Which of the following best describes the issue often associated with two-tier wage systems?

Two-tier wage systems are arrangements where employees are classified into two groups, typically based on the timing of their hiring, which results in differing pay scales. This practice often generates dissatisfaction among senior workers who have been with the company longer and are earning less than newer employees in the higher wage tier. As a result, these senior workers may feel undervalued and demotivated, leading to decreased loyalty toward the organization. They might perceive the wage disparity as unfair, which affects their overall morale and commitment to the company.

Understanding this dynamic is crucial for leaders, as it highlights the importance of maintaining equitable compensation practices to foster a loyal and motivated workforce. The other options, while they may have some relevance in different contexts, do not capture the primary concern associated with two-tier wage systems as effectively as the issue of decreased loyalty among long-term employees.