Rewarding Tips for Performance Pay


  • Start out with clear objectives for what you want to achieve.
  • Design a scheme that is aligned to your organisational values and goals
  • Establish effective performance management processes and goal setting.
  • Involve line managers and other key stakeholders in implementation.
  • Ensure there is consistency between rating performance and applying rewards.
  • Think in terms of a ‘best fit’ approach – suited to your organisational context – rather than a generic ‘best practice’ one.


  • Make your scheme more complex than it needs to be.
  • Assume that all staff will be equally motivated by the prospect of financial gain.
  • Focus on short-term objectives to the detriment of long-term goals.
  • Allow inconsistency to creep into performance assessment and pay decisions.
  • Forget managers make or break performance pay. Ensure they are equipped for the job.

Sylvia Doyle, Reward First People Consulting

This entry was posted in Rewarding Tips, Newsletter May 2012.