PERFORMANCE-RELATED PAY
CIPD issues guidance on performance-related pay
The Chartered Institute of Personnel and Development has published an updated factsheet on performance-related pay.
The factsheet gives introductory guidance. It:
explains what is meant by performance-related pay (PRP)
looks at how performance is measured and linked to pay
examines the coverage of PRP and current trends in awards
assesses key issues in the implementation of PRP schemes
includes the CIPD viewpoint.
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CIPD viewpoint
“PRP is not a silver bullet - for this approach to succeed, effective arrangements must be in place to define, measure, appraise and manage performance. The focus should be on encouraging high performance first - underpinned by effective performance management and appraisal systems - and only then on pay as an incentive to help achieve that goal. To create a sustainable high-performing workplace, the whole range of financial and non-financial rewards must be carefully designed to ensure that they support and are supported by PRP.”
Want to know more?
Title: Factsheet: Performance-related pay, Chartered Institute of Personnel and Development, revised February 2009.
Availability: To download the factsheet, free of charge, go to www.cipd.co.uk/onlineinfodocuments/factsheets.htm.
The Chartered Institute of Personnel and Development (CIPD) has more than 130,000 members and is the “leading professional institute for those involved in the management and development of people”. To find out more visit www.cipd.co.uk.