Reward preferences in South Africa’s media industry

Mark H.R. Bussin,Nokwanda N. Thabethe

doi:10.4102/sajhrm.v16i0.1010

Mark H.R. Bussin, Nokwanda N. Thabethe

Open Access

https://doi.org/10.4102/sajhrm.v16i0.1010

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Abstract

Orientation: Employee remuneration is a key driver of employee engagement and thus organisational performance. A thorough understanding of employee needs is essential to enable management to develop an equitable mix in reward strategy.Research purpose: The purpose of this study was to examine context-specific reward preferences in order to determine the overall reward preferences of employees in the media industry with the aim of improving existing reward strategies.Motivation for the study: The focus on reward preferences has emerged as a critical element in identifying what really motivates productive behaviour within the workplace. A better understanding of reward preferences is required to find ways to improve performance within the world of work.Research approach/design and method: The research was a quantitative, empirical and descriptive study of reward preferences in an industry-specific context. A self-administered survey was used as a measure and analysed using non-parametric tests to identify variances between dependent and independent groups, testing for internal consistency and non-parametric analysis of variance (ANOVA).Main findings: The following five reward preferences were rated as most important by participants: base pay or salary, merit increase that is linked to personal performance, incentives and bonus, safety and security at the workplace, and market-related salary. The results indicated that monthly salary (base pay) is the most preferred and/or significant reward category in attracting, retaining and motivating employees.Practical/managerial implications: Managers in South Africa’s media industry should investigate their organisations’ rewards through the perspective of the total rewards concept to assess and develop an equitable mix in reward strategy. A comprehensive analysis of reward preferences is required to ensure that all aspects that promote the attraction, retention and motivation of employees are taken into consideration. The importance of base pay should not be under-estimated as it represents the most significant reward preference for employees in the South African media industry.Contribution/value add: This study adds to the body of social science research, providing a deeper understanding of reward preferences, specifically in the context-specific setting.

Highlights

Problem statementThe 21st century organisations face an economically difficult, highly competitive and everchanging working environment
This was further detailed in a study by Ferreira (2012), which found that the challenges of work in the 21st century have an influence on attracting and retaining employees and that employers need to adopt a vigorous approach when developing employment and retention practices within the organisation
A study by Schlechter, Faught and Bussin (2014) provided a generic study in reward preferences of South African employees, and the results of this study showed that base pay was considered to be the most preferred reward component and an important reward component in attracting and retaining employees

Summary

Introduction

Problem statementThe 21st century organisations face an economically difficult, highly competitive and everchanging working environment. According to Boyd and Salamin (2001), employees offer a significant source of a sustainable competitive advantage for organisations This was further detailed in a study by Ferreira (2012), which found that the challenges of work in the 21st century have an influence on attracting and retaining employees and that employers need to adopt a vigorous approach when developing employment and retention practices within the organisation. The Global Competitiveness Report 2014–2015 ranks South Africa 136 out of 144 countries in pay and productivity (World Economic Forum, 2015) This rating suggests that the pay scale (remuneration) of organisations within the South African economy is not strongly related to employee productivity. This is a worrisome assessment when considering that employees provide an important source of a sustainable competitive advantage for organisations

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