Seniority system versus performance-based pay system   

Depending on what we are, answers may well vary, and they all make sense, but come to think of it, it’s important to look into the both sides of these two systems for optimal corporate strategies. Now let me explain the details.     

First, seniority system is appropriate for non-profit organizations, such as government agencies, because it discourages competition among workers. If government agencies pursued profits, the public would doubt their integrity and fairness. On the other hand, the performance-based pay helps most private businesses to keep them productive. Because it motivates workers to actively compete for higher profits.     

There are always cons to everything; one is that seniority system deprives workers of ideas and morale, which wastes talented people in turn. In addition, it harms job mobility. On the other hand, the performance-based pay system undervalues some kinds of workers, such as seniors, women in child-rearing age, and people with disabilities, who should be a significant part of workforce in our aging society.           

In this way, both systems have their pros and cons depending on each company’s strategy, philosophy, and purpose. Thank you for your attention. [186 Words Typpe-B]