Could a Seniority Based Pay Be Used as a Motivation Device - Essay Example

Employees at Federal Foods Ltd appreciated the opportunity to be judged on merit, the money offered by the plan, and the incentive to raise through seniority; but they were concerned with the quality of the goals that were set and with a lack of fairness or perception of favoritism in the allocation of rewards. The offered suggestion included an appeal to inculcate fairness in the implementation of the plan, to make relevant goals contingent upon the pay, and to involve workers in the entire process.

The participant observation that was carried out by the researchers revealed that the supervisors who acted as their conduit to the senior managers motivated the workers. Other factors that can be attributed to motivating the employees include realistic and fair budgets, and the encouragement to exercise self-evaluation. It was also observed that among those hired-with-tenure, Federal Foods Ltd employees with 3 to 15 years of seniority earned approximately 8 to 10 percent more than new hires with tenure; and Federal Foods Ltd employees with 16 or more years of seniority earn over 15 percent more than those with 2 or fewer years of seniority.

Among Federal Foods Ltd employees who have exhibited a willingness and ability to change employers, there are positive returns to seniority. It was also found that the rising returns to seniority among Federal Food Ltd employees are consistent across gender and across departments. The in-depth interviews with the senior managers revealed that the top officials believe that acknowledging the employees’ contribution, helping them to grow within the organization and to obtain new skills, encouraging them to contribute their ideas and to get involved in the organization were a few of the things that can help retain them.

This dissertation is based on premise that the employees’ motivation might be affected by the implementation of seniority-based pay plans in their organizations.