What a performance Performance related pay in the Public Services

Abstract

Linking pay to performance is something employers increasingly seek to achieve. This was once seen as an objective which could only be met in the private sector. That is no longer true. In the 1990s the British public services have experienced a revolution which has attracted the interest and concern of public service managers and unions around the world. The days when government officials marched in step up incremental pay scales are gone. Virtually all civil servants are now subject to new forms of performance management, or performance pay. This approach now extends to many other areas of the public services. But are these new systems of financial reward as effective as their creators had hoped? This is one of the questions which prompted the substantial programme of research carried out by David Marsden and Stephen French under the auspices of the Industrial Relations programme of the Centre for Economic Performance (with financial assistance from the Anglo-German Foundation). It is the most extensive study of its kind, looking at performance pay systems in the Inland Revenue and the Employment Service; within the NHS; and in the teaching profession.

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