British Workers Want Pay For Performance
Media Release
08 February 2006
Workers say productivity would rise if pay linked to performance
A new international workplace survey has found that a large proportion of workers in the UK believe they would become more productive if they were to receive performance-based pay.
The survey found just 14% of workers were currently on an arrangement where some of their pay was tied to performance targets – one of the lowest rates in Europe where the average was 21%.
However, of those workers not on performance pay, more than a quarter (28%) say they would be more productive if they had their earnings linked to performance outcomes.
The Kelly World at Work survey, conducted by global recruitment agency, Kelly Services, sought the views of almost 19,000 workers in 12 countries across Europe.
In the UK, approximately 18% of men and 12% of women were on performance-based remuneration.
Performance based pay includes any arrangement where an element of the total remuneration package is tied to meeting performance targets and may include, profit sharing, performance bonuses and sales commissions.
Those countries with the strongest element of performance based remuneration were Russia (42%), Germany and Switzerland (both 25%), Denmark (24%), Italy (22%) and Norway (21%).
Steve Girdler, Director of Marketing at Kelly Services UK, said it was surprising that some employers seemed reluctant to give workers the opportunity to become more productive through performance based pay.
“Many employees are clearly confident in their own ability to perform their job well and want the opportunity to be judged according to their performance.
“For employees, there is also the risk that they may not perform as well as expected and therefore actually lose income,” he said.
Younger workers, males, and those with tertiary qualifications were generally more willing to take on the risk - and reward - of performance based pay.
The survey found that of those British workers not on performance pay, some 33% of men and 26% of women actually want to move to performance-based remuneration.
“Performance-based incentive schemes can be a win-win situation. The employee benefits from the opportunity to prove their worth and gain an increase in pay, while the employer benefits from increased productivity and a more motivated workforce,” Girdler said.
Kelly Services’ fourth annual salary survey report for 2006 was also released today. Data from 120 Kelly Services’ offices throughout UK and Ireland delivered the latest trends across 30 regional areas and Kelly’s specialist industry divisions: scientific, engineering, education and finance and accounting. As revealed by both studies, the desire for more performance related pay demonstrates a greater confidence in UK workers which is also reflected in the growing numbers of Free Agents wanting a more flexible work style. Kelly has tracked this trend over 18 months and anticipates it continuing in 2006. In order to maintain higher rates of pay, improved control of work/life balance and broaden horizons, more and more of the UK’s workforce are turning to the more independent free agent model.
To obtain a copy of the Kelly salary survey 2006, please email: kellyinfo@kellyservices.co.uk
Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a Fortune 500 company headquartered in Troy, Mich., offering staffing solutions that include temporary staffing services, staff leasing, outsourcing, vendor on-site and full-time placement. Kelly owns and operates nearly 2,600 offices in 30 countries and territories. Kelly provides employment to more than 700,000 employees annually, with skills including office services, accounting, engineering, information technology, law, science, marketing, light industrial, education and health care. Revenue in 2004 was $4.98 billion. Visit http://www.kellyservices.com
