An empirical study of the reward preferences of South African employees

Abstract

Orientation: Adapting traditional reward systems to focus on employee preferences has become a necessity as companies strive to attract, motivate and retain a skilled and high performing workforce.Research purpose: The aim of the study was to identify certain categories of rewards that employees consider to be most important, including base pay, contingency pay, benefits, performance and career management, quality work environment, and work-home integration. The impact of these reward categories on an organisation's ability to attract, motivate and retain employees was explored, together with the influence of demographic variables on reward preferences.Motivation for the study: There is much debate over whether reward packages should be tailor-made to suit individual employees. It has been argued that a 'one-size-fits-all' approach with regard to rewards is no longer effective.Research design, approach and method: A structured questionnaire, based on the total rewards model, was used to achieve the objectives of the study. A sample of 250 employees from 11 medium-sized to large-sized organisations participated in the study. Main findings:The results showed that base pay is deemed to be the most preferred reward component amongst respondents; however, they are most dissatisfied with the level at which this reward is provided by their current employers. Base pay is also the most important reward when attracting and retaining employees. Differences between reward preferences and demographic variables, including age, gender and job level, were found. Practical/managerial implications:Organisations should design their reward systems according to the preferences of their employees by focusing on base pay and contingency or variable pay. These rewards will also serve to retain them; although, to motivate employees, non-cash awards and recognition should be emphasised. Contribution/value-add:This study contributes to literature on reward preferences, which is lacking in a South African context. It also provides support for segmentation of rewards based on certain demographic variables.

Exploring the Importance of Rewards as a Talent Management Tool for Generation Y Employees

“…The results confirmed previous findings that base salary, work-life balance and career development opportunities are important reward practices that can attract and retain generation Yers to organisations (Basset, 2008;Hendicks & Cope, 2013;Nienaber, 2009;Snelgar et al, 2013). The respondents in particular placed emphasis on utilizing opportunities to learn, broaden and improve their skills to be in line with organization requirements (Saba, 2013).…”

“…In a similar vein Nienaber (2009) found that generation Y employees valued performance and career management, quality work environment and development opportunities as most important. Snelgar et al (2013) further found that employees in the age group between 18-29 years regarded work-home integration more important as base pay and contingency pay. In contrast other studies found that compensation is one of the most important factors for prospective generation Y employees (Hendicks & Cope, 2013).…”

“…A study by Queens University IRC showed that younger workers have high expectations regarding career advancement, employability and work-family balance compared to their older colleagues (Saba, 2013). Snelgar, Renard and Venter (2013) alludes to several research studies which highlighted factors such as learning and development opportunities, immediate performance feedback, working in teams and having positive role models as important for generation Yers. In a similar vein Nienaber (2009) found that generation Y employees valued performance and career management, quality work environment and development opportunities as most important.…”

Exploring employee retention and intention to leave within a call centre

“…This indicates that employees agree that they do not have a balance between work and their personal lives. Scott-Ladd, Travaglione, Perryer and Pick (2010) found that employees experienced conflict between their work and personal responsibilities as a (Snelgar, Renard & Venter, 2013). It is important that organisations implement strategies aimed at enhancing work-life balance to assist employees in the pressures of their family and work areas (Amah, 2010).…”

A comparison of South African and German extrinsic and intrinsic motivation

“…individuals 50-59 and 60+) were more motivated by intrinsically rewarding work attributes than by extrinsically rewarding ones. However, Snelgar, Renard and Venter (2013) report that in their study investigating reward preferences, older employees showed a stronger preference for base and variable pay when compared to their younger counterparts.…”