Seniority should not be the basis of employee compensation. Employees should be promoted and given raises solely on the basis of their work performanc

Seniority alone should not be the basis of employee compensation.I think that is the very valid to make in todays's highly competetive world where each penny spend should be accountable.In today's globalised environment where the geographical boundaries are quickly dissappearing,one cannot take the traditional view of determining teh basis of employee compensation. In this highly modern,sophisticated world,where the efficency and the productivity of the employee is the prime concern for the employer,the method of determing the compensation has to the product of various different factors.So the seniority or years of service of the particular employee alone cannot be the basis of the copmensation for the employee.The work performance and the merit of the employee should be taken into the consideration.This would,in turn,motivate the employee to perform better and be more productive.However,one cannot discard the seniorty factors altogether.There are many setors and domain where teh seniority of teh employee could be a vital factors.For Example,in a small retail grocery shop,the seniority of a particular employee would have given him the opportunity to form a close tie to various customers who turn up at the shop because of the bonding they have with teh particular senior employee.so in this particular case,the store owner would be very happy to offer hom the lucaritve compenastion inspite of him being not able to continue working that effectively.However,there are several other domain,where seniority alone would not be that important.For example in the booming service sector,seniority combined with the performance would be very important.so the factors would vary from sectors to sectors. Therefore,we can safely assume,that seniority of a employee is definitely a important factors,but the performance and efficency are also equally important.so the combination of these several vital fators together can help determaine teh compensation for a employee ,so that there is satisfaction and motivation among the employees.