Abstract
M.Comm.
The use of total reward models focusing on cash and non-cash benefits as staff
retention tools has gained popularity. The existing models advocate the use of
variables, such as pay, training and development, benefits and work environment, as
motivational factors to perform, remain with, or leave an organisation. This study
seeks to establish employees‟ experiences, views and perceptions of how the
Financial Services Board (FSB) is using its reward strategy as a staff retention tool.
Aim and importance of the study
The aim of the study is to research the overall awareness and effectiveness of the
FSB‟s reward strategy as a staff retention tool by exploring employees‟ experiences,
views and feelings.
The literature reviewed indicates that rewards are key to motivating employees. The
most popular reward model is the one developed by WorldatWork (2007). It identifies
the core elements of rewards as remuneration (variable and fixed pay components);
benefits; work–life; performance and recognition; and development and career
opportunities. Rewards go beyond pay as they include systems, programmes and
practices that influence people (Wilson, 2003). Reward strategy is defined as an
intervention that is put in place with the overall aim of retaining people; supporting the
corporate and human resources (HR) strategies; and aligning policies and processes
to organisational and individual needs (Armstrong & Murlis, 2007).
Factors that lead to employees leaving or staying with an organisation include both
retentive (benefits and organisational culture) and attractive factors (promises of
retention bonuses and share schemes).
The costs associated with turnover are detrimental to organisational efficiency and as
such employers must design retention strategies that are responsive to motivational
aspects of the employees.
The research was conducted using a qualitative research method based on semistructured
interviews, academic literature, exploring past, present and future issues
pertaining to the main constructs “rewards" and “retention”.
A sample of 18 employees across all levels at the FSB participated in the study. The
data was analysed using content analysis and key themes were identified. Where
possible, the data was reported verbatim to indicate the true feelings and views of the
participants.
Ontologically, the research approach fits both the constructive and interpretative
sociological paradigms.
The main findings of the study were that most employees at the FSB are aware of
the organisation‟s reward strategy. Their motivation to remain with, join or leave the
organisation is not driven by the traditional retention factors, such as retention
bonuses, pay for skills, and share option schemes. The sample indicated that what
drives them to remain with, join or leave the FSB are factors such as the nature of
the FSB‟s business, its promotion policies, and its cash bonus system.
Employees recognised various retention strategies of the FSB and indicated that they
were adequate although they identified opportunities to improve the current
performance management system and the bonus pay out principles.
Conclusion:
The researcher has ascertained the need for organisations to move towards a
responsive rewards model. Training, developmental opportunities and bonuses and
recognition were highlighted as the key factors for consideration when deciding to
remain with the organisation.