Performance Pay/Remote Working Could Improve Productivity

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MEDIA RELEASE
20 June 2013

Performance Pay And Remote Working Could Improve New Zealand’s Productivity: Survey


• Half of employees say they would work harder for performance-based pay
• Home workers more focused, work longer

New Zealanders would be more productive if their pay was tied to performance and if they were able to work more from home, according to the latest findings from the Kelly Global Workforce Index™ (KGWI).

The global survey of more than 120,000 employees in 31 countries, including over 3,500 New Zealanders, examined the changing workplace and new models of engagement for businesses and their employees.

According to the survey, New Zealand has one of the lowest levels of performance-based pay in the Asia Pacific region, with just over a third (36%) of employees having a portion of their pay tied to individual performance or productivity targets. A total of 59% of employees in the Asia Pacific have some form of performance-based pay, with the highest rates in China, Indonesia and Thailand (75%). Only Australia has lower levels of performance-based pay in the region (29%).

Performance pay means greater productivity

However, almost half (49%) of all local employees not on performance-based pay believe that they would perform at a higher level if their earnings were linked to performance or productivity.

Kelly Services® general manager commercial New Zealand Wendy Hewson says productivity is a significant issue for New Zealand, as the country looks to keep pace with our major trading partners.

“It’s clear from the latest Kelly survey that more local businesses could introduce some form of performance-based pay in order to achieve greater levels of productivity,” says Wendy Hewson.

“With around half of those employees not on a bonus or incentive system saying they would have greater motivation if they were, it’s an area more New Zealand employers could explore with their staff.”

Remote workers more focused

The survey also highlighted that while only a quarter of the workforce spends at least one day a week working from home, those that do believe they are more productive.

According to New Zealand employees, the key benefits of working from home are:
1. Minimising the time and expense of commuting – 59%
2. Fewer interruptions, resulting in greater focus and productivity – 51%
3. Greater flexibility to deal with unexpected personal requirements – 46%

However, remote workers also reported a number of disadvantages, including:
1. Loss of opportunities for collaboration and networking – 50%
2. A feeling of isolation from colleagues and managers – 43%
3. Reduced access to company information and involvement in team activities – 34%

A third of all employees who worked from home, also said they tended to work longer hours and take fewer breaks when they were away from the office.

“As evolving roles and increased use of technology are having a greater impact on the workplace, clearly there are new opportunities to explore ways of increasing employee engagement and providing the motivation for improved productivity,” says Wendy Hewson.

“Employers need to work closely with their staff to understand what motivates them – whether that is an incentive scheme or the opportunity to spend at least part of the week working from home.”

“By creating a win-win focus on improving performance, we are likely to see a vital lift in workplace productivity – something that will have even greater benefits for the whole economy.”

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® News Room or www.kellyservices.co.nz

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