A new appraisal system in Hong Kong that denies pay increments to underperforming civil servants is unlikely to significantly improve efficiency, according to observers. They suggest a more balanced approach with team-based metrics.

A revamped appraisal system that denies salary increments to underperforming Hong Kong civil servants is unlikely to significantly improve efficiency, observers have said, calling for a more balanced approach with team-based performance indicators. The revised system, set to be implemented in October, will penalise the bottom 10 per cent of performers – those rated D to F on a six-grade scale – by making them ineligible for a pay increment. A 5 per cent buffer will be allowed depending on...