Trends in Reward Programmes in South Africa

Remuneration trends in South Africa are changing very rapidly and it is essential to keep abreast of the latest and current reward trends in order to gain a competitive edge. Rewards play an important role in determining employees' attitudes toward their work. South African organizations are feeling the need to do more than just give salary increases. In order for the organization to remain competitive and attract top talent, they will need to change merit increase programmes to increase meaning and impact. Bussin (2018) stated that there are several trends that have influenced reward programmes in South Africa this year.

Pursuing fair pay

Organisations must ensure that all features and aspects of their employees' remuneration are free from prejudice. Rewards require fairness and therefore, women and ethnic groups should not be at a disadvantage.

Avoiding economic imbalance

There should be an acceptable and fair wealth distribution across upper and lower employee ranks.

In terms of rewards, South African organisations focus on Intrinsic and Extrinsic rewards. Extrinsic rewards which is also known as tangible rewards, are being recognised as either monetary or non-monetary in nature. Organizations in South Africa are providing monetary rewards, which are money-driven rewards and financial incentives, in the form of pay, promotion and bonuses. Non-monetary rewards, which are non-financial benefits, are being offered by South African organizations in the form of fringe benefits and contingent rewards. These benefits comprise of personal recognition and praise for good performance. Intrinsic rewards are intangible rewards that are related to personal and inner fulfillment that employees feel when achieving or accomplishing something. They self-generated as they are psychological, meaningful and include an emotional, work-related experience which individuals get from their work. Recognition, praise and job satisfaction form part of the intrinsic rewards South African organizations make use of.

In South Africa, reward systems focus on compensation, benefits, recognition and appreciation. The extent and nature of rewards and benefits are determined firstly by legislation and secondly by the organizations environment and circumstances. Common benefits provided by South African organisations are pension funds, medical schemes, and employee incentive schemes (Alexander, 2018). South African legislation provide a range of employment benefits that organisations are required to make use of within a workplace, some of these benefits include;

The Unemployment Fund: Unemployment Insurance Act, 63 of 2001 (UIF)

UIF unemployment benefits. If your employment is terminated, you can apply year to the UIF for benefits. The benefits are only available to you if you have been contributing to the UIF while you worked. You can't claim if you were suspended or from work or if you have resigned.

Protection from discrimination: The Employment Equity Act, 55 of 1998 (EEA)

The Employment Equity Act is used to achieve equity in the workplace. This is done by giving each employee and employer equal opportunities and getting rid of unfair discrimination.

Compensation for Occupational Injuries and Diseases: Act, 130 of 1993 (COIDA)

Provides compensation for disablement caused by occupational injuries or diseases sustained at the workplace.

Occupational Health and Safety: Act, 85 of 1993 (OHSA)

To provide for the health and safety of persons at work and for the health and safety of persons in connection with the use of plant and machinery.

Wages

South African legislation sets a minimum wage that organisations need to comply with. The current minimum wage is R20 per hour worked. This amount cannot be waived. Farm workers and domestics, as well as learners have different minimum hourly rates.

Bonuses

Contractual and discretionary bonuses are common for employment contracts in South Africa. An employer may use his discretion when allocating bonuses to employees, however, it needs to be fair. In South Africa, there are five (5) main types of leave benefits that organisations have to allow employees, these are; Annual Leave Every employee is entitled to paid time off work, according to our legislation, every employee is entitled to fifteen days paid leave each year. You cannot count public holidays as annual leave.

Maternity leave

Pregnant employees are entitled to four months of unpaid leave. They may take leave one month prior to their due date, unless stated otherwise by their practitioner.

Sick leave

This leave is based on a 3 year cycle, in the same workplace. The amount of the sick leave entitlement is a number of days that the employee would ordinarily have worked during a six-week period. For example, if the employee works five days a week then it is 30 days sick leave in each leave cycle.

Study leave

The South African Labour Law does not make provision for study leave. This must be discussed between the employer and the employee.

Family responsibility leave

If you have worked for the same employer for more than four months and more than four days a week, then you are entitled to three days family responsibility leave each year. This is additional to annual leave. You are entitled to this leave when your child is born, when your child is sick, or in the event of the death of your spouse, parent, child or grandparent.