Seniority (years of service) should not be the basis of employee compensation. Employees should be promoted and given raises solely on the basis of their work performance and merit. That is a better way to encourage high productivity.
Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations or reading.
The issue at hand is whether or not individuals should be rewarded based on years of service or performance and productivity. In order to encourage employees to perform at their best, they must be promoted and compensated based on how well they work, not on how long they have worked.
A sixty year old man, working at a company for 20 years is most like a very valuable member of his team. He should be compensated for his years of service to the firm. That being said, a 25 year old, who has been employed for a mere 2 years, but has introduced new ideas that have benefited the company financially, should not be denied advancements in salary simply because he has had a short tenure. This type of reward program will not foster new ideas and enhance worker productivity. It will merely encourage employees to perform at the status quo with limited benefit to these individuals and the company as a whole.
Upon graduating from college, bright, energetic and motivated undergrads seek out employment with organizations that will challenge them and reward them for what they bring to the table. If such an individual has the opportunity to work with a company that will reward her early on in her career based on meeting and/or exceeding company goals, she is more likley to take this position a job where she will only receive salary advancements and promotions based on her years of service. This will put a company at a disadvantage in comparison to its competitors who reward its employees for performance rather than seniority. More productive employees usually allows for product enhancements, which in turn leads to a competitive advantage in the market place.
To sum up, older, more seasoned employees are a valuable commodity to many employers and should be rewarded for their years of service. However, in order to encourage high productivity and creative thought, employers must base compensation and promotions on performance, without regard for years employed. This performance-based reward system will encourage employees to increase productivity and idea genertation. Not only will individuals reap the benefits, but the entire company as well with higher profits and overall productivity.