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Performance pay boosts happiness
Wednesday, 08 August 2007
Life after graduation
Graduate job seekers and their employed counterparts may be able to increase workplace contentment with performance related pay, new research has found.
A study by the Lancaster University Management School, published in the journal Economica, claims that employees on the pay structure had higher job satisfaction and enjoyed a good level of job security.
The findings show a clear gender divide on performance pay with women generally enjoying the wage increase but with men happier in almost all aspects of the job including working hours and job security.
Colin Green, who conducted the research said: "Our research has shown that performance pay, as well as improving levels of satisfaction, can also improve attitudes towards job security."
He added: "Linking pay to productivity may also increase job security as wages fluctuate positively with the output of the firm, reducing the need for firms to lay-off workers in periods of weak product demand."
Recent figures compiled by BT suggest that 35 per cent of employees are more concerned with their company's corporate social responsibility than with their own pay.