Performance-related pay policies for government employees


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More pay for better performance: can such a policy be beneficial in the public sector? This report presents an overview of performance-related pay policies (PRP) for government employees in 14 countries over the past two decades. Both the strengths and the weaknesses of PRP policies are assessed. The report explores the various paths of reform in each country, investigating the reasons why PRP policies are being implemented and how the policies operate concretely. The outcomes of PRP policies at the individual and team levels are evaluated. Recommendations are made on what should be done and what should be avoided with the implementation of PRP. This book, based extensively on country reports, draws lessons from the two decades of experience with performance-related pay and assesses the impact on public sector efficiency. Countries covered: Canada, Chile, Denmark, Finland, France, Germany, Hungary, Italy, Korea, New Zealand, Spain, Sweden, Switzerland and the United Kingdom.