"does pay for performance work in the public sector?
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A powerpoint presentation for CPM class "Does Pay for Performance Work in the Public Sector?"TRANSCRIPT
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Does Pay for Performance Work in the Public Sector?
Group 2 Roy CantuNyla Flatau
Michelle Leftwich
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Introduction
• Types of incentive programs• Issues with implementation• Benefits of implementation• Challenges of implementation• Desired outcomes of pay for performance• Actual outcomes of pay for performance
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Types of Programs• Some private
companies offer vacation destinations
• United Airlines uses “Reach for the Skies”, incentive program that rewards savings certificates and travel certificates
• Microsoft, launched “Ship It” award
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Types of Programs
• Profit-sharing - specific percentages of profits above and beyond target measures are used to reward employees
• Gain-sharing - used to reach specific goals that make employees feel better about their work because they contribute to the team
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Private Sector
• Competitiveness is critical
• No external approval required
• Public perception isn’t important
• Market – primary evaluation role
• PFP common element
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Public Sector
• Affordability is critical• Adjustments subject
to vote• Public perception is
critical• Market – limited
evaluation role• PFP is emerging
element in pay
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Issues with implementation
• Microsoft – software group felt management had addressed them like children
• A slacker who might receive a good evaluation for poor performance, could put program in jeopardy
• Pay-for-performance programs assume that employees work primarily for money
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Video
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Benefits• Clarifies objectives• Planning tool• Employees are held
accountable/Better Transparency
• Improves productivity and efficiency
• Improves communication between management and employees.
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Challenges• Lack of specifically
measurable objectives• Unionized employees• Requires continuous
training for new and existing managers
• Resistance from public servants and politicians.
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Video
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Conclusion
• Pay for performance can succeed in public entities:– only when the political climate is right– employees accept it– managers are trained to implement it fairly and
consistently– agencies monitor it regularly
• Evidence is mixed on whether or not pay-for-performance works in the public sector
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Interview with Mike R. Perez, City of McAllen City Manager