Following are the benefits of the seniority system in the organization:-
Free Training: Senior workers are valued personnel who develop into organizational knowledge experts. They’re a free education resource for the next generation, carrying on their expertise and knowledge effectively.
Security of Jobs: Individuals who have earned seniority are protected from being terminated under the seniority principle. Organizations have their dismissal procedures, but in general, safeguards are in place to guarantee that newer workers are fired before those with the most seniority.
Strengthened Loyalty: One of the most important benefits of a seniority system is enhancing employee loyalty. People understand that staying with the company entitles them to better salary and advancement chances, hence they do not switch from one company to another and stay loyal to one organization.
Stability: Many people who spend around this reasonable certainty find it comforting to know that their income and perks will increase with each year of service. This gives them stability and predictability to plan out their expenses and budgets for the future.
Disadvantages of Seniority System in Workplace
Despite many advantages of the seniority system, some disadvantages cannot be ignored which are as follows:
Non-union businesses may also utilize seniority as a foundation for advancements and salary raises. Still, it’s frequently weighed with other variables like education, achievement of work objectives, expertise, and relevant experience. That’s because seniority isn’t a metric of employee productivity itself. It’s entirely feasible for someone with a 30-year career at a company to do a lower quality job than an individual with one year of employment.
It can also lead to de-motivation for enthusiastic junior staff, who are willing to join higher positions in corporate sectors. When loyalty, rather than brilliance, is rewarded, these individuals may see little sense in exceeding expectations at work. As a result, individuals may reject jobs with seniority arrangements that limit their opportunities. Even in the unionized industry, commentators believe that seniority is likely to impede recruiting in today’s information economy.
How Seniority System Lose its Value in Today’s Era?
Although seniority remuneration profiles in the cooperative industry are as high as they’ve ever been, non-union companies place a significantly higher value on specialized knowledge. Most businesses find a system that keeps senior personnel at the sacrifice of skilled youngsters undesirable. People have entered an era of equal opportunity, and everyone who succeeds well should be rewarded accordingly.
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