The bonus element in the remuneration package of the Maltese public officers and its effectiveness

Abstract

In response to a number of issues pointed out by the Public Service Reform Commission in 1989 a performance bonus which is linked to a performance agreement was introduced. The aim of this study was to examine the effectiveness of the bonus element in the remuneration package of Maltese Public Officers, in particular those officers in Category A holding a headship position. The study delved with the relationship between factors including motivation and performance bonuses as a means of rewarding this Category of officers. Data collected by means of a questionnaire indicate that a Performance Agreement is considered as a positive aspect of their employment and the majority feels the process is fair. Moreover, public officers deem that having a performance agreement helps in setting clear targets which serve also as benchmarks against which they can measure their performance. However, not all officers feel that their objectives are clear. The study also revealed that it is unrealistic to assign a performance bonus in line with the current performance ratings. Giving an unsatisfactory bonus of 0% is inappropriate because apart from being demotivating one needs to distinguish between various levels of unsatisfactory work. Hence the widening of the lower scales would be more realistic. The majority of the respondents agree that a Performance-related Pay system is an incentive to perform better. Others pointed out that there are other incentives besides a monetary reward that increase motivation, such as recognition for work achieved and career development. Implementing both intrinsic and extrinsic motivators would consequently improve short and long motivation policies.