With PRP, employees can expect their performance to be evaluated objectively according to the standard of their work instead of the whims of a supervisor or against some ever-climbing average of their group. It is quite normal to put new starters towards the bottom of the pay band and, subject to normal performance, move them up to the midpoint (market target) within 3 to 5 years. To promote themselves, some unethical managers will suppress salaries by offering cost of living rises instead of true progression through the pay scale. This gives short term savings but, in the longer term leads to low morale, low performance, poor engagement, and even employee resignations after they have been trained. All of these consequences are very costly to the business. But used properly, PRP is a very effective way to get the best from your employees. There is however a well known reverse phenomenon where employees produce "pay-related performance" if a given salary remains below 80% of the pay band for any length of time.