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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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