Public Service: Towards Performance Management Focused on Results

The Pay Research Bureau (PRB), in its report released on Friday, dedicates an entire chapter to the evolution of the performance management system in the public service. This is linked to the potential implementation of a performance-related incentive mechanism. The PRB revisits the foundations of the Performance Management System (PMS), introduced in 2006, and the limitations observed since its deployment.

According to the report, the PMS was established as a major strategic reform, marking "a shift from a traditional input-based approach to a model that links individual and collective performance to organizational objectives." Following this reform, a Performance Related Incentive Scheme (PRIS) was envisioned. However, "although the PMS has been deployed in the public sector, instilling a certain degree of a performance culture, the PRIS, on the other hand, has not been implemented due to the lack of sufficient guarantees," according to the Ministry of Public Service, Administrative and Institutional Reforms (MPSAR).

Productivity

In its 2025-2029 government program, the executive demonstrates a renewed commitment to improving productivity and performance in public service. The report emphasizes that the government is committed to "bringing the public service to new levels of efficiency and effectiveness."

In this regard, the 2025-2026 Budget marked the reintroduction of Performance-Based Budgeting (PBB), presented as "a strategic management tool aimed at improving resource management and accountability in the public sector."

Legislative frameworks have been amended to extend this mechanism to statutory bodies, local authorities, and the Rodrigues Regional Assembly, with the aim of systematically linking funding to results and outcomes achieved.

Simultaneously, the government has underscored the need to review the existing PMS to build a "more agile and modern" state. The MPSAR believes that "the adoption of appropriate tools and processes is of paramount importance for the public service to become more efficient, resilient, accountable, and citizen-centered." Trade union federations have requested the replacement of the current PMS with a new mechanism and the reintroduction of performance-related bonuses to motivate employees.

The PRB notes that there are, in some foreign jurisdictions, result-oriented accountability systems that enable "better public accountability and improved service delivery," while strengthening the link between funding and results. One of the key objectives identified is to have "a talented, professional, representative, engaged, and productive workforce equipped with the necessary skills and values to meet the current and future needs of public sector organizations."

Performance

In this context, the PRB recommends the development of an integrated performance management framework. This framework would aim to align the PMS and Performance-Based Budgeting to "match the individual objectives of employees with the program results and performance indicators defined within the PBB framework." The report specifies that this framework would enable "the planning, implementation, monitoring, and reporting of organizational performance, while linking the performance of the organization to that of its employees."

The PRB thus recommends that the MPSAR, in consultation with the Ministry of Finance, develop an Integrated Performance Management Framework (IPMF) to implement a Results-Oriented Performance Management System (ROPMS). This framework must define clear indicators to "manage and measure individual contributions to performance-based budget results, link rewards to measurable performance, and handle underperformance."

The report also emphasizes the distribution of institutional responsibilities. The MPSAR should lead and monitor the implementation of the ROPMS. The Ministry of Finance should integrate the PBB into the system to link resource allocation to results. Meanwhile, the National Audit Office would use the generated data to conduct performance audits.

Finally, the PRB cautiously addresses the issue of the Performance-Related Incentive Scheme. It notes that "empirical evidence regarding efficiency gains related to performance-based compensation is both inconclusive and ambiguous." Pending the establishment of the new framework, the PRB favors non-financial recognition forms and recommends that annual increases continue to be granted based on performance evaluations.

The recommendations made in this chapter apply to the entire public sector, including parastatal bodies, local authorities, the Rodrigues Regional Assembly, and private secondary schools.