Abstract
In order to attract knowledge workers and maintain a competitive advantage,
it is necessary for organisations to understand how knowledge workers are attracted to
different types and levels of financial rewards.
Research purpose: This research investigated a set of financial reward elements
(remuneration, employee benefits and variable pay) to determine whether knowledge
workers perceived them as attractive inducements when considering a job or position.
Motivation for the study: In South Africa there is a shortage of talent, largely due to high
rates of emigration of scarce skills (human capital). Financial rewards or inducements
are necessary to attract talent and it is essential to assess which of these rewards are most
successful in this regard.
Method: A 23 full-factorial experimental design (field experiment) was used. The three
financial reward elements (remuneration, employee benefits and variable pay) were
manipulated in a fictitious job advertisement (each at two levels). Eight (2 × 2 × 2 = 8) different
versions of a job advertisement were used as a stimulus to determine the effect of financial
reward elements on perceived job attractiveness. A questionnaire was used to measure how
participants perceived the attractiveness of the job. A convenience sampling approach was
used. Different organisations throughout South Africa, as well as corporate members of the
South African Reward Association, were asked to participate in the study. Respondents (n
= 169) were randomly assigned to the various experimental conditions (i.e. one of the eight
advertisements). Data were analysed using descriptive statistics. A full-factorial analysis of
variance was used to investigate if significant main effects could be found...