Performance-Related Pay in Government

Abstract

It is widely recognized that in the management of employee pay, there is a definite divide between government and the private sector. The immediate question comes to mind: “How is performance-related pay working in government?” A closer look provides insight on the kind of challenges governments are facing in getting this process working. It is obvious that they need to, as this pay philosophy is not working as it should or could. A proper analysis of the current scenario would pave the way to a much improved performance-related pay structure in government as a whole. It is clear that the link to performance management is of critical importance. Should governments and the private sector alike not start to learn from each other, instead of adopting the “we are better and different than you philosophy?” It is all one economy in each country with two major role players, of which government is a significant stakeholder. It is hoped that this article will assist senior government officials in establishing that closer link between performance and pay.