Capacity or Seniority There’s a saying goes, “job security and salary should be based on employee performance, not on years service”, which shows us that utmost importance should be attached to employee capacity. More recently, many economists point out the disadvantages of paying salary in light of seniority, which is strangely proven in Japanese companies. As is seen to me, I can’t agree more about this standpoint. Numerous disadvantages were gradually exposed in Japanese companies, which adopt seniority-order payment system for a long time. For employees, rewarded for years of service, they was discouraged of maintaining consistently high levels of productivity.No matter how hard they work,they were paid the same salary,which even less than that of the lazy one owning high seniority. For employers, the lack of active and enthusiasm from employees, leading to low productivity, will ultimately result to go bankrupt. Just as Ray Wilde,a famous English saint,put it, “I believe that employees are the key to success of a business.”Therefore,there are good reasons to focus on employees capacities rather than their seniorities.