EMPLOYEE PERFORMANCE AND REMUNERATION IN PUBLIC SERVICE OF SOUTH AFRICA

Revolution MADINGWANE · Adrino Mazenda · Norman Tafirenyika Nhede · Wiza Munyeka

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Employee Performance and Management Public Policy and Administration Research Human Resource and Talent Management

Abstract

Employees are the organisation's most valuable resource, and the ability of employers to attract, retain, and reward appropriately talented and competent employees determines an organisation's success or failure.The study seeks to determine the impact of a stagnant remuneration structure on employee performance and retention in the Department of Public Service and Administration (DPSA), South Africa.A parallel convergent mixed-methods research design was used in the study.The data draws from 423 structured questionnaires and 31 key informants administered to the employees and stakeholders in the DPSA.The data was analysed using binomial logistic regression and thematic analyses.The binomial logistic regression findings support the null hypothesis and corroborate past findings that higher remuneration leads to higher employee performance.Low performers were highly insecure about the government's stagnant salary and early retirement proposition.Complementarily, the thematic analysis identified the basic salary, medical aid, pension, and housing allowance as key determinants of remuneration in the public service.Career development, improved administrative capacity, and a positive work environment are key strategies for improving employee performance and retention.The study recommends the most sustainable employee retention strategies during periods of wage stagnation.This study adds to the literature by employing a convergent parallel mixed-methods design, drawing on binomial logistic regression analysis and thematic analysis, a methodological contribution to the theory, and empirical evidence on how the public sector can balance employee performance and retention in instances of stagnant remuneration structures.

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