Utilizing non-financial rewards as a competitive advantage in attracting and retaining employees

Most research in terms of reward focuses on the financial aspects. Little has been done to understand the value of non-financial rewards. The objective of this study is to determine if South African organisations are utilising nonfinancial rewards as a competitive advantage in attracting and retaining employees. A survey was developed and distributed to gather data regarding the preferences of organisations and individuals for financial versus non-financial rewards. The data was statistically analysed to determine the organisationalvalue of both with special attention on how organisations use non-financial rewards. As expected, organisations indicated a preference for financial rewards, butthis preference was also strongly indicated by individuals. Given the cost effectiveness of non-financial rewards, and its long-term value, the study determines that there is still a place for such rewards within the broader context of the total reward approach. The cost and legislative implications associated with financial rewards makes non-financial rewards, if well positioned, an attractive option as a distinctive competitive advantage in attracting and retaining employees. In addition, it presents organisations with a certain level of fluidity in offering alternatives to employees and in dealing with profitability challenges. © 2010 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. Please cite as follows: Thumbran, RS 2010, Utilizing non-financial rewards as a competitive advantage in attracting and retaining employees, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-07162011-161202/ > F11/536/ag