Abstract
By early 2020, the coronavirus (COVID-19) had been declared a pandemic and had quickly spread globally, leading to the shutdown or limited operation of businesses and government activities and the adoption of remote work arrangements for employees. Unexpected employment losses occurred owing to the COVID-19 pandemic when compared to the economy during the Great Recession of 2008–2009. Organisations reacted to the mandated restrictions by implementing actions including temporary or permanent closures, reducing the workforce, enhancing digital infrastructure, and embracing flexible work schedules. Service-oriented sectors such as banking institutions continued their operations by adopting the “work from home” (WFH) paradigm. The COVID-19 pandemic has resulted in the extensive use of distant work, the necessity for hybrid work setups, and a heightened focus on synchronous and asynchronous communication.
The significant age change in industrialised countries highlights the importance of demographic transition. The ageing and diversification of employees are leading to significant effects for businesses due to a widespread shift. It is more challenging to recruit and retain youthful people.
Every generation holds significance, but millennials, the new workforce, play a crucial role in an organisation’s success, prompting businesses to devise innovative strategies for recruiting and retaining them. Organisations are seeking competent millennials due to the evolving job environment. Strategies to appeal to this population need to be revised. This is crucial when analysing the increasing impact of Millennials on an organisation’s prosperity and sustainability.
South African millennials constitute 33% of the population and play a significant role in the workforce. The banking industry contributes to gross domestic product (GDP) growth, creates employment opportunities, and generates corporate tax revenue within the financial sector. Millennials will play a vital role in the future of the South African banking industry after the COVID-19 pandemic. In order to appeal to and retain millennials in the post-COVID-19 era, the industry must grasp the concept of comprehensive total reward packages. This will enhance the sector's competitiveness in the future of banking.
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The qualitative research aimed to comprehend total reward preferences that would help in attracting and retaining millennial employees post the COVID-19 epidemic, using the WorldatWork total rewards model as the theoretical framework. This research study utilised a qualitative research approach based on the interpretivist paradigm. Semi-structured individual interviews gathered data from a selected sample of 11 participants. With 11 interviews completed, the researcher achieved data saturation. The major findings from the analysis conducted with the Atlas.ti data analysis programme showed alterations in reward systems:
(1) Remuneration: Millennials formerly prioritised salary highly; however, the COVID-19 pandemic has shifted their preferences. While competitive pay remains crucial, it is no longer the sole deciding factor for this generation. Millennials prioritise non-monetary benefits such as remote work, hybrid employment, or flexible work environments. It is now a necessity for the Millennial age since they perceive it as contributing to an improved work-life balance. Before the COVID-19 pandemic, many people were working at their work location full-time, but there has been a substantial rise in the demand for flexibility in the job location.
(2) Well-being: There is a considerable need for mental health care, work-life balance, supportive management, and flexible working arrangements. Millennials appreciate employers who prioritise their holistic wellbeing. Post-COVID-19, there has been an improvement in well-being services with a focus on holistic well-being in the workplace. Millennials are now more aware of the importance of their physical, financial, and mental well-being. The COVID-19 pandemic heightened the demand for well-being support as millennials faced regular stress and anxiety in the workplace and looked to their employer for help.
(3) Development: Millennials seek possibilities for skill development and job advancement, which are important rewards for them after the pandemic. Millennials are individuals who show a strong inclination to acquire knowledge and skills and have a proactive attitude towards self-improvement. Development is crucial for millennials as it is a key factor that influences their
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interest in organisations, being one of the entire incentive components. They expect the company to invest in their learning and development as a reciprocal gesture for their contributions. Furthermore, they ask that development prospects be democratised and accessible to all.
(4) Recognition: Millennials tend to desire recognition. Insufficient acknowledgement can cause psychological anguish, resulting in job discontent. As businesses adapted to changes in communication and work arrangements during the COVID-19 pandemic, recognition requirements increased. Millennials value acknowledgement from their peers in addition to recognition from management. Leaders need not be the sole initiators of recognition; however, leaders need to promote a culture of peer-to-peer recognition to enhance the organisational culture, as millennials appreciate acknowledgement from their peers.
(5) Benefits: The study discovered that terms like “remote working,” “hybrid model,” and “work from home” highlight the trend towards favouring flexible work setups and their growing significance as part of the total rewards package among the research participants interviewed. For millennials, flexible working is now considered a necessity rather than a luxury. Additional benefits that surfaced as subcategories include flexibility, job security, financial benefits, health and well-being support, supportive management and culture, work from home, and personalised rewards.
Organisations can utilise the results of this research to improve their total reward systems in order to recruit, retain, and motivate the Millennial generation, who are crucial for organisational success since they are the future leaders post-COVID-19 pandemic.
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KEYWORDS
Millennials, total rewards, COVID-19 pandemic, rewards, workplace, attract and retain.