How to design, introduce and run a performance-related pay scheme

Author: Sylvia Doyle

Summary

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• Consider whether performance-related pay is a good fit for the organisation.
• Review the effectiveness of the current performance management and pay arrangements.
• Look at what the budget available for pay awards will be and how the scheme would work in later years if the budget was lower.
• Plan how the project will be managed, making sure that communication and consultation are built in from the start.
• Consider how line managers will be trained and supported in order for performance assessments and pay recommendations to be fair and consistent.
• Build equality considerations into the design, implementation and review of the performance-related pay scheme.
• Put in place effective mechanisms for reviewing and measuring the scheme's success.