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HMRC’s performance management set-up could lead to a system of “payment by results” for some members of staff, Taxation has learned.
The Revenue has always denied that its employees receive bonuses for hitting targets of tax collected, but Taxation understands that some line managers are using the figures to justify grades they have given team members.
HMRC’s performance management set-up could lead to a system of “payment by results” for some members of staff, Taxation has learned.
The Revenue has always denied that its employees receive bonuses for hitting targets of tax collected, but Taxation understands that some line managers are using the figures to justify grades they have given team members.
The new system classifies staff members as “exceeding”, “achieving” or “needing improvement”, and there is a 10% quota for those falling into the final category, who may not get pay rises in the future. By contrast, the pay increase for those classified as “exceeding” is higher than that for those who “achieving”.
Managers now have to defend the grades they have given in a “validation meeting” with their peers. Taxation understands that some managers are using figures for tax brought in by individual members of staff as a supposedly objective justification for a high or low grade. This has led to staff feeling pressured to hit targets to protect their pay rises, or even their jobs.
Taxation has received the following comment from HMRC press office.
“HMRC's staff are civil servants who are paid according to their grade. There is no direct link between the amount of compliance revenue that HMRC secures and individual performance bonuses. In line with the rest of the Civil Service, HMRC pays modest bonuses to employees who exceed their performance objectives, and we expect around one in five of our employees to receive such an award this year.”