Exploring The Impact Of Remuneration On Employee Turnover In The South African Diamond Mining Industry

Abstract

It is argued that well-structured compensation packages not only fulfil employees' basic needs, but also promote a sense of belonging and recognition, thereby reducing turnover intentions. In the context of the South African diamond mining industry, this research study explored the intricate correlation between employee remuneration and turnover, emphasising the central role that work satisfaction and motivation held. It examined how various aspects of remuneration, including perceptions of fairness, appropriateness and the implementation of performance-related incentives directly influenced employees' decisions to either stay, or resign from their companies. By incorporating a comprehensive discussion regarding relevant theories such as Equity theory, Expectancy theory and Maslow's Hierarchy of Needs, this research study provides a nuanced understanding of the motivational dynamics involved in this issue. A qualitative methodology was adopted for this research study in order to explore the experiences and perceptions of employees in this sector. In addition to this, the aim of utilising this method of research was also to provide empirical evidence concerning the effectiveness of different compensation strategies in order to increase job contentment and employee retention. It is expected that the results of this study should provide valuable insight for human resource managers and policy makers in the mining industry. Furthermore, the results are also expected to offer guidance on how to design appropriate compensation systems that will align employee aspirations with the goals of their organisation. In essence, these proposed systems should ultimately lead to lower turnover rates and a more stable workforce