KPMG has welcomed suggestions that employers should offer ‘ownership’ as a way of incentivising staff, but suggests that altering business models is only one way to drive performance. Comments, made by the Deputy Prime Minister to an audience in the City, mirrored findings from a series of reports issued by KPMG and Robert Bolton, People & Change Partner at KPMG, says:
“Too often, what someone earns is indistinct from the results they achieve, but if reward is intrinsically linked to an individual’s performance, evidence suggests that productivity levels go up. Often the problem is that employees know what is expected of them, but they don’t feel empowered to act. The end result is stagnation and an environment where innovation is stifled, fear of failure paramount and motivation to change almost non-existent.
“But ownership, on its own, is only part of the answer. Successful organisations are those exhibiting a culture of ‘ownership behaviour’, where responsibility is regarded as a challenge, not a threat and where the door to better productivity is easier to open because there are a variety of keys in hand. For long-term success employers need to outline where the business is headed and what is important to success so that employees are aware what behaviours will generate results. In some cases capital investment and a change to working structures is critical, too - the reality is that staff need resources to carry out their jobs and without the funds to support them they will continue to struggle.
“Having someone to turn to for advice and the opportunity to keep their skills current is also a key ingredient, because whilst a changing ownership model will go a long way to improving results, it will have more chance of success if employees are equipped with the confidence, competence and contacts to deliver results.”
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Mike Petrook, KPMG Press Office
020 7311 5271 (t), 07917 384 576 (m) or email@example.com
Notes to Editors:
KPMG’s reports looking at employee engagement and organisational structure include ‘Payments for Success’ and ‘Cost Boomerang’ (both 2011).
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.