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Pay systems
Rewarding employees through pay is a key issue in the public sector. Whilst some authorities have devised methods of pay to link directly with individual or team performance, others use pay to demonstrate recognition of individual development, responsibility, risk-taking and loyalty/experience. There are no set ways for using pay as a reward tool, however there are various areas to consider when planning an effective pay system:
- how well it will communicate values in terms of fairness, equality, teamwork, flexibility and cross-working within the organisation or with external partners
- how well it works as a motivator to reflect individual performance, team / organisation performance, individual development, responsibility, risk-taking and loyalty/experience
- how well it helps you to fulfil organisational goals
Balancing risks
Our attention has been drawn to the fact that some union branches have been highlighting the notes provided on these pages on the disadvantages of traditional performance related pay (PRP) systems. It has been said that these notes show LGE in some way to be against any form of PRP. This is not the case.
We have set out to demonstrate that any pay system that involves assessment of staff presents a managerial challenge if they are to work properly. This does not mean that the challenge is not worth facing up to, given the need to modernise pay in local government. We believe, however, that an asessment of performance alone may not be adequate. Skills and desired behaviours need to be brought into the equation as well and these pages should be read in full in that context.
How LGE can help
We have produced detailed information and guides detailing the most common methods rewarding contribution through pay: