Michael Kirsten

Globally, there is a broad spread in the adoption of performance pay, reflecting differing attitudes to work and remuneration.

The highest incidence of performance-based pay structures is found among survey respondents is in the Asia-Pacific region and among newly emerging economies. Respondents in China report a high percentage of employees on variable pay, but Indonesia, Thailand, Malaysia, Russia, India, Singapore and Hong Kong also report having more than 60% of respondents on performance pay. The rate is 30% or less in Denmark, Sweden, Ireland, Australia and the UK — a huge disparity. So, why such big differences? Is the approach cultural, or does it have more to do with the economies themselves?