Deon Smit and Emily Zuccarini
In a country where economic uncertainty, inequality, and unemployment are daily realities, it is assumed that primarily money is what keeps South Africans in their jobs.
But this is no longer the full picture. As the workplace evolves, so do employee expectations. For many South African employees today, pay is a symbol of value, recognition and trust. Non-monetary benefits such as the flexibility to work from home have become increasingly valuable. Not only is it an additional means for employees to increase their cash flow with regards to savings on expenses like transportation costs, it also provides a means of achieving balance.
Understanding the psychological side of remuneration and reward is now a critical part of any organisation’s talent retention strategy.
So, what really drives employees to stay or leave?
In the past, remuneration has been viewed in singular terms: pay employees well, and they will stay; pay them poorly, and they will leave. In South Africa, this perspective has been reinforced by high unemployment rates, significant income inequality, and rising living costs. While salary remains important, it is no longer the only factor. Emotional factors now weigh equally, if not more.
At the foundational level, competitive salaries help meet employees’ physiological needs: food, shelter and basic living expenses. When these are unmet, employees are primarily motivated to leave for survival reasons.
Given the county’s high unemployment rate and economic instability, job security is a major psychological benefit. A stable job, along with structured benefits (retirement and medical benefits), offers emotional peace of mind. It is not always the size of the pay cheque that matters, but the certainty of it.
South Africans are acutely aware of fairness and equity. Employees who feel underpaid in comparison to peers or the market often feel excluded or disrespected. This perceived injustice, even if inaccurate, erodes trust and team cohesion, and eventually leads to disengagement or turnover.
Recognition, or the lack thereof, is one of the most underappreciated drivers of turnover. In South Africa’s largely collectivist culture, employees want to feel part of something greater. Regular praise, career conversations and symbolic rewards often hold more emotional weight than a small bonus. When pay structures include performance bonuses or visible acknowledgment, employees feel their contributions matter, a key component in boosting self-worth and loyalty.
For younger generations work must align with their values. Many employees want to contribute to social good, support transformation efforts, or work for organisations that care about uplifting communities.
Growth and development opportunities are key additional factors. People do not just want a job; they want a future. When organisations support employees’ career ambitions, they help satisfy esteem and self-actualisation needs. Initiatives like bursaries or promotion pathways show belief in an employee’s potential, fostering loyalty and motivation.
The PricewaterhouseCoopers (PwC) Global Workforce Hopes and Fears Survey for 2024 on African perspectives found that 56% of African workers prioritise opportunities to acquire new skills when deciding to stay with or leave their employer, reflecting a shift towards a skills-centric paradigm where skills are the currency of the future.
Africa’s younger workforce places a high priority on fair pay, fulfilment, flexibility, and a collaborative working environment, emphasising the importance of feeling valued.
The survey highlighted employees are seeking clarity and openness from employers, especially concerning remuneration and benefits.
■ Deon Smit is a South African Reward Association (Sara) executive member, and Emily Zuccarini a reward specialist.
