This homework (among 17 others) was first solved on May 17th, 2022 by our USA essay writers.
Please read each passage below and respond to each part. I DO NOT need a reference or title page, however please provide the reference(s) underneath the passage. Please label as I have done below, example Part 1 and place your response along with the reference. Please keep each one on the same document! Please cite properly and use correct grammar. DUE by 6PM CST 5/16/22
Out of the two plans, which do you feel would motivate you more in the workplace? When I was younger, I worked for an organization who focused on a seniority pay plan. All the employees who worked with the organization 5 years or more received many additional benefits. They offered them promotions first, they received higher merit increases, they were given special projects, and were given more freedom because they were tenured and could be “trusted.” When I hit my three-year mark, I was outperforming many of the senior employees. I was working harder, putting in more effort, volunteering for the overtime, and just overall going above and beyond for the organization. I had nothing to show for it. No matter how hard I worked, I was not given the top assignments, I was not getting the extra bonus, and my pay increases were not as high as they could have been. We had senior reps who were doing the bare minimum but receiving all the incentives because of the time they put in. It seemed cruel to watch. It was so discouraging that I actually ended up leaving. In my opinion, I feel like the merit pay programs are great because you essentially get what you deserve (in a fair work environment of course). If I take ownership of my growth and development, it will be recognized and it will pay off. Which do you feel is more beneficial and that can mitigate the most issues?
Seniority and merit pay plans differ in the fact that seniority derives much of their compensation or influence within the organization based on the length of service in the performance of their job, merit thus resides in the sustained performance rewarded in excellent efforts or results therein (Martochio, 2017 sect 3.1& 3.2). Both can be vital avenues in establishing incentive pay within organizations, however, both retain advantages and disadvantages in an ever-evolving business environment.
Strengths and limitations too vary as the intent of getting incentive pay in part of the seniority of an individual was not necessarily centric on how well they performed and has been proven to show, within some respects, below-average productivity (Bratsberg, 2003). On the other hand, loyalty, continuity, and retention were upheld within designated positions throughout an organization. Merit-based pay can allow for the accountability of an individual or team in the execution and appraisal of meeting organizational goals. The disadvantages to such pay incentives can further lead to unwarranted competition, morale/relationship issues, and favoritism to include the budgeting factor associated with establishing distinct standards to recognize the pay-wage gap.
When deciphering between the two, some additional factors to consider are associated not only with how employers cater their pay structures to match that of their organizational characteristics (SHRM, 2018). Additional facets to reside in positional hires that are adept to means that do not offer advancement within their position, longevity pay plans may reward such tenured dedication (Martocchio, 2017). Funding too must be available and a key factor in being able to manage top talent, retention, and the attraction of new viable candidates. Structured implementation to coincide with organizational objectives may allude to a balance between recognition, incentive, a cohesive environment, and meeting the company’s overall goals.
(2018, April). SHRM – The Voice of All Things Work. https://www.shrm.org/hr-today/public-policy/hr-public-policy-issues/documents/018compprinciplestatement.final.04.10.18.pdf (Links to an external site.)
Bratsberg, B., Ragan Jr., J. F., & Warren, J. T. (2003). Negative Returns to Seniority: New Evidence in Academic Markets. ILR Review, 56(2), 306–323. https://doi.org/10.1177/001979390305600206
Martocchio, J.J. (2017). Strategic compensation: A human resource management approach (9th ed.). Pearson.