Performance-Based Rank and Remuneration University Policy for Increased Motivation and Quality

Abstract Motivation plays an immense role and is one of the key factors for successful and qualitative performance in all spheres of personal and professional engagement of individuals. Therefore, educational institutions, including academia, pay special attention to finding tools for motivating students, but also for motivation of their academic staff. Increased motivation has shown to lead to better performance and better performance inevitably contributes to quality enhancement at both individual and institutional level. The aim of this paper is to present an institutional Ranking and Remuneration (R&R) Policy based on Key Performance Indicators (KPIs) in four areas identified as the most crucial for successful operation of a higher education institution: teaching and learning, research, staff digital profile, service to society and project-based activities. Southeast European University (SEEU) in North Macedonia has developed KPIs in these four areas through an inclusive and transparent process based on its unique Total Quality Management (TQM) approach. The policy has been created after many consultations, trials and simulations and its main objective is to enhance institutional academic productivity and effectiveness through a human resource vibration that starts from individual evaluation, motivation and performance differentiation and leads to stimulation for achieving excellence. It is at an initial stage and if tested well in practice, it can serve as a model for other higher education institutions in the country and wider.