Performance-related Pay Policies for Government Employees by OECD Organisation for Economic Co-operation and Development

By OECD Organisation for Economic Co-operation and Development

This document provides an summary of performance-related pay guidelines (PRP) for presidency staff in chosen OECD member nations during the last twenty years. either the strengths and the weaknesses of PRP regulations are assessed. The file explores many of the paths of reform in every one state, investigating the explanations why PRP regulations are being applied and the way the rules function concretely. the results of PRP rules on the person and group degrees are evaluated, and proposals are made on what could be performed or refrained from with the implementation of PRP. The record encompasses a variety of case reports.

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6. Conclusions Two-thirds of OECD member countries have introduced some links between performance appraisal and pay in their civil services although only a handful of OECD member countries can be considered to have an extended, formalised PRP system. Countries which have developed the strongest links between performance appraisals and pay are the countries which retain the highest delegation in human resources and budgetary management. Countries with a rather low degree of delegation tend to focus on promotion to motivate staff and introduce the remuneration incentive only for specific categories or for those at management level.

PRP highly decentralised3 Denmark; New Zealand; Sweden. Denmark; Sweden. 1. PRP is usually defined in detail in the law: performance appraisal and the nature of the awards are centrally designed. 2. PRP is defined in the law in broad terms, and guidelines for performance appraisals and payments are issued. Within this general framework, individual departments have significant flexibility in areas such as the approach to performance appraisal and the distribution of rewards. 3. Individual departments have considerable flexibility in the design of performance appraisal, size of rewards, form and distribution of payments, etc.

Conclusions Two-thirds of OECD member countries have introduced some links between performance appraisal and pay in their civil services although only a handful of OECD member countries can be considered to have an extended, formalised PRP system. Countries which have developed the strongest links between performance appraisals and pay are the countries which retain the highest delegation in human resources and budgetary management. Countries with a rather low degree of delegation tend to focus on promotion to motivate staff and introduce the remuneration incentive only for specific categories or for those at management level.

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