Category: Finance for Contractors

The Chartered Institute of Personnel and Development (CIPD) has suggested that the public sector makes greater use of performance-related pay.

It said this would give "more bang for the taxpayer buck" and called for urgent reforms to reconnect reward with service delivery.

The CIPD report, entitled Coping with Less: Pay and pensions in the public sector, also reiterated the need for a freeze in the overall public sector pay bill in order to give added flexibility to employers.

Bonuses are one of the "most powerfultools" the new government has in its battle to drive up standards and deliver reforms, said Charles Cotton, CIPD reward adviser.

"By linking pay far more closely to performance, ministers could find that they are able to get far more bang for the taxpayer buck," he commented.

Mr Cotton also highlighted the need for more flexible pensions in the public sector.

Analyst Laith Khalaf from Hargreaves Lansdown has also said public-funded pensions could be nearing an end.

Posted by John Crawley