What is happening in contingent pay today: part 2 - Commentary and Toolkit

This issue is published in two sections: commentary (29-pages; 10,000 words); toolkit (37-pages 13,600 words).

We examine some of the key issues arising from our initial analysis as highlighted by the survey. These are:

  • choice of approach

  • reason for using pay for performance, competence or contribution (PCC pay)

  • effectiveness and impact of PCC pay

  • problems of using PCC pay

  • deciding on PCC pay increases

  • areas for development

  • conditions for success.

But first, Michael Armstrong explains why, in spite of the negative views of many commentators, contingent pay continues to flourish.

Our supplement contains a practical toolkit describing what you need to do in order to develop and implement a contingent pay scheme. It offers a systematic and comprehensive approach for analysing, diagnosing and designing a scheme, highlighting all the key phases involved.

This toolkit includes:

  • numerous checklists to determine your readiness for contingent pay

  • some easy-to-digest lessons to help you analyse the conditions most favourable for introducing and operating contingent pay

  • a seven-step process to help you develop and implement a contingent pay scheme.

For more details see our reviews, published in the 'News' section of e-reward.co.uk, 9 March and 21 April 2004 and the 'Features' section, 20 May 2004.

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