Which approach is recommended for rewarding employees?

The recommended approach for rewarding employees is based on their merits. This approach focuses on individual performance, recognizing and rewarding employees for their contributions, skills, and accomplishments. It encourages a culture of excellence, motivating employees to strive for high performance and personal development. By rewarding individuals on merit, organizations can ensure that top performers feel valued and are more likely to remain engaged and committed to their roles. This can lead to increased productivity and overall business success, as employees are recognized for their hard work and contributions rather than time spent in the organization or factors unrelated to performance.

In contrast, rewarding employees based on seniority does not necessarily reflect current performance levels and may lead to complacency. Focusing solely on teamwork and collaboration efforts, while important, may overlook individual contributions that deserve recognition. Aligning rewards relative to overall company performance can also be less effective in recognizing individual efforts, as it may not directly reflect the contribution of each employee to the company's success. By emphasizing merit, companies can create a fairer and more motivating reward system.