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Performance-related Pay Policies for Government Employees

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Public Policy and Administration Research Employee Performance and Management Public Administration in Developing Nations

Abstract

This report presents an overview of performance-related pay policies (PRP) for government employees in selected OECD member countries over the past two decades. Both the strengths and the weaknesses of PRP policies are assessed. The report explores the various paths of reform in each country, investigating the reasons why PRP policies are being implemented and how the policies operate concretely. The outcomes of PRP policies at the individual and team levels are evaluated, and recommendations are made on what should be done or avoided with the implementation of PRP. The report includes a number of case studies.

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References

1991A Theory of Goal Setting and Task Performance 1998Incentives for Helping on the Job: Theory and Evidence 1991Pay for performance: evaluating performance appraisal and merit pay

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2008Back to the Future? Performance‐Related Pay, Empirical Research, and the Perils of Persistence 2009Public service motivation and organizational performance in Swiss federal government 2015Performance‐Related Pay and the Crowding Out of Motivation in the Public Sector: A Randomized Field Experiment 2012Motivation, Discretion, and Corruption 2019Working and Learning Together 2014Monetary Incentives, Motivation, and Job Effort in the Public Sector 2014The hybrid universe of public administration in the 21st century 2009Public Sector Employees: Risk Averse and Altruistic?

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