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. Organisations often find that performance-related pay (also called merit pay) is one of the best ways of both recognising and raising employee performance.
However, a performance-related pay scheme has to be carefully designed to ensure that it fits with the organisational culture and values and has the confidence of employees. You must be confident that you have a robust method of assessing employee performance, to ensure that a fair and consistent approach is applied.
Sheila Attwood, managing editor, pay and HR practice
Nearly a quarter of the pay settlements recorded by XpertHR are based on individual performance. Here we take a closer look at these pay awards and how organisations allocate pay increases to individuals.
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.
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.
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.
Practical guidance on introducing a performance-related pay rise scheme.
Definition from the XpertHR glossary.
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.
As part of a new broadbanded pay and grading structure, nuclear decommissioning company Dounreay Site Restoration has revised its performance-related pay system to ensure a clear focus on rewarding individual contribution.
HR and legal information and guidance relating to performance-related pay awards.