Compensation and Performance Management in the Public Sector. (Essay Sample)

Compensation and Performance Management
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Compensation and Performance Management in the Public Sector
The public sector is comprised of organizations and institutions that are operated and owned by the government. These government-owned institutions exist to provide certain services to the citizens. Public sector institutions are non-profit-making entities. Some of the services offered by the public sector include national defense, firefighting, health, taxation, homeland security, and specific social programs (Starling, 2011). There are various methods of raising funding for the public sector such as taxes, levies and fees, and financial transfers from one level of government to the other. In order to attract quality skills and provide quality services in the public sector, workers' compensation should be tied to performance.
Pay-for-performance has emerged as a highly adopted measure of improving productivity in public institutions. Reducing costs while maintaining or improving productivity has been the expectation of many governments. The demands placed by the taxpayers who are the financiers of public institutions are becoming unsustainable, triggering the need to reduce the cost of providing services by the public sector (Nigro & Kellough, 2014). Even though the extent of taxpayers’ ability to finance government services is being pushed to the limit through taxation, the demand for these services remains high. To balance both cost and quality of government services, governments must increase the productivity of workers in the public sector.