According to the recent Kelly Services study, the global workforce favors greater ownership stake in their jobs, with 60 percent respondents saying profit sharing would motivate them to perform better. The findings are part of Kelly Services’ annual study – Kelly Global Workforce Index, conducted over 1,34,000 people from 29 countries across Europe, Asia Pacific and North America including almost 13,000 in the United States.
Interestingly, more than half of all Americans surveyed believe they would be more productive if they have a greater interest in the companies they work for, through benefits like profit sharing. “Such arrangements create a powerful bond between employees and employers and can motivate people to be more productive or creative,” explains George Corona, Executive Vice President and Chief Operating Officer, Kelly Services. It’s a little wonder then why the idea of giving an employee a “slice of the pie” is gaining appeal. “As the global talent shortage looms, employers need to stress on improving workforce productivity through employment packages that align individual performance to corporate goals,” adds Corona.
The study shows that Gen X (aged 30-47) employees are much more likely to be receiving performance-based pay than Gen Y (aged 18-29) or those in the Baby Boomer generation (aged 48-65). Male employees are also more frequently in performance pay plans than their female counterparts.
Of those who do not have such an arrangement, more than a third would like to see this practice adopted by their employers, particularly Gen Y and male employees. “Most employees are keen on having a part of their compensation tied to their organization’s financial performance,” elaborates Mike Webster, Executive Vice President and General Manager, Kelly Services.
Aside from salary, the highest rated benefit for all generations is Training, but it is much more important to Gen Y and Gen X.
Additionally, the survey highlights that employers with a proactive role in improving the health of their workforce are preferred, with 84 percent respondents saying that employer-provided health initiatives should be part of their employment package. “These programs can yield benefits for both employers and employees by creating a more productive and energetic work environment,” confirms Webster.
Approximately half of all generations rate employer-provided health benefits as “very important” and believe that employers should provide an incentive for adopting healthier lifestyle changes e.g. quitting smoking, losing weight or taking up exercise. Roughly 80 percent of all generations think that employers should take responsibility for employee health and well-being. The employer-provided health benefit that is most attractive to all generations is health insurance, while gym access or discounts are relatively popular with Gen Y.
“Across the workforce, there is an expectation that employers need to move beyond traditional areas of compensation in looking after the well-being of their key people. With many spending considerable time working, employee health and welfare has become vital,” Corona explains. “So it is not surprising that health and training have emerged as two key priorities for many individuals. These are also the benefits that help to strengthen commitment for the long term and are recognized as a good investment in human capital by employers,” he concludes.
Other results of the survey in the United States about employee benefits and perks shows:
- 51 percent say that profit sharing would motivate them to perform at a higher level.
- Among major U.S. regions, the largest concentration of workers receiving performance pay is in northern New Jersey and Memphis, Tennessee (both 33 percent), followed by Portland, Oregon (32 percent), Tampa, Florida; New York City; and Raleigh-Durham, North Carolina (all 31 percent).
- Industries with the highest rate of performance-based compensation include financial services, travel & leisure, retail, and business services.
- Aside from salary, the reward that rates highest is health benefits, followed by flexible hours and retirement benefits.
- More than two-thirds (67 percent) believe that employers should provide incentives to encourage a healthier lifestyle for changes like quitting smoking, losing weight, or taking up exercise.
( Source: Kelly Global Workforce Study)
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