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Should length of employment be considered?

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Question: Recently, we rearranged various departments within our small company due to workload.

One department in particular has had one person handling it very well for about four years. The person has been with the company for eight years.

We now have restructured this department to have two employees working together to handle the increase in work.

The person moving into this second position has been with the company for 17 years and has been in many different departments over those years. This individual is a good, loyal, committed worker but works at a slow pace, having performed well in some positions and struggled in others.

The department procedures have been rethought, and both individuals will be doing the same job, providing coverage for when either one is out of the office. No seniority has been created for this department. Both have the same job title.

They are team players and have worked well together in the past. We believe both can handle the department's new format.

Does anyone have any suggestions on how to handle compensation for these individuals? Length of time with the company and length of time in this particular department pose challenges: The 17-year employee recently requested a raise in pay beyond her normal review using her length of employment as the reason.

Should length of employment be considered when determining compensation, or should performance in the position be the primary consideration?  -- DFL, Pennsylvania


Comments

In our company, we have a basic that states "entitlement is history". We use this throughout the entire company and believe that pay raises, etc. are based solely on the person's performance, ethics, loyalty, etc.

I agree with D Rice. I believe that years of service should be considered but performance, ethics, and reliability should also be taken into consideration. No matter how long the employee as been employed putting her all into her position, so has the company for her. It should stay a good balance, not become a better "deal" for the employee. Years of service should become a factor with issues like, flexible hours, number of sick days/vacation days and not the percentage of pay increase. I think she deserves a pay increase but only based on job performance. If you do deside to give her an increase outside of her normal review date, I would express your reason and not mention the years of service at all, you should be the one deciding the increase and not her.

Have the duties changed? Has this person done anything to move herself beyond what the job requires? If she quit today, how much would you pay a replacement? Just because this person has chosen to keep the same job title year after year is not a reason for financial reward through annual salary review. Loyalty should be rewarded in other ways - e.g., bonus for tenure with the company - versus being tied to wage for a specific job. If you tie it to the position, you are setting the expectation for anyone else in that position (or other positions) that there is no 'cap' on the salary - which is more than likely not true.

Hi! Promotions should be based on the person's contributions and status of work, not the length of years. A person can work 20 years for a company and not do as much as someone who is efficient, loyal and hardworking.

Where I work at raises are based soley on job perfomrance, ethics,readinees to pitch in where needed.

Length of service and job performance are used only in determining job bidding for shifts and even then length of service still only account for 25% even in shift bids. Persons who have stayed with us for 5 years get 3 weeks vacation and 40 hours of personal leave in addition to their sick time and after 10 years they get 4 weeks vacation a year and 40 hours of personal leave in addition to their sick time.

WordPerfect Keystrokes. I found this on the Internet and it looks quite comprehensive 176 WP keystrokes.

http://www.dougloudenback.com/wp.htm

Karen, Phoenix

Hi! The performance of the individual should be considered when giving out increases in pay.

Amy, NJ

We have a pay scale that is used for individual positions. You go up the scale depending on your job performance. When you reach the top of the scale, rather than changing the pay scale they give you a 3% increase for each 5 year interval that you have worked. Say you have worked for the company 20 years and reach the top of the pay scale. On year 21 you would receive a 3% increase if your performance evaluation warrents a raise. The next year the same thing would apply. Once you have reached the 4th year you will have a salary greater than someone else doing the job. But the increases weren't tied to a specific position. It seems to work by giving something to those that work a long time without the person working next to them expecting a raise also.

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