Birmingham City Council links increased contribution and outcomes to reward and recognition : System raises productivity and improves performance

Purpose – Describes how a fair and transparent reward system based on performance is giving greater control over outcomes, retaining the best staff for the future and saving money. Methodology/approach/design – Explains that the new performance development review (PDR) system has been delivered as part of the award‐winning Excellence in People Management project, which has modernized and refocused people‐management practice at Birmingham City Council, UK. Findings – Reveals that the PDR process has given Birmingham City Council the ability to manage effective performance and behaviors and link pay progression to performance rather than time served. Practical implications – Details how managers now have the tools to manage their own staff more effectively. Social implications – Shows that the PDR has shifted the performance focus more toward how employees contribute to achieving effective outcomes for the citizens of Birmingham and the behaviors employees need to demonstrate. Originality/value – Explains that staff that feel valued and rewarded, are more committed and motivated, and are more willing to go the extra mile. Increased productivity and performance, combined with the abolition of incremental pay increases, has realized a saving of around £6m so far.