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UK workers feel they would be more productive if their pay was linked to performance outcomes

More than half of UK workers think they would be more productive if they were able to share in profits or have an ownership stake in their employer's business.

The Kelly Global Workforce Index, which obtained the views of approximately 134,000 people in 29 countries, including 6,000 in the UK, also found 30% of UK workers are currently in an arrangement where some of their pay is tied to performance targets. Gen Y (aged 18-29) and Gen X (aged 30-47) employees are more likely to be on some form of performance-based pay than those in the Baby Boomer generation (aged 48-65).

But of those not receiving performance pay, more than a third (36%) say they would be more productive if they had their earnings linked to performance outcomes, with Gen Y the most attracted to it.

There is strong support for employers to take a greater role in improving the health of their workforce, with half of those surveyed saying employers should actually provide incentives to encourage a healthier lifestyle for such changes as quitting smoking, losing weight or taking up exercise.

Andrew Cook, Kelly Services’ interim general manager for UK & Ireland, said: "Many employees are actually quite comfortable about some element of their compensation being tied to their individual or group performance. This indicates that many are confident in their ability to perform their jobs well and believe they can share in the rewards of improved workplace productivity.

"Interestingly, we are also seeing a real groundswell of opinion urging employers to not only support but also to actively promote healthy employees and healthy workplaces, something that can produce a positive outcome for employers and employees alike."

The survey also found 53% say that profit-sharing or an ownership stake would motivate them to perform at a higher level, with men more attracted to the idea than women. Those industries with the highest rates of performance-based pay were financial services, business services, IT and science/pharmaceutical.

Aside from salary, the benefit that is rated most highly is training (54%), followed by flexible working (18%), holiday or personal time off (9%) and retirement benefits (8%).