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Performance-related pay 'often provides no incentive'
Posted by Emily Swanson
Many performance-related pay schemes on offer from UK employers are not big enough to motivate professionals, new research has established.
According to a study published last week (September 2nd) by XpertHR, some 51 per cent of all organisations use such initiatives for either a proportion or all of their workforce, with factors such as boosting productivity being the primary reasons behind their implementation.
However, statistics obtained by the body showed that the median paybill hike from performance-related rises is 2.7 per cent, meaning managers have "little scope for vastly different pay awards between exceptional and poor performers".
Therefore, it was found that putting average or poor performers on such schemes had very little effect on their productivity and output.
Sheila Attwood, pay and benefits editor at XpertHR, observed that these initiatives are "not necessarily easy" to implement properly within any business.
This comes after self-titled Stress Doctor Terri Bodell called on managers to be transparent with regard to their firm's financial situation.
05/09/2011 15:54
News category: Employment