Strategic Reward Key Models and Practices Essay

Strategic Reward Key Models and Practices - Essay Example For example, it is possible to create a plan for performance related pay using different strategies such as the following: (1) merit-based pay plan; (2) job- or skill-based pay plan; (3) competency-based plan; and/or (3) job-evaluation-based pay (Heneman and Werner, 2005, p. 45; Baldwin, 2003, p. 45, 70). After examining the potential impact of introducing a performance related pay in a German public service, Shmidt, Trittel and Muller (2011) found out that the use of different types of performance related pay schemes can lead to different effects in terms of public sector employees’ work motivation and performance and that a highly selective performance related pay will never work in government offices. It simply means that depending on the type of performance-based appraisal used by each government office, there will always be the risk wherein the public sector employees would perceive the type of assessment and evaluation process used within the government office to be inef fective, inconsistent, and unfair to some government employees (Shmidt, Trittel and Muller, 2011; Rayson, 2013). Another possible reason behind the reluctance of the public sector employees in integrating performance related pay is the fact that most of the non-performing government employees would fear that their superiors would be closely monitoring their overall work performance. Because of the on-going tight government budget, Weiner (2013) reported that the public sector employees may no longer have the opportunity to enjoy so much of work-related flexibility options. Since there is a need for the government to cut down their unnecessary fixed operating costs, some of the underperforming public sector employees may think that they can be one of the candidates in case... It is the duty and responsibility of the public HR managers to design and implement the performance related pay effectively within the UK government offices. As a common knowledge, the public sector employees will be affected by the new pay and reward scheme. Therefore, the reservations made by the public sector employees should be considered legitimate. The use of performance related pay is a good form of pay and reward strategy particularly in terms of increasing the quality service provided by the public sector employees. For this reason, the public HR managers should exert more effort to effectively address all reservations made by the public sector employees. It is also necessary to create a S.M.A.R.T performance-based criteria that could guide the public sector employees on what they are expected to do. In the process of removing the reservations of each public sector employee, the HR professionals can easily win the support of all affected individuals.