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The common objection to seniority pay is, "It's rewarding dead wood!" My response is, "Why do you hire dead wood? Or why do you hire live wood and kill it?"
Systems are created, sustained, and improved by insightful and interactive work on the system, not by using carrots and sticks. Measurable goals do not improve systems; accountability does not improve systems. Improving systems improves systems.
Your purpose is to identify where in the process things go wrong, not who messed up. Look for systemic causes, not culprits.