Bentolila, Cahuc, Dolado & Le Barbanchon 2012).
Advantages of two-tier wage system The following are some of the advantages associated with the two-tier wage system from both the management, union and employee perspective:
a. Two-tier wage system enables the management to effectively reduce on the costs of labour in an organization which increases the revenues of an organization
b. Two-tier wage systems enables employees who have no form of employment secure employment
c. Two tier employment structure enables the Union to effectively manage the employee they represent due to the limited number of employee represented by the union
Disadvantages of two-tier wage system
a. It leads to low levels of productivity as a result of low levels of employee motivation and lack of employee …show more content…
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Heetderks, T. D., & Martin, J. E. (1991). Employee perceptions of the effects of a two-tier wage structure. Journal of Labor Research, 12(3), 279-295.
Bernstein, A., & Schiller, Z. (1985). The double standard that 's setting worker against worker. Business Week, 8, 70-71.
Bentolila, S., Cahuc, P., Dolado, J. J., & Le Barbanchon, T. (2012). Two‐tier labour markets in the Great Recession: France versus Spain. The Economic Journal, 122(562), F155-F187.
Boeri, T. (2014). Two-tier bargaining. Available at SSRN 2475326.
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