Seniority System vs Merit System
Seniority system is synonymous with Japan’s employment system. However, with a few more steps, Japan wages move toward Merit system .
Having said that, let’s try to differentiate the two most common compensation system in many companies.
Merit System –is a kind of system pertaining an organization compensate and promotes employees based on their ability and performance, thus providing motivation leading to increased productivity.
Seniority System – this system entails employment preferences based on an employee’s length of employment at a given employer. The organization pays and promotes people based on the number of years they have been with the organization.
POINTS FOR DISCUSSION:
- Workplace harmony
- Motivation Boost
- Which do you think is the better system?
- What are the advantages and disadvantages of each?