Employees were asked if their performance was linked to pay and the results were a bit bleak

 
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Workers in some industries get more rewards for performance than others (Source: Getty)

Most employees don't think their performance is linked to their pay packet, according to a new study.

Less than half of workers in every industry surveyed by Emoulement agreed that their pay was linked to performance. In the study of 2,200 people, only 34 per cent of those who received bonuses thought there was a link, with this slipping to just 24 per cent among people who do not get bonuses.

The study also ranked industries by how strong the link between pay and performance was perceived to be. While jobs which used well-established metrics -such as billable hours for law - were at the top, less structured industries were at the bottom. Sports, culture and recreation lagged far behind the rest of the pack with just eight per cent believing their performance was linked to pay.

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How performance-related is your pay?

Rank Industry Percentage of employees who feel performance is a significant factor in pay
1 Recruitment and executive search 42 per cent
2 Law practice 40 per cent
3 Construction and real estate 35 per cent
4 Technology and telecoms 34 per cent
5 Transportation and logistics 34 per cent
6 Energy, mining chemicals, environmental 33 per cent
7 Services, tourism, restaurants 33 per cent
8 Consulting and professional services 32 per cent
9 Financial services 30 per cent
10 Manufacturing 29 per cent
11 Charity and not for profit 29 per cent
12 Healthcare 29 per cent
13 Pharmaceuticals and biotech 28 per cent
14 Media, communication, music, gaming 25 per cent
15 Insurance and reinsurance 25 per cent
16 Consumer goods and FMCG 25 per cent
17 Retail and trade 25 per cent
18 Public sector and education 22 per cent
19 Sports, culture and recreation 8 per cent

While some performed better than others, no industry had a majority of people who agreed about the performance-linked nature of their pay packet.

Alice Leguay, co-founder & CMO at Emolument said that this is bad news for employee motivation and productivity.

"If employees do not believe performance drives pay, what do they think does?" she said. "Is it longevity, politics, being in the right place at the right time?

"Whatever it is, the belief that performance has little or no impact on remuneration is disheartening and cannot possibly encourage productivity or a thriving corporate culture. Lack of transparency when it comes to remuneration may be an aggravating factor fostering suspicion and negativity as employees are concerned that they may be earning less than their peers with no way of benchmarking their pay."

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