PUBLIC SECTOR PAY
Introducing performance-related pay . . . how not to!
There are many practical lessons emerging from the way in which the government has mishandled the introduction of performance-related pay for teachers, says Michael Armstrong, managing partner of e-reward.co.uk, in a recent issue of People Management.
Three costly mistakes
Armstrong’ s demolition job centres on three ghastly basic mistakes made by ministers.
First, they labelled it performance-related pay — a move which was certain to provoke opposition from teachers, writes Armstrong. As far as the teachers were concerned, it implied that they would be rewarded as individuals on the basis of quantified outputs — namely, their pupils’ progress.
But, as the UK academic Ray Richardson commented in his report to the National Union of Teachers, attributing any performance differential to the skill or dedication of an individual teacher is problematic simply because teaching is, to a considerable degree, a collective activity.
The minister’ s second mistake was to follow the crowd . As Armstrong argues, they followed blindly in the footsteps of the many private-sector companies that have adopted PRP on the doubtful assumption that it will offer a performance incentive. Yet there is no reliable evidence that performance-related pay provides direct motivation.
A more damning general critique made by Armstrong was the failure to consult adequately. The government could have done a lot worse than apply this effective technique: stop and talk to employees and their representatives, and involve them in designing the scheme.
Says Armstrong: Initially, opinions were canvassed, but the largely hostile nature of these opinions was ignored.
What are the alternatives?
Despite this debacle , Armstrong remains convinced that employers have little choice but to pay for performance in some way. The concept that it is right and proper for people to be rewarded according to their contribution is still valid.
Title: A lesson in ‘ how not to’ , by Michael Armstrong, People Management, 12 October 2000.
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Want to know more about performance pay for teachers?
Department for Education and Employment: the DfEE has launched a web site to give you access to the latest information on its plans to introduce performance-related pay for teachers in England and Wales.
To browse all the latest developments jump to . . . www.dfee.gov.uk/teachingreforms
National Union of Teachers: this excellent web site from the UK's biggest teachers' union contains extensive background material and research on the government proposals to introduce performance-related pay, together with numerous links . . . www.teachers.org.uk