How cultural differences affect recognition and retention in multinational organisations

Abstract

Employee recognition matters to business outcomes; ensuring employees know and feel that they are valued can result in lower voluntary turnover. The purpose of this qualitative research was to investigate how cultural differences affect employee recognition and its link to retention within the context of a telecommunications multinational operating in 18 African markets. By exploring the nuances of recognition across various cultural contexts, the research aimed to determine the relevance of macro-cultural models such as Hofstede’s in guiding modern employee recognition strategies affecting employee loyalty with the aim of identifying best practice. The study used a descriptive-exploratory design, analysing 16 semi-structured interviews with employees and HR professionals across multiple African regions. Thematic analysis was used to identify patterns in preference, perception and impact using Atlas.ti. The principal finding is that national culture is a weak predictor of recognition preferences. Instead, individual demographic factors and socio-economic pragmatism were found to be stronger moderators. The findings also challenge the direct link between recognition and retention and highlight that recognition is more of an amplifier than a driver of retention. The study proposes a Structured Personalisation model in place of a “one-size-fits-all’ approach. It recommends that MNCs provide personalisation in recognition and make managers more accountable for driving it.