PRP works fine in theory on an individual basis i.e., objectives are set that are a mix of hard/soft achievable/stretch targets yadda yadda yadda.
The crunch comes to the point at the end of year when the money has to be found to pay everyone.
In the private sector, the assumption is that if the majority of employees have achieved their targets, then there is extra money available. But, invariably there isn't enough extra money to give everyone something. So:
- Umbrella targets get set relating to profit that need to be met before anyone gets anything.
- All of a sudden, only those who "exceed" rather than achieve targets get money
- Bonuses are awarded as one-off lump sums that aren't pensionable.
and the list of creative variations goes on and on.
- Powerful managers (i.e., those with influence) can always swing something for someone that they want to reward. All systems can be manipulated.
I had PRP for 16 years and despite always hitting or exceeding targets, only once got a pensionable salary increase and once got a lump sum. Its a mechanism to pay the top-earners whilst chucking just enough hope and the odd small reward to those of us lower down the food chain. IN the end, I regarded it as a lottery win and had no expectations of reward being actually linked to my performance despite the tortuous hours spent on objectives and interim reviews and progress updates for both myself and my teams members.
Schools can not generate additional income. All the teachers in a school can theoretically meet or even exceed targets but, as an ex-school governor, I can tell you that there will be no money to pay them all. And certainly not as salary increases.
And then there all the arguments already made by previous posters as well. My DH, a passionate and committed job-changer primary school teacher, has just decided to bow out. After 10 years he's a broken man. I fear for my kids - no-one in their right minds would sign up to teach right now - its a horrible, horrible time to be a teacher.