Paying for Contribution: Real Performance-related Pay Strategies

Citation

(2001), "Paying for Contribution: Real Performance-related Pay Strategies", Work Study, Vol. 50 No. 1. https://doi.org/10.1108/ws.2001.07950aae.004

Paying for Contribution: Real Performance-related Pay Strategies

Paying for Contribution: Real Performance-related Pay Strategies

Michael Armstrong and Duncan BrownKogan PageISBN 0 749428996£25

Keywords: Performance-related pay, Rewards, Implementation

This book examines and provides solutions to some of the perennial problems of performance-related pay. Brown and Armstrong review the evidence for the spread, relevance and effectiveness of PRP on both sides of the Atlantic. They demonstrate conclusively that, while performance pay is not in retreat and is, indeed, continuing to expand, difficulties have resulted in the past from the rigid uniform, top-down approach often adopted in its implementation. The authors demonstrate that organisations today are taking a much more strategic and holistic approach to the issue, an approach which the authors term "paying for contribution". The book draws out the major trends and future themes in contribution pay, considering:

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  reward strategies and how more effective links between pay and the achievement of strategic goals are being developed;

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  competency pay, and how organisations are successfully blending competence and results-based approaches, rewarding the "what" and the "how" of performance;

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  team bonus plans and other methods of increasing the variability of pay in relation to performance; and

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  the importance of associated process improvements in the areas of employee communications and involvement, and performance management, in creating a high commitment, high contribution workforce.

Strongly supported by examples, Paying for Contribution features many individual companies and 17 new, detailed case studies. Practical "how to" guidance is provided in order to assess, introduce and operate systems which can effectively relate pay to contribution in your own organization. An essential handbook for all reward and HR professionals, and all managers wanting to use reward more effectively as a change management lever, this book leads the way towards the next generation of performance pay schemes.