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Minimizing Impacts of HR Practice - Longevity Pay

Discuss one or more conflicting practices you have experienced and recommend one or more alternative HRM practices that could appropriately minimize, or even eliminate, the conflict. Explain in detail.

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Organizations that have a high volume of employees in the same job classification, such as customer service representatives, bank tellers or even police officers; tend to offer a longevity incentive to reward those who remain committed to the company. These incentives may be as a percentage such as five percent of monthly base salary after five years of service, or in the form of a "flat" dollar amount, like paying $250 per month as a longevity "bonus" for those with a certain amount of service.

The human resource management (HRM) of paying longevity has good intentions - it is meant to entice organizational loyalty and reward ...

Solution Summary

Almost every organization with more than 200 employees has at least one significant conflicting HRM practice, which undermines the total performance of the organization at least marginally. This solution is about 400 words and includes a reference explaining how the practice of longevity pay can create a conflict in employee performance. Such payment structure can create a decreased work ethic as employees know pay increases will occur simply by "time" served. For other employees who are not yet eligible for longevity pay, there may be decreased morale as regardless of how hard they work, increases do not occur until the requisite time in service. This analysis provides recommendations on how to improve the dynamic of longevity pay.