The bonuses of fat cat company directors continue to grow at the expense ofthe rank-and-file. This is the message of the TUC’s new report Executive excess– time to act.It is not a new message – the media has been full of stories about CEO payrises in the face of tumbling share prices. In most of these companies, the payhikes are justified on the grounds of a shortage of leaders, rather thanperformance – avoiding the argument about whether performance-related pay worksat all. There are three news stories in this week’s Personnel Today covering theimplementation of PRP. While they show PRP can have more subtle andsophisticated applications, all three are proving contentious. BT has been working on a solution for spreading its work-life balanceprinciples to blue collar staff. The trial of a new PRP scheme among fieldengineers enabled many to spend more time with their families instead ofworking overtime. Lifeboat charity RNLI has also introduced a form of PRP – a sensitivesubject in the voluntary sector – for all of its 1,000 staff. It is not aimingto incentivise staff, but to improve the appraisal system and thus managementof the 178-year-old charity. But there are inherent risks in PRP, even when applied in a sophisticatedmanner. Just as discretional pay increases can motivate, they can alsodemotivate disappointed staff. PRP schemes need staff and managerial support,objectivity and consistency to deliver results, and it is unlikely they willprovide all the answers to motivation and productivity. There are bigger, less tangible drivers at work, and getting staff tounderstand, embrace and passionately work towards the organisation’s objectiveswill take more than pay, benefits, a set of corporate values and the odd teambonding exercise. HR needs to lead the thinking if the bigger answers onleadership, development and staff empowerment are to be developed. By Mike Broad Previous Article Next Article Related posts:No related photos. Putting corporate values in the hearts of your staffOn 2 Apr 2002 in Personnel Today Comments are closed.