Seniority is the state of being older or placed in a higher position of status relative to another individual, group, or organization. [1] For example, one employee may be senior to another either by role or rank (such as a CEO vice a manager), or by having more years served within the organization (such as one peer being accorded greater status over another due to amount of time in). The term "seniority" can apply to either concept or both concurrently.
In some military command structures, the length of time someone has held a particular rank is called "seniority in grade" and determines whether that person is senior to another person of the same rank. For instance, a captain who was promoted five years ago can give orders to a captain who was promoted three years ago.
Seniority in United States politics, when used out of context, is informally defined as the number of years one member of a group has been a part of the group.
As of March 2022, Hal Rogers is Dean of the United States House of Representatives, the most senior member of the House of Representatives, having represented Kentucky since 1981 (21 terms). However, "seniority" can also refer to political power attained by position within the United States Government.
Seniority is viewed sometimes both positively and negatively. Many elected officials are viewed as retaining their position only because they have been there for many years, which can reflect voter stagnancy and the benefits of incumbency. On the other hand, long years of incumbency can also be seen as a sign of the person's ability to continue pleasing voters or the use of seniority to deliver benefits to constituents.
In some countries the Dean of the Diplomatic Corps receives special treatment.
In unionised companies, employees with more seniority may enjoy more work privileges. [2] Here are examples:
Seniority also has an influence over bumping rights, which is a reassignment of jobs, possibly for many people at a time.
Some traditionalist employers, common in smaller, single-operated business, take a "last in, first out" (LIFO) - notably in the education sector - perspective, meaning those who have been there longest or who have tenure have the right to stay, whereas other employers take a "first in, first out" (FIFO) or "inverse seniority" viewpoint, which tends to emphasize a new or "fresh start" for the company. [3]
Seniority does have several positive factors to its name. Individuals may be drawn toward a specific field or occupation with the knowledge that seniority is obtainable. If seniority were to be banished as a whole, many higher paid employees would be fired first just because they make more money than their peers. Seniority does an effective job in helping people, interested in staying at one organization, in working towards having a "marathon" career. One of the goals of a seniority system is employee retention, which ensures an organization is retaining institutional knowledge, erudite employees, and an opportunity for mentorship of new hires. It is important to make sure employees are here to stay.
Though the principle of seniority does an effective job of protecting long-term employees, in some scenarios, it can fail to address several critical factors. Firstly, spots secured by seniority casts aside some of the most appealing perspectives. Individuals will become less driven to enter a field that does not reinforce their efforts with employment. Secondly, the security of tenure often encourages mediocrity. [4] Employees with the knowledge that their spot in the workplace is secured will naturally become less likely to improve their working ethics as they may no longer view improvement as a necessity. Lastly, a system rewarding individuals for their hiring date does not encourage professional growth. If individuals are aware they only have to reach a certain time-span of employment to have a guaranteed position in a company, they will not grow professionally once they have reached their mark. [5]
During the late 20th century in the United States, the federal government stopped emphasizing seniority as the primary basis for pay raises for its workforce. The Reagan administration replaced a seniority-based system for pay increases for its white collar government workers. The new system included performance appraisal. [6]
In personnel economics, some researchers take the view that seniority pay is employed by firms as a solution to the problem of shirking. Since firms cannot always monitor the effort of their employees, they need to introduce an incentive for their employees to keep up the work. One way firms can accomplish this is through delayed compensation, in which employees are paid below the value of what they are producing in the first years at a firm, and paid above the value of their production in later years. The continuous rising of the wage based on seniority at the firm ensures that shirking, which can lead to dismissal, becomes much more costly for employees due to the loss of the high wages they can expect when staying at a firm for a long time. [7]
Some collective agreements include so called bumping provision (also known as bumping rights. The bumping involves a senior employee whose job position is being eliminated to displace a junior worker from their job. The junior employee thus losing the job might then "bump" another, even more junior, person. Bumping rights usually come with restrictions, like requirement of a minimum period of employment before bumping is possible, allowing only moves to positions previously held, or limiting the departments or jobs where the bumping can occur. [8]
Commercial aviation pilots working for a carrier have their privileges determined by their seniority or generally known as the "pilot seniority list." These privileges can be income level, routes flown, types of aircraft, work schedules and positions. [9] [10] [11] Seniority is most important when deciding which pilots to upgrade to a larger, more complex aircraft type; or for upgrading a First Officer to the rank of a Captain.
Engine drivers with many railways also have a seniority list, but it is focused on work scheduling. Younger engine drivers often serve as back-up personnel and must help out on a very short notice – for example when a colleague calls in sick or has a delay. [12]
A performance appraisal, also referred to as a performance review, performance evaluation, (career) development discussion, or employee appraisal, sometimes shortened to "PA", is a periodic and systematic process whereby the job performance of an employee is documented and evaluated. This is done after employees are trained about work and settle into their jobs. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations.
Temporary work or temporary employment refers to an employment situation where the working arrangement is limited to a certain period of time based on the needs of the employing organization. Temporary employees are sometimes called "contractual", "seasonal", "interim", "casual staff", "outsourcing", "freelance"; or the words may be shortened to "temps". In some instances, temporary, highly skilled professionals refer to themselves as consultants. Increasingly, executive-level positions are also filled with interim executives or fractional executives.
Termination of employment or separation of employment is an employee's departure from a job and the end of an employee's duration with an employer. Termination may be voluntary on the employee's part (resignation), or it may be at the hands of the employer, often in the form of dismissal (firing) or a layoff. Dismissal or firing is usually thought to be the employee's fault, whereas a layoff is generally done for business reasons outside the employee's performance.
The Equal Pay Act of 1963 is a United States labor law amending the Fair Labor Standards Act, aimed at abolishing wage disparity based on sex. It was signed into law on June 10, 1963, by John F. Kennedy as part of his New Frontier Program. In passing the bill, Congress stated that sex discrimination:
The term efficiency wages was introduced by Alfred Marshall to denote the wage per efficiency unit of labor. Marshallian efficiency wages are those calculated with efficiency or ability exerted being the unit of measure rather than time. That is, the more efficient worker will be paid more than a less efficient worker for the same amount of hours worked.
A background check is a process used by an organisation or person to verify that an individual is who they claim to be, and check their past record to confirm education, employment history, and other activities, and for a criminal record. The frequency, purpose, and legitimacy of background checks vary among countries, industries, and individuals. An employment background check typically takes place when someone applies for a job, but it can also happen at any time the employer deems necessary. A variety of methods are used to complete these checks, including comprehensive database search and letters of reference.
Recruitment is the overall process of identifying, sourcing, screening, shortlisting, and interviewing candidates for jobs within an organization. Recruitment also is the process involved in choosing people for unpaid roles. Managers, human resource generalists, and recruitment specialists may be tasked with carrying out recruitment, but in some cases, public-sector employment, commercial recruitment agencies, or specialist search consultancies such as Executive search in the case of more senior roles, are used to undertake parts of the process. Internet-based recruitment is now widespread, including the use of artificial intelligence (AI).
Mandatory retirement also known as forced retirement, enforced retirement or compulsory retirement, is the set age at which people who hold certain jobs or offices are required by industry custom or by law to leave their employment, or retire.
United States labor law sets the rights and duties for employees, labor unions, and employers in the US. Labor law's basic aim is to remedy the "inequality of bargaining power" between employees and employers, especially employers "organized in the corporate or other forms of ownership association". Over the 20th century, federal law created minimum social and economic rights, and encouraged state laws to go beyond the minimum to favor employees. The Fair Labor Standards Act of 1938 requires a federal minimum wage, currently $7.25 but higher in 29 states and D.C., and discourages working weeks over 40 hours through time-and-a-half overtime pay. There are no federal laws, and few state laws, requiring paid holidays or paid family leave. The Family and Medical Leave Act of 1993 creates a limited right to 12 weeks of unpaid leave in larger employers. There is no automatic right to an occupational pension beyond federally guaranteed Social Security, but the Employee Retirement Income Security Act of 1974 requires standards of prudent management and good governance if employers agree to provide pensions, health plans or other benefits. The Occupational Safety and Health Act of 1970 requires employees have a safe system of work.
Equal pay for equal work is the concept of labour rights that individuals in the same workplace be given equal pay. It is most commonly used in the context of sexual discrimination, in relation to the gender pay gap. Equal pay relates to the full range of payments and benefits, including basic pay, non-salary payments, bonuses and allowances. Some countries have moved faster than others in addressing equal pay.
Employee benefits and benefits in kind, also called fringe benefits, perquisites, or perks, include various types of non-wage compensation provided to employees in addition to their normal wages or salaries. Instances where an employee exchanges (cash) wages for some other form of benefit is generally referred to as a "salary packaging" or "salary exchange" arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Examples of these benefits include: housing furnished or not, with or without free utilities; group insurance ; disability income protection; retirement benefits; daycare; tuition reimbursement; sick leave; vacation ; social security; profit sharing; employer student loan contributions; conveyancing; long service leave; domestic help (servants); and other specialized benefits.
Personnel economics has been defined as "the application of economic and mathematical approaches and econometric and statistical methods to traditional questions in human resources management". It is an area of applied micro labor economics, but there are a few key distinctions. One distinction, not always clearcut, is that studies in personnel economics deal with the personnel management within firms, and thus internal labor markets, while those in labor economics deal with labor markets as such, whether external or internal. In addition, personnel economics deals with issues related to both managerial-supervisory and non-supervisory workers.
Permatemp is a U.S. term for a temporary employee who works for an extended period for a single staffing client. The word is a portmanteau of the words permanent and temporary.
A severance package is pay and benefits that employees may be entitled to receive when they leave employment at a company unwilfully. In addition to their remaining regular pay, it may include some of the following:
An employment agency is an organization which matches employers to employees. In developed countries, there are multiple private businesses which act as employment agencies and a publicly funded employment agency.
The Uniformed Services Employment and Reemployment Rights Act of 1994 was passed by U.S. Congress and signed into law by U.S. President Bill Clinton on October 13, 1994 to protect the civilian employment of active and reserve military personnel in the United States called to active duty. The law applies to all United States uniformed services and their respective reserve components.
Occupational inequality is the unequal treatment of people based on gender, sexuality, age, disability, socioeconomic status, religion, height, weight, accent, or ethnicity in the workplace. When researchers study trends in occupational inequality they usually focus on distribution or allocation pattern of groups across occupations, for example, the distribution of men compared to women in a certain occupation. Secondly, they focus on the link between occupation and income, for example, comparing the income of whites with blacks in the same occupation.
A dead-end job is a job where there is little or no chance of career development and advancement into a better position. If an individual requires further education to progress within their firm that is difficult to obtain for any reason, this can result in the occupation being classified as a dead-end position. Based on human resources and career strategist Toni Howard Lowe, some individuals who have worked for the same company for several years may not be privy to the signs that they are currently employed in a dead-end job.
County of Washington v. Gunther, 452 U.S. 161 (1981), is a United States labor law case concerning discrimination and the lower standards of protection for gender pay because of the Bennett Amendment in Title VII of the Civil Rights Act of 1964, §703(h).
Wage transparency, salary compensation, and compensation transparency generally, involves disclosure of employee compensation amounts, either among other employees in an organization, to owners, to government regulators, or to the public.