Expectations and experiences of talent management across South Africa and the effect on retention

The “war on talent” is intensifying and effective talent management strategies are imperative for business success. This study explores the expectations and experiences of talent management strategies amongst employees across South Africa and their impact on retention. The literature review covers the constructs of talent management, working environment, rewards, leadership, race, age and gender as well as retention. A quantitative survey approach with comparative studies was adopted. A snowball convenience sampling method was used with links to an on-line questionnaire e-mailed to potential respondents. A total of 711 useable responses were received. Statistical analysis included factor analysis, Cronbach alpha reliability testing, mean factor scores, paired samplet-tests, Pearson’s correlations, T-tests and ANOVAs. The study found that leadership was the factor rated as most important followed by working environment and development. Respondents reported significant differences between expectations and employer ratings on all factors, with cash rewards being the greatest source of dissatisfaction. Experiences of work environment, leadership and development indicated stronger correlations to retention than cash rewards. Women, millennials and non-whites demonstrated the highest retention risks. A significant negative correlation was found between the respondents’ reported experience of leadership, work environment and development and the importance they attached to cash rewards. The study supports Hertzberg’s classification of cash rewards as a hygiene factor and Alderfer’s ERG theory’s concept of frustration-regression. This has significant implications for the focus of talent and retention strategies, and it is proposed that improving the quality of leadership, work environments and development opportunities will decrease the current over-reliance on monetary rewards as a retention tool