In my company they use RA (Result Agreement) and CA (Competence Agreement). The RAs are things like projects you've participated in and brought to a satisfying conclusion. The CAs are training and certification. Both RA and CA get evaluated every 6 months, you'll also agree (manager and you) to new RAs and CAs. Your raise is directly linked to your RA and CA. If you score normal you get a normal raise. If you score outstanding you get a higher raise. Seems to work...

As for paying for training/certification, my company pays the bill. I only have to pay them back if I leave the company within a year.