Profit sharing may boost employee productivity: survey

Three in every four employees in the country believe that a share in profit or an ownership stake in their employer's business will boost their productivity, a survey by global workforce solutions firm Kelly Services said.

The global survey, which included over 4,000 Indian employees, stated that a higher number of workers feel they would be more productive if their earnings were linked to performance.

"Around 73 per cent employees in India said that share in profits or having an ownership stake in the employer's business, would motivate them to perform at a higher level," the report stated.

The industries which have the highest rates of performance-based pay were business services, manufacturing, financial services and retail.

The survey also found that 56 per cent of workers are currently in an arrangement where some of their pay is tied to performance targets.

Baby Boomer employees (people aged 48-65 years) are more likely to be on some form of performance-based pay than those in the Gen Y (aged 18-29 years) and Gen X (aged 30-47 years) generations, it said.

However, of those not receiving performance pay, almost half (48 per cent) of employees said they would be more productive if they had their earnings linked to performance outcomes.

"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 the rewards of improved workplace productivity," Kelly Service Managing Director Kamal Karanth said.

The Kelly survey stated that there was a strong support for employers to take a greater role in improving the health of their workforce.

Almost two-thirds (64 per cent) respondents said employers should provide incentives to encourage a healthier lifestyle for such changes as quitting smoking, losing weight, or taking up exercise.

"Interestingly, we are also seeing a real groundswell of opinion urging employers to not only support, but to actively promote healthy employees and healthy workplaces, something that can produce a positive outcome for employers and employees alike," Karanth added.

Around 89 per cent of employees' surveyed said that employer-provided health initiatives should be part of their employment package.