One of the most confounding decisions that face organisations is whether to promote employees on the basis of merit or seniority.

Seniority brings with it several benefits: these employees have a deep understanding of the company’s culture, vision and goals. More importantly, they have the benefit of experience on their side - a critical attribute, especially when it comes to selection for leadership positions. It is often assumed that a more seasoned, experienced individual is better suited to lead a team. That being said, merit-based promotions have gained increasing popularity over the years, and with good reason.

An organisation that emphasizes merit-based promotions fosters a culture of healthy competition and productivity. Performance-based promotions are also effective in creating a sense of accountability among employees. If promotions are based purely on seniority, employees may not be as motivated to perform exceptionally, considering growth is promised on the completion of certain tenure with the company. Basing promotions on merit also comes with the added advantage of enhanced productivity. Employees are held responsible for their own career trajectory and work hard to earn the desired advancement.

High-achievers and High-potentials are often characterized as individuals who are driven, hard-working and ambitious. They seek to provide value and grow their professional spheres. Having a system in place which recognizes high-performing employees will ensure that these individuals receive the acknowledgment they deserve for their efforts. On the contrary, in a company with a seniority-based promotion policy, high-performers are more inclined to become disengaged or start seeking opportunities elsewhere in order to accelerate their professional goals and gain the recognition they feel they deserve.

Those with a contrasting viewpoint might say that merit-based promotions can lead to ambiguity and speculation of bias in certain instances. A promotion policy centered on merit needs to be structured and clear to avoid conjecture. It is crucial that employers detail a systematized policy that enables a consistent, impartial process of selection for promotions.

That being said, at a time when one of the greatest HR challenges faced by organisations is talent retention and succession planning, it is fundamental to ensure that senior employees feel appreciated and respected for their long service and overall commitment to the organisation.

Therefore, a well –rounded, robust promotion policy that incorporates seniority as a valid criterion when considering promotions is essential. While it is apparent that an individual’s impact on an organisations growth ought to be a decisive factor in their future success with the company, it might be equally important to reward those who have been steadfast in their contribution to organizational growth. Companies should also give sufficient weight to an employee’s track record established over a period of time; this includes longevity in the organisation, experience as well as performance over time. An organisation that aims to recognize its most valuable assets needs to exercise thoughtful judgement in order to select a fine blend of high-performing individuals and those who have established a solid foundation in the company while gauging the best choices for various positions.