TORONTO--(Marketwired - Jun 24, 2013) - There is widespread support for performance-based pay among employees, according to the latest findings from the Kelly Global Workforce Index (KGWI), an annual survey conducted by workforce solutions leader Kelly Services. The survey analyzed responses from more than 120,000 respondents in 31 countries, including more than 5,000 in Canada.
Survey results show that a total of 40 percent of respondents in Canada have their pay based on some form of performance or productivity targets, according to the latest findings from the KGWI, while nearly a third of respondents are on variable pay arrangements.
Among those not on performance-based pay, 43 percent say they would be more productive if they had their earnings linked to performance/productivity outcomes.
Kristin Supancich, Vice President and General Manager of Canadian Operations for Kelly Services, said the trend reflects widespread recognition that organizations and individuals perform best when their interests are aligned, including through incentive-based pay.
"There are many employees who are clearly confident in their ability to perform their jobs well, and would like the opportunity to be compensated according to their performance."
Results of the survey in Canada also show:
- The incidence 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 careers.
- When asked to choose between pay for overtime worked, and pay-for-performance, more than half (53 percent) opt for pay-for-performance.
- Only half of those surveyed agree that their current pay is equitable.
- Among Professional and Technical employees, the highest rates of performance-based pay are in sales (68 percent), engineering (53 percent), marketing (53 percent), and IT (46 percent).
Performance based pay includes any arrangement where an element of the total remuneration is tied to meeting performance targets, including profit sharing, performance bonuses and sales commissions.
Supancich said a renewed focus on ways of lifting productivity in enterprises has placed added emphasis on the role of remuneration in raising business performance.
"Performance based incentive plans can be a win-win situation. Employees can benefit from the opportunity to work smarter and boost their earnings capacity, while employers benefit from increased productivity and a more engaged workforce," Supancich said.
Complete findings are published in a new report, Paying for Performance. For more information about the Kelly Global Workforce Index and key regional and generational findings, please visit the Kelly® Press Room. Canadian results can be found by visiting kellyservices.ca.
About the Kelly Global Workforce Index™
The Kelly Global Workforce Index is an annual survey revealing opinions about work and the workplace from a generational viewpoint. Approximately 122,000 people from the Americas, APAC and EMEA participated in the survey. Results will be published throughout 2013 on a variety of topics such as employee retention, social media and technology, and the changing workplace. Visit www.kellyservices.com to review findings on the current topic.
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