Key Facts
• In 2025, 56.3% of new employees preferred seniority-based pay over performance-based pay.
• This marks the first time seniority-based pay surpassed performance-based pay in preference.
• A survey by the Institute of Management and Productivity tracks workplace preferences annually.
• 20 years ago, only 34.7% of new employees preferred seniority-based pay, while 65.3% favored performance-based pay.
• Over the past three years, preference for seniority-based pay has steadily increased.
• Analysts attribute this shift to a growing emphasis on work-life balance and stable work environments.
Summary
A 2025 survey by the Institute of Management and Productivity revealed that 56.3% of new employees prefer seniority-based pay over performance-based pay, marking the first time this preference has shifted. Twenty years ago, only 34.7% favored seniority-based pay, with performance-based pay dominating at 65.3%. Over the last three years, the preference for seniority-based pay has grown, reflecting a shift in values among new employees. Analysts suggest that the increasing focus on work-life balance and the desire for stable work environments are driving this trend.
