Pay Progression

Pay progression practices tend to differ between sectors with much of the private sector working to a progression model based on 'pay for performance' with much of the public and voluntary sectors on a 'pay for service' model.

Both methods have their advantages and disadvantages. For instance:

• pay for service is highly predictable in terms of future cost control but is inflationary. There is, though, no pay differentiator in terms of working more or less hard. • pay for performance can target higher salaries towards higher performers. But this can also set up tensions in terms of how to measure different performance levels and the balance between team performance and personal contribution.   • rja has expertise in both quantitative and qualitative analysis of the differing pay progression options including the use of consolidated v. non-consolidated payments, the use of bonuses and non-cash awards, etc..
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