Total rewards: A study of artisan attraction and retention within a South African context

Abstract

Orientation: The shortage of artisan skills remains a serious challenge in South Africa andis forcing employers to investigate which total reward factors contribute to the attractionand retention of this critical skills segment, as undifferentiated retention strategies are nolonger useful or even appropriate.

Research purpose: The aim of this study was to further develop understanding of the total rewardfactors and the ideal combination and relative amount of total rewards that attract and retainartisans, including artisans from various race groups and age cohorts, using a novel approach.

Motivation for the study: Limited research is available on the total reward factors and theideal combination and relative amount of total rewards that attract and retain artisans. Furtherknowledge in this area will allow organisations to develop reward models that better attractand retain artisans.

Method: The study followed both a quantitative and qualitative research approach,whilst adopting a descriptive research design. Using this mixed method, primary datawere collected from individuals by means of two focus groups discussions: (1) a groupof human resource and remuneration managers (n = 4) and (2) a group of artisans (n = 7).These results were used to develop two questionnaires that were distributed to artisans (n = 143). Data from Questionnaire 1 were analysed using descriptive statistics and factoranalysis. Conjoint analysis was employed to identify an ideal total rewards compositionbased on responses from Questionnaire 2.

Main findings: The results of the choice-based modelling (conjoint analysis) revealed thatthree total rewards attributes were consistently deemed to be important in the retention ofartisans. These were (in order of priority): environment (work-life balance), compensation(level) and compensation (variable). Environment (work-life balance) was considered14.64% more important than compensation (level) within the overall sample as well aswithin the race and age cohorts.

Practical/managerial implications: The identification of both the combination and relativeamount of total rewards that attract and retain artisans will allow organisations to createdifferentiated retention strategies.

Contribution: The current study succeeded in identifying the total rewards and the idealcomposition of total rewards that attract and retain artisans, including artisans from variousdemographic groups (race and various age cohorts). This was done using a method thatassessed the psychological trade-offs people make when choosing between options ratherthan just asking them how desirable each of these factors are. This novel approach and theoutcomes thereof add to the body of literature on total reward and talent management.