Performance-related pay and other incentives

Bonuses are legally capped under 20% of total remuneration of a public servant

Review of legislation on public servants in the central government administration. All variable elements that meet the criteria of bonus should be limited in such a way that altogether they can constitute not more than 20% of the total annual remuneration of a civil servant. If there are no bonuses, 2 points is awarded.

Percentage of public servants who received bonuses during the latest full calendar year is below 50 %

Data from the central human resource management information system (HRMIS) is used to conduct the analysis. Data relates to the central government administration only. If a public servant received a bonus more than once during the year, it is counted as one. If the majority of public servants received bonuses, it should be assumed that such bonuses do not have a motivational character. Points are allocated based on the percentage of civil servants who received bonuses (x): • x > 50% = 0 points. • 50% ≥ x ≥ 30% = linear function. • x < 30% = 2 points. If there are no bonuses, 2 points are awarded.

Direct superiors participate in awarding bonuses to their staff

Review of legislation and additional guidance if issued by the central public service human resource management co-ordination unit. Information about practices is obtained from a sample of institutions (three ministries, two agencies). Direct superiors are expected to decide or at least formally propose bonuses to their subordinates. Top managerial positions are excluded from the analysis. If there are no bonuses, 1 point is awarded if legislation indicates a direct superior as competent for applying or suggesting application of other performance related rewards. In the administration where bonuses can be awarded – if legislation or guidance issued indicate direct superiors as competent for applying or suggesting application of bonuses, 1 point is awarded. If this cannot be determined, information about practices from sample institutions is collected: if in all analysed institutions direct superiors were applying or suggesting application of bonuses, 1 point is awarded.

Perception of the impact of the reward system on the organisation’s performance (%)

Analysis of survey responses from a sample of public servants in management positions to the following statement: “To what extent do you agree with the following statement: The incentive system in my organisation (monetary and non-monetary rewards) improves the performance of my colleagues?” Answer options are: Strongly disagree, Tend to disagree, Neither agree nor disagree, Tend to agree, Strongly agree, Do not know, Prefer not to answer. Points are allocated based on the percentage of respondents who replied “Tend to agree” or “Strongly agree” to the survey statement(x) : • x < 10% = 0 points. • 10% ≤ x < 90% = linear function. • x ≥ 90% = 3 points.