Wednesday, August 11, 2010

Workers fancy sharing profits with employers

A survey finds that 85 per cent of respondents said that profit-sharing or an ownership stake would motivate them to perform better.

More than three-quarters of the Malaysian workforce believe they will be more productive if they have an ownership stake in their employers' business, according to the latest survey from workforce solution firm Kelly Services.

The Kelly Global Workforce Index (KGWI) found that 85 per cent of respondents said that profit-sharing or an ownership stake would motivate them to perform better.

The survey also revealed that slightly less than two-thirds of the respondents' pay is tied to performance targets.

Generation (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).

"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," Kelly Malaysia managing director Melissa Norman said in a statement.

The KGWI study covered views from about 134,000 people, including almost 2,000 in Malaysia.

The annual survey found that of those not receiving performance pay in Malaysia, more than two-thirds said they would be more productive if they had their earnings linked to performance outcome.

It was found that industries with the highest rates of performance-based pay were government, travel/leisure and financial services.

"By providing a scheme where employees can share in profits, employers are providing a platform where employees can take charge of their own careers in terms of how much 'extra income' they can achieve via performance incentives or profit-sharing, and this is something that can produce a positive outcome for employers and employees alike," Norman said.

There is also strong support for employers to take a greater role in improving the health of their workforce, with almost three-quarters of respondents saying employers should provide incentives to encourage a healthier lifestyle such as quitting smoking, losing weight, or taking up exercise.

Besides salary, the benefit that rated most highly was training, followed by health benefits, flexible hours and retirement benefits.

Some 95 per cent of those surveyed said that health initiatives should be part of their employment package.

Under health benefit provided by employers, the most attractive was health insurance, followed by gym access or discounts, corporate exercise programmes and a smoke-free environment.

About 134,000 people from North America, Europe and Asia Pacific responded to the 2010 KGWI survey, with results published on a quarterly basis.

Hmm...if you ask me...I will give you the exact same answer as most of them :)

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