Employee Seniority: Benefits and Drawbacks Essay

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Seniority

Seniority is a special rank received by long-term employment with one’s firm. People who stay with the same firm for some extended time are compensated through seniority-based program for their commitment to the organization. Seniority method is different from merit-based progression because it is based on an individual’s work term without considering other variables such as accomplishments. A firm may utilize seniority to make certain decisions and merit-based procedures to make others (Carrell & Hearvin, 2014a). In most circumstances, seniority is used in conjunction with other qualification considerations. As a result, this article aims to analyze seniority, its advantages, and any challenges or trends linked with it.

Types of Seniority Benefits

There are two sorts of seniority, and a corporation may utilize either one or both. Firstly, organizations tend to use competitive seniority to determine recruiting and promotion chances. Because the organization must choose amongst numerous individuals, these selections may be competitive. Secondly, benefit seniority can be used to disseminate incentives such as training programs, pay raises, or benefit increases (Carrell & Hearvin, 2014b). In this scenario, one’s rank does not guarantee them the above benefits.

The Benefits of Seniority

One of the utmost noteworthy compensations of a seniority structure is that it eliminates recruitment and promotion prejudices. The company records the employee’s commencement date, which guarantees that documentation of the staff’s seniority is kept so that rewards can be received on time. As employees develop longevity in their employment, they could also obtain perks such as more paid time off, improved healthcare insurance coverage, more vacation days, or other corresponding payments as they remain with a firm for extended periods (Carrell & Hearvin, 2014a). Secondly, the organization may provide appealing training chances to those with higher seniority. This training may help individuals develop in their careers since they will be qualified to undertake duties that may be required to finish projects.

Thirdly, when one becomes a senior staff member, the business may initially give them supervisory chances. When a firm needs a group leader or program manager, it picks the person with the most extended uninterrupted job history with the company, that is, if it uses a seniority model for rewarding. Fourthly, when it comes to granting seniority-based job stability enhancements, some organizations follow a typical pattern. For instance, one may start as an intern or in an entrance role before obtaining enough expertise and credibility to advance to a program manager position. Individuals become progressively essential as their skill set gets more developed and significant to the firm (Carrell & Hearvin, 2014c). Fifthly, when a worker’s status grows, the business may give them first options on schedules. If their employer allows remote work, the individual may be free to select whenever to report to the office for work or whether they prefer to work from their home.

Sixth, if one’s job allows for extra hours, the person in question may be entitled to more regular overtime depending on seniority. Furthermore, given the seniority, one may receive a promotion faster than a colleague who is lower in the hierarchy. This reward recognizes personnel’s devotion by providing professional progression opportunities that can aid the company’s success. Seventh, seniority-based wage rises imply that hardworking employees will receive an increasing way earlier than a workmate with less seniority (Park et al., 2022). This benefit recognizes the individual’s continuous commitment to the firm. Eighth, seniority may provide direct exposure to sought-after tasks. In some circumstances, the business will offer these individuals opportunities for business trips or more vital prospects to an organization.

References

Carrell, M., & Hearvin, C. (2014a). Job security and seniority. In Labor relations and collective bargaining: Private and public (10th ed.). Pearson Education, Inc.

Carrell, M., & Hearvin, C. (2014c). Unfair labor practices and contract enforcement. In Labor relations and collective bargaining: Private and public (10th ed.). Pearson Education, Inc.

Carrell, M., & Hearvin, C. (2014b). Wage and salary issues. In Labor relations and collective bargaining: Private and public (10th ed.). Pearson Education, Inc.

Park, H., Kim, H., & Han, H. (2022). The effect of seniority-based pay on firm performance. Korean Management Review, 51(1), 199-226. Web.

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IvyPanda. (2023, June 4). Employee Seniority: Benefits and Drawbacks. https://ivypanda.com/essays/employee-seniority-benefits-and-drawbacks/

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IvyPanda. (2023) 'Employee Seniority: Benefits and Drawbacks'. 4 June.

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IvyPanda. 2023. "Employee Seniority: Benefits and Drawbacks." June 4, 2023. https://ivypanda.com/essays/employee-seniority-benefits-and-drawbacks/.

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IvyPanda. "Employee Seniority: Benefits and Drawbacks." June 4, 2023. https://ivypanda.com/essays/employee-seniority-benefits-and-drawbacks/.

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