Hays survey: Chinese more willing to back themselves through performance-based bonuses
(Aug. 10, 2015,/HRoot.com/) 63 per cent of Chinese professionals would take a base salary cut for the opportunity to potentially earn more through performance-based bonuses, according to a new poll by recruiting experts Hays.
In the online poll of 480 people in mainland China , Hays found that 49 per cent would take a base salary cut of up to 20 per cent in order to receive a bonus based on their performance. A further 14 per cent would take a cut of more than 20 per cent for that same opportunity. The final 37 per cent prefer not to roll the dice and would not cut their base salary in order to potentially earn more through a bonus based on performance.
“Skilled professionals in China are very confident in their own capabilities and their capacity to achieve high results. They are therefore willing to bet on themselves and sacrifice a portion of their base pay for the chance to earn more in a bonus based on their performance.” says Christine Wright, Managing Director of Hays in Asia. “That’s a strong sign of a confident talent pool who feel the local market gives them the opportunities they need to excel. Such a positive market encourages people to take risks, be innovative, trust in their own competency, and take advantage of their expertise. Our poll result also points to Chinese professionals’ high entrepreneurial spirit and pro-activeness in the workforce.”
According to Christine, such bonuses work best when there is clear and open communication from both sides of the employment equation. “Both the employer and employee need to be aware of the objectives that must be met in order to qualify for the bonus, which is why they are often tied to performance appraisals. The minimum performance expectations must be made clear, otherwise an employee may not feel they are being rewarded fairly for their performance. Communication is essential to make sure both sides are fully aware of the objectives that need to be met in order for performance-related bonuses to be awarded.”