Contact Us

Pay for Performance

The concept and practice of pay linked to performance has been with us now for many years, albeit in different forms. From its origins in linking workers’ pay to the volume of  industrial output, to modern methods of using performance pay as an integral element in  many organisations’ people development strategy, it still generates much interest and debate among HR professionals and business leaders alike.

We at Total Reward Projects help our customers in to define and develop their own pathway through the field of performance pay, so that they are then able to align their performance pay systems with their own particular business needs.  There are many options, ranging from relatively straightforward individual or team bonus arrangements based on organisational profits or success, through to more refined and elaborate mechanisms. This might, for example, take the form of controlling annual pay progression through pay ranges linked to employee appraisal systems; linking pay increases to the acquisition and demonstration of competence and skills as part of the organisation’s people development strategy; or linking some element of pay to employees who make a wider corporate contribution beyond the requirements of their own job.

In working with customers to develop new performance pay arrangements, our consultants always bear in mind both the latest market developments and the costs involved in changing customers’ current pay regimes. We always offer advice and guidance on achieving the most effective use of the pay budget. This might include, for example, greater use of non-consolidated pay as a way of combining cost effectiveness with increased motivation and retention of employees.