Competency or Seniority based pay?

[davidten]

According to you,
which kind of method is better if for example you have a company and would like to compensate your employees?
Are you going to use the Competency / Merit based pay or are you going to use the Seniority based pay method?

[davidten]

note:

Seniority pay is payment according to how long have you been working in a particular company. more into loyalty to the company. if you work longer, you will gain higher salary.

Merit pay is payment according to your competency, knowledge or skill in a particular company. if you can maintain a good performance you will gain a higher salary faster and vice versa.

Thanks for the poll

[Trouble43]

I would say competency/merit based pay awards are far fairer that seniority. At least they are based on what an individual can do rather than just what level of the company they're at.

[Kiwi 1691]

Easy, Competency / Merit based pay.

[Midas]

I would say competency/merit based pay awards are far fairer that seniority. At least they are based on what an individual can do rather than just what level of the company they're at.

Agreed, but in real life it's never quite as simplistic as that, and seniority, even with nothing else other than years of just plodding and mundane work behind it, can bring with it a wealth of value to a company together with knowledge and experience which other more ambitious people can use to their great advantage.

[Trouble43]

Agreed, but in real life it's never quite as simplistic as that, and seniority, even with nothing else other than years of just plodding and mundane work behind it, can bring with it a wealth of value to a company together with knowledge and experience which other more ambitious people can use to their great advantage.

I'm sorry but if you compare the likes of (theoretical) Edward Pilkington-Smythe because whose been with the company forty years but has done exactly what his job description says he must and absolutely nothing more, to the likes of the (equally theoretical) Joe Bloggs who has worked there for four years and has done his level best to do everything to help the company and make his work more productive, who helps others and does things outside of of his JD then surely Joe Bloggs deserves more than Pilkington-Smythe?

To say one man deserves more purely because he's been there longer shows a shocking misunderstanding of the workforce. The hard working newbies are more likely to 'work to rule' (ie follow their JD's). I have seen this happen when I worked in HR, and have always thought how counterproductive it is to reward people purely based on longevity rather than productivity and innovation.

All you end up doing is alienating the hard working and innovative staff; or worse losing them to companies who do reward on merit.

[DougieG]

I'd say a combination - people's salaries should grow year on year as they gain experience and become more used to their jobs. Competency pay is a no-brainer, but I don't think that it's the be all and end all either.

[Trouble43]

I'd say a combination - people's salaries should grow year on year as they gain experience and become more used to their jobs. Competency pay is a no-brainer, but I don't think that it's the be all and end all either.

But that's not a combination. Seniority pay is aimed at those higher up the pecking order basically just because they are.

What you're talking about is cost of living rises and rises based on experience added to compentency pay rises as well. I'd say you're right with your assumption, if thats the case.

[Kiwi 1691]

I'd say a combination - people's salaries should grow year on year as they gain experience and become more used to their jobs. Competency pay is a no-brainer, but I don't think that it's the be all and end all either.

True, a combination is most realisitic.

[DougieG]

But that's not a combination. Seniority pay is aimed at those higher up the pecking order basically just because they are.

What you're talking about is cost of living rises and rises based on experience added to compentency pay rises as well. I'd say you're right with your assumption, if thats the case.

Yes, I suppose that is what I mean. By seniority, I am talking more about age than promotions. A boss will always be paid more than his workers, not saying it's right, but that's how it will always be. People who are at a company for a long time without getting a promotion should still get some pay rise above inflation. I think that is the key point I was making.

[Midas]

I'm sorry but if you compare the likes of (theoretical) Edward Pilkington-Smythe because whose been with the company forty years but has done exactly what his job description says he must and absolutely nothing more, to the likes of the (equally theoretical) Joe Bloggs who has worked there for four years and has done his level best to do everything to help the company and make his work more productive, who helps others and does things outside of of his JD then surely Joe Bloggs deserves more than Pilkington-Smythe?

To say one man deserves more purely because he's been there longer shows a shocking misunderstanding of the workforce. The hard working newbies are more likely to 'work to rule' (ie follow their JD's). I have seen this happen when I worked in HR, and have always thought how counterproductive it is to reward people purely based on longevity rather than productivity and innovation.

All you end up doing is alienating the hard working and innovative staff; or worse losing them to companies who do reward on merit.

Sorry, you've either totally misunderstood what I said or you've applied your usual form of logic to it. I was simply pointing out that life isn't as straightforward as the original question implied. I wasn't saying that the longer a person remains with a company, the more (comparatively) he should be paid, simply that someone like your hypothetical Edward Pilkington-Smythe should be paid more as his seniority grows, however that does not mean that your equally hypothetical Joe Bloggs should be paid less pro rata. I'd guess I've had considerably more experience than you at knowing who is deserving of what in the pay structure of companies; in fact if you've read some of my other posts you'll have seen where I've specifically said that I'm quite happy to pay over the odds for particularly good workers.

FWIW my vote was for a competency and merit based pay.

[Trouble43]

Sorry, you've either totally misunderstood what I said or you've applied your usual form of logic to it. I was simply pointing out that life isn't as straightforward as the original question implied. I wasn't saying that the longer a person remains with a company, the more (comparatively) he should be paid, simply that someone like your hypothetical Edward Pilkington-Smythe should be paid more as his seniority grows, however that does not mean that your equally hypothetical Joe Bloggs should be paid less pro rata. I'd guess I've had considerably more experience than you at knowing who is deserving of what in the pay structure of companies; in fact if you've read some of my other posts you'll have seen where I've specifically said that I'm quite happy to pay over the odds for particularly good workers.

FWIW my vote was for a competency and merit based pay.

Oooh, touchy aren't we? Perhaps you just didn't clarify it properly?

That aside are you saying, just so's we're clear, that what you're advocating (like dougie) is a cost of living type yearly increase coupled with comptency/merit based pay? If so, I agree with you - as I did with Dougie. I basically don't agree with people getting payrises just based on years worked. Its unfair and can cause serious ill feeling in the workplace.

Oh and FYI, having worked in HR for more years than I care to remember, I probably have a similar knowledge of pay structures, etc. I've also been one of the poor sods who've had to deal with the fallout when managers, directors, et al get it wrong and staff go on the warpath.

[Midas]

Oooh, touchy aren't we? Perhaps you just didn't clarify it properly?

That aside are you saying, just so's we're clear, that what you're advocating (like dougie) is a cost of living type yearly increase coupled with comptency/merit based pay? If so, I agree with you - as I did with Dougie. I basically don't agree with people getting payrises just based on years worked. Its unfair and can cause serious ill feeling in the workplace.

Oh and FYI, having worked in HR for more years than I care to remember, I probably have a similar knowledge of pay structures, etc. I've also been one of the poor sods who've had to deal with the fallout when managers, directors, et al get it wrong and staff go on the warpath.

OK, sorry, blame it on a long day! Yes, basically as Dougie said, a combination - and just to be clear, seniority on its own is valuable, but competency even more so, and should be rewarded accordingly!

[Trouble43]

OK, sorry, blame it on a long day! Yes, basically as Dougie said, a combination - and just to be clear, seniority on its own is valuable, but competency even more so, and should be rewarded accordingly!

Ah right - had plenty of them myself. Sorry as well for being snippy, not had a good day either. What is it with us lot lately? Even MN said he's miserable right now. I reckon we need more happy pills.

Oh yes, in that case I totally agree.

[Midas]

Ah right - had plenty of them myself. Sorry as well for being snippy, not had a good day either. What is it with us lot lately? Even MN said he's miserable right now. I reckon we need more happy pills.

Oh yes, in that case I totally agree.

We should all be jumping around like spring lambs with the onset of some decent and warmer weather too. Must be all the depressing discussions in the forum; we need some more of Hestia's happy pink subjects - well, maybe not the pink, but happy at least

[Trouble43]

We should all be jumping around like spring lambs with the onset of some decent and warmer weather too. Must be all the depressing discussions in the forum; we need some more of Hestia's happy pink subjects - well, maybe not the pink, but happy at least

yeah; I want to see more edible chocolate cutlery!

In all seriousness I think people are just a bit down this time of year - the weather's only just starting to get better, we're all still stressed about the recession (and the 'doom and gloom' merchants in the media) and our own personal issues affect us too.

Give it a couple of months and we'll all be shiny happy people. That sounds like a good title for a song.

[Midas]

Give it a couple of months and we'll all be shiny happy people. That sounds like a good title for a song.

'Fraid you've been beaten to it, by R.E.M.....

Shiny happy people laughing
Meet me in the crowd
People people
Throw your love around
Love me love me
Take it into town
Happy happy
Put it in the ground
Where the flowers grow
Gold and silver shine

Shiny happy people holding hands
Shiny happy people laughing

Everyone around love them, love them
Put it in your hands
Take it take it
There's no time to cry
Happy happy
Put it in your heart
Where tomorrow shines
Gold and silver shine

Shiny happy people holding hands
Shiny happy people laughing

[Trouble43]

'Fraid you've been beaten to it, by R.E.M.....

Shiny happy people laughing
Meet me in the crowd
People people
Throw your love around
Love me love me
Take it into town.........<snniippppp>

LOL! I loathe that group - but its the one song of theirs that sticks in your head.

[Midas]

LOL! I loathe that group - but its the one song of theirs that sticks in your head.

I don't like some of their stuff, but I've got their CD "In Time" here, and most of the tracks on it are OK, especially "Man on the Moon" and "Everybody Hurts", but each to their own

[Trouble43]

I don't like some of their stuff, but I've got their CD "In Time" here, and most of the tracks on it are OK, especially "Man on the Moon" and "Everybody Hurts", but each to their own

Current music of the moment for me is Nikelback. Also Snow Patrol's new album - 100 millions suns; its EXCELLENT!


As for REM, my OH likes them so perhaps its a bloke thing?

[LA]

I would say both.

Pay them for their knowledge, then increase their salary each year for loyalty ...