HR Rebecca Smith · 11 November 2015
UK workers say the route to increased productivity is through financial incentives
Want to boost productivity? A financial bonus is one of the most reliable ways to do so, but new research has found nearly half of UK employees won’t be in line for one. Incentive compensation business Xactly said over a quarter of 1, 500 workers linked financial incentives to motivation at work, with better commission, bonuses and increasing pay cited as the best ways of increasing productivity. Nearly 70 per cent said having received a bonus in the past fuelled them to push towards their next professional goal? within nine months. Many UK employers however, weren’t capitalising on utilising financial incentives to strengthen engagement among employees, with a quarter of employees saying their personal performance wasn’t at all linked to their pay package. The study also found 45 per cent of workers were paid hourly or on a fixed pay rate with no potential for a bonus. Employees said the lack of financial incentives was creating a productivity lag. Tom Castley, vice president at Xactly, said: The UK is currently experiencing a huge productivity challenge UK productivity currently falls behind the likes of the US, Italy, Germany and France. While the government was taking steps to address this with the productivity plan? announced earlier this year, Castley feels UK plc must play its part too. this isn’t about throwing money at the problem but smart, performance-based financial rewards must be used to help the UK pull itself out of the productivity pit, he added. The one-size-fits-all approach that many employers adopt, was, Castley said, an ineffective approach and should be ditched in favour of tailoring compensation schemes in order to encourage and maintain motivation among staff.
ABOUT THE EXPERTRebecca Smith
Rebecca is a reporter for Business Advice. Prior to this, she worked with a range of tech, advertising, media and digital clients at Propeller PR and did freelance work for The Telegraph.