Balancing Seniority and Merit in Local Government: Evaluating the Effects of Seniority-Based Promotion Systems on Employees and Institutional Performance

Promotion policies are critical to the functioning of public service organizations, shaping leadership progression, employee morale, and institutional performance. In local governments, seniority-based promotion systems have historically been adopted to ensure fairness, reduce political interference, and provide predictable career pathways. Drawing on equity theory, institutional theory, and human capital theory, this paper examines the effects of seniority-based promotions on employees and local government institutions. While these systems enhance job security, loyalty, and retention, they may also reduce intrinsic motivation, discourage innovation, and alienate high-performing or younger employees. Using Ghana’s Local Government Service as a case study, the paper highlights how seniority-based promotions preserve institutional knowledge, facilitate workforce planning, and maintain stability, but also pose challenges for performance, modernization, and talent attraction. The findings suggest that integrating merit-based criteria alongside seniority can balance stability with innovation, supporting both effective governance and employee development. This study contributes to understanding the evolving role of promotion policies in modern public administration and offers guidance for designing hybrid promotion frameworks that promote fairness, competence, and organizational effectiveness.