Total rewards that retain: A study of demographic preferences

Abstract

Orientation-Changing workplace demographics and a scarcity of skills have forced employers to understand which total reward factors influence the retention of talented employees, as undifferentiated retention strategies are no longer appropriate. Research purpose-The objectives of this study were to develop an understanding of the total reward factors and the ideal combination and quantum of total rewards that retain employees from various demographic groups including: knowledge workers, employees of different races, genders and age groups. Motivation for the study-People are integral to an organisations‘ competitive advantage but talent retention is a challenge for companies globally. To survive the war for talent it is necessary to understand the total reward factors that retain employees. This is especially applicable in South Africa where the demographic profile of the workplace is changing and differentiated retention strategies are needed to retain employees from diverse groups. Research Design-A quantitative research approach adopting a descriptive design was used. Data was collected via convenience sampling by way of three questionnaires. Remuneration Managers (n=7) completed the first questionnaire to identify different total reward offerings that are believed to retain skilled employees. These results, together with total reward elements constructed from the WorldatWork Total Rewards model, were used to develop the second and third questionnaires which were distributed to corporate members of the South African Reward Association (SARA) as well as to a multinational Oil Company (n=361). Data from questionnaire 2 was analysed using descriptive statistics, t-tests and ANOVAs. Conjoint analysis was employed to identify an ideal total rewards mix based on responses from questionnaire 3. Main findings-The results of the conjoint task revealed that all respondents considered the highest value of financial rewards including: Benefits, Remuneration and Performance and Recognition as components in their total University of Cape Town rewards package that lead to their retention. Results of the t-tests and ANOVA‘s revealed significant differences in respondents‘ preferences for Performance and Recognition, Learning and Career Advancement and Work- Life Balance. Performance and Recognition was valued in the retention of Generation X and Y and black employees while Non-Management, Middle- Management, females and Generation X and Generation Y employees considered Learning and Career Advancement as significant in their retention. Matriculants, Undergraduates, Generation Y and black employees considered Work-Life Balance Climate important in their retention, while Work-Life Balance Practices were valued by Non-Management and Middle Management in their retention. Practical/Managerial Implications-The unique application of conjoint analysis allowed for the identification of both the combination and quantum of total rewards that retain the various demographic groups. Organisations are able to incorporate these findings into differentiated retention strategies. Contribution/value add-A dearth of research exists in South Africa which highlights the total rewards that retain various demographic groups. No literature exists which identifies the desired reward mix and the amount of rewards that retain employees. The current study succeeded in identifying the total rewards and the ideal mix of total rewards that retain knowledge workers and employees of different gender, race and age groups. Pregnolato, M., Bussin, M. H., & Schlechter, A. F. (2017). Total rewards that retain: A study of demographic preferences. SA Journal of Human Resource Management, 15(1), 1-10.