Linking Performance, Development and Pay in the Danish Ministry of Finance EUPAN HRWG, Dublin Castle, 5 April 2013

Background for introducing the PULS concept Full use of employees’ potentials Clear link between performance, pay and development Structured and clear feed back to individual employees on competences, results and goals and direction for their future development Basis for continuous dialogue between manager and employee on tasks and development Starting point for a cross organisational overview over competencies and development of the organisation

The ’PULS’ concept Samtale (Dialogue) Performance Udvikling (Development) Løn (Pay)

PULS (P) Performance: Assessment of the employee’s performance (U) Development: Identification of need for and drawing up a plan for development (L) Pay: pay negotiation (or dialogue on expectations) (S) Dialogue: manager gives employee feed back on performance as starting point for a dialogue on future development

Timetable for implementing PULS Sept. 2012HR Unit presents concept and guidelines for managers Oct. 2012Workshop – training of managers Presentation of concept for employees, Q&As etc. Managers align performance assessments Nov. 2012PULS with employees Dec. 2012Promotions and payment of allowances Jan. 2013PULS with managers Febr. 2013Evaluation of concept and process May 2013’Mini-PULS’ (follow-up on development plans) Fall 2013Second round of PULS in the Ministry of Finance

Process for PULS Manager assesses employee Managers align performance assessments Employees evaluate themselves Dialogue between manager and employee Drawing up development plan

Performance assessment – academic staff 1/3 Professional level12345 Possesses analytical skillsX Delivers solutions of high qualityX Creates ideas and new solutionsX Can present a case precisely and clear with focus on the essential X Works efficiently and goal orientedX

Performance assessment – academic staff 2/3 Comprehension of processes and cooperation Is aware of processes that advance useful results X Shows judgementX Have skills and will for taking up new tasks and methods X Shares knowledge and cooperates well – internally and externally X

Performance assessment – academic staff 3/3 Efforts and commitment12345 Can stand the strainX Has a proactive and independant approach to the tasks X Has focus on learning and development X Is a good colleague who contributes to the whole X

First experiences - managers A strong management tool Supports the communication of relevant messages Works best when pay negotiation is integrated part of dialogue Gives more structure to the dialogue

First experiences - employees More structured and specific dialogue on performance and development Coherence between performance assessment and development plan Works best when pay negotiation is integrated part of dialogue Managers have been well prepared

Lessons learned - points of attention for future PULS Communication, more communication… Training of managers essential Consider methods for cross follow up Nuancing performance assessments? Next step: consolidate or develop?

Thank you for your attention ! For more information, contact: Ida Krarup, Senior Adviser: or