1887

n Acta Commercii - The perceived effectiveness of employee share options as a mechanism of talent management in South Africa

Volume 12, Issue 1
  • ISSN : 2413-1903
  • E-ISSN: 1684-1999

Abstract

The purpose of the study was to explore the views of a sample of employees, industry experts, academics, and professionals to determine whether employee share options (ESO) are an effective talent management tool in the South African context. Talent management refers to the attraction, motivation, and retention of employees, as well as fostering their loyalty to the company.


This study sought to explore and provide empirical evidence as to whether or not ESO are an effective talent management strategy and remuneration tool.
A quantitative research design was used for this study. A survey was constructed by the researchers, using the main themes identified in the literature. A purposive sampling methodology was then employed, using the key informant technique. A total of 4 300 surveys were electronically distributed, and 256 completed surveys were received. Data were analysed using descriptive statistics.
This study suggests that while ESO are seen as an important component of a total reward solution, they are not the primary drivers of the attraction, retention, and motivation of talent. Respondents indicated that the quality of the work environment and the presence of developmental opportunities are far more significant considerations. Furthermore, the majority of respondents (41%) indicated that they would prefer the allocation of share options to correspond with individual performance.
The study suggests that employee reward preferences have evolved over time. Whilst ESO may have been considered a pivotal component of talent management in the late 1990s, today they are only a component of an expected total reward solution. The study demonstrates the importance of consistently reviewing the employee value proposition to ascertain the changing preferences of employees in order to accordingly adapt and maximise talent management. The study can be used as guidance in the design and implementation of share schemes.
This study suggests that while ESO are perceived as an important component of a total reward solution, these are not the primary drivers of the attraction, retention, and motivation of talent. Respondents indicated that the quality of the work environment and the availability of developmental opportunities are far more significant considerations. The findings suggest that employee reward preferences have evolved over time. Today's employee has a desire to have reward linked to individual performance, which implies that employers will have to revisit their reward solutions as part of their total value proposition.

Loading full text...

Full text loading...

Loading

Article metrics loading...

/content/acom/12/1/EJC126500
2012-01-01
2019-10-19

This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error