Original Research
The impact of a total reward system of work engagement
Submitted: 16 October 2015 | Published: 10 November 2016
About the author(s)
Crystal Hoole, Department of Industrial Psychology and People Management, University of Johannesburg, South AfricaGabi Hotz, Department of Industrial Psychology and People Management, University of Johannesburg, South Africa
Abstract
Research purpose: The overall purpose of this study was to explore the relationship between total rewards and work engagement in a South African context and to determine which reward categories predict work engagement. The study further endeavoured to determine whether gender and age had a moderating effect on the relationship between total rewards and engagement.
Motivation for the study: Statistics report that less than 30% of all working people are optimally engaged in their work. Considering that individuals spend more than a third of their lives at work committing themselves emotionally, physically and psychologically – research indicates that employees are no longer satisfied with traditional reward systems and want to feel valued and appreciated.
Research approach, design and method: In this quantitative, cross-sectional research design using a non-probability convenience and purposive sampling strategy, 318 questionnaires were collected and analysed from financial institutions in Gauteng in which opinions were sought on the importance of different types of rewards structures and preferences, and how engaged they are in their workplace. The 17-item UWES and Nienaber total reward preference model were the chosen measuring instruments.
Main findings: A small statistically significant correlation (r = 0.25; p < 0.05; small effect) was found between total rewards and work engagement, and 12% of the variance of work engagement was explained. Only performance and career management significantly predicted work engagement.
Practical/Managerial implications: Although small, the significant correlation between total rewards and work engagement implies that total rewards are important motivators for employees in the workplace. Of the total rewards scales tested, only performance and career management significantly predicted work engagement, suggesting that more research is needed. Organisations seeking to implement total reward strategies should pay specific attention to which strategies have an impact on work engagement.
Contribution/Value-add: Organisations must take cognisance that factors such as performance and career management significantly predicted work engagement and should be considered as part of their total reward offerings.
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Crossref Citations
1. Measuring Total Reward Satisfaction: Scale Development and Empirical Validation for Public Sector Employees in India
Hareendrakumar VR, Suresh Subramoniam, Bijulal D
Metamorphosis: A Journal of Management Research vol: 20 issue: 2 first page: 77 year: 2021
doi: 10.1177/09726225211041873