Performance Pay

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What is performance pay?

  • Performance Pay is a method of remuneration that links pay to an assessment of individual performance.
  • We can advise you on how to succeed with any performance or other contribution based pay scheme.
  • Whilst the research is inconclusive as to the absolute benefits it does reveal considerable success factors and also what doesn’t work.

We can help you to:

  • Understand the drivers, benefits and risks of performance pay.
  • Build an informed and common understanding of the desired approach.
  • Design the detail of any performance pay scheme.
  • Enable effective implementation including the introduction of systems and the essential managerial capability.

Our approach provides:

  • A means of locating performance pay within an overall strategic approach to reward.
  • A way of ensuring performance is defined, measured and managed. These are all prerequisites of an effective scheme .
  • An opportunity to build informed consent to any changes.

Key features are:

  • A ‘what works’ perspective based on track record and researched outcomes.
  • An open, honest approach to the risks and advice on their management.
  • Addressing why schemes can fail (often managerial reluctance and resistance to managing the benefits).
  • Guiding the detail on managing the link from performance to pay result.
  • Examination and advice on other rewards, apart from pay.

The process

Implementation depends on your situation. We work in close partnership at all times.

A typical process involves:

  • Stage one
    Your detailed briefing on strategy requirements.
  • Stage two
    Reviewing current reward policy and process.
  • Stage three
    Ownership and design of scheme – building informed understanding based on contingent option appraisals.
  • Stage four
    Implementation (Capability and process).