Under the current pay structure British police pay is related to rank rather than to role and to seniority rather than skill. Annual increments are automatically given regardless of individual performance or corporate success. Such a system may suppress employee motivation and creativity and fail to orient work behavior toward tangible achievements. Performance-related pay systems, on the other hand, tie pay directly to performance. Included in such a system are the use of individual wage incentives, promotion upon merit, and rewards for special achievements. Penalties are typically dependent upon falling below some minimum standard of performance. This system requires that the performance and skill standards used in the allocation or rewards and penalties be objective and measurable. Although performance-based pay rates have the appeal of rewarding and sanctioning behaviors that add to or detract from organizational goals, there are many difficulties in constructing an equitable pay system. There will be difficult choices about the relative value of various roles and skills. The consequences of context and location within which individuals operate will be debated, and there will be problems in crediting organizational results to particular individuals. Performance-related pay will lead to increased administration and a greater training requirement, with all the associated resource implications. Employee support for such a system may also be difficult to obtain. 22 references