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Performance pay

Performance payments are defined as any lump sum payments made to staff (whether as part of an individual performance assessment or a collective agreement settlement) that relate to performance, incentive, productivity, exceeding expectations, collaborative or innovative work or achieving results. In 2015, the number of employees receiving performance payments has dropped to 1,308 which is 3% of all staff. The average performance payment is $3,061 which is 14% higher than in 2014. The trend since 2011 is shown in Table 3.6.

Table 3.6 Lump sum performance payments, June year 2011 to 2015
2011 2012 2013 2014 2015
Number of staff receiving performancements 1,667 5,361 6,092 1,634 1,308
Percentage of staff receiving performance payments (%) 4% 12% 13% 4% 3%
Average value of performance payment ($) $3,538 $1,345 $1,626 $2,688 $3,061

The large decrease in the number of performance payments in 2014 compared to 2012 and 2013 was a result of the Ministry of Social Development collective agreement settlement to make productivity dividend payments for the 2011/12 and 2012/13 years only.

Twenty two departments made performance payments in 2015 while seven agencies did not. Around 73% of performance payments were given by six departments: Foreign Affairs and Trade, Land Information New Zealand, Business, Innovation and Employment, Internal Affairs, Treasury and Corrections.

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