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AUTHOR: Rachel Sharp
Although performance-related pay is not without its problems, it features in the reward strategies of a majority of respondents to XpertHR's 2011 survey. We look at why organisations are using performance-related pay, how such schemes are implemented and how successful they are proving in practice.
On this page:
Which organisations are using performance-related pay?
Why operate a performance-related pay scheme?
Chart 1: Objectives of performance-related pay schemes and how well they are met
Chart 2: Factors taken into account in performance appraisals
Role of HR and line managers in implementing performance-related pay schemes
Training for line managers
Determining distribution of pay awards
Chart 3: Line managers' discretion in overall distribution of pay awards
Communicating with employees
Monitoring the outcome of performance-related pay schemes
Do performance-related pay schemes meet their objectives?
Chart 4: Effect of performance-related pay scheme on employee performance
Problems with performance-related pay schemes
Chart 5: Views on performance-related pay among organisations that use it
Level of pay awards in performance-related pay schemes
Chart 6: Problems encountered in using performance-related pay
Process can be subjective or inconsistent
Problems measuring and managing performance
Alternatives to performance-related pay
Chart 7: Views on performance-related pay among organisations that do not use it
Reasons why selected organisations do not use performance-related pay
Additional resources on XpertHR.
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