One in four UK workers prefer performance-based pay

More than a quarter of UK workers believe they would become more productive if they were to receive performance-based pay, according to research.

A survey of 19,000 workers across 12 European countries, by recruitment firm Kelly Service, found just 14% of UK respondents were on an arrangement where some of their pay was tied to performance targets. This was one of the lowest rates in Europe where the average was 21%.

Of those UK 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 survey also revealed that of those UK workers not on performance pay, some 33% of men and 26% of women actually want to move to performance-based remuneration.

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.

“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,” he said.

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%).

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