Pay-for-performance in local governments: the views of personnel directors

This article provides new information about the use of pay-for-performance in local governments by presenting findings from a national survey of personnel directors in municipalities and counties. The findings show that most respondents view pay-for- performance as a useful tool, even though it is only used in a minority of local governments. An in-depth analysis of 40 possible benefits and problems showed that PFP benefits are relatively undefined and that users do experience some potentially serious problems, though these problems appear less serious than the existing literature would predict.