Abstract
Orientation: This research evaluates the remuneration preferences of knowledge workers as a retention strategy in an integrated international energy and chemical company, using the WorldatWork Total Rewards Model.Research purpose: Organisations may benefit from understanding their employees’ preferential remuneration benefits, in particular, knowledge workers as a scare skill requiring specific retention strategies.Motivation for the study: To understand the remuneration preferences for the retention of a group of knowledge workers within a large organisation based in South Africa. The research is necessary within organisations in South Africa impacted by scarce skills and a need to attract and retain knowledge workers. If remuneration preferences are not considered as part of retention, there is a risk knowledge workers may leave for preferential opportunities.Research approach/design and method: A total of 199 employees from a group of 1229 voluntarily participated in the survey. An electronic-based questionnaire was developed from the WorldatWork rewards model. The results from the surveys were analysed with descriptive statistics and inferential statistics.Main findings: No significance in reward strategies was found for age, level of performance or number of years of service. There was also no significant difference between the knowledge workers number of years of service and their intention to remain with the organisation. There was a significance in gender for benefits, flexibility and performance development preferences.Practical/managerial implications: The development of retention strategies should consider reward preferences of male and female employees.Contribution/value-add: Knowledge workers’ reward preferences do not differ on demographic variables, except gender. This contradicts some literature in the area.
Highlights
Key focus of the studyThe right total reward strategy can deliver the right amount to the right people at the right time, for the right reasons (Smit, 2013, p. 1).The context of employment is continuously changing with both demographic and economic pressures which include increasing life expectancy, declining birth rates, the higher flexibility of human capital to relocate through globalisation and the shift towards knowledge-based economies (Tatoglu, Glaister, & Demirbag, 2016)
Organisations struggle to compete effectively to be the employer of choice (Balakrishnan & Vijayalakshmi, 2014): Employee retention is more than rivalling your competition with higher wages
An online survey was sent out to 1229 knowledge workers based at the head office of an international integrated energy and chemicals company
Summary
Key focus of the studyThe right total reward strategy can deliver the right amount to the right people at the right time, for the right reasons (Smit, 2013, p. 1).The context of employment is continuously changing with both demographic and economic pressures which include increasing life expectancy, declining birth rates, the higher flexibility of human capital to relocate through globalisation and the shift towards knowledge-based economies (Tatoglu, Glaister, & Demirbag, 2016). The ability to attract, retain and motivate this talent will become difficult because of the increased turnover costs which comprise loss of corporate memory, productivity and intellectual and social capital. The indirect financial costs include work disruptions, loss of knowledge, productivity, customers, mentors and even increased employee turnover (Schlechter et al, 2014c). Retaining knowledgeable employees is vital to the continual success of an organisation (Balakrishnan & Vijayalakshmi, 2014). South Africa is experiencing a skills crisis in general and retaining knowledge workers is difficult because of their unique attributes. This ‘scarcity of skills stimulates the open competition for talent and drives turnover higher’ A lack of an inclusive environment and obstacles for advancement has been shown to increase the turnover rate (Khoele & Daya, 2014)
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