TROY, MI--(Marketwired - Jun 24, 2013) - There is widespread support for performance-based pay among employees in the United States, with nearly a third of respondents to an annual survey indicating their employment is compensated through a variable pay arrangement, and many others saying they would become more productive if they were.
According to the latest findings from the Kelly Global Workforce Index (KGWI), a total of 32 percent of U.S. respondents have their pay connected to some form of performance or productivity targets. The annual survey, conducted by Kelly Services, analyzed responses from more than 120,000 respondents in 31 countries, including nearly 12,000 in the United States.
Among those not on performance-based pay, 40 percent say they would be more productive if they had their earnings linked to performance/productivity outcomes.
Steve Armstrong, Senior Vice President and General Manager of U.S. Operations for Kelly Services, said the trend reflects widespread recognition that organizations and individuals are most productive when their interests, including incentive-based pay, are aligned.
"There are many employees who are clearly confident in their ability to perform their jobs well, and they want the opportunity to be compensated according to their performance," Armstrong said.
Results of the survey in the U.S also show:
- When asked to choose between pay for overtime worked, or pay-for-performance, respondents are almost evenly split, with 45 percent preferring pay-for-performance, and 49 percent choosing paid overtime.
- Less than half (39 percent) 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), and marketing (44 percent). The lowest are in education (21 percent) and science (28 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.
"Performance-based incentive plans can be a win-win situation. Employees can benefit from the opportunity to work smarter and raise their earnings capacity, while employers benefit from increased productivity and a more engaged workforce," Armstrong 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 or kellyservices.com.
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 kellyservices.com to review findings on the current topic.
About Kelly Services®
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