CASE STUDY - Tenure Promotion
CASE STUDY - Tenure Promotion
CASE STUDY - Tenure Promotion
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A seniority-based promotion is where management
promotes an employee because of their seniority within the
company compared to other candidates. Employees who
are promoted due to seniority have been at the company
longer than any other candidates, and may or may not have
any other qualifications for the promotion. There are
benefits to using this method, including that employees will
feel their loyalty to the company has been rewarded, but
there are also challenges. In companies that promote
employees based on seniority only, employees begin to
expect promotions at a certain point.
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A. INTERNAL ENVIRONMENT
1. STRENGTH
• Reduces appearance of favoritism by
rewarding employees for seniority. 2. WEAKNESS
• Reduces turnover as employees will
want to stay in order to get promoted. • Less motivation among employees to
• Lowers chances of backstabbing among excel, as it doesn't factor into
employees since performance and promotions.
favoritism play no role. • Increases resentment among motivated
• Having a clearly communicated metric or talented employees if mediocre
for promotions that everyone can meet is employees are promoted over them.
helpful to employees and managers. • Can cause challenges with recruiting, as
• Senior employees often have the training new employees will be promoted last.
and skills needed for promotions. • Hard work isn't being rewarded.
• Rewards loyal employees.
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B. INTERNAL
A. EXTERNALENVIRONMENT
ENVIRONMENT
1. OPPORTUNITIES
• Senior staff are valuable employees who become 2. THREATS
knowledge-leaders in the organization. They're
essentially a free training resource, passing their • This is the main criticism of seniority – that it
knowledge and experience on the next generation. The
values longevity over merit. If an under-
seniority system rewards these efforts.
• Job security. The seniority rule protects those who have
performing employee is promoted solely on the
achieved seniority from being laid off. This protects basis of seniority, then that company could end
older, more experienced workers who tend to have the up paying more for an employee who is not
toughest time finding a job in the labor market. achieving as much as a less-senior colleague.
• People recognize that if they remain with the company, • It hinders recruitment, as it can even signal
they gain access to better paychecks and promotion career disaster for ambitious junior employees
opportunities. For the company, this should result in who want to advance their careers as quickly as
lower staff turnover and all its associated replacement possible. These employees may see little point in
costs.
over-delivering at their jobs when it's loyalty, not
• Some workers want to know where the next pay rise
and promotion is coming from and, for them, the
talent that gets rewarded. As a result, they may
seniority system can be a godsend. Knowing that your choose to avoid jobs with seniority systems that
salary and benefits will rise with every year of tenure is might stifle their ambition.
reassuring for many who budget around this relative 6
predictability
III. STATEMENT OF THE PROBLEM
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IV. ALTERNATIVE COURSE OF ACTION
Setting performance expectations for the Implementing Performance Management that Monthly HR
employee. evaluate and review each employee’s
performance as basis of promotion.
Monitoring the continuous measuring of Monthly coaching and performance review can Monthly HR Manager and Heads
performance and providing feedback on progress correct in case of suboptimal performance, rather
towards the goals. than finding this out at the end of the year when it
is too late.
Training and Development Create training and development activities to Quarterly Heads and HR
improve employee’s performance through
challenging assignments and other opportunities
for personal and professional growth.
Rating & rewarding: Rating performance is an inevitability to Quarterly and Annual HR to Oversee and All
determine the added value of employees to the leaders to
organization. This is usually done during the implement
employee’s quarterly or annual performance
appraisal performance.
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