Factors driving changes to remuneration policy and outcomes.
- Authors: Bussin, Mark
- Date: 2007-10-04T10:16:04Z
- Subjects: compensation management
- Type: Thesis
- Identifier: uj:6582 , http://hdl.handle.net/10210/41
- Description: The aim of this study is to develop an in-depth understanding of the relative importance of the factors driving change to remuneration policy decision making and the impact on organisations. A triangulated approach involving qualititative and quantitative analysis was adopted to derive answers to 5 main research questions. The study was split into 2 phases, namely a qualitative and quantitative phase. A qualitative study was undertaken to explore and identify key assumptions and characteristics identifying the main factors driving change to remuneration policies (Phase 1). The outcome of the qualitative phase formed the basis for the quantitative phase in which statistical analysis was used (Phase 2). Data from 148 organisations were analysed and subjected to rigorous statistical analysis. Sense was made of these resulting in answers to the research questions. The findings closed gaps in current knowledge and provided insight into the most powerful drivers of remuneration policy as well as the extent of change on each component of remuneration policy. How each component impacted on organisations is now understood and remuneration decision-makers are able to make more informed decisions based on empirical evidence. The results show that the most potent drivers of remuneration policy are retention of key staff, financial results and organisation strategy. The greatest changes to remuneration policy were in the areas of variable pay, merit/ performance related pay, market position, total package and job evaluation/ broadbanding policy. A strong correlation was found between the extent of change and impact on the organisation. This suggests that the greater the change the greater the impact on the organisation. There are distinct differences in the extent of change and impact across organisation structure and industry sector. , Dr. Deon Huysamen
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A food-manufacturing manager’s experiences and perceptions of the implementation of an incentive scheme
- Authors: Begbie, Celita , Bussin, Mark , Schurink, Willem
- Date: 2011
- Subjects: Incentives in industry - South Africa , Performance - Management , Compensation management - South Africa , Hospitality industry , Organizational effectiveness - South Africa
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226810 , uj:22941 , Citation: Begbie, C., Bussin, M. & Schurink, W. 2011. A food-manufacturing manager’s experiences and perceptions of the implementation of an incentive scheme. SA Journal of Human Resource Management, 9(1):1-13. DOI: doi:10.4102/sajhrm.v9i1.323.
- Description: Abstract: The field researcher, under the supervision of the co-authors Bussin and Schurink, sought to explore the experiences, views and perceptions of 10 managers about the incentive scheme that a South African food manufacturing company introduced. Research purpose: Identifying the contributors to negative feelings and demotivation, or conversely, excitement and motivation, will ultimately assist managers to implement an incentive scheme to motivate staff and improve performance. Motivation for the study: There is little research on how participants perceive incentive schemes and whether or not they motivate employees and improve overall performance. Research design, approach and method: The researcher used a modernistic qualitative research approach and, more specifically, a case study. Main findings: The participants in the research were unaware of the performance goals they needed to achieve. They felt that there was no link between their performance and their earnings. They felt that some objectives were demeaning and insulting, as was the payment they received. They felt that achieving their goals was outside their control and influence. Practical/managerial implications: Participants felt excited and motivated to perform when their managers presented the department’s overall goals to them and asked the participants to set their own goals based on the department’s objectives. Contribution/value-add: Although this study is explorative and descriptive, it suggests that it is how departments implement an incentive scheme, rather than merely having one, that will motivate or demotivate employees to perform.
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An employer brand predictive model for talent attraction and retention
- Authors: Botha, Annelize , Bussin, Mark , De Swardt, Lukas
- Date: 2011
- Subjects: Branding (Marketing) - Management , Employees - Recruiting , Employee retention
- Type: Article
- Identifier: uj:5519 , http://hdl.handle.net/10210/13792
- Description: Orientation: In an ever shrinking global talent pool organisations use employer brand to attract and retain talent, however, in the absence of theoretical pointers, many organisations are losing out on a powerful business tool by not developing or maintaining their employer brand correctly. Research purpose: This study explores the current state of knowledge about employer brand and identifies the various employer brand building blocks which are conceptually integrated in a predictive model. Motivation for the study: The need for scientific progress though the accurate representation of a set of employer brand phenomena and propositions, which can be empirically tested, motivated this study. Research design, approach and method: This study was nonempirical in approach and searched for linkages between theoretical concepts by making use of relevant contextual data. Theoretical propositions which explain the identified linkages were developed for purpose of further empirical research. Main findings: Key findings suggested that employer brand is influenced by target group needs, a differentiated Employer Value Proposition (EVP), the people strategy, brand consistency, communication of the employer brand and measurement of Human Resources (HR) employer branding efforts. Practical/managerial implications: The predictive model provides corporate leaders and their human resource functionaries a theoretical pointer relative to employer brand which could guide more effective talent attraction and retention decisions. Contribution/value add: This study adds to the small base of research available on employer brand and contributes to both scientific progress as well as an improved practical understanding of factors which influence employer brand.
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Job-hopping amongst African black senior management in South Africa
- Authors: Nzukuma, Khanyile C. C. , Bussin, Mark
- Date: 2011
- Subjects: Labor turnover - South Africa , Employee retention - South Africa
- Language: English
- Type: Article
- Identifier: http://ujcontent.uj.ac.za8080/10210/368297 , http://hdl.handle.net/10210/226685 , uj:22925 , Citation: Nzukuma, K.C.C. & Bussin, M. 2011. Job-hopping amongst African black senior management in South Africa. SA Journal of Human Resource Management, 9(1):1-12. DOI: http://dx.doi.org/10.4102/sajhrm.v9i1.360 , ISSN: 2071-078X (online) , ISSN: 1683-7584 (print)
- Description: Abstract: The study focuses on understanding labour turnover trends amongst African Black senior managers in South Africa. There is a perception that turnover amongst African Black senior managers is higher than average. There is also a perception that African Black senior managers are only motivated by financial rewards when considering job change. Research purpose: The study focused on understanding why African Black senior managers have a propensity to change jobs and how organisations can resolve the trend. Motivation for the study: To develop a better understanding of the push and pull factors for African Black senior managers in organisations. Research design, approach and method: The research was conducted in two phases, namely as part of a qualitative study and a quantitative study: Creswell (2003) refers to this approach as triangulation. The target population was African Black senior managers on the database of a large Human Resources Consultancy, The South African Rewards Association and the Association of Black Actuaries and Investment Professionals (ABSIP) (n = 2600). A total of 208 usable responses were received. Main findings: The main findings and contribution to the field of study was that African Black senior managers do not trust organisations with their career development. They would rather take control of their own career development by moving from organisation to organisation to build their repertoire of skills and competence. They want to be in charge of their careers. This finding has profound implications for organisations employing African Black managers in the senior cadre. Practical/managerial implications: Managers of African Black senior managers need to create attractive employee value propositions that address the main findings. Contribution/value-add: The research shows that African Black senior managers generally seek corporate environments that encourage a sense of belonging and with a clear career growth plan.
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Organisational readiness for introducing a performance management system
- Authors: Ochurub, Michael , Bussin, Mark , Goosen, Xenia
- Date: 2012
- Subjects: Performance - Management , Organizational effectiveness , Compensation management
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226692 , uj:22926 , Citation: Ochurub, M., Bussin, M. & Goosen, X. 2012. Organisational readiness for introducing a performance management system. SA Journal of Human Resource Management, 10(1):1-11. http://dx.doi.org/10.4102/sajhrm.v10i1.389. , Citation: Ochurub, M., Bussin, M. & Goosen, X. 2012. Organisational readiness for introducing a performance management system. , ISSN: 2071-078X (online) , ISSN: 1683-7584 (print)
- Description: Abstract: The successful introduction of performance management systems to the public service requires careful measurement of readiness for change. Research purpose: This study investigated the extent to which employees were ready for change as an indication of whether their organisation was ready to introduce a performance management system (PMS). Motivation for the study: Introducing system changes in organisations depends on positive employee preconditions. There is some debate over whether organisations can facilitate these preconditions. This research investigates change readiness linked to the introduction of a PMS in a public sector organisation. The results add to the growing literature on levels of change readiness. Research design, approach and method: The researchers used a quantitative, questionnaire-based design. Because the organisation was large, the researchers used stratified sampling to select a sample from each population stratum. The sample size was 460, which constituted 26% of the total population. They used a South African change readiness questionnaire to elicit employee perceptions and opinions. Main findings: The researchers found that the organisation was not ready to introduce a PMS. The study identified various challenges and key factors that were negatively affecting the introduction of a PMS. Practical/managerial implications: The intention to develop and introduce performance management systems is generally to change the attitudes, values and approaches of managers and employees to the new strategies, processes and plans to improve productivity and performance. However, pre-existing conditions and attitudes could have an effect. It is essential to ensure that organisations are ready to introduce performance management systems and to provide sound change leadership to drive the process effectively. This study contributes to the body of knowledge about the challenges and factors organisations should consider when they introduce performance management systems. Contribution/value-add: This research adds to the knowledge about aspects of change readiness, change management and introducing change initiatives.
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Reward preferences for generations in selected information and communication technology companies
- Authors: Moore, Annetjie , Bussin, Mark
- Date: 2012
- Subjects: Information technology - Employees - Recruiting , Information technology - Employee retention , Incentives in the industry
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226714 , uj:22930 , Citation: Moore, A. & Bussin, M. 2012. Reward preferences for generations in selected information and communication technology companies. SA Journal of Human Resource Management, 10(1):1-9. DOI: http://dx.doi.org/10.4102/sajhrm.v10i1.325. , ISSN: 2071-078X (online) , ISSN: 1683-7584 (print) ISSN: 1683-7584 (print)
- Description: Abstract: Previous research suggests that different generations have different reward preferences based on differences in values, frames of reference and life goals. Research purpose: The focus of this study was to determine whether different generations prefer different rewards in the Information and Communication Technology (ICT) industry in South Africa. Motivation for the study: The rationale for this study was to obtain a better understanding of the reward preferences of Veterans, Baby Boomers, Generation X and Generation Y in the ICT industry. Research design, approach and method: The research was a quantitative, cross-sectional, correlational design. Participants from two ICT companies completed a structured electronic survey. One hundred and sixty four valid responses were received. A Cronbach’s alpha of 0.821 indicates that the survey was reliable. Main findings: Contrary to previous research, the results show that generations do not display different reward preferences. Practical/managerial implications: It would be more beneficial to use individual interrelationship factors to develop a reward strategy than generations. Contribution/value-add: The research has added insight and value to reward preferences for generations in the ICT sector.
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The perceived effectiveness of employee share options as a mechanism of talent management in South Africa
- Authors: Bhengu, Mthunzi , Bussin, Mark
- Date: 2012
- Subjects: Employee retention , Mentoring in business. , Incentives in industry
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226699 , uj:22927 , Citation: Bhengu, M. & Bussin, M. 2012. The perceived effectiveness of employee share options as a mechanism of talent management in South Africa. Acta Commercii, 85-93. , ISSN: 1680-7537
- Description: Abstract: The purpose of the study was to explore the views of a sample of employees, industry experts, academics, and professionals to determine whether employee share options (ESO) are an effective talent management tool in the South African context. Talent management refers to the attraction, motivation, and retention of employees, as well as fostering their loyalty to the company. PROBLEM INVESTIGATED: This study sought to explore and provide empirical evidence as to whether or not ESO are an effective talent management strategy and remuneration tool. DESIGN AND METHODOLOGY: A quantitative research design was used for this study. A survey was constructed by the researchers, using the main themes identified in the literature. A purposive sampling methodology was then employed, using the key informant technique. A total of 4 300 surveys were electronically distributed, and 256 completed surveys were received. Data were analysed using descriptive statistics. FINDINGS: This study suggests that while ESO are seen as an important component of a total reward solution, they are not the primary drivers of the attraction, retention, and motivation of talent. Respondents indicated that the quality of the work environment and the presence of developmental opportunities are far more significant considerations. . Furthermore, the majority of respondents (41%) indicated that they would prefer the allocation of share options to correspond with individual performance. VALUE OF THE RESEARCH: The study suggests that employee reward preferences have evolved over time. Whilst ESO may have been considered a pivotal component of talent management in the late 1990s, today they are only a component of an expected total reward solution. The study demonstrates the importance of consistently reviewing the employee value proposition to ascertain the changing preferences of employees in order to accordingly adapt and maximise talent management. The study can be used as guidance in the design and implementation of share schemes. CONCLUSION: This study suggests that while ESO are perceived as an important component of a total reward solution, these are not the primary drivers of the attraction, retention, and motivation of talent. Respondents indicated that the quality of the work environment and the availability of developmental opportunities are far more significant considerations. The findings suggest that employee reward preferences have evolved over time. Today's employee has a desire to have reward linked to individual performance, which implies that employers will have to revisit their reward solutions as part of their total value proposition.
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Short-term incentive schemes for hospital managers
- Authors: Malambe, Lucas , Bussin, Mark
- Date: 2013
- Subjects: Compensation management - South Africa , Health facilities - Personnel management , incentives in the industry - South Africa
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226735 , uj:22932 , Citation: Malambe, L. & Bussin, M. 2013. Short-term incentive schemes for hospital managers. SA Journal of Human Resource Management, 11(1):1-9. DOI: http://dx.doi.org/10.4102/sajhrm.v11i1.487. , ISSN: 2071-078X (online) , ISSN: 1683-7584 (print)
- Description: Abstract: Short-term incentives, considered to be an extrinsic motivation, are commonly used to motivate performance. This study explored hospital managers’ perceptions of shortterm incentives in maximising performance and retention. Research purpose: The study explored the experiences, views and perceptions of private hospital managers in South Africa regarding the use of short-term incentives to maximise performance and retention, as well as the applicability of the findings to public hospitals. Motivation for the study: Whilst there is an established link between performance reward schemes and organisational performance, there is little understanding of the effects of shortterm incentives on the performance and retention of hospital managers within the South African context. Research design, approach, and method: The study used a qualitative research design: interviews were conducted with a purposive sample of 19 hospital managers, and a thematic content analysis was performed. Main findings: Short-term incentives may not be the primary motivator for hospital managers, but they do play a critical role in sustaining motivation. Participants indicated that these schemes could also be applicable to public hospitals. Practical/managerial implications: Hospital managers are inclined to be more motivated by intrinsic than extrinsic factors. However, hospital managers (as middle managers) also seem to be motivated by short-term incentives. A combination of intrinsic and extrinsic motivators should thus be used to maximise performance and retention...
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Total rewards : a study of artisan attraction and retention within a South African context
- Authors: Schlechter, Anton , Faught, Charl , Bussin, Mark
- Date: 2014
- Subjects: Incentives in industry - South Africa , Employee retention , Employee competitive behavior - South Africa
- Language: English
- Type: Articles
- Identifier: http://hdl.handle.net/10210/226756 , uj:22935 , Citation: Schlechter, A., Faught, C. & Bussin, M. 2014. Total rewards : a study of artisan attraction and retention within a South African context. SA Journal of Human Resource Management, 12(1):1-15. DOI: http://dx.doi.org/10.4102/sajhrm.v12i1.648. , ISSN: 2071-078X (online) , ISSN: 1683-7584 (print)
- Description: Abstract: The shortage of artisan skills remains a serious challenge in South Africa and is forcing employers to investigate which total reward factors contribute to the attraction and retention of this critical skills segment, as undifferentiated retention strategies are no longer useful or even appropriate. Research purpose: The aim of this study was to further develop understanding of the total reward factors and the ideal combination and relative amount of total rewards that attract and retain artisans, including artisans from various race groups and age cohorts, using a novel approach. Motivation for the study: Limited research is available on the total reward factors and the ideal combination and relative amount of total rewards that attract and retain artisans. Further knowledge in this area will allow organisations to develop reward models that better attract and retain artisans. Method: The study followed both a quantitative and qualitative research approach, whilst adopting a descriptive research design. Using this mixed method, primary data were collected from individuals by means of two focus groups discussions: (1) a group of human resource and remuneration managers (n = 4) and (2) a group of artisans (n = 7). These results were used to develop two questionnaires that were distributed to artisans (n = 143). Data from Questionnaire 1 were analysed using descriptive statistics and factor analysis. Conjoint analysis was employed to identify an ideal total rewards composition based on responses from Questionnaire 2...
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Total rewards strategy for a multi-generational workforce in a financial institution
- Authors: Bussin, Mark , Van Rooy, Dirk J.
- Date: 2014
- Subjects: Employee competitive behaviour , Incentive awards , Employee motivation
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226744 , uj:22934 , Citation: Bussin, M. & Van Rooy, D.J. 2014. Total rewards strategy for a multi-generational workforce in a financial institution. SA Journal of Human Resource Management, 12(1):1-11. DOI: http://dx.doi.org/10.4102/sajhrm.v12i1.606. , ISSN: 2071-078X (online) , ISSN: 1683-7584 (print)
- Description: Abstract: Different generations may value and perceive employee rewards differently. This impacts on reward strategies in the workplace which have been specifically developed to attract, retain and motivate staff. A one-size-fits-all approach to reward strategy may not achieve the objectives intended, leading to direct and indirect financial implications for businesses. Research purpose: This study investigated whether perceptions of reward strategy differed across generations in a large financial institution in South Africa. This context was specifically chosen due to the significant competition to attract and retain staff that exists in the financial sector. To contribute to the practical challenges of reward implementation, the study investigated whether specific reward preferences associated with generation exist, and whether offering rewards based on these preferences would successfully attract and retain staff. Motivation for study: South African businesses are competing for skilled staff and rely heavily on a total reward strategy to compensate all generations of employees. Given the financial incentives to retain and attract the most effective staff, it is essential that reward strategies meet their objectives. All factors impacting the efficacy of reward strategies should be considered, including the impact of generational differences in preference. This is of relevance not only to the financial industry, but to all companies that employ staff across a variety of generations. Research design, approach and method: A quantitative survey design was used. A total of 6316 employees from a financial firm completed a survey investigating their experiences and perceptions of reward strategies. Statistically significant differences across different generations and reward preferences were considered...
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Understanding talent attraction : the influence of financial rewards elements on perceived job attractiveness
- Authors: Schlechter, Anton , Hung, Angel , Bussin, Mark
- Date: 2014
- Subjects: Employee retention , Incentive awards , Employee motivation , Employee competitive behaviour
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226763 , uj:22936 , Citation: Schlechter, A., Hung, A. & Bussin, M. 2014. Understanding talent attraction : the influence of financial rewards elements on perceived job attractiveness. SA Journal of Human Resource Management, 12(1):1-13. DOI: http://dx.doi.org/10.4102/sajhrm.v12i1.647. , ISSN: 2071-078X (online) , ISSN: 1683-7584 (print)
- Description: 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...
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Attractiveness of non-financial rewards for prospective knowledge workers : an experimental investigation
- Authors: Schlechter, Anton , Thompson, Nicola Claire , Bussin, Mark
- Date: 2015
- Subjects: Non-financial rewards , Knowledge workers , Job attraction
- Type: Article
- Identifier: uj:5517 , http://hdl.handle.net/10210/13790
- Description: Purpose – The purpose of this paper is to investigate if the presence of non-financial rewards (specifically work-life balance, learning, and career advancement) were able to influence the perceived attractiveness of a job offering. A secondary objective was to establish if there were demographic differences, specifically, gender, race, and age differences in the manner in which these non-financial rewards influenced the perceived attractiveness of a job offer. Design/methodology/approach – A quantitative research approach was followed and a 23 full-factorial experimental design utilised. Data were collected with two questionnaires via convenience (non-probability) sampling. The first job attraction questionnaire assessed the perceived level of attractiveness to one of eight randomly assigned experimental conditions (stimuli) that were expressed as eight fictitious job advertisements. Employees who responded were from various industries (n=180). The data collected were analysed using descriptive statistics and a full-factorial ANOVA. A second questionnaire was used to assess the perceived attractiveness of various elements of a typical total rewards package. The validity and reliability of the second questionnaire was assessed using Exploratory Factor Analysis utilising the Principal Axis Factoring extraction method, employing a Direct Oblimin (i.e. Oblique) rotation, and calculating Cronbach α coefficients, respectively. Descriptive statistics were calculated for the composite factors or reward elements. Findings – The non-financial reward elements (work-life balance, learning, and career advancement) were found to have statistically significant main effects on employees’ perceived attractiveness of a job offering. Gender was further found to also have a significant main effect, indicating that the presence of non-financial rewards was more attractive in job offerings for women than for men. Research limitations/implications – The sample group was obtained by means of convenience sampling and may not have been adequately representative of the target population. Practical implications – Organisations may benefit from these results by implementing and/or emphasising non-financial rewards as part of a total rewards package when they attempt to attract or recruit potential employees. Organisations that seek to attract a higher number of female employees may benefit from the results by incorporating or further emphasising non-financial rewards as part of a targeted job offer. Originality/value – Substantial research exists that has identified reward elements that are effective in attraction strategies, but the authors are unaware of any literature where use was made of an experimental design to empirically show that non-financial rewards effect/influence perceived job attractiveness. The current study succeeded in identifying that the presence of non-financial rewards, as part of a job advertisement led to significantly higher levels of job attractiveness in prospective employees. Also, that there are gender differences in the extent to which the presence of non-financial rewards effect perceived attractiveness of a job offer.
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CEO pay-performance sensitivity in the South African context
- Authors: Bussin, Mark
- Date: 2015
- Subjects: Performance - Management , Compensation management , Performance - Measurement , Organizational effectiveness - Measurement
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226782 , uj:22937 , Citation: Bussin, M. 2015. CEO pay-performance sensitivity in the South African context. South African Journal of Economic and Management Sciences, 18(2):232-244. DOI: http://dx.doi.org/10.17159/2222-3436/2015/v18n2a7 , ISSN: 2222-3436 (Online) , ISSN: 1015-8812 (Print)
- Description: Abstract: The topic of executive pay-performance sensitivity has resulted in mixed research findings. Literature related to executive remuneration constructs, company performance measures and the underlying theories is critically reviewed in this article. The literature is compared to research findings within the South African context pre, during and post the Global Financial Crisis of 2008. The researcher found similar results in the South African context compared to research in other countries and industries. The research challenges the notion that there is one dominant theory driving CEO compensation. The principal-agent theory, supported by the optimal contract theory, are foremost during periods of strong economic performance, while the influence of managerial power and other behavioural theories appear to prevail during periods of weak economic performance. This article proposes some critical considerations in order to manage this tension.
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Financial indicators of company performance in different industries that affect CEO remuneration in South Africa
- Authors: Bussin, Mark , Blair, Chris
- Date: 2015
- Subjects: Corporate profits - South Africa , Chief executive officers - Salaries - South Africa , Executives - Salaries - South Africa , Executive effectiveness South Africa
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226796 , uj:22940 , Citation: Bussin, M. & Blair, C. 2015. Financial indicators of company performance in different industries that affect CEO remuneration in South Africa. South African Journal of Economic and Management Sciences, 18(4):1-13. DOI: http://dx.doi.org/10.17159/2222-3436/2015/v18n4a7. , ISSN: 2222-3436
- Description: Abstract: In an attempt to address the growing gap between chief executive officer (CEO) remuneration and that of the general worker, reign in rising CEO remuneration, and justify the portion of long-term incentive pay that makes up the bulk of CEO remuneration, shareholders and other stakeholders are trying to find definitive factors that will link CEO remuneration to company performance. Finding this link has become central to all executive remuneration issues. The results of the studies linking CEO remuneration to company performance are varied and inconclusive, particularly in South Africa. The reason for this is that previous studies have not looked at whether the company performance measures chosen have definite relationships with CEO remuneration in each industry. This study investigated eleven financial indicators of company performance to determine which of them have significant and positive relationships to CEO remuneration in different industries in South Africa. 254 South African listed companies, spread over 5 industries, were analysed for the period 2008 to 2012 using panel data analysis and statistical tests. The results were conclusive, finding performance metrics that had a positive and significant relationship to CEO remuneration in 4 of the 5 industries investigated, as well as over the aggregate of all the industries.
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Influence of reward preferences in attracting, retaining, and motivating knowledge workers in South African information technology companies
- Authors: Bussin, Mark , Toerien, Wernardt C.
- Date: 2015
- Subjects: Employee retention , Labor turnover , Job satisfaction , Pay-for-knowledge systems - South Africa , Compensation management - South Africa
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226817 , uj:22942 , Citation: Bussin, M. & Toerien, W.C. 2015. Influence of reward preferences in attracting, retaining, and motivating knowledge workers in South African information technology companies. Acta Commercii, 15(1):1-13. DOI: http://dx.doi.org/10.4102/ac.v15i1.290. , ISSN: 2413-1903 (Print) , ISSN: 1684-1999 (Online)
- Description: Abstract: The world of work is evolving and the nature of relationships between knowledge workers and their employers has changed distinctly, leading to a change in the type of rewards they prefer. The nature of these preferences in the South African, industry-specific context is poorly understood. The purpose of this study was to deepen understanding of the reward preferences of Information technology (IT) knowledge workers in South Africa, specifically as these relate to the attraction, retention and motivation of knowledge workers. Design: The research design included a quantitative, empirical and descriptive study of reward preferences, measured with a self-administered survey and analysed using non-parametric tests for variance between dependent and independent groups and non-parametric analysis of variance. Findings: This study found that there are specific reward preferences in knowledge workers in the IT sector in South Africa and that these preferences apply differently when related to the attraction, retention and motivation of employees. It identified the most important reward components in the competition for knowledge workers and also demonstrated that demographic characteristics play a statistically significant role in determining reward preferences. Practical implications: The study’s findings show that a holistic approach to total rewards is required, failing which, companies will find themselves facing increased turnover and jobhopping. Importantly, the study also highlights that different rewards need to form part of knowledge workers’ relationship with their employer in three different scenarios: attraction, retention and motivation.
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Relationship between CEO remuneration and company financial performance in the South African retail and consumer goods sector
- Authors: Bussin, Mark , Nel, Morne
- Date: 2015
- Subjects: Company financial performance , Chief executive officers - Salaries, etc. - South Africa
- Type: Article
- Identifier: uj:5516 , http://hdl.handle.net/10210/13789
- Description: Purpose: This study was motivated by the need to better understand the effects of the global financial crisis in 2008 on the relationship between company financial performance and CEO guaranteed cost to company (CTC). The aim of this study was to understand the relationship between company financial performance using DuPont analysis and CEO guaranteed CTC in the South African retail and consumer goods sector. Design: The research was a quantitative, archival study of companies listed on the Johannesburg Stock Exchange (JSE), measured over a period of six years (2006–2011). The statistical analysis included regression and correlation analysis. Findings: The research found that CEO guaranteed CTC has shown no sensitivity towards company financial performance in terms of DuPont analysis over the six-year period, which included the global financial crises in 2008. Furthermore, a negative relationship existed between the return on equity and the guaranteed CTC of CEOs in the retail and consumer goods sector during this period. Practical implications: The findings suggest that there is misalignment between company strategy and performance and the guaranteed CTC of CEOs. A practical implication would be to have independent and competent remuneration committees ensuring alignment of the interests of a company with those of its leaders in this regard.
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Retention preferences and the relationship between total rewards, perceived organisational support and perceived supervisor support
- Authors: Smit, Wilmien , Stanz, Karel , Bussin, Mark
- Date: 2015
- Subjects: Employee retention , Incentive awards , Organizational effectiveness , Compensation management
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226724 , uj:22931 , Citation: Smit, W., Stanz, K. & Bussin, M. 2015. Retention preferences and the relationship between total rewards, perceived organisational support and perceived supervisor support. SA Journal of Human Resource Management, 13(1):1-13. DOI: http://dx.doi.org/10.4102/sajhrm.v13i1.665. , ISSN: 2071-078X (online) , ISSN: 1683-7584 (print)
- Description: Abstract: Currently there is much debate whether modifying traditional reward packages to focus on the preferences of multi-generations would be essential in attracting, motivating and retaining talent. Total reward factors, perceived organisational support and perceived supervisor support are distinct but related concepts, all of which appear to influence an employee’s decision to stay at an organisation. Research purpose: The objective of this study was to identify the different total reward components that multi-generations prefer as most important for retention. In essence, the study aims to establish possible relationships between multi-generations’ total reward components, perceived organisational support, and perceived supervisor support. Motivation for the study: This study is useful as it conducts a contemporary retention exploration that considers both the emerging demographic workforce shift and the new paradigm shift towards talent management. Research methodology: A quantitative, cross-sectional research design was applied to gather data from employees (N = 303) from different industry sectors in South African organisations. Main findings: The results showed that performance management and remuneration are considered to be the most important retention factors amongst multi-generation groups. Differences between total reward preferences and demographical variables, which include age, gender, race, industry and job level, were found...
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The relationship between chief executive officer remuneration and financial performance in South Africa between 2006 and 2012
- Authors: Bussin, Mark , Modau, Minute F.
- Date: 2015
- Subjects: Chief executive officers - Salaries, etc. - South Africa
- Type: Article
- Identifier: uj:5513 , http://hdl.handle.net/10210/13751
- Description: Orientation: The relationship between Chief Executive Officer (CEO) remuneration and organisation performance has been a topic of close scrutiny, especially since the global financial crisis. Optimal contracting relies on the premise that effective incentives will link organisation financial performance and CEO remuneration in ways that will be in the best interests of both shareholders and CEOs. Research purpose: The purpose of this research study was to investigate the relationship between CEO remuneration and organisation performance in South Africa between 2006 and 2012 and to determine whether the two constructs were positively correlated. Motivation for the study: The study provides an evidenced-based understanding of the nature of the CEO pay-performance relationship in South Africa. Understanding this relationship is critical to finding a suitable model to structure executive remuneration that will protect shareholders from over-remunerating executives in times of economic appreciation, whilst protecting executives from being underpaid in times of economic depreciation. Method: The financial results and CEO remuneration of 21 of the top 40 listed companies on the Johannesburg Stock Exchange were analysed for the period 2006–2012. The research was a quantitative, archival study. The primary statistical techniques used in the study were correlation analysis and multiple regression analysis. Main findings: The primary finding of the current research indicates that between 2006 and 2012 organisation executives have noticeably been moving away from focusing on short-term incentives, which are categorised as performance-related elements of remuneration packages. Based on these findings, it is evident that the relationship between executive remuneration and organisational financial performance has been experiencing a decline, especially since the 2008 global financial crisis. The decline has predominantly been due to a move away from performance-related elements of remuneration contracts by CEOs, creating a disconnect between CEO remuneration and organisational performance. The findings suggest that, to a large extent, remuneration contracts for CEOs are no longer optimal for the organisation and its shareholders, but are influenced by the propensity of executives to enhance their own remuneration. There exists a link between short-term incentives received by CEOs and accounting-based organisational performance measures; on the other hand, fixed pay linked with organisational performance measures continue to be eroded as organisations’ executives become more innovative as they are noticeably moving away from focusing on short-term incentives....
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Fast-tracking authentic leadership development by means of a programme
- Authors: Wulffers, Tineke , Bussin, Mark , Hewitt, L. M. M.
- Date: 2016
- Subjects: Organizational effectiveness , Leadership , Conduct of life
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226789 , uj:22938 , Citation: Wulffers, T., Bussin, M. & Hewitt, M. 2016. Fast-tracking authentic leadership development by means of a programme. SA Journal of Human Resource Management, 14(1):1-13. DOI: http://dx.doi.org/10.4102/sajhrm.v14i1.764. , ISSN: 2071-078X (Online) , ISSN: 1683-7584 (Print)
- Description: Abstract: While there is considerable literature on the definition and impact of authentic leadership (AL), there is a research gap regarding the effectiveness of AL programmes. Research purpose: The focus of this article is on the proximal programme effect of an AL development programme on executive leaders within a period of 3 months. Motivation for the study: AL has been identified not only as the root construct of positive forms of leadership but also equates to the highest level of leadership effectiveness. Leadership authenticity can take a life time to develop, and organisations need positive and ethical leadership now. An appropriate AL programme could considerably shorten the development period of a such leadership Research design, approach and method: A longitudinal qualitative programme evaluation approach was used. The participants comprised a primary group of a 10-member executive leadership team who were the AL programme participants and their respective secondary (senior, peer and subordinate) participants who provided pre- and post-programme data on the leadership authenticity of the primary participants. Main findings: The outline of the AL programme is presented with an indication of how it adhered to specific guidelines offered for development of such programmes. Findings indicate that the programme had a proximal effect of increasing AL; starting with the development of personal followed by interpersonal and professional leadership. Practical/managerial implications: An appropriate and effective AL programme could thus considerably shorten the development period of such leadership.
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Predicting voluntary turnover in employees using demographic characteristics: A South African case study
- Authors: Schlechter, Anton F. , Syce, Chantal , Bussin, Mark
- Date: 2016
- Subjects: Employee retention - South Africa , Labor turnover , Job satisfaction
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226707 , uj:22928 , Citation: Schlechter, A.F., Syce, C. & Bussin, M. 2016. Predicting voluntary turnover in employees using demographic characteristics: A South African case study. Acta Commercii 16(1):1-10. DOI: http://dx.doi.org/10.4102/ac.v16i1.274. , ISSN: 1684-1999 (Online) , ISSN: 2413-1903 (Print)
- Description: Abstract: Employee turnover presents arguably the biggest threat to business sustainability and is a dynamic challenge faced by businesses globally. In South Africa, organisations compete to attract and retain skilled employees in an environment characterised by a burgeoning skills deficit. Turnover risk management is becoming an important strategy to ensure organisational stability and promote the effective retention of employees. The purpose of this research was to contribute to the practice of turnover risk management by proposing an approach and constructing a model to predict employee turnover based on demographic characteristics readily available in a human resource information system. Design: An exploratory research design was employed. Secondary quantitative data were extracted from an existing human resources database and analysed. Data obtained for 2592 employees in a general insurance company based in South Africa and Namibia formed the basis for the analysis. Logistic regression analysis was employed to predict employee turnover using various demographic characteristics available within the database. A likelihood ratio test was used to build a predictive model and the Akaike information criterion and Schwarz criterion were used to test how much value each variable added to the model and if its inclusion was warranted. The model was tested by conducting statistical tests of the significance of the coefficients. Deviance and Pearson goodness-of-fit statistics as well as the R-square test of significance were used. The overall goodness-of-fit of the model was also tested using the Hosmer and Lemeshow goodness-of-fit test. Findings: The current findings provide partial support for a predictive model explaining employee turnover. The model tested 14 demographic variables and the following five variables were found to have statistically significant predictive value: age, years of service, cost centre, performance score and the interaction between number of dependants and years of service. It is proposed that these five demographic variables be used as a model to help identify employees at risk of turnover or termed as flight risks. Practical implications: Gaining an understanding of the factors that influence employee voluntary turnover can be instrumental in sustaining workforce stability. The proposed model could help human resources professionals identify employees at risk of turnover using data that are readily available to them. This will further enable the use of targeted interventions to prevent turnover before it happens. Decreased levels of turnover will result in cost saving, enhanced talent management and greater competitive advantage.
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