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1、<p>  Contribution Pay (Pay Linked to Performance) – A Positioning Paper</p><p>  Background</p><p>  The Pay Commission Report for the National Employers Organisation for Local Government

2、Services recommended that “contribution pay combined with service-based progression is suggested as a way forward, contribution defined as skills acquisition, competencies and qualifications.”</p><p>  The E

3、mployers Organisation paper – Reviewing and Modernising Pay Frameworks (2004) stated that:</p><p>  “Competence or skill based progression holds appeal in non - profit driven sectors, although sometimes clea

4、r performance targets are harder to define. Skill- based progression however does involve extensive preparatory work in order to:</p><p>  Define the competencies which will drive progression</p><

5、p>  Define the states in the acquisition of those competencies which will trigger progression</p><p>  Ensure that managers can operate the system.”</p><p>  The NJC issued Joint Guidance on

6、Pay & Grading Reviews in 2005. Advice on options for incremental progression included using experience, skills & competencies, contribution and performance or a combination of these.</p><p>  Introd

7、uction</p><p>  Traditional performance related pay (with variants of contribution and competency pay) has received good and bad press. The concept is a good one ie rewarding individuals or groups for above

8、average performance, but has often been marred in its implementation. </p><p>  The purpose of this positioning paper is to gauge interest amogst London Boroughs in developing a ‘tool kit’ approach to implem

9、entation of pay linked to performance. </p><p>  The ‘tool kit’ would encompass the theoretical rationale for performance pay, as well as practicalities of implementation – the ‘do’s and ‘don’ts though proba

10、bly less prescriptive than it may sound on paper.</p><p><b>  Approach</b></p><p>  The suggested approach to producing a ‘tool kit’ would be to formulate a project plan, involving i

11、nterested parties, in its development and completion.</p><p>  The proposal adopts a project methodology, as follows.</p><p>  Define the problem and the objectives (including terms of reference

12、)</p><p>  - Define types of pay linked to performance (PRP, Contribution, Competency) </p><p>  Why produce a pay linked to performance ‘tool kit’ </p><p>  Define who the cust

13、omer is?</p><p>  Define what the benefits from its production might be? (including what the wider benefits of linking pay to performance might be) </p><p>  Plan how to progress including under

14、taking benchmarking/research into the subject </p><p>  - research theoretical models (Employee motivation, Employee Satisfaction)</p><p>  talk to employers (private & public s

15、ector) to establish critical success factors</p><p>  explore/evaluate options for progression/reward such as:</p><p>  Fully integrated into progression</p><p>  Top of scale enhan

16、cement</p><p>  Mid point market rate enhancement</p><p>  Consolidated - non-consolidated</p><p>  explore and evaluate measurement/progression criteria such as:</p><p&g

17、t;  Target achievement criteria</p><p>  Competency achievement criteria</p><p>  Stages/defined incidences of progression</p><p>  Job profiles</p><p>  Consider ‘tool

18、s’ for measurement </p><p>  Evidencing performance</p><p>  Consider affordability such as:</p><p>  Budget allocation/capping</p><p>  Quota systems</p><p&

19、gt;  Implementation guidance on:</p><p>  Communication/consultation</p><p><b>  Training</b></p><p>  HR support</p><p>  Organise what the stated out

20、puts are and who's going to do them</p><p><b>  Product</b></p><p>  Project team & any other resource </p><p><b>  Timetable</b></p><p>

21、;  Review/control progress</p><p>  - Monitor progress against project timelines/objectives</p><p>  Install deliverables, document the project</p><p>  - Implement project out

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