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- Two-tier_system abstract "A two-tier system is a type of payroll system in which one group of workers receives lower wages and/or employee benefits than another.The two-tier system of wages is usually established for one of three reasons: 1) The employer wishes to better compensate more senior, ostensibly more experienced and productive workers without increasing overall wage costs; 2) The employer wishes to establish a pay for performance or merit pay wage scheme that compensates more productive employees without increasing overall wage costs; or 3) The employer wishes to reduce overall wage costs by hiring new employees at a wage less than incumbent workers.A much less common system is the two-tier benefit system, which extends certain benefits to new employees only if they receive a promotion or are hired into the incumbent wage structure. This is distinguishable from traditional benefit structures, which often do not permit an employee to access a benefit (such a retirement pension or sabbatical leave) without having first achieved certain time-in-position levels.Two-tier systems became more common in most industrialized economies in the late 1980s. They are particularly attractive to companies which have high rates of turnover among new hires (such as retail) or companies which have large numbers of high-wage, high-skilled older workers due to retire soon.Trade unions generally seek to reduce wage dispersion (the differences in wages between workers doing the same job). Not all unions are successful at this. A 2008 study of collective bargaining agreements in the United States found that 25 percent of union contracts surveyed included a two-tier wage system. Such two-tier wage systems are often economically attractive to both employers and unions. Employers see immediate reductions in the cost of hiring new workers. Existing union members will see no wage reduction, and the number of new union members with lower wages is a substantial minority within the union and subsequently unable to negatively affect ratification votes. Unions also find two-tier wage systems attractive because they encourage the employer to hire more workers. Some collective bargaining agreements contain \"catch-up\" provisions which allow newer hires to advance more rapidly on the wage scale than existing workers so that they reach wage and benefit parity after a specified number of years, or which provide wage and benefit increases to new hires to bring them up to party with existing workers if the company meets specified financial goals.Some studies have found problems with two-tier systems. Some negative effects which have been found include: Higher turnover among newer, lower-paid employees; a demoralized workforce. Given enough time, a two-tier wage system can permanently lower wages in an entire industry. Lowering productivity expectations for new hires seems to alleviate some of these problems.".
- Two-tier_system wikiPageID "6718365".
- Two-tier_system wikiPageLength "5188".
- Two-tier_system wikiPageOutDegree "15".
- Two-tier_system wikiPageRevisionID "632570024".
- Two-tier_system wikiPageWikiLink Category:Labour_relations.
- Two-tier_system wikiPageWikiLink Collective_bargaining.
- Two-tier_system wikiPageWikiLink Employee_benefit.
- Two-tier_system wikiPageWikiLink Merit_pay.
- Two-tier_system wikiPageWikiLink Payroll.
- Two-tier_system wikiPageWikiLink Pension.
- Two-tier_system wikiPageWikiLink Performance-related_pay.
- Two-tier_system wikiPageWikiLink Productivity.
- Two-tier_system wikiPageWikiLink Sabbatical.
- Two-tier_system wikiPageWikiLink Seniority.
- Two-tier_system wikiPageWikiLink Trade_union.
- Two-tier_system wikiPageWikiLink Turnover_(employment).
- Two-tier_system wikiPageWikiLink United_States.
- Two-tier_system wikiPageWikiLink Wage.
- Two-tier_system wikiPageWikiLink Wage_dispersion.
- Two-tier_system wikiPageWikiLinkText "two-tier system".
- Two-tier_system wikiPageWikiLinkText "two-tier wage scale".
- Two-tier_system wikiPageWikiLinkText "two-tier wage system".
- Two-tier_system wikiPageWikiLinkText "two-tier wages".
- Two-tier_system wikiPageWikiLinkText "two-tier".
- Two-tier_system wikiPageWikiLinkText "wage tier".
- Two-tier_system wikiPageUsesTemplate Template:Reflist.
- Two-tier_system subject Category:Labour_relations.
- Two-tier_system hypernym System.
- Two-tier_system type Relation.
- Two-tier_system comment "A two-tier system is a type of payroll system in which one group of workers receives lower wages and/or employee benefits than another.The two-tier system of wages is usually established for one of three reasons: 1) The employer wishes to better compensate more senior, ostensibly more experienced and productive workers without increasing overall wage costs; 2) The employer wishes to establish a pay for performance or merit pay wage scheme that compensates more productive employees without increasing overall wage costs; or 3) The employer wishes to reduce overall wage costs by hiring new employees at a wage less than incumbent workers.A much less common system is the two-tier benefit system, which extends certain benefits to new employees only if they receive a promotion or are hired into the incumbent wage structure. ".
- Two-tier_system label "Two-tier system".
- Two-tier_system sameAs Q17145990.
- Two-tier_system sameAs Sistema_dualistico.
- Two-tier_system sameAs m.0gk8bm.
- Two-tier_system sameAs Q17145990.
- Two-tier_system wasDerivedFrom Two-tier_system?oldid=632570024.
- Two-tier_system isPrimaryTopicOf Two-tier_system.