This factsheet explores the reasons for linking pay and performance. It reviews the potential issues around implementing performance-related pay (PRP) schemes. It also provides an overview of key issues. These issues include:
- the role of line managers
- measuring performance
- distribution of awards, and
- the impact on employee behaviours.
It also highlights the latest research.
This factsheet was last updated by Charles Cotton: Senior Performance and Reward Adviser, CIPD
Charles directs CIPD’s research agenda and public policy on performance and reward. He speaks for CIPD at government consultations on topics such as, pensions, retirement, CEO remuneration, low pay and employee tax.
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