Rewarding Public Servants: Continuity and Change

This chapter considers the changing nature of the reward relationship between employers and their employees in the UK public sector focusing primarily on central and local government and the NHS. The ‘effort bargain’ (Behrend, 1957) in the public sector has traditionally been different to that in the private sector. Given that public sector employment has always been associated with bureaucratic institutions with a strong emphasis upon the so-called public sector ‘ethos’, as opposed to the overriding profit motive and income maximisation of private sector employment, this difference is not surprising (see Chapter 4 in this volume for a fuller discussion). In accordance with public sector values, personnel policies have prioritised careers, equity of treatment and recognition of service, rather than strong financial incentives and competition between staff. Similarly, reward policies in the public sector have tended to incorporate clear grading and promotion structures, collective determination of pay and conditions, service-related pay progression and relatively generous benefits compared to those in the private sector. The recruitment and retention of staff have been paramount considerations and have often taken precedence over issues of motivation.