Business uncertain on link between performance management and pay

Many businesses that conduct performance reviews with their staff do not use that information to determine part or all of workers’ remuneration, a new survey reveals.

Many businesses that conduct performance reviews with their staff do not use that information to determine part or all of workers’ remuneration, a new survey reveals.

Only 52% of 154 HR professionals surveyed by talent management firm PageUp People said that in their company there is some correlation between an employee’s rank in a performance rating system and whether they receive improved pay and conditions.

Most HR managers said they conduct formal performance reviews with staff on an annual basis. A majority said they applied a relative ranking to employees by placing their performance results on a bell curve of distribution.

There was also a mix of responses when the HR practitioners were asked what kind of criteria they tend to evaluate staff against. Close to 30% said they measure staff against key performance indicators, 21% rated behaviours required for the role, 20% training and development needs (20%) and 17% skills required for the position.

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