Exploring South African employees' reward preferences

Research has found a link between reward systems and desired performance. However studies have not clarified whether and why managers should employ intrinsic or extrinsic reward systems. Therefore this study aimed at further investigating employee perceptions on intrinsic and extrinsic rewards. Managers will be better informed from this study as to which reward system would work better in which situation. This research is significant because prior studies on reward systems have not been substantial on the issue of intrinsic and extrinsic motivation. Therefore further study was needed to investigate how employees perceive intrinsic and extrinsic reward systems and which they prefer. The issue about employee entitlement would be addressed and deductions pointed out that will assist organizations. Managers will be enlightened about reward systems, which to employ under which conditions and about employees’ generally perception of reward systems. The research design used was quantitative. Questionnaires were administered to selected respondents using simple random sampling. It was found that employees still prefer extrinsic rewards and are keen to advance their careers. Employers understand this and reward employees in the same manner. Yet, considering that many people are unhappy in the workplace, perhaps further research may shed light on employee happiness as an intrinsic reward and the abilities of transcendental, rather than transactional leaders to deliver it. The research conducted proved to be useful as the aims of the research were achieved.