Employees believe performance-related pay fuels productivity

Some 40% of respondents to Kelly Services’ annual Kelly Global workforce index claim that they would be more productive if they had their salary linked to performance targets.

But the survey, which polled nearly 90,000 employees in 30 countries, found that just one third (30%) of respondents’ pay is tied to some form of performance or productivity target.

The highest rates of performance-based pay were recorded by respondents in China (75%), Russia (70%), Poland (55%), the Netherlands (48%), Belgium (45%), Germany (43%), and Switzerland (40%).

Rates in other countries are Hungary (38%), France, Luxembourg and Portugal (all 36%), Italy (35%), Norway (32%), Ireland (26%), Sweden (24%) and Denmark (21%).

The research also found:

  • 54% of respondents chose pay for performance over pay for overtime.
  • 32% of respondents said their current pay is fair.
  • Highest rates of performance-based pay are in sales (78%), finance and accounting (47%) and engineering (35%).

Gary Jones, managing director at Kelly Services UK and Ireland, said: “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.

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.”