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 topic of compensation has been heavily discussed in busines literature. Often times, companies devote a whole department which it's sole purpose is to establish compensation structure for the firm. In general, the right compensation practice serves the interest of the company, promoting and encouraging employees to perform at their maximum potential. I believe compensation should be based on many factors which includes experience, performance, and years of service.
Compensation structures that are heavily based on seniority often do not align the interests of the employees with the interests of the company. In this structure, employees are encouraged in average behaviors in order to minimize their chances of being fired. They often avoid risky but profitable projects because their compensation is not related to the outcome of their efforts in those projects.
A classic example of compensation based on years of service is in the current school system. Teachers are rewarded for their tenure rather than their performance and merit. Since the outcome of their student's performance is not a factor in their pay, many teachers are not incentized to improve their teaching abilities. Many experts support changing teachers compensation to be based on both performance and years of service. Only by doing this would we align the interest of the school, to provide the best education for the next generation, with the interest of the teachers, to improve their teaching skills in order to achieve the best result.
However, we should never remove seniority completely from the compensation equation. Years of service are very highly correlated with experience and loyalty. A company need a mix of experienced and young professionals. Experienced employees perform their job fasters, solve problems quicker, and serve as mentors for newbies. Also, loyalty is a critical component to a successful company.
Stock options, productivity, and seniority are all factors that should contribute to the compensation formula. The goal of compensation should be to align the interest betwen both parties.
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Sentence: A company need a mix of experienced and young professionals.
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Sentence: The topic of compensation has been heavily discussed in busines literature.
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Sentence: The goal of compensation should be to align the interest betwen both parties.
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Attribute Value Ideal
Score: 4.0 out of 6
Category: Good Excellent
No. of Grammatical Errors: 1 2
No. of Spelling Errors: 2 2
No. of Sentences: 19 15
No. of Words: 324 350
No. of Characters: 1744 1500
No. of Different Words: 167 200
Fourth Root of Number of Words: 4.243 4.7
Average Word Length: 5.383 4.6
Word Length SD: 2.913 2.4
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No. of Words greater than 6 chars: 119 80
No. of Words greater than 7 chars: 74 40
No. of Words greater than 8 chars: 54 20
Use of Passive Voice (%): 0 0
Avg. Sentence Length: 17.053 21.0
Sentence Length SD: 6.809 7.5
Use of Discourse Markers (%): 0.211 0.12
Sentence-Text Coherence: 0.311 0.35
Sentence-Para Coherence: 0.539 0.50
Sentence-Sentence Coherence: 0.068 0.07
Number of Paragraphs: 5 5