Paying for Performance

New trends in performance-related pay

Suff P, Reilly P, Cox A | HR Network Paper MP78 | Institute for Employment Studies | Nov 2007

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This paper examines how performance-related pay (PRP) has evolved in recent years.

It uses real-life case studies to demonstrate how new techniques, closely linked to the organisation's unique characteristics and needs, can successfully act as a lever to improve individual performance and organisational effectiveness.

The authors argue that PRP must be built on an effective performance management system, with clear objectives that support business goals, and line managers that are confident and competent in assessing performance against individual objectives.