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 departmental circumstances, while professional grades and smaller departments may reduce the quota of penalised staff with justification.

“Is a single salary point enough of a real punitive measure? Is it sufficient as a proper performance management tool? Clearly, it is not,” said Alexa Chow Yee-ping, managing director of ACTS Consulting.

She explained that the bottom 10 per cent of performers could still receive their regular pay progression despite being denied a salary point increment.

Chow added that 37 per cent of civil servants had already reached the maximum point of their pay scale.