What role does seniority play in the exempt compensation plan?
Strictly speaking, seniority does not play a role. The exempt compensation system is based on the value of the position in the marketplace and the person’s ability to fulfill the role, not length of service. There may be differences in placement within a specific band based on skills and years of experience (with an implied difference in mastery of the position), but not strictly based on time served. In many instances a person is considered to be fully productive in their position within a given number of years. Service beyond that level of full productivity doesn’t necessarily change the value of the position in the marketplace. For example, a person with five years of experience in the role and a person with eight years of experience in the role may both be fully productive and therefore paid similarly.
