Masterplan for Linking Pay To Productivity

Mr. Cornelius Yawson- Director Performance Management, Monitoring and Evaluation- FWSC

The public services have for years been perceived as not suited for the application of private sector management practices. All that is changing now with the adoption by many countries world-wide of the new public management concept which adopts private sector management practices including performance management, based on target setting, otherwise known as results-based performance management.

The Forward to the Budget Statement and Economic Policy of the Government of Ghana for the 2007 Financial Year,( the Budget that introduced the Single Spine Pay Policy and dubbed “Growth and Stability -Towards Fair Wages”), had stated the broad objective for the Single Spine Pay Policy (SSPP), which it termed a pay reform, as “to aim for wage increases in line with productivity gains, cost effectiveness and efficiency”.  It added that the pay reforms “will be sustained to boost private sector development through an enhanced public services delivery, in order to deepen the public-private sector partnership for accelerated growth   

Following the promulgation of the FWSC Act, a White Paper was issued by the government of Ghana which endorsed the introduction of a robust public service wide performance management, monitoring and evaluation system as recommended by the Consultant appointed to develop a new pay policy. This was borne out of the need to establish a link between the new pay policy and performance management and thus stop the automatic annual salary increments which are not based on annual performance assessment. It was recognized that improved compensation must be driven by improved performance or productivity.

The establishment of a link between pay and performance through the institution of a robust public service wide performance management, monitoring and evaluation system and the stoppage of the automatic annual salary increments would involve integrated and complementary systems interventions as well as a massive change initiative with all its ramifications.

To achieve this component of the policy, the FWSC has developed various programmes and activities with the active involvement of other central management agencies, to be implemented over a five-year period. Being basically a change management and reform process, the interventions would be woven into a four-step change management process of creating a vision and readiness for change, dealing with barriers, obstacles and resistance to change-creating a culture for change, implementing change and finally institutionalizing and anchoring change. 
The actual interventions would be three-fold:
a)    Massive and sustained sensitization, awareness creation and education;

b)    Training including leadership and management development for supervisors and managers aimed at attitudinal and cultural change at the national, sectoral and institutional levels.

c)     The review, development and institution of systems, structures and processes culminating in the roll-out of a robust public sector wide performance management system, the fulcrum of the objective to link pay to productivity.

These would be anchored through a Monitoring, Evaluation and Feedback system which will check to see the achievement of the objectives of the interventions.
The architecture for carrying out the interventions would include a Steering Committee and a Project Implementation Team at the top-tier. Sub Teams of the Project Implementation Team will include, sensitization, organizational systems review and change management sub committees as well as monitoring and evaluation teams at various levels of implementation
The time table for implementing this phase of the policy includes:

  • A programme for massive sensitization, awareness creation and education in 2016/2017 and throughout the programme
  • Systems review development and institution; including the introduction of performance management instruments
  • Piloting of the programme in 2018
  • Roll out from 2019 to 2020 and phase out or exit plus mainstreaming in 2021.
  • Change management and monitoring and evaluation would be throughout the lifespan of the project.


Mapping and Migration

Mapping is the process of placing individual jobholders in an institution on the Single Spine Grade Structure based on established guidelines

Notes on the Single Spine

The Fair Wages and Salaries Commission and labour unions, associations, institutions :