A study by the London School of Economics' Centre for Economic Performance on public sector performance-related pay...
A study by the London School of Economics' Centre for Economic Performance on public sector performance-related pay concludes that most staff believe it is divisive and has undermined morale.
The Financial Times (p10) reports that, according to the study, most public sector staff also believe such pay schemes inhibit workplace co-operation and hamper team working.
The report suggests there is a 'worrying paradox' about public sector performance related pay. 'A great many public servants approve of the principle of linking pay to performance which makes outright opposition difficult to sustain,' the survey says. 'Yet many also believe the schemes have been unfair in their operation.'
If finds that half of line managers in the civil service and hospitals believe performance-related pay has raised productivity, improved goal setting and raised the quality of work done. However, many staff are deeply hostile to the way such schemes are administered.