Employee reward system in the corporate and investment banking sector of Standard Lesotho Bank in Maseru region
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Date
2020
Authors
Sebete, Tumelo
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Free State
Abstract
Banks today are faced with intense competition for talent as the banking industry evolves and certain skills become more critical. One of the most significant ways to attract, motivate and retain the talent is through the strategic use of rewards. However, looking at the disruption that has been brought by the fourth industrial revolution (4IR) and the presence of all four generations in the workplace at the same time for the first time, organisations are faced with a challenge to rethink their entire reward systems and align them with the future demands. Despite the apparent need to transform the reward systems, very few organisations have taken the necessary steps towards the transformation of the reward systems.
This study evaluated the reward system at Standard Lesotho Bank (SLB) for Corporate and Investment Banking (CIB) employees in Maseru, Lesotho. The study did this by establishing the views and perceptions of CIB employees regarding the reward system and investigated whether the SLB CIB reward system will still be effective in the fourth industrial revolution and in meeting the demands and preferences of the younger generation of the workforce. A qualitative approach in which semi-structured interviews were conducted was employed.
The research findings mainly revealed that the SLB reward system is still very traditional and CIB employees do not perceive it as one of the best in terms of attracting, motivating and retaining the bank’s workforce. Participants cited lack of transparency, fairness and innovation in the reward system as the major problems. The employees expressed great desire to have reward strategies tailored to their needs. The results further revealed that the reward system is not on par with the 4IR demands and not lucrative enough to attract the younger generation to choose SLB as their preferred employer.
The study concluded that there is a need for SLB to re-imagine the reward system and come up with refreshed ways of rewarding people aligned with individual preferences to facilitate the retention and attraction of talented employees. This paper recommended the adoption of transparent personalised rewards that accommodate individual employee needs, are appealing to the young generation and relevant to the workplace and workforce of the fourth industrial revolution.
Description
Dissertation (MBA (Business Administration))--University of the Free State, 2020
Keywords
Reward system, total rewards, employee performance, perceptions, motivation, retention, attraction, generation, fourth industrial revolution, preferences