Reward strategy as a staff retention tool at the Financial Services Board

M.Comm.The use of total reward models focusing on cash and non-cash benefits as staff retention tools has gained popularity. The existing models advocate the use of variables, such as pay, training and development, benefits and work environment, as motivational factors to perform, remain with, or leave an organisation. This study seeks to establish employees‟ experiences, views and perceptions of how the Financial Services Board (FSB) is using its reward strategy as a staff retention tool. Aim and importance of the study The aim of the study is to research the overall awareness and effectiveness of the FSB‟s reward strategy as a staff retention tool by exploring employees‟ experiences, views and feelings. The literature reviewed indicates that rewards are key to motivating employees. The most popular reward model is the one developed by WorldatWork (2007). It identifies the core elements of rewards as remuneration (variable and fixed pay components); benefits; work–life; performance and recognition; and development and career opportunities. Rewards go beyond pay as they include systems, programmes and practices that influence people (Wilson, 2003). Reward strategy is defined as an intervention that is put in place with the overall aim of retaining people; supporting the corporate and human resources (HR) strategies; and aligning policies and processes to organisational and individual needs (Armstrong & Murlis, 2007). Factors that lead to employees leaving or staying with an organisation include both retentive (benefits and organisational culture) and attractive factors (promises of retention bonuses and share schemes). The costs associated with turnover are detrimental to organisational efficiency and as such employers must design retention strategies that are responsive to motivational aspects of the employees. The research was conducted using a qualitative research method based on semistructured interviews, academic literature, exploring past, present and future issues pertaining to the main constructs “rewards" and “retention”. A sample of 18 employees across all levels at the FSB participated in the study. The data was analysed using content analysis and key themes were identified. Where possible, the data was reported verbatim to indicate the true feelings and views of the participants. Ontologically, the research approach fits both the constructive and interpretative sociological paradigms. The main findings of the study were that most employees at the FSB are aware of the organisation‟s reward strategy. Their motivation to remain with, join or leave the organisation is not driven by the traditional retention factors, such as retention bonuses, pay for skills, and share option schemes. The sample indicated that what drives them to remain with, join or leave the FSB are factors such as the nature of the FSB‟s business, its promotion policies, and its cash bonus system. Employees recognised various retention strategies of the FSB and indicated that they were adequate although they identified opportunities to improve the current performance management system and the bonus pay out principles. Conclusion: The researcher has ascertained the need for organisations to move towards a responsive rewards model. Training, developmental opportunities and bonuses and recognition were highlighted as the key factors for consideration when deciding to remain with the organisation