The relative importance of different types of rewards for employee motivation and commitment in South Africa

Abstract

Orientation: Employees’ perceptions of rewards are related to their affective commitment and intrinsic motivation, which have been associated with staff turnover.Research purpose: The study sought to establish the relationship between intrinsic and different extrinsic rewards with intrinsic motivation and affective commitment.Motivation for the study: South African organisations are grappling with employee retention. Literature shows that employees who are more motivated and committed to their organisation are less likely to quit. Rewards management strategies serve to create a motivated and committed workforce. Using the correct types of rewards can thus provide a competitive advantage.Research design, approach and method: A cross-sectional, correlational study was conducted. Questionnaire data of 399 South African employees were analysed using bivariate correlations and multiple regression.Main findings: Three main findings emerged. Firstly, there is a relationship between all types of rewards investigated and the two outcome variables. Secondly, this relationship is stronger for intrinsic than for extrinsic rewards and thirdly, monetary rewards do not account for the variance in intrinsic motivation above that of non-monetary rewards.Practical/managerial implications: Rewards management strategies should focus on job characteristics and designs to increase staff intrinsic rewards and include non-monetary rewards, such as supportive leadership, to encourage employees’ intrinsic motivation and affective commitment.Contribution/value-add: This research demonstrated the important role different rewards, particularly intrinsic non-monetary rewards, play in creating a committed and motivated workforce. The insights gained from this study can promote organisational effectiveness. Suggestions of how to expand on and refine the current study are addressed.

A comparison of South African and German extrinsic and intrinsic motivation

“…The results show that South Africans demonstrate higher levels of intrinsic motivation than they do extrinsic motivation. This supports the findings of Nujjoo and Meyer (2012).…”

“…This was closely followed by the desire for development opportunities, equality and recognition (Van Rooyen, du Toit, Botha & Rothmann 2010). However, Nujjoo and Meyer (2012) have found that in South Africa the positive influence of non-monetary and particularly intrinsic rewards can lead to highly skilled individuals becoming more committed and intrinsically motivated. Renard's (2015) study revealed too that South African employees in general exhibit higher levels of intrinsic motivation than other countries (this study investigated differences in intrinsic motivation between South Africa, USA, Belgium and Australia).…”

The influence of organisational rewards on workplace trust and work engagement

“…As a legal obligation and inherent to a job, extrinsic rewards are those salient incentives useful for attracting and retaining members of the workforce (Armstrong & Stephens, 2005;Nujjoo & Meyer, 2012). From a traditional perspective, Porter and Lawler (1968) defined rewards as the tangible benefits that employees receive for conducting their work.…”

Organizational Commitment and Rewards in Malaysia, with Comparison between University Graduates and Others

“…However, a research conducted in South Africa with 6,483 USD GDP per capita in 2014, which is at an economic stage close to China with 7,590 USD GDP per capita in 2014 (World Bank, 2016), also obtains a result which should be categorized in group '(i) ' showing that intrinsic rewards are more associated with OC than extrinsic and social rewards (Nujjoo & Meyer, 2012). This could be explained with the particular characteristics of the sample used in their study.…”