Rejuvenating the rewards typology: Qualitative insights into reward preferences

Abstract

Orientation: In order to drive desirable behaviour, employees need to feel valued. It is, therefore, important to identify which rewards motivate employees and satisfy their needs. Research purpose: The overarching aims of this study were to explore how South African employees feel rewarded at work and to develop a model depicting how rewards can be categorised. Motivation for the study: There is a dearth of qualitative research on reward preferences, especially on the psychological façade of this construct. Research approach/design and method: Using a phenomenological research approach and in-depth interviewing techniques, 47 South African employees participated in focus group sessions. To analyse the data, a deductive and constructionist thematic analysis was employed. Main findings: The rewards construct is perceived to be multidimensional. Rewards can be categorised into three main categories: (1) extrinsic financial rewards (consisting of the total remuneration package), (2) extrinsic non-financial rewards (inclusive of good relationships, learning and development opportunities, organisational culture, communication, recognition, the physical working environment, feedback and work-life balance) and intrinsic-psychological rewards (encapsulating autonomy, meaningful work, felt competence, task enjoyment and challenging work). Practical/managerial implications: Outdated reward strategies should be re-evaluated to include all three categories of rewards. This means that there should also be a more in-depth focus on intrinsic-psychological rewards in the workplace. Contribution/value-add: This study highlighted the importance of using extrinsic (financial and non-financial) as well as intrinsic-psychological rewards to motivate employees and satisfy their needs. The insights gained from this research study can be used by future researchers and practitioners to construct modernised rewards frameworks.

Keywords

• reward preferences
• extrinsic financial rewards
• extrinsic non-financial rewards
• intrinsic-psychological rewards
• work motivation
• job satisfaction
• qualitative research