Introduce, manage and review a performance-related pay scheme
- Many organisations link employees' pay to their individual performance. Employers that are considering introducing a performance-related pay scheme should decide on the appropriate form of assessment of employee performance and how this will link to the pay review.
- Employers should operate a transparent process so that employees understand how their performance links to their pay review.
- The individuals who will conduct performance reviews and allocate pay awards should be appropriately trained.
- Employers that operate a performance-related pay scheme should carry out regular reviews of the scheme to check that it is meeting its aims and objectives.
- They should also monitor their performance-related pay scheme to ensure that there is no unfair discrimination taking place in the allocation of pay awards.