Compensation based on merit or seniority?

One of the difficulties when looking at fair ways to compensate employees is the decision on whether to compensate based on merit or based on seniority. The argument goes back and forth between “they have earned it because they have been loyal and been here longer” and “shouldn’t we be paying the best people the most money?”

If this is the debate isn’t there a bigger problem? If the people with the most seniority aren’t the best people why aren’t we doing a better job of training them? With proper training shouldn’t people with experience excel over less experienced people?

How much money are you spending on continuing education (not just on what is required to maintain licenses or certification but to make sure people are constantly improving)? While many organizations might think of extra continuing education as an added (and possible unneccesary) expense those organizations that want to excel will realize it’s not a matter of how much will it cost but rather how much money is your organization losing by not having employees who are growing in their roles?

Start thinking of continuing education as a way to increase potential profits as opposed to increasing costs and, done properly, your organization will prosper

Just something to think about.

Have a great day!


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