Abstract:
Orientation: Currently there is much debate whether modifying traditional reward packages to focus on the preferences of multi-generations would be essential in attracting, motivating and retaining talent. Total Reward factors, Perceived Organisational Support and Perceived Supervisor Support are distinct but related concepts, and all of them appear to influence an employee’s decision to stay at an organisation.
Research purpose: The objective of this study was to identify the different total reward components which multi-generations prefer as most important for retention. In essence, the study aims to establish possible relationships between multi-generations’ Total Reward components, Perceived Organisational Support (POS), and Perceived Supervisor Support (PSS).
Motivation for the study: This study is useful as it conducts a contemporary retention exploration that considers both the emerging demographic workforce shift and the new paradigm shift towards talent management. An enriched understanding of retention preferences that influences organisational commitment may benefit the organisation who wants to retain their valuable talent.
Research Methodology: A quantitative, cross-sectional research design with convenience sampling was used. Data were gathered from employees (N = 303) at different industry sectors in South African organisations, using the Total Reward Scale (based on WorldatWork’s total reward model) and the Perceived Organisational Support Scale (SPOS), and the Perceived Supervisor Support Scale (SoPSS).
Main findings: The results showed that performance management and remuneration are considered to be the most important retention factors among multi-generation groups. The
study revealed Cronbach Alpha’s of 0.82, 0.92 and 0.95 for the total reward scale, SPOS and SoPSs respectively.
Differences between total reward preferences and demographical variables which include age, gender, race, industry and job level, were found. Moreover, differences between total reward preferences, Perceived Organisational Support (POS) and Perceived Supervisor Support (PSS) and demographical variables which included race, industry, job level were found.
The findings of the study indicates a strong practically significant positive correlation (r (df=237, p> 0.001) = 0.298, medium effect) between Total Reward components and POS. A strong practical significant positive relationship (r (DF=233, p>0.001) = 0.250, medium effect) was found between Total Reward and PSS. The study confirmed a strong practically significant positive correlation (r (df= 230, p> 0.001= 0.662, large effect) between POS and PSS in this study. This indicates that an increased perception of organisational support can be associated with an increased perception of Supervisor Support. Multiple regression confirmed that only race groups and job level groups mediate/moderate the relationship between Total Reward and POS as well as Total Reward and PSS.
Practical/managerial implications: Managers or HR practitioners should design their reward packages by taking employees preferences into account. More specifically, HR practitioners should focus on remuneration, performance management and development opportunities in order to retain scarce skills.
Contribution/value additions: The study on retention preferences of different demographic groups within the South African context adds considerably to the existing body of literature. The results of the study can assist managers and HR practitioners to design effective retention strategies, while also providing crucial information for the retention and motivation of employees.
