Performance or Pay? Which Matters More, or Less?

Source: National Association of State Personnel Executives, Issue Brief, 2014

Public sector organizations continue to face human resources challenges. These well-documented issues include imminent retirements, competing for and attracting new employees in a multi-generational workforce, motivating and retaining talent, and perceptions of an out-of-balance compensation and benefits system. Public sector organizations are also held to high standards for achievement and are expected to always meet their goals. States in particular, with their large, diverse, and often decentralized workforces, have used a number of business tools to help encourage their staffs. This paper will explore the extent to which a presumably key motivational tool has been used, is currently used, and if it even should be used in the future.