The success of any pay for performance system is contingent on the design and implementation of appropriate, measurable and balanced Key Performance Indicators (KPIs).
A great deal of care needs to be exercised in the design of KPIs and related incentives as we know you often get what you incentivise and that this may not be what the organisation expected.
Well-designed KPIs and incentives produce high productivity and customer engagement outcomes characteristic of high performing organisations. Poorly designed KPIs or incentives can produce unexpected and unwelcome staff behaviours.
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