The relationship between occupational culture dimensions and reward preferences: A structural equation modelling approach

Bussin, Mark; Nicholls, Michelle; Nienaber, Ronel

doi:10.4102/sajhrm.v14i1.737

Cited by 3 publications

(3 citation statements)

References 23 publications

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“…Pay (compensation or remuneration) is the most commonly cited reward element used in retention strategies http://www.sajhrm.co.za Open Access (Bussin, Nicholls & Nienaber, 2016). In reality though, pay has been found to be the fifth most common reason for leaving an organisation (Bussin, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

Total rewards that retain: A study of demographic preferences

Pregnolato

Bussin

Schlechter

2017

SA Journal of Human Resource Management

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Employee engagement and retention are overwhelmingly cited by the Chief Executive Officers of some of the largest and fastest growing companies, as the number one priority on the Human Resource or Human Capital agenda (Frank, Finnegan & Taylor, 2004;Schlechter, Faught & Bussin, 2014). Business strategies, products and services can often be replicated, but it is nearly impossible to replicate a company's talent pool, a fundamental aspect whereby a business distinguishes itself from its competitors (Jensen, McMullen & Stark, 2007). Background of the studyThe turnover of critical or key staff members, often referred to as talent, is associated with significant direct and indirect costs to an organisation. These costs include, for example, the costs associated Orientation: Changing workplace demographics and a dearth of employees with scarce skills have forced employers to better understand the various factors that retain talented employees. Research purpose:In this empirical study, the reward preferences and ideal combination of total reward elements (based on an estimation of their relative importance) that retain employees from various demographic groups, including employees of different race, gender and age groups, were investigated.Motivation for study: Organisations are competing for talented employees and to benefit from the value these individuals add, it is required of them to stay at the respective businesses. Previous studies have indicated that employees who are offered a reward package that is aligned to their personal preferences are prone to stay longer at the organisation and to be more engaged at work. However, new and novel ways need to be found to identify the reward preferences of employees.Research design, approach and method: A quantitative approach and descriptive research design was employed to estimate the individual reward preferences and identify an ideal mix of total reward elements that retain different cohorts of employees. Three questionnaires were distributed, including a Remuneration Managers Questionnaire (n = 7), a Remuneration Preference Questionnaire (n = 368) and a Choice-based Conjoint Task Questionnaire (n = 368). The latter two questionnaires were distributed as an online questionnaire to South African businesses and consisted of eight choice-based conjoint tasks, as well as a field survey. Main findings:The results of the choice-based conjoint analysis revealed that all respondents considered financial rewards (Benefits, Performance and Recognition, Remuneration, Career, in that order) as relatively speaking, the most important components in their total rewards package that would lead to their retention. For most demographic groups, the remaining three places (i.e. ranked) were Career Advancement, Learning and Work-life balance. Work-life balance was found to be relatively more important for Generation Y than career advancement. For those employees with only a matric qualification and those in non-managerial positions, access to learning opportunities were the least important...

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Section: Literature Reviewmentioning

confidence: 99%

Total rewards that retain: A study of demographic preferences

Pregnolato

Bussin

Schlechter

2017

SA Journal of Human Resource Management

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“…Unfortunately, there are very limited studies which have further scrutinised the psychometric properties of the modified version. Another instrument which has undergone modification and validation in the South African context is the SARM10 (Bussin, Nicholls, & Nienaber, 2016). The SARM10 consists of 11 subscales namely, guaranteed package, short-term incentives, pension, job-level-based benefits, family-related benefits, job security, work hours, career and development, performance and recognition, team pay and team equal.…”

Section: Measuring Reward Preferencesmentioning

confidence: 99%

The development and validation of the Rewards Desirability Inventory

Victor

Hoole

2021

SA j. hum. resour. manag.

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Orientation: Research on reward preferences remains inconclusive. Total reward theories often do not take the role of intrinsic psychological rewards into consideration. Further to this, there are not only limited instruments available to measure reward preferences but also ease of access to psychometrically sound measures is further challenging.Research purpose: The aim of this study was to develop and validate an instrument to measure reward preferences in the working environment.Motivation for the study: Organisations require tools to enhance waning motivational levels in the workplace. The measurement of reward preferences appears essential to determine what employees ultimately want from their work to improve levels of motivation. Major limitations exist regarding current reward preference instruments.Research approach/design and method: Quantitative scale development procedures were employed to construct the 32-item instrument. Data were collected from South African employees (N = 639) and processed using both Factor and Rasch analysis procedures.Main findings: The factor analysis revealed a 3-factor structure (Non-financial rewards, Financial rewards and Benefits and growth opportunities). Items evidenced good factor loadings and dimensions demonstrated high internal consistency. The dimensions and overall scale performed mostly well in accordance with Rasch Model expectations. Based on the overall results, one can confirm that the new instrument has satisfactory psychometric properties.Practical/managerial implications: The instrument can help employers and scholars to measure, understand and explore what employees value and seek from the working environment.Contribution/value-addition: The study expands on limited pre-existing theory and empirical research pertaining to the measurement of rewards preferences. A unique and psychometrically sound reward preference instrument is provided for use by scholars and employers.

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“…Pay (compensation or remuneration) is the most commonly cited reward element used in retention strategies (Bussin, Nicholls & Nienaber, 2016). In reality though, pay has been found to be the fifth most common reason for leaving an organisation (Bussin, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

Total rewards that retain: A study of demographic preferences

Pregnolato

Bussin

Schlechter

2017

SA j. hum. resour. manag.

View full text Add to dashboard Cite

Orientation: Changing workplace demographics and a dearth of employees with scarce skills have forced employers to better understand the various factors that retain talented employees.Research purpose: In this empirical study, the reward preferences and ideal combination of total reward elements (based on an estimation of their relative importance) that retain employees from various demographic groups, including employees of different race, gender and age groups, were investigated.Motivation for study: Organisations are competing for talented employees and to benefit from the value these individuals add, it is required of them to stay at the respective businesses. Previous studies have indicated that employees who are offered a reward package that is aligned to their personal preferences are prone to stay longer at the organisation and to be more engaged at work. However, new and novel ways need to be found to identify the reward preferences of employees.Research design, approach and method: A quantitative approach and descriptive research design was employed to estimate the individual reward preferences and identify an ideal mix of total reward elements that retain different cohorts of employees. Three questionnaires were distributed, including a Remuneration Managers Questionnaire (n = 7), a Remuneration Preference Questionnaire (n = 368) and a Choice-based Conjoint Task Questionnaire (n = 368). The latter two questionnaires were distributed as an online questionnaire to South African businesses and consisted of eight choice-based conjoint tasks, as well as a field survey.Main findings: The results of the choice-based conjoint analysis revealed that all respondents considered financial rewards (Benefits, Performance and Recognition, Remuneration, Career, in that order) as relatively speaking, the most important components in their total rewards package that would lead to their retention. For most demographic groups, the remaining three places (i.e. ranked) were Career Advancement, Learning and Work–life balance. Work–life balance was found to be relatively more important for Generation Y than career advancement. For those employees with only a matric qualification and those in non-managerial positions, access to learning opportunities were the least important in their retention.Practical/managerial implications: Human Resource managers and line managers should note that reward elements should be chosen and offered as total reward packages in such a way as to best be able to attract, engage and retain talented employees.Contribution/value-add: The findings of the present study adds value in a sense that it assists organisations in creating customised reward packages that best suit the needs of both employees and them as employers. Providing a more ideal or preferential combination of reward elements can, by increasing retention and engagement, provide a competitive advantage for organisations.

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The relationship between occupational culture dimensions and reward preferences: A structural equation modelling approach

Cited by 3 publications

References 23 publications

Total rewards that retain: A study of demographic preferences

Total rewards that retain: A study of demographic preferences

The development and validation of the Rewards Desirability Inventory

Total rewards that retain: A study of demographic preferences

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