The relationship between occupational culture dimensions and reward preferences: A structural equation modelling approach

Abstract

Orientation: Reward has links to employee attraction and retention and as such has a role to play in managing talent. However, despite a range of research, there is still lack of clarity on employee preferences relating to reward.Research purpose: The purpose of the research was to recommend and appraise a theoretical model of the relationship between occupational culture dimensions and reward preferences of specific occupational groups in the South African context.Motivation for the study: The motivation for this study was to address the gap that exists with reward preferences and occupational culture with a view to identifying and gaining insight into individual preferences.Research design, approach and method: A structural equation modelling approach was adopted in exploring the proposed relationships. A South African Information, Communication, and Technology (ICT) organisation served as the population, and a web-based survey assisted in gathering study data (n = 1362).Main findings: The findings provided support for the relationship between occupational culture dimensions and certain reward preferences. In particular, statistically significant results were obtained with the inclusion of the Environment, Team, and Time occupational culture dimensions as independent variables.Practical implications and value-add: The study provides workable input to organisations and reward professionals in the design of their reward strategies and programmes.Keywords: compensation; employee preferences; occupational culture; remuneration; reward preferences

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