Donkin R
Human Resources, (UK), Jan/Feb 98 (No 34)
Start page: 53 No of pages: 3
Summarizes the UK evidence that performance-related pay fails to improve employee performance, possibly even harming it. Despite this evidence, draws attention to the fact that many companies are keeping performance-related pay as part of their remuneration strategy, albeit as a small element of it. Considers the future of performance-related pay, looking at why managers and employees have distrusted it in the past and continue to do so. Suggests that performance-related pay should be changed so that it rewards team performance rather than individual performance. Also argues that the reward structure should widened to include skill and career development rather than just pay and benefits.