Performance pay and profit sharing entice high-performing workers, Kelly Global Workforce Index TM finds

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1 FOR IMMEDIATE RELEASE Performance pay and profit sharing entice high-performing workers, Kelly Global Workforce Index TM finds TROY, Mich. (August 4, 2010) There is widespread support among employees for a greater ownership stake in the businesses that employ them, with 60 percent of respondents saying profit sharing would motivate them to perform at a higher level, according to the latest survey results from workforce solutions leader Kelly Services. The findings are part of the Kelly Global Workforce Index, which obtained the views of approximately 134,000 people in 29 countries across,, and. The idea of giving employees a slice of the pie is gaining in appeal. Almost 40 percent of those surveyed say that some of their compensation is tied to individual, group or company performance targets. Of those who do not have such an arrangement, more than a third would like to see this practice adopted by their employers. Gen Y (aged 18-29) and Gen X (aged 30-47) are much more likely to be on some form of performancebased pay than those in the baby boomer generation (aged 48-65). Among those not already on performance-based pay, Gen Y are the most attracted to it. Profit sharing and company ownership arrangements create a powerful bond between workers and employers, and can motivate people to be more productive and creative, says Kelly Services Executive Vice President and Chief Operating Officer, George Corona. "As a global talent shortage looms, employers may want to consider how they can improve the productivity of their workforce by offering employment packages that align individual performance to corporate goals. The survey also found extensive support for employers doing more to address the health and well-being of the workforce, even to the extent of providing incentives or rewards to those who are able to quit smoking, lose weight or adopt a healthy lifestyle. Other key generational findings of the survey about employee benefits and perks reveal that: Aside from salary, the highest rated benefit for all generations is training, but it is much more important to Gen Y and Gen X. Approximately half of all generations rate employer-provided health benefits as very important. Roughly 80 percent of all generations think that employers should take some responsibility for employee health and well-being.

2 Well over half of all generations believe that employers should provide an incentive or reward to employees for adopting a healthier lifestyle, changes which may include quitting smoking, losing weight or taking up exercise. The employer-provided health benefit that is most attractive to all generations is health insurance, while gym access or discounts are relatively popular with Gen Y. Across the workforce, there is an expectation that employers need to move beyond traditional areas of compensation in looking after the well-being of their key people. With many staff spending a considerable amount of time working, employee health and welfare become vital, Corona says. So it is not surprising that health and training have emerged as two key priorities for many individuals. These are also the benefits that help to strengthen commitment for the long term and are recognized as a good investment in human capital by employers, he concludes. For more information about the survey results and key global findings, please visit the Kelly Global Workforce Index. About the Kelly Global Workforce Index The Kelly Global Workforce Index is an annual survey revealing opinions about work and the workplace from a generational viewpoint. Approximately 134,000 people from,, and responded to the 2010 survey with results published on a quarterly basis. In 2009, Kelly Services was the recipient of a MarCom Gold Award for the Kelly Global Workforce Index in the Research/Study category. About Kelly Services Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly offers a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Serving clients around the globe, Kelly provides employment to 480,000 employees annually. Revenue in 2009 was $4.3 billion. Visit Media contacts: Jaquilin Ang Kelly Services Jaquilin_ang@kellyservices.com.sg # # # Tamara Achba Kelly Services Tamara.achba@kellyservices.eu Kathy Fisher Kelly Services kathy_fisher@kellyservices.com

3 Benefits & Perks: Key Global Findings 61 percent say that profit sharing or an ownership stake would motivate them to perform at a higher level, with Gen Y and Gen X far more confident than baby boomers. More Gen Y (43 percent) and Gen X (42 percent) are on performance based pay arrangements than baby boomers (30 percent). Of those not on performance pay, 36 percent believe they would work more productively if they were, with Gen Y the most enthusiastic. Aside from salary, the benefit that rates most important to employees is health benefits, followed by training, flexible hours, retirement benefits, and time-off. 68 percent rate employer-provided health benefits as very important, higher than in both and. 86 percent say employers should take some responsibility for employee health and well-being. 60 percent believe that employers should provide an incentive or reward to employees for adopting a healthier lifestyle, including changes such as quitting smoking or losing weight. 65 percent say that profit sharing or an ownership stake would motivate them to perform more productively, higher than in and. Far more Gen X (42 percent) and Gen Y (40 percent) are on performance based pay arrangements than baby boomers (29 percent). Of those not on performance pay, 42 percent believe they would work more productively if they were, with Gen Y the most enthusiastic. Aside from salary, the benefit that rates most important to employees is training, followed by flexible hours, health benefits, time-off, and retirement benefits. 41 percent rate employer-provided health benefits as very important, lower than in both and. 82 percent say employers should take some responsibility for employee health and well-being. 62 percent believe that employers should provide an incentive or reward to employees for adopting a healthier lifestyle, including changes such as quitting smoking or losing weight. 56 percent say that profit sharing or an ownership stake would motivate them to perform at a higher level, a lower figure than in and. 39 percent of respondents have some of their compensation tied to performance targets. Of those not on performance pay, 37 percent believe they would work more productively if they were, with Gen Y the most enthusiastic. Aside from salary, the benefit that rates most important to employees is training, followed by flexible hours, health benefits, time-off, and retirement benefits. 45 percent rate employer-provided health benefits as very important. 78 percent say employers should take some responsibility for employee health and well-being. 51 percent believe that employers should provide an incentive or reward to employees for adopting a healthier lifestyle, including changes such as quitting smoking or losing weight.

4 Is profit sharing or employee ownership something that would motivate you to perform at a higher level? and Region (% yes) 63% % % 5 0% 10% 20% 30% 40% 50% 70%

5 Is any of your compensation variable, e.g. tied to individual, group or company performance targets? and Region (% yes) 30% 43% 4 40% % % 40% 3 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

6 Do you think you would perform at a higher level if part of your salary was tied to performance targets? and Region (% yes) 30% 30% % 45% % 10% 20% 30% 40% 50%

7 Outside of salary, what other benefit do you rate as the most important? Region Life insurance Telecommuting options Motor vehicle/ allowance Vacation/ time off Retirement benefits Flexible hours Health benefits Training 1% 3% 3% 5% 11% % % 45% Life insurance Telecommuting options Motor vehicle/ allowance Vacation/ time off Retirement benefits Flexible hours Health benefits Training 1% 3% 3% 3% 1% 11% 13% 20% 11% 11% 30% % 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Note that percentages may not add to 100 due to rounding.

8 To what degree are employer-provided healthcare benefits important to you? and Region (% very important) % 43% 50% 51% 4 50% 0% 10% 20% 30% 40% 50% 70%

9 As part of your employment package, do you think your employer should take some responsibility for employee health and well-being? and Region (% yes) % % % 8 80% 81% 0% 20% 40% 80% 100%

10 Should employers provide an incentive or a reward to employees for adopting a healthier lifestyle, e.g. quitting smoking, losing weight or taking up exercise? and Region (% yes) 50% 5 51% 51% 5 61% 6 63% % 5 5 0% 10% 20% 30% 40% 50% 70% Should employers provide an incentive or a reward to employees for adopting a healt

11 What employer-provided health benefit would be most attractive to you? Region Corporate exercise programs 5% Corporate exercise programs Smoke-free environment Smoke-free environment On-site health screening 5% 5% On-site health screening Gym access/ discounts % Gym access/ discounts 10% 21% 1 Health insurance % 6 Health insurance % 0% 10% 20% 30% 40% 50% 70% 80% 0% 10% 20% 30% 40% 50% 70% 80% Note that percentages may not add to 100 due to rounding.