Seniority, in general, is the length of service with an employer. Initially, those with more experience in a job position managed those with less experience. Advantages It enhances guaranteed promotions, benefits and advancement in a job field. It also ensures job security through protecting those who have achieved seniority from being retrenched. Disadvantages It fails to reward performance since one has to achieve seniority to get a reward.
It also leads to slow career growth and be discouraging to most of the talented and motivated individuals. A Merit Pay System employs some ways of evaluating performance (usually annual) as a basis of determining a relative quantity of an employee’s annual size. Therefore, a Merit Pay plan motivates an individual to work extra task whenever they desire increased salary or pay. Advantages It rewards high performers thus increased earnings in return to high performance by an individual. It also enhances on improved service delivery for customers and clients.
Disadvantages When the employee’s performance evaluation by the manager does not match with the employee’s thus bringing inequity. Also it may give rise to jealousy among workers with low rewards and with high rewards. Conclusion When deciding between the two plans, one should consider the type of job, the organization, customer satisfaction, the expertise and also attitude to ensure achieving goals and high returns.