A national workplace survey has found almost a third of all New Zealand employees are on performance-based pay and many more would like to be. The survey by global recruitment agency Kelly Services found 32 per cent of workers were on arrangements where part of their salary was tied toperformance targets. A further 17 per cent said they wanted to be.
Almost 1000 people in New Zealand and more than 2400 in Australia were surveyed for their views. New Zealand has almost one third of its workforce on performance pay, while Australia has only 12 per cent on these incentives.
Performance-based pay includes any arrangement where an element of the total remuneration package is tied to meeting performance targets and may include profit sharing, performance bonuses and sales commissions.
Kelly Services' regional manager John Phipps said New Zealand employers had taken a positive step in embracing performance pay schemes.
"Many employees are clearly confident in their ability to perform their job well and want the opportunity to be judged according to their performance," he said.
Older workers believed they would perform better under a performance-based pay scheme. The 55 and older age group was the most enthusiastic, with 35 per cent wanting the incentive-based approach, followed by 29 per cent of those aged 35-44.
Workers aged 15-19 were the least in favour, only 20 per cent preferring the incentive-based approach.
