Singaporeans prefer pay for performance and about two-thirds of employees in the nation are on variable pay arrangements, as per a newly released annual global survey by Kelly Services.
Latest findings from Kelly Global Workforce Index indicate that 63 percent of respondents in the nation have a proportion of their pay tied to individual performance or productivity targets.
This figure is 19 percent higher than the global average proving that there is widespread support for performance-based pay in Singapore.
Sixty-one percent of the Singapore respondents not on performance-based pay agreed that they would be more productive if they had their earnings linked to performance outcomes.
"Performance-based incentive schemes can be a win-win situation," said Mark Hall, vice president and country general manager. "Employees can benefit from the opportunity to work smarter and raise their earnings capacity, while employers benefit from increased productivity and a more engaged workforce."
Role in raising business performance
This research has emphasised the role of remuneration in raising business performance and Hall notes that it is evident organisations and individuals perform best when their interests are aligned.
Sixty-seven percent of the respondents said the incidence of performance pay is higher among those with professional or technical jobs.
Forty percent of those surveyed said their current pay is equitable to the work they do.
Findings of the survey are based on the responses from more than 120,000 respondents in 31 countries, including about 24,000 in the Asia Pacific region.
In Asia Pacific, however, Singapore lags behind five countries in rates of performance-based pay. Recording the highest levels are three countries, China, Indonesia and Thailand, each at 75 percent. These are followed by Malaysia (72 percent), India (67 percent), Singapore (63 percent), Hong Kong (62 percent) and Australia (29 percent).
"There are many employees who are clearly confident in their ability to do their jobs well, and they want the opportunity to be compensated according to their performance," added Hall.
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