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ArpanaAmishi
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"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"
Response
Oganizations should provide performance and merit based compenstaion rather seniority(years of experience). We have seen some organizations which still keep on providing more monitory benefits to their long contriubutor employess; hwoever they don't get that much of return/beneifits. On the other hand emloyers those are more focused on work performance and merit are leading the globe ion their respective verticals.
I strongly recommend compensation & promotion should be based on work performance and merit. This would lead organization to meet it's Goal and will make sure consistent or better performance. Performance based oragnization would have below adavantages comparatively with vintage based
1. More young and better performer in leadership team ; hence new thoughts and execution style
2. More risk taking availability - however organization need to trained them on "Take calculated resiks only"
3. More adapatible and Versatile - youngs are more adapatibale and versatile compartively
On the other hand this type of model may face resistance (with their existing employees) and may rise several conflits. Below are some examples
1. Older age employee may have some reservations in reporting to a younger employee - may be due to cultural issues. This would develop resistance in older employees and that may further imapct older employee productivity
2. Working and execution style may not be matched - that would result conflicts
However to perfomance & merit based promotion and compensation may have it's own issues like
1. High attrition - youngers has more enthusiams in changing Jobs
2. Higher Compensation - Organization may need to pay significant extra amount comparatively
3. Aggessiveness - it has been seen youngers are more aggressive comparatively and makes hasty decision sometimes that may not be in organization favour.
I would also like to highlight advantages that would come in vintage based promotion and compensation
1. Low attrition;hecne a lot of money save that is supposed to waste during hiring the right guys
2. Experienced based decision - history says experience based decion is always better
3. Organization would always have more confidence in older employees
In concise if we conclude all pros and cons with each other; we would come out that performance & merit based compensation is always better . Hence I would higly recommend performance & merit based model comparatively on vintage based model.
Response
Oganizations should provide performance and merit based compenstaion rather seniority(years of experience). We have seen some organizations which still keep on providing more monitory benefits to their long contriubutor employess; hwoever they don't get that much of return/beneifits. On the other hand emloyers those are more focused on work performance and merit are leading the globe ion their respective verticals.
I strongly recommend compensation & promotion should be based on work performance and merit. This would lead organization to meet it's Goal and will make sure consistent or better performance. Performance based oragnization would have below adavantages comparatively with vintage based
1. More young and better performer in leadership team ; hence new thoughts and execution style
2. More risk taking availability - however organization need to trained them on "Take calculated resiks only"
3. More adapatible and Versatile - youngs are more adapatibale and versatile compartively
On the other hand this type of model may face resistance (with their existing employees) and may rise several conflits. Below are some examples
1. Older age employee may have some reservations in reporting to a younger employee - may be due to cultural issues. This would develop resistance in older employees and that may further imapct older employee productivity
2. Working and execution style may not be matched - that would result conflicts
However to perfomance & merit based promotion and compensation may have it's own issues like
1. High attrition - youngers has more enthusiams in changing Jobs
2. Higher Compensation - Organization may need to pay significant extra amount comparatively
3. Aggessiveness - it has been seen youngers are more aggressive comparatively and makes hasty decision sometimes that may not be in organization favour.
I would also like to highlight advantages that would come in vintage based promotion and compensation
1. Low attrition;hecne a lot of money save that is supposed to waste during hiring the right guys
2. Experienced based decision - history says experience based decion is always better
3. Organization would always have more confidence in older employees
In concise if we conclude all pros and cons with each other; we would come out that performance & merit based compensation is always better . Hence I would higly recommend performance & merit based model comparatively on vintage based model.
