Abstract:
Orientation: The financial sector comprises of the biggest part of South African economy. Organisations are growing fast and changes also happen rapidly which leave employees uncertain. Without the necessary perceived organisational support employees can suffer from several psychological illnesses such as burnout, over-/under committed or feeling unsatisfied with their lives.
Research purpose: The purpose of this study was to investigate whether different compensation structures, namely (i) fixed salary; (ii) fixed salary and commission; and (iii) commission only, will influence employees' perceived organisational support, organisational commitment, burnout and satisfaction with life of financial advisors within South Africa.
Research design, approach and method: The present study used a quantitative research approach, with a non-experimental, explanatory and cross-sectional survey design, with a population in the financial industry (n=105). The statistical analyses that were conducted include descriptive statistics, exploratory factor analyses (EFA), and multivariate analysis of co-variance (MANCOVA).
Main findings: This study brought new insights in how the different outcomes of wellness may be related to perceived organisational support, and how they differ for different types of compensation structures. Specifically, it was found persons receiving fixed salaries experienced higher levels of affective commitment, but they may also be more prone to burnout.
Practical/managerial implications: The present study sheds light on the effect of different compensation structures on employees' wellness in terms of Perceived organisational support, organisational commitment, burnout and satisfaction with life. The results can be used by organisations to introduce more suitable compensation structures for a healthier workforce, which could result in higher levels of commitment, and would reduce burnout. In this study it was found that financial advisors who receive a fixed salary are more prone to burnout. Perceived organisational support was significant with all the constructs except for continuous commitment.
