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Examines the impending introduction of performance‐related pay to academic staff in higher education. Draws on research in both public and private sectors both in the UK and USA to suggest that there are nine lessons that those with the responsibility for introducing and operating performance‐related pay in higher education may heed. The lessons are that performance‐related pay: may not motivate academic staff; may demotivate academic staff; may alienate academic staff; objective PRP assessment of academic staff is problematic; may lead to other benefits of appraisal being dissipated; is likely to be driven by budget considerations; gives differential achievement opportunities to staff;threatens collegiality and finally affronts professionalism. Concludes that performance‐related pay is unlikely to be successful in causing academic staff to work more effectively; its impact may at best be neutral and at worst harmful.

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