Seniority and Longevity Pay
Seniority and Longevity Pay
Seniority Pay
$8.60/hr
24 months
$7.95/hr
$7.25/hr 9 months
15 months
$7.50/hr
6 months
$6.85/hr
9 months
Advanced Clerk
$6.50/hr
3 months
Junior Clerk
Advantages of Seniority Pay
To Employees
Perceive they are treated fairly because they
earn pay increases according to seniority,
which is an objective standard
To Employers
It facilitates the administration of pay
programs
Employers are less likely to offend employees
by showing favoritism to others
Advantages of Seniority
Pay
Employees perceived it fairly
Very objective
Greater cooperation among coworkers
Easyto estimate and make
arrangement for pay
No favoritism
Better motivation
Fitting seniority pay with
competitive strategies
Lowest-cost competitive
strategy
Differentiation competitive
strategy
THANK YOU