According to the study by Cappelli and Sherer, what is generally true about lower-tier employees in a two-tier wage plan?

In the context of the study by Cappelli and Sherer regarding two-tier wage plans, lower-tier employees are generally observed to be more satisfied despite earning less for the same work. This phenomenon can be attributed to several factors that contribute to job satisfaction beyond monetary compensation. For example, lower-tier employees may prioritize job security, workplace culture, or benefits associated with their roles that foster a sense of belonging and commitment to the organization.

Additionally, these employees may also derive satisfaction from factors such as stable work conditions, meaningful relationships with coworkers, or positive recognition from supervisors. It's important to note that satisfaction can be influenced by perceptions of fairness, opportunities for advancement, and the overall work environment.

Understanding this dynamic can help HR professionals and organizational leaders develop strategies that enhance employee satisfaction and retention, even in wage-competitive environments where compensation discrepancies exist.