What is a common feature of companies that adopt two-tier wage systems?

A common feature of companies that adopt two-tier wage systems is typically higher satisfaction among long-term workers. In a two-tier wage system, existing employees (often referred to as "tier one") are paid more and retain benefits that newer employees (or "tier two") do not receive. This can create a sense of loyalty and satisfaction among longer-term employees, as they benefit from higher wages and more favorable benefits compared to their newer counterparts.

This disparity promotes a recognition of tenure within the organization, rewarding commitment and experience. Long-term workers may feel valued and secure in their positions, leading to better morale, which can positively impact the overall workplace culture.

In contrast, high employee turnover rates can often be an issue in environments that experience dissatisfaction from the lower tier workers, as they may be discontent with their pay and benefits compared to their longer-tenured colleagues. Low training costs for new hires and increased emphasis on performance-based pay do not specifically characterize the fundamental design of a two-tier wage system—those are more about the operational strategies and training processes rather than the essential elements of wage structuring itself.