Performance-related pay

Sheila Attwood Editor's message: Many organisations link either all or part of the pay awards made to individuals to an assessment of their performance - measurements of performance can include competencies, skills and knowledge as well as results and achievement of objectives.

However, a performance-related pay scheme (also called a merit pay scheme) has to be carefully designed to ensure it will fit with the organisational culture and values and have the confidence of employees.

Although performance-related pay awards are common in certain sectors of the economy - such as finance - they account for only around a quarter of the pay awards made each year.

Sheila Attwood, managing editor, pay and HR practice

Latest items in Performance-related pay

  • Review of pay awards 2016: performance-related pay awards

    Date:
    29 September 2016
    Type:
    Survey analysis

    Almost a quarter of pay settlements recorded by XpertHR are based on individual performance. Here we look in more detail at these pay awards and how organisations allocated pay increases over the 2015/2016 bargaining year.

  • Review of 2016 pay awards

    Date:
    29 September 2016
    Type:
    Editor's choice

    As employers start to plan their pay award budgets for 2017, XpertHR looks back at the pattern of pay awards over the past year.

  • Podcast: Performance-related pay rises

    Date:
    27 May 2016
    Type:
    Audio and video

    In this week's podcast we discuss how employers can measure, and then reward, employee performance, as well as highlighting some of the issues that employers should be aware of when using performance-related pay rises.

  • Podcast: Linking pay rises to employee performance

    Date:
    27 May 2016
    Type:
    Editor's choice

    XpertHR editors Laura Merrylees and Sheila Attwood discuss the practical implications of running a performance-related pay scheme, from how to measure employee performance to the key role that line managers play.

  • Performance-related pay survey 2016

    Date:
    26 May 2016
    Type:
    Survey analysis

    Our survey looks at the practicalities of running a performance-related pay scheme and the effect that this method of reward actually has on employee performance.

  • How to design, introduce and run a performance-related pay scheme

    Type:
    How to

    Practical guidance on introducing a performance-related pay rise scheme.

  • Performance-related pay schemes examined

    Date:
    26 May 2016
    Type:
    Editor's choice

    We take a look at performance-related pay schemes, including how performance is measured and pay rises are determined.

  • Review of pay awards 2015: performance-related pay awards

    Date:
    25 September 2015
    Type:
    Survey analysis

    Latest XpertHR analysis examines pay awards based on individual performance in the year to the end of August 2015, including how organisations allocate pay increases to individuals.

  • Performance-related pay

    Type:
    Employment glossary

    Definition from the XpertHR glossary.

  • Performance-related pay awards: 2013 XpertHR survey

    Date:
    9 August 2013
    Type:
    Survey analysis

    The latest XpertHR research examines the extent to which performance-related pay schemes are judged to be succeeding in practice, and looks at some of the problems encountered by organisations using this reward strategy.