You’ve got to Pay to Boost Productivity – Money is Best Motivator, yet over a Third of Employers do not use this to Engage Staff
Study finds over a quarter of UK workers feel immediately motivated after a financial incentive, yet 45% have no chance of a bonus and a quarter state personal performance cannot impact pay
London, UK: November 11th 2015 – An independent study commissioned by Xactly, (NYSE: XTLY), a provider of cloud-based incentive solutions, has revealed that financial incentives are key to engaging employees and boosting productivity, but many organisations are not yet acting on this, failing to offer staff any financial incentives or compensation opportunities.
Despite over a quarter (27%) of UK employees stating a financial bonus is their main motivator, a large portion of employers do not run any kind of monetary incentivisation programme. 45% of respondents are paid hourly or on a fixed pay rate with no potential for a bonus, and a quarter (25%) stated their personal performance is in no way connected to financial incentives or affects their pay package. The scale of the missed motivational opportunity is made clear with respondents who had previously received a bonus, with over two-thirds (69%) stating that it motivates them to push towards their next professional goal within nine months.
“The UK is currently experiencing a huge productivity challenge – UK productivity currently falls behind the likes of the US, Italy, Germany and France. The government is taking steps to address this with the Productivity Plan announced this year, but UK plc must play its part too,” commented Tom Castley, Vice President EMEA at Xactly. “These findings highlight the gap between what motivates employees and what businesses are doing to engage them. The best way to boost productivity is to boost employee engagement – financial incentives are key. Of course, this isn’t about throwing money at the problem – but smart, performance-based financial reward must be utilised to help the UK pull itself out of the productivity pit.”
In addition to highlighting the importance of financial motivation, the study revealed money is not the only factor in engaging employees. Despite a third (33%) of those questioned admitting they wouldn’t work if they didn’t have to, over a quarter (28%) stated they still would. When asked to indicate what would motivate them to go the extra mile, most respondents said
increased pay (34%) and better commission and bonuses (27%), while internal recognition also ranked highly with 27%. Almost a quarter (23%) of respondents also said the opportunity for personal career growth would entice them to stay in a role for less money, while 25% that flexible working hours was the most appreciated non-financial incentive.
“This research shows the answer to boosting the UK workforce’s productivity lies with incentive and compensation schemes. While money is unsurprisingly a big driver in encouraging staff to go above and beyond the call of duty, it is not the sole motivator,” commented Castley. “It is vital for organisations to ditch the ‘one size fits all’ approach and tailor their compensation schemes to positively encourage their satisfied and motivated workforce.”
Xactly is a leading provider of enterprise-class, cloud-based, incentive compensation solutions for employee and sales performance management. We address a critical business need: To incentivize employees and align their behaviours with company goals. Our products allow organizations to make more strategic decisions, increase employee performance, improve margins, and mitigate risk. Our core values are key to our success, and each day we’re committed to upholding them by delivering the best we can to our customers. Noted for our exceptional workforce satisfaction, business success and thriving culture of motivated employees, Xactly was named one of the best workplaces in the U.S. by Great Place to Work® and Fortune Magazine in 2014 and 2015,
©2015 Xactly Corporation. All rights reserved. Xactly, the Xactly logo, and “Inspire Performance” are registered trademarks or trademarks of Xactly Corporation in the United States and/or other countries. All other trademarks are the property of their respective owners.
Notes to editors
This survey was commissioned by leading provider of cloud-based incentive solutions Xactly Corporation. The primary research was undertaken by the research agency Atomik Research during the first half of 2015, with 1,508 full or part-time employees from UK-based private sector companies.
Research from Gallup has found that in the U.S., 32% of workers were engaged in their jobs in September. Monthly figures have not wavered since the beginning of 2015, consistently trending between 31% and 32%. Gallup categorises workers as “engaged” based on their ratings of key workplace elements that predict organizational performance outcomes, such as productivity, profitability and customer engagement.
For more information about the findings of this report or to speak with an Xactly spokesperson, please contact:
Kelly Bowen, Harvard PR Amanda Fennell
Account Manager Marketing Director, EMEA, Xactly
T: +44 (0)20 7861 1640 T: +44 (0) 203 695 0468
E: Kelly.firstname.lastname@example.org E: email@example.com