Rewarding good performance in the public sector

Last year about 300 London borough of Camden employees attended its annual staff awards ceremony, the Outstanding Service to Camden Awards (Oscas) where high performers were recognised, celebrated and honoured. This year such glitzy events are out of the question as public sector employers grasp the austerity nettle. Mike Cooke, HR director at Camden and lead officer on pay and reward at the Public Sector Peoples Managers' Association, says about £40,000 was spent on the Oscas but that budget has been "cut in half". This year, staff that are recognised for having gone the extra performance mile will get luncheon or Marks & Spencer vouchers worth £5 each. This is a stark illustration of how reward and recognition for outstanding performance in the public sector will have to be addressed on a low or no cost basis as it faces and experiences funding cuts. "Reward and recognition is not an issue now," says Cooke, "but will be soon. We (in the public sector) are bracing ourselves for 15% reduction in budgets over the next few years. If that happens then the talk is of 10 years of lean." Although £5 vouchers aren't so valuable in themselves, Cooke believes it's the act of recognition and publicising it internally that is important. The total reward statement One tried and tested reward standby in good times and bad is the total reward statement (TRS). These give chapter and verse on the total reward and benefits package that each employee receives and cast the employer in a favourable light. They can include the cost of employee training and development, benefits received such as employee assistance programmes and how much the employer spends on national insurance contributions. But they are blunt reward instruments. Far better that reward is aligned to personal performance plans which set achievable, meaningful, stretching and agreed goals for each employee that mesh with organisational objectives. In any case, public sector employers should find out what low or no cost rewards would be most appreciated by employees. "There's no point investing a tight budget, or any budget for that matter," says Andy Philpott, marketing director at Capital Incentives and Motivation , "into an incentive programme that offers rewards that don't appeal to staff. They won't encourage their work efforts or raise morale." He advises conducting informal research beforehand to see what rewards staff do value, a sentiment echoed by Chris Charman, director in reward, talent management and change at management consultants Towers Watson (TW). He says research by TW in its latest survey of employee attitudes in the workplace indicates that staff "really value" career development and especially the opportunity to acquire new skills. Although this covered the private sector Charman says the same lessons apply to the public sector. "Employers should focus on helping staff improve their skills and help them take opportunities in the workplace". This can include job swaps and formal and informal development. "Managers must keep the training budget going," stresses Charman. Mary Robertson, director of reward consultancy Reward Matters , says little things can mean a lot. "Many staff expect at least thanks for putting up with little or no rise and still doing a good job. My former boss Lawrence Churchill CBE, now chairman of the Pension Protection Fund regularly wrote personal letters of thanks to staff who had done something excellent and hand delivered them. I still have a note he wrote to me about a report I had written. I was young and it really meant something. "I remember that far more than the pay rise I got that year." Tips: • tell staff that reward budgets are tight or non existent • find out what low or no cost options will motivate them • engage them in the process through personal development plans • publicise reward options • publicise high achievement and achievers • focus on skills and career development • protect the training budget