Total rewards: A study of artisan attraction and retention within a South African context

Abstract

Orientation: The shortage of artisan skills remains a serious challenge in South Africa andis forcing employers to investigate which total reward factors contribute to the attractionand retention of this critical skills segment, as undifferentiated retention strategies are nolonger useful or even appropriate.Research purpose: The aim of this study was to further develop understanding of the total rewardfactors and the ideal combination and relative amount of total rewards that attract and retainartisans, including artisans from various race groups and age cohorts, using a novel approach.Motivation for the study: Limited research is available on the total reward factors and theideal combination and relative amount of total rewards that attract and retain artisans. Furtherknowledge in this area will allow organisations to develop reward models that better attractand retain artisans.Method: The study followed both a quantitative and qualitative research approach,whilst adopting a descriptive research design. Using this mixed method, primary datawere collected from individuals by means of two focus groups discussions: (1) a groupof human resource and remuneration managers (n = 4) and (2) a group of artisans (n = 7).These results were used to develop two questionnaires that were distributed to artisans (n = 143). Data from Questionnaire 1 were analysed using descriptive statistics and factoranalysis. Conjoint analysis was employed to identify an ideal total rewards compositionbased on responses from Questionnaire 2.Main findings: The results of the choice-based modelling (conjoint analysis) revealed thatthree total rewards attributes were consistently deemed to be important in the retention ofartisans. These were (in order of priority): environment (work-life balance), compensation(level) and compensation (variable). Environment (work-life balance) was considered14.64% more important than compensation (level) within the overall sample as well aswithin the race and age cohorts.Practical/managerial implications: The identification of both the combination and relativeamount of total rewards that attract and retain artisans will allow organisations to createdifferentiated retention strategies.Contribution: The current study succeeded in identifying the total rewards and the idealcomposition of total rewards that attract and retain artisans, including artisans from variousdemographic groups (race and various age cohorts). This was done using a method thatassessed the psychological trade-offs people make when choosing between options ratherthan just asking them how desirable each of these factors are. This novel approach and theoutcomes thereof add to the body of literature on total reward and talent management.

Total rewards that retain: A study of demographic preferences

“…This indicates that there was a high level of reliability for this model. The ratio of correctly predicted choices is called the hit rate, which is a common validity measure (Eggers et al, 2009;Schlechter et al, 2014). The hit rate for the conjoint model in this study was 38.5%, which means that the model was able to produce 38.5% correct predictions from the holdout set.…”

“…generations, genders or race groups), has been the focus of research over the last few years (Codrington, 2008;Schlechter et al, 2014;Snelgar et al, 2013;Sutherland, 2004). Within the South African context, it has been found that specific reward strategies are related to the retention of Generation X, female employees and black professionals (Bussin & Toerien, 2015;Kotze & Roodt's, 2005;Krishnan, 2009;Masibigiri & Nienaber, 2011;Schlechter et al, 2014).…”

“…The hit rate for the conjoint model in this study was 38.5%, which means that the model was able to produce 38.5% correct predictions from the holdout set. With four alternatives in the holdout set, a chance model would have resulted in 25% of predictions being correct (Schlechter et al, 2014). The hit rate for this study needs to be interpreted in the context of the holdout stimuli being developed on the basis of chance given that no previous research existed to guide the design of the stimuli.…”

“…Each attribute's utility range is expressed as a percentage of the sum of the utility ranges across all attributes. These percentages provide an indication of the importance employees attach to the various total reward attributes in their ability to retain employees (Schlechter et al, 2014). Attributes with a larger range have a greater impact on the calculated utility values and are therefore deemed to be of greater importance.…”

Reward preferences in South Africa’s media industry

“…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. This study notably also found differences between reward preferences and demographic variables, including age, gender and job level, providing support for segmentation of rewards based on certain demographic variables.…”