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Outcome Over Hours

Outcome over hours_180x180

Forty-six percent of workers believe they would perform at a higher level if their pay was tied to their performance. With the opportunity to directly impact organizational performance, why not give employees what they want?

"When you pay workers for their time, they’re willing to give you as much of it as you are willing to pay for. But, that doesn’t necessarily mean they’re maximizing productivity during that time.” – Tony Bradley, PC World1

Most employees believe they’re worth more than what they’re being paid. But many also believe they would be more productive if an aspect of their pay was tied to their performance. Pay earned for achieving specific goals has the potential to both drive productivity and change employee perspectives on their worth to the company.

The 2013 Kelly Global Workforce Index supports the notion that most employees are not satisfied with the level of remuneration they receive from employers. Respondents were asked to what degree the pay or compensation they received for their work was equitable. Globally, only 38 percent believe they are paid a fair amount for their work.

While the term “equitable” can be read in a broad sense – encompassing fairness to all employees and to the employer – we feel it is safe to narrow respondents’ answers to how they perceive fairness to themselves.

The question also raises an interesting idea for employers and HR managers. If employees don’t see their rate of pay as fair, it implies they are confident in their capabilities and quality of work. Employers can harness this confidence by shifting to a remuneration structure that offers incentives for performance."

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