Yesterday (29.4.2024) the cabinet gave the green light to the general framework for the implementation of the new productivity bonus system throughout the State.
The productivity bonus in the public sector will be inextricably linked to the target setting and evaluation system for civil servants, according to the plan of the Minister of the Interior, Nikis Kerameos.
At the beginning of each year, the targets eligible for reward will be determined from the set of targets that have been set as well as the responsible organizational units for their implementation and specific performance measurement indicators (key performance indicators – KPIs) for each target.
After the year is completed, the reward amount corresponding to each body will be calculated according to the number of goals achieved.
The eligible employees who worked to achieve the goals will then be determined by their Supervisors. 40% of the available reward amount will be distributed equally to these employees while 60% will be distributed by decision of the Head in a non-horizontal way but in relation to the offer of each employee.
In this way, the role of the Heads is upgraded, who are given resources in order to evolve into essential managers of their organic units, in conjunction with other initiatives of the Ministry of the Interior such as the new target setting and evaluation system.
There is a minimum reward limit per employee who receives the bonus (so the bonus cannot be distributed to all employees of the department and thus take the form of a bonus) and an upper limit, which cannot exceed 15% of the annual basic salary of each employee, per year.
For employees who do not receive the productivity bonus, there is the possibility of non-monetary rewards (eg some extra days of leave with full pay, possibility and priority to participate in training programs).
The benefits
The benefits of this legislation are the following:
Rewarding deserving and efficient civil servants – introducing healthy incentives in the Civil Service.
Enhancing the efficiency of the Public Sector – enhancing collaboration between services that serve common goals.
Better public services – better service to the citizen.
Faster implementation of Ministry reforms and priorities.
Strengthening the image and attractiveness of the Public Sector as an employer.
The potential beneficiaries
All employees of organizations that are subject to targeting – evaluation, such as e.g. Ministries, municipalities and regions, hospitals, are potential beneficiaries of the productivity bonus.
In order for an employee to receive the productivity bonus, they must have made a substantial contribution to the achievement of a target selected for reward.
Target selection
The objectives set for each public service result from the existing target setting process for public bodies, in which the projects of the Ministries’ Annual Action Plans are integrated and specialized by General Directorate, Division and Department.
At the beginning of each year, the organizations’ reward targets will be determined, following processing by the Incentives and Remuneration Committee, which consists of officials and the competent Secretaries General, based on the priorities of each Ministry.
Grading
The objectives of the services resulting from the existing process of setting goals for public bodies are formulated in their entirety according to the SMART method.
In this way, objectives arise which are:
- Specifically,
- measurable,
- achievable,
- Related,
- Timed.
The degree of achievement of the targets selected for reward is calculated based on specific performance indicators. These indicators, as well as the documentary material that proves the progress of the achievement of the selected goals, are recorded in the Reward Information System, implemented for this purpose, with funding from the Recovery and Resilience Fund.
Selection of beneficiaries
The selection of the eligible employees and the amount of reward per beneficiary is carried out by their superiors and not by the political leadership, based on their contribution to the achievement of the specific objectives.
In order for the productivity bonus not to acquire a “remunerative” character, a minimum amount of reward per employee and a maximum number of eligible employees per organization is determined.
40% of the reward amount is distributed equally to the eligible employees and 60% is distributed non-horizontally and in relation to each employee’s contribution to the achievement of the goal.
The amount of the bonus
Eligible employees can receive a cash reward of up to 15% of their annual base salary. The budget for monetary rewards, according to the new system, amounts to a total of 40 million euros per year.
What are non-monetary rewards?
Non-monetary rewards are granted once, annually, to employees who have contributed to the full achievement of objectives and have not received a monetary reward. They are granted following thorough recommendations from the employees’ direct supervisors.
They can, for example, take the form of participation in special knowledge and skills certification programs by public administration bodies abroad.
Objectivity
The bill introduces a number of safeguards for objectivity in the process of awarding the productivity bonus:
- A methodical way of distributing the reward is foreseen, with specific mathematical formulas explicitly stated in the draft law,
- The employees who will receive productivity bonuses are selected by their superiors and not by the political leadership of the Ministries,
- The Reward Information System ensures the fair application of the productivity bonus, through the monitoring of performance metrics and the necessary documentation,
- The National Transparency Authority is given the opportunity to carry out a sample check of fair distribution and correct payment of the bonus.
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