WKO Styria

Performance must pay off again

WKO Styria President Josef Herk (left) and economist Christoph Schneider (right) demand: "Performance must pay off"

(Bild: Foto Fischer)

Performance must "pay off", demands Josef Herk, President of the Styrian Economic Chamber. Two new surveys show that 71 percent of entrepreneurs and 39 percent of the population consider performance to be very important. The willingness to perform is falling drastically, especially among younger people. Herk is therefore calling for measures such as tax cuts and a reduction in bureaucracy in order to increase motivation.

People who work full-time must earn noticeably more. Otherwise, fundamental values in our society are in danger of slipping," warns Herk, referring to two new surveys. Although 97% of entrepreneurs and 94% of the population rate performance in a professional context as very important or at least important, a look at the age structure behind this reveals massive shifts - at least in the population survey. While 96% of the 61 and older generation rate performance as the basis of our prosperity, only 64% of 18 to 25-year-olds do. Herk: "We need to make performance more rewarding."  

(Bild: WKO Steiermark)

Reducing bureaucracy and lowering taxes

As part of the new performance agenda, the Styrian Economic Chamber commissioned a survey on the willingness to perform in our country. Two surveys were conducted for this purpose, one among Styrian entrepreneurs (975 participants) and one - with the same question - among the population (344 participants). According to the results, 71% of businesspeople rate performance in a professional context as very important and 26% as important, compared to 39% (very important) and 55% (important) of the general population. Furthermore, 88% of entrepreneurs and 87% of Styrians agree or at least somewhat agree with the statement "Performance is the basis of our social prosperity". However, a look at the age structure reveals major differences: only 64% of young people (population survey) agree with this statement, compared to 96% of the older generation (61 years and older).

"Only if we finally manage to make our state more efficient will we have the leeway to reduce taxes on labor and non-wage labor costs."

WKO Steiermark Präsident Josef Herk

For WKO Styria President Josef Herk, this is clear evidence "that we need to make performance more rewarding and therefore more desirable". Measures to achieve this have been set out in a separate performance agenda. 

Austrians are calling for these measures
The two surveys also looked at which measures to increase motivation have a social consensus. According to the results, there is the greatest approval for reducing bureaucracy (95% of companies, 88% of the population), as well as for the demand for more net from gross (94% of companies, 95% of the population) and for more accurate social benefits (88% of companies, 89% of the population), followed by the expansion of childcare facilities (87% and 88% respectively) and "getting the unemployed into work more quickly" (85% and 87% respectively). Herk insists on a quick signal here: "Responsible politicians must not forget their responsibility for future generations in the hunt for votes." 

(Bild: WKO Steiermark)

Creating more incentives
The new performance index, compiled by economist Christoph Schneider from the Economica Institute for Economic Research, compares data from 18 European countries. Austria is ranked second in terms of performance, but only seventh in terms of incentives. In the overall ranking, Austria is in fifth place behind Ireland, Sweden, Denmark and Finland. Schneider emphasizes the need for action, as Austria is heading in the wrong direction.