Abstract
Orientation: The workforce is changing, as employers aim to attract qualified individuals from Generation Y, born 1981–2000, but strategies for attraction require adaption, as the ‘one-size-fits-all’ model no longer works for today’s multigenerational workforce.Research purpose: Determining what changes and priorities organisations need to consider for their total rewards frameworks to attract youth employees.Motivation for the study: Companies offer employees historical benefits that they do not want or value. This is important when one considers the attraction of Generation Y to organisations, as they are increasingly becoming a formidable factor in an organisations’ success and sustainability. The motivation for this study was understanding what rewards are aligned with the aspirations of this skilled generation, to attract them.Research approach/design and method: A sequential mixed-method approach was followed, where data were collected, using quantitative and qualitative methods. A questionnaire was distributed and a response rate of 276 participants from seven of the nine provinces in South Africa achieved. Interviews were conducted where 11 participants validated the quantitative findings.Main findings: Seven reward categories were found to affect Generation Y’s attraction to organisations, (1) leadership and environment (2) benefits (3) performance incentives (4) individual development (5) safe, secure working environment (6) work–life balance and resources and (7) performance recognition.Practical/managerial implications: A different approach is required for the attraction of Generation Y.Contribution/value-add: No empirical study exists that authenticates total rewards models for Generation Y, identifying the most important reward preferences and developing a new, more effective total rewards framework.
Highlights
Organisational environments are characterised by increasing shortages of skilled labour, and it has become imperative to design employment systems that prioritise human resources to create a competitive advantage (Holland, Sheenan, & De Cieri, 2007)
Respondents answered the quantitative questions on a defined Likert scale, and the results from these responses are presented in Table 4 by the total rewards element, with corresponding year of birth across and frequency of response downwards
The results indicated that the group born 1946–1965 had Salary/Pay 13th Cheque Short-term incentives Long-term incentives Share options Higher base salary with limited bonus potential Lower base salary with unlimited bonus potential Lump sum annual bonus payment Smaller bonuses intermittently Medical aid Retirement fund Leave Employee discounts Employee wellness offering Sabbaticals, or other scheduled time reductions Non-financial rewards Formal recognition Informal recognition Learning and development opportunities Career/Growth opportunities Experience of working in different organisations to maximise career progression Experience of working in different organisations to maximise career earnings potential Formal coaching or mentoring programmes Flexible work arrangements Corporate social responsibility Longer-term job security (>months) Safe and secure work environment Supportive management Supportive work environment Resources
Summary
Human resource practice initiatives can help to attract skilled labour to gain and retain competitive advantage (Pahuja & Dalal, 2012). It has become clear that the battle for talent involves much more than highly effective, strategically designed compensation and benefits programmes While these programmes remain critical, the most successful companies have realised that they must take a much broader look at the factors involved in attraction, motivation, and retention. They must employ all the factors – including compensation, benefits, work–life, performance recognition, development and career opportunities – to their strategic advantage (Wang, 2012)
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