Question 2.

Identify some of the

ways that performance-based pay
systems should be developed based
on the experiences at Scripps
Health.
Establish clear performance metrics:

1. establish clear and measurable performance

metrics that align with the goals and objectives of
the organization.

2. This can help ensure that the performance-based

pay system is fair and transparent

3. Establish clear performance expectations on the basis

of proper research and industry-wise benchmarking of
performance.
 Performance
Expectations

Quantity or Output Quality or Behavioural

Expectations Expectations

Developing Performance Expectations:

We recommend using S.M.A.R.T. criteria for setting effective performance expectations.

Effective expectations should be:

Specific - help the staff member understand exactly what is expected.

Measurable - measurements help the staff member and supervisor understand when the
expectation is achieved.
Achievable - expectations should be realistic.
Results Oriented - expectations should focus on end results.
Time Bound - deadlines should be identified where applicable.
Involve employees in the development process:

Employees should be involved in the development process

of the performance-based pay system

Ensure that their needs and concerns are taken into

account.

This can help increase employee buy-in and engagement

with the system.

Increase in Enhanced Healthier Commitment Towards

Productivity Morale Relationships the Organisation:
Provide ongoing feedback about there performance:

Regular feedback should be provided to employees on

their performance, both positive and constructive.

This can help employees understand how they are

progressing towards their goals and can help them
make adjustments to improve their performance.

It helps HR managers to monitor the performance

of their employees continuously and improve it

continuous feedback helps in developing a two-way

communication channel between employees and
their managers.
 Ensure that the system is fair and equitable

setting clear criteria for performance measurement,

ensuring that the system is not biased against any particular

group of employees.

providing training and development opportunities for

employees to improve their skills,

Use data to inform decisions:

The performance-based pay system should be data-driven, with

metrics and benchmarks that are based on data analysis.

This can help ensure that decisions about pay are based on
objective criteria rather than subjective opinions.