Compare and contrast seniority (longevity) pay with merit pay. Determine the advantages and disadvantages of each, including specific examples to support your response. The seniority system compensates an employee based on the length of time he has spent working for the organization. The employee with the longest time in service generally earns the highest pay, if all other factors are held constant. Under the seniority system, employees with the longest time in service are also given the most preferential treatment in areas such as promotions, vacation time and scheduling. Merit-based pay is pay based on an employee’s performance. That means that employees who put more effort into their work and perform better at their jobs get rewarded with higher raises and bonuses than those who put in just enough effort to get by. Advantages and disadvantages: Merit pay systems can help keep productivity and morale high, and employee turnover low. Inequity- When the manager’s evaluation of employee performance does not match th
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