Profit sharing can boost staff productivity

by 19 Aug 2010

Australian employers attempting to boost employee productivity should consider offering some kind of profit sharing scheme, according to the latest survey from Kelly Services. 

The Kelly Global Workforce Index revealed that more than half of Australians surveyed believe they would be more productive if they were able to share in profits or have an ownership stake in their employer’s business

Managing director of Kelly Services Australia, Karen Colfer 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.”

The report obtained the views of approximately 134,000 people, including more than 20,000 in Australia. The survey also found 30 per cent of 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 much more likely to be on some form of performance-based pay than those in the Baby Boomer generation (aged 48-65).  However, of those not receiving performance pay, more than a third (37 per cent) say they would be more productive if they had their earnings linked to performance outcomes, with Gen Y the most attracted to it.  “Interestingly, we are also seeing a real groundswell of opinion urging employers to not only support, but to actively promote healthy employees and healthy workplaces, something that can produce a positive outcome for employers and employees alike,” said Colfer.

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