WA's small business commissioner says senior public servants should have up to 20 per cent of their pay linked to key targets to help the public service run more effectively.
Amid the debate over the public service redundancies, Commissioner David Eaton said the government sector would run more efficiently if an average 5 to 10 per cent of a senior public servant's pay was put "at risk" by linking it to medium-term key performance indicators.
Mr Eaton said as much as 20 per cent should be linked to performance in extreme cases involving a significant departmental transformation or innovation, though anything higher than this amount was not appropriate.
KPIs should not just be about attaining a good financial position but about servicing the community.
"(It's possible) to introduce some performance management processes to give an incentive to drive change without throwing out the public service culture and the focus on serving the public," he said. It would also help attract and retain talented people in public service roles.
The Chamber of Commerce and Industry also argued for similar private sector KPIs linked to rewards in its pre-Budget submission.
The commissioner's comments came as Premier Colin Barnett introduced reforms into Parliament, ending the "job for life" entitlement of WA public servants.
As well as paving the way for retrenchments, the Bill compels the WA Industrial Relations Commission and Salaries and Allowances Tribunal to pay greater regard to the Government's public sector wage policy and financial position in determining wages.
Opposition Leader Mark McGowan said the Government needed to provide a "very good explanation" for waiving the requirement when considering MPs' salaries.
He also said the Government was seeking a "blank cheque" for mass sackings by keeping the details surrounding retrenchments out of yesterday's legislation and instead introducing them via regulations, which were approved by the executive.
Mr Barnett said retrenchments would only happen "as a last resort" when employees could not, or would not, be redeployed to other public sector jobs.Workers could challenge in the WAIRC the legitimacy of any claim by employers that they were no longer required and could not be redeployed.