The expansion of the incentive and reward system (productivity bonus) to public bodies were presented to the cabinet by the minister and the deputy minister of the interior, Niki Kerameos, and Vivi Charalambogianni, respectively.
Beneficiaries of the new system are the civil servants of the bodies subject to the target setting – evaluation (Ministry, municipalities and regions, hospitals).
At the beginning of each year, the targets to be rewarded for the public bodies will be determined, after processing by the Incentives and Rewards Committee, which consists of service executives and the competent Secretaries General, based on the priorities of each Ministry. As long as these goals are achieved, employees who have substantially contributed to their achievement will receive the productivity bonus.
Eligible employees may receive a cash reward up to 15% of the annual basic salary their. 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.
The 40% of the reward amount is distributed equally to the eligible employees who worked to achieve the goal and the 60% is distributed not horizontal and in relation to the specific contribution of each employee to the achievement of the goal.
The bill also provides safeguards to prevent the bonus from turning into a horizontal allowance, while non-monetary rewards are also introduced, which can for example take the form of participation in special knowledge and skills certification programs by public administration bodies abroad.
Kerameos: “Healthy incentives in the State”
According to the competent ministry, the goal of the new system is to enhance the productivity and efficiency of civil servants in order to achieve a faster and more efficient implementation of reforms with the ultimate goal of optimal service to citizens.
In her statement Ms. Kerameos said: “We are introducing healthy incentives to the State. We invest in our people, we reward civil servants who are particularly efficient. We are changing the perception of the State through a rich reform network that aims to create a more modern, friendlier, more efficient state that will better serve the citizen.”
Ms. Charalambogianni, for her part, said: “Today, we are fulfilling another of our pre-election commitments, with the new incentive and reward system that is part of our broader strategy for the management of human resources in the public sector. We inextricably link the new legislation with the target setting and create an environment of motivation, meritocracy, transparency and efficiency, for the benefit of the citizens.”
Nine questions – answers about the productivity bonus
The Ministry of the Interior provides details on the new incentive and reward system for civil servants with 9 questions and answers.
What is the new incentive and reward system for civil servants (productivity bonus)?
This is a new system for rewarding public servants for their substantial contribution to the achievement of defined and measurable goals, completely connected to the existing target-evaluation system and to the Ministries’ Annual Action Plans.
The aim of the new system is to enhance the productivity and efficiency of civil servants in order to achieve a faster and more efficient implementation of reforms with the ultimate goal of providing the best service to citizens.
What are the benefits of the productivity bonus?
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 cooperation 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.
Who does the productivity bonus apply to?
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.
How are the targets to be rewarded selected?
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.
How is the degree of achievement of the objectives calculated?
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.
How are the eligible employees selected and how is it ensured that it does not end up being a bonus for all?
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 the contribution of each employee to the achievement of the goal.
What is the amount of monetary reward that the employees receive?
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.
How is objectivity ensured in the process of awarding the productivity bonus?
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 that are 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.
Source: RES-MPE
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