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This is a short note examining the relationship between performance and remuneration. We have concentrated on the link at individual (rather than group or corporate) level and we have focused on pay, not any other forms of reward. Finally, we have not looked specifically at the different techniques for relating performance to pay.
This paper describes how IES has helped employers to make changes to their reward strategies and payment systems, and highlights common 'pressure points' and solutions.
Reviews the evidence of whether employee financial participation can lead to greater employee commitment to the purposes of the organisation, or whether it is simply a means of giving or receiving tax-efficient remuneration. The report does this by looking at the different forms of employee financial participation - how they have developed and why they have been introduced. It also looks at survey evidence on the impact of financial participation on employee attitudes and behaviour. Is it merely another form of pay, generating little involvement by employees, or does it help attract, retain and motivate staff? Employee financial participation can be associated with improved productivity and more positive employee attitudes, but it cannot be proved that there is a causal relationship between the employee financial participation and these benefits.
This paper identifies ten of the most common mistakes made by employers as they seek to formulate and implement reward strategy.
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