Performance Related Pay divides opinion

The Chartered Institute of Personnel and Development (CIPD) survey revealed 30% of public sector workers think their salary should be linked to performance whereas more than half (54%) of those in the private sector think a salary should be representative of an individual’s work.

The CIPD’s annual ‘Employee Attitudes to Pay’ report found 30% of public sector workers believe pay levels should be decided through trade union negotiated deals, the highest number since 2001. Charles Cotton, rewards adviser at the CIPD, comments: 

“Establishing a closer link between pay and performance in the public sector is a key element to improving service delivery and value for taxpayers. Unless the public sector starts linking pay to performance or better engages with those in the private sector about why their taxes should reward workers differently, employers could find it hard to legitimise pay decisions in the eyes of the private sector.”

Nick Day, Managing Director of James Gray Associates added "The public sector faces a real challenge balancing payroll and salary expectations whilst being asked to implement complex projects, matching job requirements with skilled individuals who can command higher salaries elsewhere. Sometimes it is difficult to attract the best talent due to these restrictions, however smart public sector employers understand how to structure benefits to create an attractive work life balance, attracting top payroll talent."

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