What can be a long-term consequence of two-tier wage systems for employee relations?

A long-term consequence of two-tier wage systems is that they can lead to strained relations between different employee tiers. In such systems, newer employees are often paid less than their more senior counterparts for the same work, which can create feelings of resentment and division among the workforce. This disparity can foster an environment where collaboration and trust are undermined, as newer employees may feel undervalued or discouraged by the perceived inequities in pay. Over time, this can lead to a deterioration of workplace morale and cohesion, which affects overall employee relations negatively.

In contrast, increased collaboration and communication, unchanged engagement levels, and heightened investment in worker training are unlikely outcomes in a two-tier wage system, as the financial and emotional divide typically hinders open dialogue and mutual support among employees.