The effects of reward equity on employee innovation in South Africa.

Abstract

South Africa is currently plagued with low growth and high unemployment. The burden of corrective action now rests with business and government, where growth prospects can be expanded through the support of innovation and the exploration of new opportunities. Recently, innovation and the various determinants of innovation have received significant media attention and although every organisation has its own priorities, a consistent trend emerges surrounding the failure of businesses that neglect innovation. Individuals and businesses understand the constant need for innovation and this study analysed an important determinant of innovation and determined the impact that reward equity has on innovation. Understanding the effects of reward equity on employee innovation will provide for organisational awareness with respect to establishing and maintaining innovation in the workplace. Using quantitative techniques, this study identified and analysed the association between employee perceptions of reward equity and their relative contributions toward innovation in their organisations as well as their innovative work behaviour. The study used data collected through a fully structured web-based self-administered survey distributed across different industries. Key findings included the identification of an association between employee engagement and innovation as well as the consistent association between female gender and increased innovative involvement and innovative behaviour. The results however, did not display a strong association between reward equity and innovation involvement or innovative work behaviour. Employee participation in innovation and innovative behaviours can be attributed to many variables and the variables included in this research only accounted for a small proportion of the variance in the innovation variable. The study concludes that in order for an organisation to foster a creative climate and encourage innovation, it is necessary to ensure that employees are engaged in their work and focussed on innovation.