Abstract:
Orientation: Literature has shown that universal approach to rewards does not exist and not ideal. Developing a total rewards package that is more closely aligned to the preferences of employees can improve its effectiveness and help organisations attract, engage, and maintain talent to develop a competitive advantage amongst its peers.
Research purpose: The primary objective of this research is to determine if employee’s reward preferences are affected by demographics through the application of the WorldatWork total rewards strategy framework.
Motivation for the study: With the critical skills shortage and resulting fierce competition for skills within the South African energy sector, understanding how to attract, engage and retain the desired skills will enable organisations to develop a competitive advantage over its peers and successfully implement its strategic priorities.
Research design, approach, and method: A quantitative approach was taken where primary data was collected, at a single point in time, through structured online surveys. The population was made up of 1 553 employees from a large South African petrochemical company. The sample was defined through non-probability convenient sampling, where 152 individuals responded voluntarily.
Main findings: The research confirmed that employee reward preferences are varied based on their demographic groupings. Although there was no difference in how the different demographic groups valued financial rewards, reward preferences did vary based on age, gender, race, tenure, and seniority.
Practical implications: Based on the understanding of how reward preferences vary amongst the different demographic groups, managers can develop total reward packages that are more closely aligned to the preferences of their diverse workforce without necessarily increasing the associated cost.
Contributions: Within the South African energy sector, demographics do influence the employee reward preferences. This is a significant and decisive contribution to academic literature and the body of knowledge.
