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Should Government Introduce a performance base

Pay Scale

Should Government Introduce a performance based Pay

Scale?
A Research based Review

Sk. Yeasin
ID: 1211186030
Eng-105
SectionSubmitted toSubmitted on 9th of April, 2016

ENG 105, Section 03

Ms. Maleka Sarwar
April 5, 2016

Should Government Introduce a performance base

Pay Scale

Acknowledgements
Should Government Introduce a performance base Pay Scale: A Research based
Review- this was a totally new experience for me. This research will not fulfill if Almighty
Allah will not give me the ability to work, so I want to give thanks to Almighty Allah first. Then
thanks to my honorable faculty member who gives me the direction to prepare the research paper
and document and every aspect of the research. Next thanks to my friends and the people who
helps to collect data and complete the survey paper.

Sk. Yeasin
April 9, 2016

Should Government Introduce a performance base

Pay Scale

Abstract
Should Government Introduce a performance base Pay Scale:
A Research based Review
By
SK Yeasin
North South University
Under the supervision of Ms. Maleka Sarwar

Government job is a golden job in our country because of good facility, less work
pressure, pension, long vacations in a year, and many more. There was one problem that the
salary was not up to mark, but few months ago government took a great initiative to make the
pay scale almost double. This made the government job holder happier but the salary increasing
policy will make how much beneficial for government. Because the increasing salary will costs
more to the government. So, the question will be, shouldnt the government use such policy
which will focus on the performance of each job holders. And if government will focus on such
performance base pay scale, what and what need to do, the obstacles and changes.

Key words: Government Job, Pay scale, Performance, Change, Obstacles.

Should Government Introduce a performance base

Pay Scale

Table of Contents
Acknowledgement

02

Abstract

03

Table of Contents

04

Introduction & Background

05-10

Area of Research

11

Hypothesis

12

Methodology

13

Data Presentation and Analysis .

14-25

Summary of Research Findings

26-28

Recommendations

29

Conclusion

30

Reference

31

Appendix

32

Should Government Introduce a performance base

Pay Scale

Introduction
There is good news to our government service holders that their salary is almost doubled,
which is approved from 7th September, 2015. This increasing rate of salary is 91 to 101 percent
of their previous payment. Where the lowest payment is shifted 4,100 taka to 8,250 taka and the
payment is from 40,000 taka to 78,000 taka.
In our country there is a tendency of our government service holder that they taking bribe
by saying that their salary is not much better to run their family. But, now this question will be
gone, because the current salary is the way better sometimes from the private job sector.
But there are always some debates behind any big steps of government and this
increasing amount of salary is also a questionable topic to some extent. Because, we all have
some negative impact on government job holder that they rest more rather than work. And now
the question will be that, is this increasing amount of salary able to change the government job
holder. And the way more important question will be that, shouldnt the new pay scale need to
base on performance if the government wants to make every single penny countable.
Historically, the Bangladeshi civil service has been associated with bureaucratic rules which
gives us an idea of how the employees should be treated within an organization. Bureaucracy
always promotes the seniors should get the preference of getting a designated position in the
government sector and the system will work from the lower level to upward level of an
organization. Although bureaucracy has been historically treated as proper method of organizing
the structure of an association, it has got some serious drawbacks. The system introduces us with
a very old-fashioned way of dealing the tasks and promotes bribery inside an organization. Since,
Bangladesh is a country using none other than the techniques and structure of bureaucracy, the

Should Government Introduce a performance base

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system has been making the country more corrupted. It is promoting the bribery systems which
makes the government officials more prone to corruption rather than having their benchmarked
compensation.
Since, the government officials are prone to corruption because of having a moderate
scale compensation compared to their skills, the government of Bangladesh has doubled the pay
scale and make it more attractive than ever. The reason of upgrading the pay scale should be to
discourage the government officials to take bribery and deprive them from corruption. But,
would this pay-scale actually help the system to be more distracted to corruption? There might be
both positive and negative answer to this question but the system of using a performance based
pay scale will definitely help the government officials to be much more professional than before.
If the government of Bangladesh introduces a performance based pay scale, the government
officials may become quicker in doing their work which will significantly reduce the problems of
bureaucracy and make the government offices more active.

Should Government Introduce a performance base

Pay Scale

Background
Bangladesh is a democratic country having a bureaucratic structure to manage the countrys most
necessary active section Bangladesh Civil Service (BCS). The BCS of Bangladesh has been
providing official services to aid the country in implementing the laws and regulations to prosper
and achieve its economic growth. There has been a lot of upgrades on the payment structure of
the employees working in the Bangladesh Civil Service since then. The upgradation of the
payment structure of the employees has been decided based on the continuous increase in
economic inflationary of the country. Recently, government of Bangladesh had introduced the 8th
national pay- scale where the payment scale has been upgraded by almost 100% from the
previous payment scale.

The 8th national pay scale had introduced a recent up rise in the payment structure of all the
government employees. One news states that now an officer passing recently a Bangladesh Civil
Service examination will get a basic pay of BDT 22, 000 including the allowance for medication
and home rent services (8th national pay scale approved, BDNews24). The up rise in the pay
scale had imposed a burden on the country of $159.04 billion in 2014 and it is said that the
burden will increase as the time passes. However, the pay- scale up rise had motivated a lot of
general people to pursue the career as government official and many of the countrys top most
bright had started coming to this sector. Sadly, those bright mind of the nations had to get
involved in corruption due to the current corrupted environment already presented in the system.
The government officials have historically been eager to take bribes to assist a particular task of
the general people even if there needs to move a file from one desk to the other. They were called

Should Government Introduce a performance base

Pay Scale

the servant of the general public and the public are paying for their compensation through
income and value added tax. But, instead of serving the public eagerly, they have been more
eager to earn money through corruption by taking bribery from the general public without which
no job is done for them.

In addition to this, the productivity rate of the public servants or government officials has been
very low to many of the crucial duties they perform. If someone have to take any kind of
permissions from the government to do a particular job or have to complete a project, it takes a
longer time than average in order to perform the job successfully. Their productivity rate has
impacted a bad impression towards the general public about their qualifications and
professionalism.

However, the 8th national pay scale will help them to get more of the government services
actively than under previous pay scale. A popular news article stated that The new national pay
scale is going to reduce the corruption to a drastic end since government officials will not think
their compensation is to low compared to their qualifications ( Up rise in national pay scale,
Prothom Alo). Many of the policy makers think that the new scale will going to help country
reduce corruption and increase the government activities as well. Ironically, the nature has got a
simple rule for the living species the more one gets, the more he wants.

Should Government Introduce a performance base

Pay Scale

It has been seem like the increase in pay scale for the government officials has not been a
motivating factor to uproot the corruption in this sector. Bangladesh has been a corrupted country
since 1959 and still ranks 139th in the least corrupted countys list. Although the rank had been
increasing for the country but still it is considered as one of the corrupted countries in the world
(Bangladesh Corruption Rank, Transparency International). Since the sector of government
offices has been corrupted for most number of years, it is not easy to uproot the corruption from
the countrys government officials.

Considering the above facts, if the government introduces a performance based pay scale to the
system, the government officials or the public servants will become more prone to
professionalism by utilizing their qualifications properly to serve the general public. A
performance based pay structure is system of compensating the employees based on the level of
their performances throughout a particular period of time. It is method through which
productivity of the employees will be rewarded which will encourage to work much more
effectively. So, by introducing the reward or compensation system to the government officials,
the country may able to increase the productivity of the employees. Besides, this system could
work on discouraging the employees from taking bribery because the employees will be more
focused on increasing their performances and making more money for them. A research blog
from a Turkish University stated on performance based pay structure that The first idea is that
financial rewards are a key motivator in employee performance. The second idea is that
tying financial rewards to measurable work output will therefore increase employee
productivity because employees will behave in ways that maximize their earnings (Making

10

Should Government Introduce a performance base

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performance pay more successful in public sector, Turkiye Cumhuriyeti Disisleri

Bakangligi).

Should Government Introduce a performance base

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11

Research Questions
In this research paper I have prepared to find out that if government focus on
performance base salary, is it more productive or not. And in this research I will try to know
some question answer, which will help me to come up some solutions. Here are those questions,
What are the reasons behind increasing the pay scale in this higher rate?
Is this increasing pay scale amount making any difference in the government

service holders?
Are the government service holders happy with new pay scale?
What are the outcomes of increasing new pay scale?
What if the government introduces performance based pay scale (pros and cons)?
If government introduces performance based pay scale, how government will

introduce this new system?

What will be the measurements of measuring performance based pay scale?

Hypothesis

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Should Government Introduce a performance base

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Previously government service holders were claiming for not handsome amount of salary,
but recently government takes big step to increase the pay scale almost double. But the question
arises that is the government should increase the payment on the basis of position or the
performance. Because our government service holders are not willing to work more, if this
performance based payment scale will introduced, the government service holders will work
more rather than thinking to time pass in the office. And on the other hand the goal of
government will reach easily by implementing this system.

Research Methodology
For the primary research, I will take a question based survey and two interview one from a
government service holder and another from a private job holder. The survey will focus on the
payment scale and what are the people thinking about increasing the payment scale. And what
will be the future impact on this issue. And if government will introduce performance based pay

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Should Government Introduce a performance base

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scale; what will be done by government. And this survey will help to get the answer of my
research paper. And the interview will help to get the both public and private job holders
position about the performance based pay scale.
For the secondary research, I will take information mostly from online based sources. I
will take online based journal, newspaper, articles and I will try to get some information relating
with my research from books also.

Data Presentation and Analysis

I collected secondary data from some published articles and journals in some renowned
national newspapers and from the internet. But data from the secondary source are not well
enough to gather all information, thats why I need to collect data from primary source. So, here I
am going to present some results of graphs which I got from my survey.

Should Government Introduce a performance base

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14

20

Number of Participents in this survey

10

Male
Female

Fig: This graph shows that the total number of males & females are participated in this survey.

The research was conducted on both the male and female of the Bangladeshi citizens. The Graph
shows us that among the 30 sample size on which the research has been conducted 66.67% were
male and 33.33% were female.

Question: 1 - To make the government employees more result oriented do you think performance
based payment system should be followed?
Description: The graph below shows us that what the sample thinks if the
performance based payment system will be useful to make the government employees more
result oriented. The X-axis shows the number of people responding to the particular question and
the Y- axis shows the types of respond they made. Among the 30 people of sample size 97% of

Should Government Introduce a performance base

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15

them thinks that government should introduce performance based pay scale. On the other hand,
3% of the sample size thinks that government should not introduce performance based pay scale.

29

1
Yes
No

Fig: This graph shows that how many people are agree to implement performance based payment
system.
Analysis: A performance based pay scale helps the organization to utilize or maximize the
skills of their employees more efficiently than any other compensation package. Since, most of
the sample respondents went for the introduction of performance based pay scale, they think that
this method will be efficient in increasing the work performance of the government officials and
reduce corruption to an extent. Besides, as being the public the servants of this nation, the
general people will expect the quick implementation of the government regulation being taken
by introducing the method.

Should Government Introduce a performance base

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16

Question: 2 Do you think accountability of government officials should be improved if

performance based payment scale is implemented?
Description: The graph below shows us that what the sample thinks if the
performance based payment system will be useful to make the government employees more
result oriented. The X-axis shows the number of people responding to the particular question and
the Y- axis shows the types of respond they made. Among the 30 sample size 25 of them thinks
that it will absolutely improve the accountability of the government officials. On the other hand,
4 of the respondents think that it is not necessary to increase the accountability of the
government officials and 1 of them thinks that it is not going to increase the accountability of the
government officials.

Should Government Introduce a performance base

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17

25

Fig: This graph shows that, if performance based payment scale is implemented will it increase
accountability.
Analysis: Accountability is one of the most important and crucial phenomena
for an organizations employees in order to more committed to their work and fulfilling the goals
and target set. The graph shows us that majority of the people think that the performance based
pay scale would increase the accountability of the government officials. Since most of them are
hired in order to carry out and formulate the government regulations, increasing in accountability
through upgradation in payment structure would make them more liable to their job and the
people they are serving. Some the sample think that changes in other sector in essential rather
than this sector because there has been a lot of problems surrounding around the country
including political disorder, national laws and Crime rates which are more important than
increasing in accountability of the employees.

Should Government Introduce a performance base

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Question: 3 If performance based pay scale is followed, non-performer in different public

sector will automatically try to make them skilled and efficient- what is your opinion?
Description: : The graph below shows us that what the sample thinks if the
performance based payment system will be useful to make the government employees specially
non-performers more skill and efficient oriented. The Pie-chart shows the number of people
responding to the particular question and the types of respond they made. Among the sample size
of 30 people, 83% of them think that the performance based pay scale will increase the nonperformer skills and efficiency automatically. On the other hand, 17% of them think that the
performance based pay scale will not increase the non-performers of governments officials
skills and efficiency.

No, they will remain same; 17%

Yes, they will change; 83%

Fig: This graph shows that, if performance based pay scale is followed, what will happen to the
non-performer, will they change or not?

Should Government Introduce a performance base

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Analysis: Any of the organizations no matter what type has drawback which is the
non-performing employees. This type of employees is receiving the compensations and other
benefits properly by working in Bangladeshi Government services and in return delivering
nothing to the organization perceiving its missions and goals. Since they believe they will enjoy
the benefits of being employed without delivering anything to the system, they will not increase
their work performances. As most of the people think that performance based pay scale may
trigger their instincts of working and giving to the organizations something so that they can also
be properly compensated acquiring the skills and efficiency needed. The rest of the sample size
thinking of not improving the skills of non-performers is due to the belief that some people are
always focus or try to avoid work as much as possible and it is quite impossible to change that
attitude of them.

Question: 4 Will government face extreme challenge if this new pay scale is implanted?
Description: The graph below shows us that what the sample thinks if the
performance based payment system will make the government fall under extreme challenges.
The Pie-chart shows the number of people responding to the particular question and the types of
respond they made. Among the sample size of 30 people, 97% of them think there could be
extreme challenges for government if performance based pay scale is introduced. On the other
hand, 3% of them think that government is not going to face any challenges for this kind of
payment structure.

Should Government Introduce a performance base

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No, government will not face any challenge ; 3%

Yes, this would be new, so challenges must come ; 97%

Fig: How many people think that government will face challenge if performance based pay scale
implemented?
Analysis: Changes in any kind of structure brings more challenges to implement and
make an effort to make the employees more adaptable to the new situation. Majority of the
people think government will face some challenges when implementing this new payment
structure because this kind of payment system requires the government officials more work
oriented and committed rather than enjoying a flexible working system. Those preferring the
flexible or loose working environment wont let the government easily implement this structure.
They may set marches, rallies or protest by avoiding work against the government which will
make it difficult for the government. The rest of the people thinking of facing any challenges is
due to governments immense power in strategy formulation and making leaving the government
employees powerless in making circumstances work.

Should Government Introduce a performance base

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21

Question: 5 - Apart from performance what other factors should be considered in case of
implementing performance based payment system?
Description: The graph below shows us that what the sample thinks of considering other
factors in case of implementing the performance based payment system. The Pie-chart shows the
number of people responding to the particular question and the types of respond they made.
Among the 30 people, 40% of them think that transparency should be considered in case of
performance based payment system and 40% of them think efficiency should also be considered
in spite of considering the performance based pay scale. On the other hand, 20% of them think
that accountability factor should be considered despite of considering performance based pay
scale.

Accountability ; 20%
Efficiency ; 40%
Transparency; 40%

Fig: This figure shows that, apart from performance what other factors that should focus.

Should Government Introduce a performance base

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22

Analysis: Compensating employees based on performances may lead the

government officials more prone to making mistakes or carrying out unethical activities inside
the organization. Besides, if the employees are not proficient enough, then measuring their
performances based on the number of job done can be vague rather than measuring their work or
job in terms of quality. So, efficiency should also be considered and compensation benefits
should also give based on this. Moreover, transparency in work is also considered important as it
helps the managers to clearly know about what is actually going on inside the organizations.
Accountability is an important factor to be considered since it increases more commitment
towards the job.
Question: 6 - Performance based pay scale will not bring the result because government officials
do not care about what policies and reforms are going, the only thing which can bring change is
their mindset. Do you agree or disagree?
Description: : The graph below shows us that what the sample thinks whether
the performance based pay scale will be able to bring any changes since government officials do
not care about the policies and reforms are imposing on them unless they have a changed
mindset . The Pie-chart shows the number of people responding to the particular question and the
types of respond they made. Among the 30 sample size, 60% believe that the increase pressure
and force will automatically shape the employees mentality towards work without even
attempting to change the mindset. On the other hand, 40% of them believe that changing mindset
is necessary before implementing any plans.

Should Government Introduce a performance base

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No, government should implement the policy and this will force them to change their mentality; 60%
Yes, changing mentality is must ; 40%

Fig: This graph shows that, How government implement the new system?
Analysis: Government has immense power to take policies and rules that every
citizen in the nations has to abide by. Since the power of government gives them the right to
exercise any kind of policies like implementing the performance based pay scale, the government
officials have to change their mentality about accepting and respecting decision anyway. This
leaves the government employees with no choice of changing their mentality towards new
system. However, according many of the people of sample taken, this forceful decision may
impact the psychology of the government officials and can lead to unexpected circumstances.
Besides, every employee has the right to make their own decision and own way of carrying out
duties bestowed upon them. So, firstly changing their mentality through professional education
may help them adopt the new system easily.

Should Government Introduce a performance base

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Question: 7 - Do you think the overall perception about public sector will change if performance
based pay scale is implemented?
Description: The graph below shows us that what the sample thinks if the
performance based payment system will change the perception of people toward the public
sector. The X-axis shows the number of people responding to the particular question and the Yaxis shows the types of respond they made. Among the 30 people of sample size, 27 of them
think that it will actually change perception of people toward the public officials and this sector.
On the other hand, 3 of the 30 people think that it will not change the perception of people tward
the public sector.

27

Yes
No

Fig: This graph shows that, if the new system implemented, will the public perception about
government change or not?

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Should Government Introduce a performance base

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Analysis: Public perception toward the government offices and its employees has
always been negative because of its heavy involvement in corruption. If the performance based
pay scale makes the government officials to be more professional and committed to their work
leaving corruption behind, the perception of the general public has to be changed. So, it is the
thinking of general public through our sample size that the performance based pay scale will
change the employees moral and work attitude and make them a valuable assets to the
government to prosper and good servant to the general public. On the other hand, some of the
people think that the perception will not change because the perception that has already been
established is very destructive and not easy to eliminate the change it. Besides, it is also not
guaranteed that the government officials attitude toward work will change since they are keener
to bribery for making money instead of really earning it through hard work.

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Should Government Introduce a performance base

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Summary of Research Findings

The research has been conducted on whether government of Bangladesh should introduce a
performance based pay scale for its employees. After conducting both the primary and secondary
research, we have come to know that a performance based pay scale should be introduced by the
Government of Bangladesh rather than following the old structured way of compensation. This
kind of payment structure will help the government offices more productive and efficient and can
help reduce the corruption in this sector to an extent.

The primary research based on a sample size of 30 people reveals that a performance based
payment structure will help Bangladesh government to value the policies properly and serve the
nations citizen adequately. The primary research was conducted on both male and female
nonetheless, the opinion are quite same in this matter. Most of the people think that a
performance based pay scale will help the government officials more result oriented which will
increase the output of the employees resulting in a better implementation of the policies taken.
Besides, most of the people think that by introducing a performance based pay scale
accountability of the employees will also be improved since the system will consider more of the
output of the employees. This output will make the employees more focused to their work and
getting the job done. Moreover, majority of the people also think that by introducing the
performance based payment structure the employees who lack proper qualifications or get hired
through political help have to acquire the skills and efficiency needed in order to get properly
compensated. However, implementation of this payment structure will make the government

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Should Government Introduce a performance base

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jobs more difficult since a significant portion of the people think that introducing the payment
system will be more challenging for the government of Bangladesh. The government officials
may take the matter seriously and boycott their work services altogether or protest strongly.
Besides, the big guns of the nation may also criticize the government because there are a bunch
of other issues to be considered rather than just introducing a new payment system. From our
research we have come to find that almost same portion of people think that efficiency and
transparency should also be taken under serious consideration rather than just introducing the
new payment system. In addition to this, many of the people think that just by introducing a new
payment structure will change the mentality of the government officials and make them more
work oriented and so it will force them to change their mentality toward their job. Finally, this
performance based payment system will change the perception of the general public towards the
government officials according to most of the people from the sample. The general people have a
perception about the government officials is that they are not active in their respective field and
are more interested in making money than delivering services to the general people. They have
no fixed time schedule and so the come late to offices and many of them dont even bother to
attend the office time. If performance based pay scale is implemented, then they have to work
and do their job properly in order to get paid.

The secondary research shows us that the introduction of performance based payment system
will make the employees more productive and carry out financial job more eagerly.
Compensations based on performance of the employees will generate substantial inflow to the

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government offices and make the department achieve more in implementing the government
policies, rules and regulation. Besides, this kind of payment structure will help the government
reduce corruption to an extent because employees will think that they will get rewarded for their
performance instead of asking bribery from the public.
Consequently, both the primary and secondary research are seemed to be in favor of introducing
a performance based pay scale which will help the government officials more professional and
increase the speed of government activities which will help the country to boost its economy.

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Recommendations
Since both the primary and secondary research shows that government of Bangladesh should
introduce a performance based pay scale, the government should consider this matter as a serious
issue. In order to implement the payment structure, the government of Bangladesh should try to
change the government offices structures. Initially, they should introduce some of the seminars or
workshop to increase the efficiency and skills of the already working government officials. The
seminars will mostly consist of how to more effectively complete the particular task assigned to
each and every government employee. In addition, the government should also conduct some
seminars on some of the moral issues and promote ethical conduct among the employees.
Because, if the ethical or code of conduct is promoted, then the mentality of taking bribery or
corruption can be reduced to a certain level. And if the corruption can be reduced, then the
employees will be more focused on performing the job properly which will reward them through
their compensation packages. Most importantly, the government should design the structure in
such a way that promotes patriotism in all the sectors to develop the countrys infrastructure and
make it economically stable and self-dependent. If all the steps are implemented successfully,
then the introduction of the performance based payment structure will be easily accepted among
the government officials and achieve the countrys economic growth.

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Conclusion
To conclude, the government officials had been compensated previously based on low scale
compared to hustle they have to undergo in order to get job. But, recently, the government has
taken the issue under consideration and increased the payment structure of the government
officials by almost doubling them. My hypothesis was to find out if an introduction of
performance based payment structure should be introduced in order to make the government
projects of policy formulation more effective. After conducting both the primary and secondary
research, I have come to find out the performance based payment scale will be much more
effective in increasing the efficiency of the government officials and successfully dealing with
the problems that this sector is currently facing. The research findings have shown a strong view
of favoring this performance based payment structure for the government officials in order to
carry out the government activities successfully. Finally, there has been some recommendations
given on the process of implementing the payment or compensation structure to the government
officials. If the given recommendations are considered properly, then the performance based pay
scale can be introduced to the government officials without facing any challenges. Consequently,
all this process will help the country to prosper its economic growth and make the country one of
the valuable country among the developed countries.

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Reference
8th-national-pay-scale-approved-basic-pay-range-tk-8250---78000. (2015).
bdnews24. Retrieved from http://bdnews24.com/bangladesh/2015/09/07/8thnational-pay-scale-approved-basic-pay-range-tk-8250---78000
Bangladesh gives final node to new pay scale. (2015). The daily star. Retrieved from
http://www.thedailystar.net/frontpage/new-pay-scale-gets-final-nod-139666
Big pay hike proposed for Govt. staff. (2014). The Financial express. Retrieved from
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Compnesation TOday. (2010). Retrieved from Payscale:
http://www.payscale.com/compensation-today/2010/04/performance-relatedpay-models
Governemnt approved 8thnational pay scale. (2015). Media Bangladesh. Retrieved
from http://www.mediabangladesh.net/pay-commission-report-2014-new-payscale/
Implementing a Performance-Based Compensation System. (2004, january 4).
Retrieved from Accounting web:
http://www.accountingweb.com/practice/team/implementing-a-performancebased-compensation-system
kallol, A. s. (2014). Public servants to get up to double salaries. Dhaka Tribune.
Retrieved from http://www.dhakatribune.com/bangladesh/2014/dec/22/publicservants-get-double-salaries
Neil Mcphie, b. s. (n.d.). Desiginig an effective pay for perfromace compensation
system. Retrieved from http://www.mspb.gov/netsearch/viewdocs.aspx?
docnumber=224104&version=224323&application=ACROBAT
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Appendix
1. Compensation Today
Making Pay-for-Performance Models Work
The top level has announced that the organization is shifting to a performance-related
pay model. What does pay for performance mean? Arent we all performing already?
Arent we getting paid for that? The real answer is probably not.

Developing a new talent management strategy? You need a tool that prices jobs exactly to your
candidate's education, experience, certifications and skill set. Request a demo of PayScale's compensation
solutions and see how having the most accurate salary data available can save you money.

The vast majority of compensation plans are based on a starting market value for
specific jobs after which future compensation is guided primarily by time in the job,
staying within an overall corporate merit pool target percentage, and the fact that you
havent screwed up badly during that time. Performance compensation plans take a
vastly different approach by asserting that there is a clear difference between ordinary
and extraordinary performance that merits a distinct difference in compensation.

These models are most effective when the goals and performance measures are
related to the overall enterprise goals and expected performance and to outcomes
versus tasks. This is the part that is not easy for most organizations and the part where
most failed pay-for-performance models completely missed the boat. This is the nexus
the place where human behavioral science and business meet. Making this work
involves providing clearly articulated goals, a sense of purpose, and increased
individual, group, and overall enterprise accountability.

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Achieving complete organizational alignment mission, goals, objectives, performance,

and pay - is much easier to talk or write about it than to do. This type of alignment
takes commitment because it means starting from the highest aspiration for your
organization and working your way down to identifying and inspiring the smallest
outcome and/or behavior that will get you there. Organizations must ask themselves,
What is it that we really, really, want to be? How do we get to be that? What will we
need to do? Who will we need to do it? And, how will they do it? It is that final
question How will they do it?- that becomes the basis for managing, measuring, and
compensating your people for performance.
2. 8th national pay scale approved, basic pay range Tk 8,250 - 78,000

Home > Bangladesh

8th national pay scale approved, basic pay

range Tk 8,250 - 78,000
Staff Correspondent bdnews24.com
Published: 2015-09-07 15:40:15.0 BdST Updated: 2015-10-19 17:44:00.0 BdST

The government has approved a new pay scale for its employees with a highest basic pay of Tk
78,000 and a minimum of Tk 8,250, allowing an across-the-grade hike ranging from 91 to 101
percent.

An officer who joins government service by clearing the BCS examinations will now get a basic pay
of Tk 22,000, to which will be added house rent in accordance with the area of residence and
medical reimbursements.
The earlier basic was Tk 11,000.

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The basic pay for officers and other employees will take retroactive effect from July 1 this year, while
the allowances will be paid from July 1, 2016.
A Cabinet meeting, chaired by Prime Minister Sheikh Hasina, endorsed the eighth national pay scale
on Monday.
Cabinet Secretary Md Musharraf Hossain Bhuiyan said new pay scales had been recommended for
the armed forces also.
He said the new structure had dropped the class categories, selection grade, and time scale. The
annual increment will be a percentage of the basic pay.
The government employees will be given two festival bonuses as well as 20 percent of the basic as
Bangla New Year allowance.
Although the recommended highest basic pay is Tk 78,000, the cabinet secretary and the principal
secretary to the prime minister will get a basic of Tk 86,000, while senior secretaries will be entitled
to Tk 82,000.
Their earlier pay was Tk 45,000 and Tk 42,000, respectively.
Officers of these grades have fixed salaries, which means they are not entitled to any annual
increments.
The new pay scale will impose a burden of over Tk 159.04 billion on the government in the current
financial year. Next year, it will be more than Tk 238.28 billion.
Revenue inflow has risen compared with what it was last year.

3. Public servants to get double salaries

Pay commission says governments expenditure to rise by 64%
In a move that has drawn mixed reactions, the highly anticipated pay commission report has proposed up
to more than doubled salaries for public servants, with the proposed lowest to the highest basic salary
grades ranging between Tk8,200 and Tk80,000.
The latest proposal sees a higher spike than the previous pay commissions: the two most recent
commissions in 2005 and 2009 had asked for 94% and 96% hikes respectively, while the current
commission has recommended up to 112.5% salary hike, according to the Finance Ministry.

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35

The Eighth National Pay and Service Commission (NPSC) Chairman Muhammad Farashuddin submitted
the final report to Finance Minister AMA Muhith yesterday, recommending the government to spend
63.7% more on its employees.

The commission also suggested that all kinds of deputation

appointments be cancelled in the government administration, Farashuddin said, adding that the
government has also been advised to introduce an option to allow public servants to retire after 20 years
of service, instead of the existing 25 years.
He added that the salary hike proposal would have little impact to the annual enhancement of budget and
revenue earning of the country.
The massive salary hikes were proposed as an incentive to draw in better educated talents into public
service, to raise the financial status of government employees, and to keep them in service to ensure
good governance to an expanding economy, Farashuddin said
- See more at: http://www.dhakatribune.com/bangladesh/2014/dec/22/public-servants-get-doublesalaries#sthash.jk6QCdLw.dpuf

4. Implementing a performance based compensation system

Compensation used to mean a fixed salary with annual increases. This model rested upon
employee demands to be paid based on the number of hours worked and years of service.

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Today's compensation needs to reflect the new contract between employers and
employees where performance is rewarded regardless of effort or tenure.
Pay-for-Performance ("PFP") systems tie compensation directly to specific business goals
and management objectives. To do this, companies must deliver competitive pay for
competitive levels of performance, pay above market for exceptional performance, and
reduced pay for poor performance. To achieve this, companies must match measurable
and controllable performance targets to company objectives.
In PFP systems, employees compensation is composed of a fixed base salary and a
variable component. The most commonly used variable components are:

Company equity (Phantom or actual) - the quantity and price to

be paid are typically based on a percentage of value added as
determined by the