All organisations can use performance pay to increase productivity. Most businesses have some experience of making decisions about pay that are linked to assessments of performance and this needs to be expanded to link all decisions about pay progression for your staff to performance in future.
The quality of the performance appraisal system in your company will be the key to this working well. Appraisals should be supportive and contain developmental processes designed to ensure that all staff have the skills and support they need to carry out their role effectively. It should help to ensure that all staff continue to improve their skills or professional competences throughout their careers.
All organisations should review their pay policies to see how appraisal outcomes can be linked to pay decisions. Their pay policy should then set out how all their pay decisions will be made, with sufficient detail for an individual to understand the basis upon which pay decisions will be made in their role.
Give our Pay and Reward Consultants a call on 01506 828767 to discuss the support we can give you to enhance the performance of your organisation through the design of a performance management system to increase employee engagement levels and company profitability.