Taking a more conservative stance, or perhaps not so sure of our ability to perform over the odds in the workplace, a third of us wouldn't be prepared to take any cut in our base salary in order to potentially earn more through a bonus based on our achievements.
Jason Walker, managing director of Hays in New Zealand, says recognition for good work is a key component of staff retention, and for New Zealanders, at-risk pay is a way to provide that recognition through their compensation package.
"It does make sense that employees who have been loyal to their employer through challenging times now want to share financially in the rewards of a more prosperous economy," he says.
"Showing that they are happy to reduce their base income for the chance to potentially receive more in a bonus based on their performance also suggests that New Zealanders are prepared to accept an element of risk. This typically only occurs when economic optimism is high."
Walker's explanation hints that our Aussie mates might not be as optimistic about current economic indicators in the lucky country, but in any case they are certainly less secure than us in their belief that their work performance could earn them more dollars.
When the same poll was run in Australia, fewer than half of all respondents said they would be prepared to take a base salary cut of up to 20 per cent to get a performance-based bonus. And a full 41 per cent were not willing to take any sort of base salary cut for the chance to earn more by taking the bonus option.
Walker finds it surprising that Kiwis seem to be more willing to bet on themselves than those from the home of the Melbourne Cup.
"We tend to think of Australians as far more bullish and confident, particularly on the sporting field. However, when it comes to the world of work, it is New Zealanders who are more confident in their performance and want their overall compensation package to reflect their results."
Nick Deligiannis, managing director of Hays Australia and New Zealand, has some words of wisdom for bosses when it comes to awarding the performance-based bonus.
"Understanding how people weight the various elements in a compensation package can be a great attraction and retention advantage," says Deligiannis. "After all, a compensation package consists of more than just salary.
"However, there is no one-size-fits-all approach to compensation packages and employers should work with a candidate to tailor an offer that has the best chance of retaining them long-term."
He adds that performance-related bonuses offer advantages to both employers and employees.
"A performance-related bonus rewards employees for good performance and can be very motivating for employees as they have a vested interest in achieving a top result.
"For employers, this can motivate their team to work at peak efficiency.
"Such bonuses work best when both the employer and employee are aware of the objectives that need to be met in order to qualify for the bonus, which is why they are often tied to performance appraisals."
He also warns that employers need to be clear about their expectations to ensure that such deals remain mutually beneficial.
"The minimum performance expectations must be made clear, otherwise an employee may not feel they are being rewarded fairly for their performance," Deligiannis says. "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."
The Human Resources Institute of New Zealand cautions that care should be taken by employers when drafting performance bonus clauses in employment contracts.
A well-drafted bonus clause will protect both boss and worker.
If an employer does not pay an employee their bonus when they are entitled to it, they may bring a claim in the Employment Relations Authority for a breach of contract and may seek arrears in wages.
