What is the primary basis for decisions regarding promotions, pay, and layoffs in a seniority system?

In a seniority system, the primary basis for decisions related to promotions, pay, and layoffs is length of service. This approach values the time an employee has spent with the organization, rewarding longevity and experience as indicators of reliability and commitment.

Organizations implementing a seniority system often seek to create a stable workforce where employees feel a sense of security regarding their positions and have incentive to remain with the company longer. This can help in maintaining morale and reducing turnover, as employees see that their time with the company is recognized and valued through tangible benefits such as promotions or pay increases based solely on their years of service.

While factors like employee performance evaluations, job qualifications, and company revenue growth can influence other systems of employee evaluation or in merit-based structures, they do not drive the primary decisions in a seniority system. In such systems, the emphasis is placed on how long an employee has been with the organization rather than their individual achievements or the company’s financial performance.