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A Review of the Evidence on the Impact, Effectiveness and Value For Money of Performance-Related Pay in the Public Sector

A Review of the Evidence on the Impact, Effectiveness and Value For Money of Performance-Related Pay in the Public Sector

Kathryn Ray, Beth Foley, Tiffany Tsang, Damian Walne and Zofia Bajorek
02 December 2014

The Office of Manpower Economics (OME) commissioned The Work Foundation to conduct a review of the evidence on the impact, effectiveness and value for money of performance-related pay (PRP) systems in the public sector. The review updates a previously commissioned review of PRP in 2007, providing a picture of the emerging evidence-base since then.

The report presents evidence on the impact of PRP on a range of outcomes; unintended consequences; the effects on staff attitudes, motivation and behaviour and on team relationships; cost effectiveness; and PRP scheme design.

The report was written with colleagues from Lancaster University.

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