KGWI Workplace Performance

KGWI Workplace Performance

This second installment in the 2013 Kelly Global Workforce Index, on the topic of Workplace Performance explores the way that performance based remuneration is gathering pace, and being embraced by unexpected groups in the workforce.

The findings suggest that employees are now more willing to accept some element of “risk” in their salary in return for the opportunity to meet benchmarks that will trigger performance bonuses. The survey also provides some insights into what employees really think about the fairness of their compensation, with a particular focus on different generational and global markets. The subject of telecommuting is featured, with latest data on the scale of this work practice and the factors that are both encouraging and preventing it across the globe. Finally, the report takes a glimpse at the phenomenon of crowdsourcing, whereby businesses are using the internet to tap into a worldwide source of suppliers for a diverse range of services.

‘Performance pay’ preferred by UK employees above pay for overtime

There is widespread support for performance-based pay in the UK with almost a third of workers already on results-based pay arrangements, and many others saying they would become more productive at work if they were.

30 per cent of UK workers have their pay tied to some form of performance or productivity targets, according to the latest findings from the Kelly Global Workforce Index (KGWI). Among those not on performance-based pay, 40 per cent say they would be more productive if they had their salaries linked to performance targets. This trend reflects growing recognition that businesses and employees perform best when their interests are aligned, including through incentive-based pay.

“There are many UK employees who are clearly confident in their ability to do their jobs well, and they want the opportunity to be rewarded according to their performance,” says Gary Jones, Managing Director, Kelly Services UK & Ireland.

The highest rates of performance-based pay are recorded by respondents in China (75%), Russia (70 percent), Poland (55 percent), Netherlands (48 percent), Belgium (45 percent), Germany (43 percent), and Switzerland (40 percent). Rates in other countries are Hungary (38 percent), France, Luxembourg and Portugal (all 36 percent), Italy (35 percent), Norway (32 percent), Ireland (26 percent), Sweden (24 percent) and Denmark (21 percent).

Results of the survey in Europe also show:

  • When asked to choose between pay for overtime worked, and pay for performance, more than half (54%) would choose pay for performance.
  • The choice of performance pay is higher among younger workers in the Gen Y and Gen X demographics, and also among males, and those with professional or technical jobs.
  • Less than one-third (32%) of those surveyed agree that their current pay is fair
  • Among job sectors, the highest rates of performance-based pay are in Sales (78%), Finance and Accounting (47%), and Engineering (35%).

Gary Jones says a renewed focus on ways of increasing productivity in organisations has placed added emphasis on the role of pay in raising business performance.

"Performance-based incentive schemes should be a win-win. Employees benefit from the opportunity to raise their pay package, while employers benefit from increased productivity and a more motivated workforce,” Gary Jones adds.

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