Abstract
This dissertation investigates the effects of pay transparency on employees’ job performance in the South African property industry, with a specific focus on the student accommodation sector within Real Estate Investment Trusts (REITs). Grounded in the historical context of apartheid-era wage disparities and ongoing economic inequalities, the study addresses the paucity of research on pay transparency in this commission-driven industry, where opaque compensation structures often exacerbate perceptions of unfairness, demotivation, and reduced trust. Drawing from the Equity Theory, Agency Theory, Social Exchange Theory, and Signalling Theory, the research explores how transparent pay practices influence fairness perceptions, employee motivation, organisational commitment, and overall performance outcomes.
The primary aim is to examine employees’ and managers’ perceptions of pay transparency and its implications for job performance, providing actionable insights for enhancing equity and organisational effectiveness in a sector critical to South Africa’s economic growth. The research questions probe perceptions of pay transparency, its influence on motivation and commitment, shaping factors, strategies for improvement, and insights from employee experiences. Corresponding objectives include examining perceptions in the student accommodation sector, exploring impacts on motivation and satisfaction, assessing effects on trust and performance, and offering policy recommendations.
Employing a qualitative, exploratory case study design within an interpretive paradigm, the methodology emphasises subjective experiences and contextual understanding. Data were collected through semi-structured interviews with 15 purposively and snowball-sampled participants (5 upper management, including directors and Chief Operations Officers (COOs), and 10 property managers) from three Johannesburg-based REITs. Thematic analysis, guided by Braun and Clarke’s six-phase framework and supported by NVivo software, identified four key themes: Perceptions and Awareness of Pay Transparency, Influence on Motivation and Commitment, Trust and Perceived Fairness in Pay Practices, and Recommendations and Strategies for Improvement. Trustworthiness was ensured through credibility (participant-driven scheduling), transferability (thick descriptions), authenticity (pseudonyms), confirmability (reflexivity), and dependability (audit trails). Ethical considerations, including informed consent and compliance with South Africa’s Protection of Personal Information Act (POPIA), were prioritised.
Key findings reveal varied perceptions of pay transparency, ranging from appreciation for procedural clarity to unfamiliarity and frustration with inaccessible formal channels (e.g., HR portals) and prevailing secrecy. Transparency emerged as a motivator, linking clear salary ranges and bonus criteria to increased effort, job satisfaction, and commitment, while secrecy induced stress, demotivation, and turnover intentions. Unexplained disparities undermined trust and fairness perceptions, signalling potential bias in a...