New pay in European civil services:is the psychological contract changing?

Abstract

Purpose This research paper analyses the extent to which national systems are following “new pay” trends, or whether there are still traditional features, which reflect the specificity of employment in the public sector and the psychological contracts of public servants. Design/methodology/approach The data used in this paper was based on an online survey of six countries and was completed by pay experts in each case. Findings Previous comparative research on civil service pay systems has focused mostly on specific aspects of pay but this paper looks at a wide range of pay characteristics. It finds that although there have been changes in pay systems in the six countries studied, the “new pay” model has not been fully adopted and traditional reward systems are still strong, with the exception of Sweden and to a lesser extent the UK and Denmark. This is related to the importance that civil servants attach to their psychological contract in which equity and collectivism remain central values Originality/value The paper demonstrates that cultural factors and psychological contracts are important in influencing both practices and attitudes towards change in reward systems across countries and that traditional identities of public service are still evident.