ARP

In recent years there has been increasing interest in both the public and private sectors in pay arrangements which tie rewards more closely to performance. However, developing an effective appraisal related pay (ARP) scheme is not easy. Consequently, this booklet is designed to:

- discuss the benefits and difficulties associated with ARP schemes
- give guidance on key factors to consider when introducing ARP
- offer general guidance on how to assess performance and relate the outcome to pay
- give advice on how to manage certain aspects of ARP schemes.

The booklet is concerned solely with payment systems where increases in pay are wholly or partially based on the systematic assessment of performance through individual appraisal, rather than with work-measured or productivity-based systems such as payment by results or piece work, or with profit sharing schemes. The focus is on good practice, and the booklet should be read in conjunction with another Acas Advisory Booklet: Emp...