0 

 

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

 

by 
 

Thabang Kedige 
 
 

Submitted in fulfilment of the requirements in respect of the Master’s Degree  

 
Master of Business Administration 

 
in the  

 
Faculty of Commerce, Law and Management 

 
at the 

  
University of the Witwatersrand, Johannesburg  

 
 

Supervisor: Dr Erasmus Appiah 
 

 

 

 

 

 

 

Feb 2024 

 

  



 1 

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. 

 

Key Terms 
Remuneration, turnover, retention, motivation and work satisfaction 

 

 

 

 

 

 

 



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Tables and graphs 
Tables 
Table 1: Literature review matrix ....................................................................................... 30 
Table 2: Themes .................................................................................................................. 60 
 

 

Graphs 
Figure 1: Conceptual Framework ...................................................................................... 33 
Figure 2: Gender Presentation .......................................................................................... 58 
Figure 3: Year of Experience Range ................................................................................. 59 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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TABLE OF CONTENTS 

ABSTRACT ................................................................................................................. 1 

CHAPTER 1: INTRODUCTION .................................................................................. 7 

1.1. STATEMENT OF PURPOSE .............................................................................. 7 

1.2. BACKGROUND ................................................................................................... 7 

1.3. CONTEXT OF THE STUDY ................................................................................ 8 

1.4. RESEARCH PROBLEM ...................................................................................... 9 

1.5. RESEARCH QUESTIONS ................................................................................. 11 

1.6. JUSTIFICATION/RATIONALE ........................................................................... 11 

1.7. DELIMITATION OF THE STUDY ...................................................................... 12 

1.8. OPERATIONAL DEFINITIONS ......................................................................... 13 

1.9. STRUCTURE OF THE PAPER ......................................................................... 14 

CHAPTER 2: LITERATURE REVIEW ...................................................................... 17 

2.1. MOTIVATION .................................................................................................... 19 

2.2. REMUNERATION .............................................................................................. 21 

2.3. EMPLOYEE RETENTION ................................................................................. 24 

2.4. EMPIRICAL LITERATURE REVIEW ................................................................. 27 

2.5. PRIOR RESEARCH ON REMUNERATION AND RETENTION ....................... 28 

2.6. RECENT TRENDS ON EMPLOYEE REMUNERATION AND RETENTION .... 29 

2.7. CONCEPTUAL FRAMEWORK ......................................................................... 32 

2.8. APPLICATION OF THEORY ............................................................................. 34 

2.8.1. Equity Theory .......................................................................................... 34 

2.8.2. Expectancy Theory ................................................................................. 35 

2.8.3. Maslow's Theory ..................................................................................... 36 

2.8.4. McClelland’s Theory ............................................................................... 37 

2.8.5. The Two-Factor Theory .......................................................................... 38 

2.8.6. The Self Determination Theory ............................................................... 38 



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2.9 Relationship between the Variables ....................................................... 39 

2.9.1 The Relationship between Remuneration and Motivation ...................... 39 

2.9.2 The Relationship between Remuneration and Work satisfaction ........... 40 

2.9.3 The Effect of Motivation on the Relationship between Remuneration and 

Retention ................................................................................................ 40 

2.9.4 The Effect of Work satisfaction on the Relationship between 

Remuneration and Retention .................................................................. 41 

2.10 Research Gaps ....................................................................................... 41 

2.10.1 Is a Man Social or Economic? ................................................................ 42 

2.10.2 Assessment of Employees’ Perception of Remuneration ....................... 42 

2.10.3 The Relationship between Salary, Responsibility and Qualifications ..... 43 

2.10.4 Predictability of Future Requirements of Employees .............................. 43 

2.10.5 The Types and Blend of Rewarding Tools .............................................. 44 

CHAPTER  3: RESEARCH METHODOLOGY ......................................................... 46 

3.1 RESEARCH APPROACH – QUALITATIVE ...................................................... 46 

3.2 RESEARCH DESIGN ........................................................................................ 48 

3.2.1 Population ............................................................................................... 48 

3.2.2 Sample Size ............................................................................................ 49 

3.2.3 Data Collection Methods ......................................................................... 50 

3.2.4 Data Analysis Techniques ...................................................................... 51 

3.3 Data Credibility (Trustworthiness) ........................................................... 53 

3.3.1 Methodological Transparency ................................................................. 54 

3.3.2 Member Checking ................................................................................... 54 

3.3.3 Reflexibility .............................................................................................. 54 

3.3.4 Saturation................................................................................................ 54 

3.3.5 Researcher Positionality ......................................................................... 54 

3.4 Ethical Considerations ............................................................................ 55 

CHAPTER 4: RESULTS, DISCUSSIONS, AND INTERPRETATION ..................... 57 

4.1. INTRODUCTION ............................................................................................... 57 

4.2. RESPONSE RATE ............................................................................................ 57 

4.3. PRESENTATION OF RESULTS AND INTERPRETATION .............................. 57 



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 4.3.1 DEMOGRAPHIC INFORMATION ............................................................ 58 

 4.3.1.1 GENDER OF PARTICIPANTS .............................................................. 58 

 4.3.1.2 DURATION OF CURRENT POSITION ................................................. 59 

4.4. THEMATIC ANALYSIS OF QUALITATIVE DATA ............................................. 59 

METHODS TO DECREASE EMPLOYEE TURNOVER ........................................... 60 

4.4.1 THEME 1: REASONS EMPLOYEES RESIGN. ............................................... 60 

4.4.1.1 SUBTHEME 1.1: POOR REMUNERATION ................................................. 60 

4.4.1.2 SUBTHEME 1.2: LACK OF CAREER GROWTH ......................................... 62 

4.4.1.3 SUBTHEME 1.3: POOR WORKING CONDITIONS ..................................... 63 

4.4.2. THEME 2: FUTURE REQUIREMENTS THAT ENSURE WORK 

SATISFACTION. ....................................................................................................... 64 

4.4.2.1 SUBTHEME 2.1: EMPLOYEE CAPACITATION .......................................... 64 

4.4.2.2 SUBTHEME 2.2: EMPLOYEE AUTONOMY ................................................ 65 

4.4.3 THEME 3: IDEAL REWARD SYSTEM ............................................................ 66 

4.4.3.1 SUBTHEME 3.1: SHARE SCHEMES AND OTHER BENEFITS. ................. 66 

4.4.4 THEME 4: EFFECTS OF EMPLOYEE TURNOVER ON TEAM 

PERFORMANCE ...................................................................................................... 68 

4.4.4.1 SUBTHEME 4.1: DECREASED PRODUCTIVITY ........................................ 68 

4.4.4.2 SUBTHEME 4.2: ANXIETY AND JOB INSECURITY ................................... 70 

4.4.5 THEME 5: STRATEGIES TO REDUCE EMPLOYEE TURNOVER ................ 71 

4.4.5.1 SUBTHEME 5.1: IMPROVE ORGANISATIONAL CULTURE ...................... 71 

4.4.5.2 SUBTHEME 5.2: RECOGNITION AND REWARD PROGRAMMES ............ 72 

4.5 CONCLUSION .................................................................................................... 73 

CHAPTER FIVE: CONCLUSIONS, RECOMMENDATIONS AND LIMITATIONS .. 74 

5.1. INTRODUCTION ............................................................................................... 74 

CONCLUSION .......................................................................................................... 74 

RECOMMENDATION ............................................................................................... 76 



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5.5.1 REVIEW REMUNERATION SYSTEM ............................................................. 76 

5.5.2 CREATE SUPPORTIVE WORK ENVIRONMENTS. ....................................... 77 

5.5.3 EFFECTIVE COMMUNICATION ..................................................................... 77 

BIBLIOGRAPHY ....................................................................................................... 80 

APPENDICES ........................................................................................................... 98 

APPENDIX A ............................................................................................................ 98 

APPENDIX B ............................................................................................................ 99 

APPENDIX C .......................................................................................................... 100 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 



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CHAPTER 1: INTRODUCTION 
 

1.1. Aims of the study  
 

The aim of this research study is to investigate the potential impact that compensation 

may have on employee turnover, including the role that work satisfaction and 

motivation as mediating variables may hold. This study further aims to examine the 

relationship between compensation and employee retention, as well as the factors that 

may influence employees' perception towards their compensation. In addition, 

providing insight into the factors that drive employee turnover and how organisations 

can effectively manage employee retention through effective compensation policies, 

and practices will also be explored. In essence, the goal of this research study is to 

contribute to the development of practical recommendations that may help 

organisations improve employee retention and reduce turnover by establishing 

effective remuneration, and retention strategies. 

 

1.2. Background  
 

Based on past and existing research, the issue of remuneration in a company has 

been a critical factor in employee retention and motivation (Zayed & Nahar, 2019). 

Research has shown that employees who receive fair and equitable compensation are 

more likely to be satisfied with their work, have higher levels of motivation and are 

more likely to remain at their organisations (Prasetio, Azis, et al., 2019). However, 

employees who perceive their compensation to be unfair or inequitable may 

experience job dissatisfaction, lower levels of motivation and are more likely to leave 

their organisations (Prasetio, Azis, et al., 2019). Companies who reward their 

employees with inadequate remuneration for their work tend to experience employee 

dissatisfaction, low motivation and high turnover rates (Prasetio, Azis, et al., 2019). It 

is believed by researchers that work satisfaction and motivation play mediating roles 

in the relationship between remuneration, and retention (Wardhani et al., 2020). This 

means that when employees are satisfied with their compensation and motivated to 

perform well, they are more likely to remain with their organisations (Desai, 2018). 

Therefore, in order for organisations to remain at optimum efficiency it is important for 

them to understand the relationship between remuneration, work satisfaction, 



 8 

motivation and retention. When this goal is achieved organisations are thus able to 

retain their employees and maintain a productive workforce (Desai, 2018). 

 

1.3. Context of the study  
 

In the province of Limpopo, South Africa, diamond mining companies in the town of 

Musina are transitioning from open cast to underground mining systems. It is the 

opinion of some stakeholders in the field of mining that certain companies may use 

their financial strength to attract highly skilled employees from rival companies in order 

to set up, and manage their underground operations. These companies offer packages 

that are relatively higher than their competitors and as a result their rivals experience 

higher turnovers, stemming mainly from remuneration and work security. That is to 

say that a new mine equals a longer mine lifespan. In the Northern Cape province, 

most of the diamond mines are nearing the end of their lifespan and employees 

working for those companies are not reluctant to leave. For some companies in 

Musina, producing larger volumes of production than other diamond mines has 

resulted in them requiring a higher demand for critical skills. 

 

In the beginning of 2021, some organisations opted for operational designs in order to 

realign employees’ remuneration packages with the rest of the market. This strategy 

would assist in the continued employment of their respective employees, especially 

those who were critically skilled. The operational design was done in phases by 

realigning remuneration packages from the most to the least critically skilled 

employees. Unfortunately, this approach created problems as some of the longest 

serving employees with extensive experience did not see the benefit of these 

packages, as they were already receiving higher salaries due to the number of years 

of their service. Thus, this approach was a motivation to some employees, but it 

demoralised others. With regards to Maslow’s Hierarchy of Needs, it highlights basic 

human needs in respect of physiology, safety, love, esteem and self-actualisation. This 

theory states that employees at organisations are driven by the will-power to achieve 

various conditions of basic satisfaction (Ramlall, 2004). This theory further provides 

useful information for operational leaders or managers to find ways to inspire 

employees by developing programmes that are aimed at satisfying their current, and 

emerging needs (Ramlall, 2004). 



 9 

Some organisations in the mining industry do not have adequate development and 

succession plans in place for their employees, which in turn contributes to a high 

turnover from skilled employees. Effective communication, recruitment of a skilled, 

competent and diverse workforce, as well as the provision of development and training 

are the strategies that may be used to retain employees (Omer Cloutier, 2015). Some 

employees, especially graduates, cite that the reason for leaving their organisation for 

their rivals was due to the of lack of personal development plans. Fredrick Herzberg’s 

two factor theory outlines motivators and hygiene as factors that drive employees’ 

working attitude, and levels of performance (Adegboyega M. O., 2017). According to 

research, a few diamond mining organisations were optimistic that increasing the 

salary packages of their employees would elevate employee morale and therefore 

retain them. However, they ignored specific motivators and hygiene factors which 

addressed work issues and employees’ overall satisfaction (Adegboyega M. O., 2017).  

 

With this knowledge in mind, fundamentally, the lack of formalised development plans 

may also be the biggest contributor to high turnovers in companies. This more so, 

when one considers how ambitious graduates are and their continued need to seek 

out better development, and growth opportunities. McClelland’s theory of needs 

highlights the importance of achievement, affiliation and power as influencers of 

motivation amongst individuals (Hall, 2012). Essentially, employees want to excel, 

become influential and connected in order to fulfil their personal goals and achieve 

work satisfaction. 

 

1.4. Research problem 
 

The South African diamond mining industry contributes significantly to the economy in 

terms of its Gross Domestic Product (GDP) and from the employment perspective. 

This industry contributes 18% of the annual GDP of South Africa and produces 

approximately $3 billion annually on average (Matthews, 2023). Diamonds are mined 

from 25 different countries, of which 49% of the total global production comes from 

South Africa (Matthews, 2023). The South African mining industry has a total of 

458 954 employees, of which 13 000 are employed in the diamond sector (Statista, 

2023). 

 



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Concerning the matter of remuneration, it is a key element in the diamond industry 

because it attracts and keeps skilled workers in its employment, motivates 

performance and reduces turnover (Park & Ungson, 2019). Fair compensation 

increases work satisfaction, safety compliance and industry reputation, while 

promoting productivity, skills development and long-term sustainability in this 

specialised sector (Perevozova et al., 2019). The impact of remuneration for 

employees on turnover is rather profound. Adequate pay influences loyalty, work 

satisfaction, and skill retention, thereby promoting reduced recruitment costs and 

fostering team stability in specialised industries (Skelton et. al., 2019). The impact of 

pay on the South African economy is far-reaching and may include factors such as 

increased consumer spending, reduced inequality, increased attractiveness to talent, 

productivity, tax revenues and investor confidence. This then may, in turn, promote 

economic stability and growth (Menyelim et. al., 2021). 

 

Diamond mining companies in South Africa are challenged with employee turnover as 

a result of their employees moving from one company to the next and such high 

employee turnovers may cause instabilities within the organisation. Small scale 

diamond mining companies are struggling to compete with bigger organisations with 

regards to employee remuneration. One of the current problems facing mining 

organisations is the challenge of offering better salaries and benefits that will attract, 

and retain their best employees (Bhattacharya, 2022). This means that small scale 

companies are unable to recruit highly competent workers who have extensive 

knowledge and experience in diamond mining. Moreover, this problem is compounded 

by the fact that the mining industry often requires specialised skills and knowledge, 

essentially making it difficult to replace experienced employees when they resign 

(Vasantham & Aithal, 2022). 

 

Concerning the topic of employee remuneration in the South African diamond mining 

industry, the following points are the research gaps that were identified: 

 

• How does the adequacy and fairness of remuneration influence employee 

turnover intentions? 



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• How do different remuneration structures, such as performance-based 

incentives, affect employee retention and turnover? 

• What are the perceived effects of competitive remuneration on employee 

loyalty and turnover rates? 

 

Fundamentally, by addressing these gaps, a positive practical contribution to the 

existing body of work done on this topic may be made and it may also benefit 

organisations in terms of sustainability, growth and reduced turnover rates. In addition, 

targeting the above gaps may also contribute to the broader economy by increasing 

consumer spending and reducing inequality. Lastly, government will then be able to 

collect more tax which may be used to create employment in other business sectors. 

 

1.5. Research questions 
 

There are different theories of needs that outline various factors that may influence 

employee morale which could ensure personal growth and work satisfaction. The 

following are questions posed by this study with the aim to understand and possibly 

address these factors: 

 

• How does the adequacy and fairness of remuneration influence employee 

turnover intentions? 

• How do different remuneration structures, such as performance-based 

incentives, affect employee retention and turnover? 

• What are the perceived effects of competitive remuneration on employee loyalty and turnover 

rates? 
 

1.6. Justification/rationale  
 

The findings of this research study could provide crucial information to mining 

organisations on how to better remunerate and motivate their employees with the aim 

of improving retention rates. This knowledge may urge most mining companies to 

address the gaps in their current remuneration and retention strategies. Furthermore, 

the data from this research study may contribute to the existing body of knowledge 

that has been conducted with regards to remuneration and retention. It may provide a 



 12 

more comprehensive perception into the interrelation of these factors, including how 

they may be used to formulate strategies and policies that will improve retention rates. 

 

Employee retention is a critical issue for organisations and turnover may have 

significant financial, and operational impacts for them (Baten et. al., 2019). 

Remuneration is an essential factor that may motivate and keep employees satisfied 

in the company (Zafar & Siddiqui, 2019). As was mentioned earlier in this chapter, 

understanding the relationship between compensation, motivation, work satisfaction 

and retention is critical for organisations that wish to retain their employees (Mahmud 

et. al., 2018). A further rationale for this study is the fact that there is limited research 

that specifically focuses on the South African diamond mining industry, which is an 

important sector of the South African economy. This research study may shed some 

light on particular factors that may affect employee retention in this industry and could 

potentially assist organisations to develop strategies that may help them retain their 

employees. Finally, this research study may add value to the academic world by 

highlighting important information concerning the subject of employees’ remuneration 

and retention. 

 

1.7. Limitations of the study 
 

Considering the scope of this research study, it will be limited to the diamond mining 

industry in South Africa and one of the diamond mines will be used to represent all the 

other diamond mines. It is presumed that the data of this study will be applicable to 

other diamond mines. The sample of participants for this research study will include 

experts from management, as well as employees. The focus group discussions will be 

a composition of supervisors and employees on the lower bands from various 

departments. While the sample size for the interviews will be made up of five managers 

on the same level heading different departments. Lastly, the sample size for the focus 

group discussions will be made up of 15 employees (three per department) from 

various departments. The one-on-one interviews and the focus group discussions will 

be conducted within a 6-8 week period and the data will be analysed afterwards. There 

may be a need to re-interview the experts or focus group participants in order to verify, 

or clarify some data upon analysis. This research study will be conducted in English, 

however, as a language found to be difficult for some, it may pose to be a barrier to 



 13 

some employees when conducting the focus group discussions. Due to this limitation, 

the participants’ responses may be unarticulated since some employees may not be 

able to express themselves clearly.  

 

With regards to the methodology, this research study will be qualitative in nature. This 

study will purposefully seek to gain in-depth information regarding the phenomenon of 

unsatisfied employees and the factors that spark their need to leave their companies. 

A comparison of the views made by management during the interviews and the focus 

groups discussion feedback will be conducted during the data analysis phase. The 

access to data will rely on the permission and restrictions granted by the company of 

choice to conduct the interviews, and group discussions. Access to the necessary data 

and any possible restrictions may limit the scope of this study, and content of the focus 

group discussions, as well as the interviews. Finally, the availability of management 

may also limit the amount of data that could be collected from interviews.  

 

1.8. Operational definitions 
 

The following are some of the definitions that will be used to give context to the subject 

of this study and to explain some of the concepts. 

 

1.8.1. Remuneration  

 

This can be defined as retribution or a form of compensation that is received by 

employees for their contribution to the company and may include wages, bonuses, 

benefits and commissions (F Werdati, 2020). 

 

1.8.2. Motivation  

 

This concept refers to the internal and external factors that drive employees to behave 

in certain ways, for example, working towards achieving their goals or objectives, 

putting in extra effort towards their work, and maintaining a positive attitude towards 

their duties (Klopotan et. al., 2018). 

 

 



 14 

 
1.8.3. Work satisfaction 
  

Work satisfaction refers to employees’ perception of their work, which may be reflected 

through their positive attitude towards it (Murtiningsih, 2020). 

 

1.8.4. Employee retention  

 

Employee retention refers to the strategies and practices that organisations put in 

place to ensure that employees remain at the company on a long-term basis (Ni 

Komang Pertiwi, 2021). 

 

1.8.5. Turnover  
 

This concept refers to the number or percentage of employees who leave an 

organisation during a specific period; usually within a year and they need to be 

replaced (Department of Industrial Management, Faculty of Applied Sciences, 

Wayamba University of Sri Lanka 60200, Kuliyapitiya, Sri Lanka. et al., 2020). In 

essence, it is a measure of employee attrition or the rate at which an organisation 

loses, and replaces its employees (Department of Industrial Management, Faculty of 

Applied Sciences, Wayamba University of Sri Lanka 60200, Kuliyapitiya, Sri Lanka. et 

al., 2020). 

 

1.9. Structure of research study 
 

For the intents and purposes of this research study, a brief discussion on its contents 

will be presented below: 

 

1.9.1. Introduction 
 

To adequately introduce this research study, an overview of the subject matter will be 

discussed. A brief outlook regarding the relationship between compensation and 

employee turnover, specifically in the context of the South African diamond mining 

industry will be discussed as it may lay a foundation for future research. Essentially, 



 15 

this chapter describes the study's goals, scope and importance. 

 

1.9.2. Literature review 
 

During the literature review, an in-depth and thorough analysis of the research topic, 

applicable theories and practices that were conducted in the past regarding the issue 

of employee motivation, pay plans and turnover rates will be examined. This chapter 

will highlight and discuss possible gaps in the present literature, including an attempt 

to bridge the gap between historical perspectives and current findings.  

 

1.9.3. Conceptual framework 
 

By employing a variety of motivational theories required to explore the internal and 

external factors that may be influencing employee well-being and retention, this 

chapter will aim to develop a theoretical framework for this research topic. It will 

introduce a strong foundation for analysis and describe the theoretical connections 

that may exist between compensation, employee motivation, satisfaction and turnover. 

Numerous research studies have been conducted to explore the different theories that 

may be related to employee motivation and remuneration, such as Maslow’s Hierarchy 

of Needs, Herzberg's Two-Factor Theory, and the Equity Theory. These theories 

provide insight into the factors that may potentially influence employee motivation and 

work satisfaction, including how organisations may design effective compensation 

packages that could aid them in meeting employee needs, and expectations. 

 

1.9.4. Methodology 
 

In this chapter, the research design that was chosen for this study will be highlighted and 

discussed in length, outlining the preferred methodology that was chosen in order to collect 

the necessary data, the sampling procedures that were undertaken, and any analytical tools 

that required to analyse the data. This chapter’s objective is to guarantee the trustworthiness 

and accuracy of this research study by detailing all ethical considerations, as well as any 

strategies used to maintain data integrity. 

 

 



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1.9.5. Data analysis 
 

With regards to the analysis of the collected data, this chapter will examine the data 

and the results thereof will be presented to illustrate the influence that remuneration 

may have on employee turnover. Essentially, the main objective of this chapter is to 

determine if the results of this research study are linked to the theoretical framework 

and current literature. 

 

1.9.6. Conclusion, limitations of the study and recommendations  
 

In the final chapter of this research study, conclusions pertaining to the results will be 

presented and discussed. The key findings will be concluded in an attempt to 

emphasise the implications for industry practices, and policies. In addition, any and all 

limitations that were experienced during the course of this research study will be 

mentioned and explained. Lastly, possible recommendations for improving employee 

retention through strategic compensation practices will be proposed and further 

recommendations will also be suggested for future research endeavours; thus 

highlighting the study's contribution to academia and the field of mining. 

 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



 17 

CHAPTER 2: LITERATURE REVIEW  
2.1. Introduction 
 

The South African diamond mining sector makes a substantial contribution to the 

economy in terms of GDP and jobs. Diamonds are mined from 25 different countries 

of which 49% of the total global production comes from South Africa (Matthews, 2023). 

The diamond mining industry contributes 18% of the annual GDP of South Africa and 

approximately $3 billion annually on average is made from global sales (Matthews, 

2023). This lucrative industry is also known for producing the most rare and stunning 

stones in the world, one of which is the Cullinan diamond which was sold to the Queen 

of England. De Beers controls 50% of the world's yearly production and possesses 

the majority of the mines in South Africa (Matthews, 2023). They regulate the prices 

in the diamond market and this has a positive impact on the country’s economy in 

terms of their overall contribution to the GDP. The South African mining industry has 

a total of 458 954 employees of which 13 000 are employed in the diamond sector 

(Statista, 2023).  

 

To ensure the continued growth of the South African economy, the diamond mining 

sector plays a crucial role and therefore its sustainability, and modern development is 

a necessary objective. With this in mind, it is the opinion of some that employee 

retention should be prioritised for the success and longevity of the business, while 

driving it towards future success (Craig, 2023). Creating a conducive workplace is 

crucial for maintaining employee engagement, inspiration and motivation in order to 

enhance their work performance. Employees are key assets in every work 

environment and their knowledge, and experience determines the rate of productivity, 

responsiveness to duties, quality of work and recognition of service (Anwar, 2021). 

Concerning the issue of human resource management, the relationship and 

communication between employees and their leaders should be some of the pillars 

that support the strategies of organisations (Anwar, 2021). Thus, informed employees 

are engaged and this leads to positive employee morale and productive employees.  

 

It is difficult to manage an effective business without the teamwork of professionals, 

as well as a good reward and motivation system (Anwar, 2021). Employees’ reward, 

recognition and motivation are some of the critical elements that may impact 



 18 

employees’ morale, and productivity either positively or negatively. There is a growing 

demand for employee satisfaction and motivation in the workplace (Anwar, 2021). 

Employees may be rewarded with increased involvement in other duties, participation 

in decision making processes, workload autonomy, task significance and recognition 

of their hard work (Anwar, 2021). According to Panatik (2019), motivation is the act of 

encouraging people to perform a certain task as a result of interaction between the 

conscious and unconscious factors. Influencing behaviour may include personal 

requirements, desires, rewards, incentives, including the severity of these influences 

(Panatik, 2019). Employees are inspired by ways in which their managers create and 

promote an environment which is conducive for employee productivity (Adegboyega 

M. O., 2017). Employees who are driven show signs of becoming the most productive, 

most engaged and invested in their daily duties (Adegboyega M. O., 2017). It is argued 

that it remains the duty of leaders to inspire their workers to stay committed to the 

company. The success of the manager, which may guide a company to be successful, 

is most probable when the employees are motivated, engaged and committed to their 

work. The current literature describes motivation as an individual’s collective 

willingness to offer maximum efforts towards organisational goals (Adegboyega M. O., 

2017). 

 

Employees who commit to their companies are rewarded and incentivised properly. 

Should this no longer be the case, or such rewards lessen over time, employees tend  

to get complacent and produce low quality work, avoid their workplaces and even seek 

to resign when presented with the opportunity (Panatik, 2019). Many in the field of 

mining agree that employee morale should be one of the core values of every 

organisation as it is one of stark indicators of a successful organisation. Companies 

are expected to invest in initiatives that will aid them in understanding the needs of 

their employees and factors that motivates them in the workplace. Employees that are 

motivated are more likely to be productive and remain at their companies for longer 

terms. Bonuses, monetary remuneration, paid time-off and travel pleasures are some 

of the rewards, and incentives that influence the behaviour of employees to be 

satisfied, motivated, committed and productive in the organisation (Panatik, 2019). 

 

The literature that will be presented, discussed and explained in this chapter will 

explore the various theories of employees’ remuneration as a motivator, and factor 



 19 

that may lead to work satisfaction. Furthermore, this literature review seeks to explore 

the numerous factors that may give organisations the ability to retain their employees, 

more specifically those that are highly trained. Possible research gaps that may be 

found in the various literature will be explored and identified in this chapter. The 

theoretical framework will comprise of remuneration as an independent variable, 

motivation (mediating variable), work satisfaction (mediating variable) and turnover 

(dependent variable). 

 
2.2. Motivation 
 

A motivated workforce should be a priority for every organisation as it is important for 

their sustainability and growth. That is why the reasons that stimulate specific 

individual behaviour need to be understood and acknowledged (Adegboyega M. O., 

2017). Frederick Herzberg identified motivators and hygiene as the two factors that 

influence employees working attitude, and their productivity levels (Adegboyega M. 

O., 2017). The motivators are intrinsic in nature and they influence employees’ work 

satisfaction, whereas hygiene factors are extrinsic in nature and serve to prevent 

employees from being dissatisfied with their respective duties (Adegboyega M. O., 

2017). It is clear from Herzberg’s Two-Factor theory that organisations must focus on 

motivators to influence employees’ satisfaction with their work. The theory identifies 

employee recognition, sense of personal achievement, development prospects and 

personal growth as factors that motivate employees (Deb, 2023). Wage and benefits, 

corporate policies and management, strong interpersonal relationships, and perceived 

status due to the level of work that they do, are a few of the numerous hygiene factors 

that were identified by past literature (Deb, 2023). From the examples of motivators 

and hygiene factors stated above, it can be deduced from the literature that both 

factors are independent from one another.  

 

McClelland’s Needs Theory of Motivation highlights the importance of achievement, 

power and affiliation with regards to people’s actions and behaviour (Adegboyega M. 

O., 2017). In general terms, people feel a sense of accomplishment when they excel 

at what they do. As they achieve or reach certain milestones in their lives, or careers, 

individuals gradually become more confident and are persuaded to achieve more. It is 

argued that achievement is coupled with some level of satisfaction, as McClelland is 



 20 

of the view that needs are learned or acquired by the type of events employees 

experience in their environment, and prevailing culture (Adegboyega M. O., 2017).  

 

Another theory that may be associated with the topic of motivation is Maslow’s 

Hierarchy of Needs. In his acclaimed model he emphasised the need for belonging 

and love. So, in light of the discussion of this research topic, being affiliated with an 

organisation or a social group provides one with a sense of belonging and love. People 

have a strong desire to be proudly affiliated with elements in their lives that bring 

meaning to it; be it friendships, social gatherings or their careers (A. Acquah, 2021). 

Employees who are associated strongly with their company work well in teams and 

are bound to be effective, or productive (A. Acquah, 2021). Employees who have a 

sense of connection are also unlikely to leave their organisation. It is stated that 

organisations need to foster a culture that will cultivate a sense of belonging and 

affiliation amongst their employees. The matter of power concerns the desire to lead 

and manage one's own tasks, or the tasks of others (A. Acquah, 2021). Driven 

individuals have a strong desire to influence, teach, or inspire others to act in ways 

that reflect their values and worldviews (Adegboyega M. O., 2017). Therefore, 

organisations should find it beneficial for them to delegate authority to those who are 

able to influence productivity and inspire hope, and confidence amongst their 

subordinates. 

 

Focusing on the Self-Determination Theory, it explains how motivation develops and 

its influence on human behaviour, and their wellbeing (R.M. Ryan, 2020). This theory 

identified the need for autonomy, need for competence, and the need for relatedness 

as basic psychological needs that must be fulfilled (R.M. Ryan, 2020). One of the first 

needs mentioned, autonomy, argues that people have the desire to feel a sense of 

volition over their own behaviour (R.M. Ryan, 2020). The second need, competence, 

is the need or desire to experience effectiveness when interacting with the universe, 

whereas relatedness refers to the desire to be connected with others. That is, a sense 

of satisfaction with the environment and feeling accepted (R.M. Ryan, 2020). 

Fundamentally, employees who are autonomous are self-driven and motivated to be 

productive, and thus a competent workforce is most likely to achieve their goals, which 

in turn may prompt reward and recognition. Finally, the need for relatedness in an 

individual’s life creates a sense of association. This association in turn may promote 



 21 

organisational awareness of employees’ psychological and emotional needs. This 

awareness may then persuade employees to not resign from their positions. 

 

Lastly, the Expectancy theory, also known as the Expectancy-Valence theory, is a self-

efficacy theory states that an individual's desire to complete a task is influenced by the 

level of confidence they have in their ability to do it (expectancy). Furthermore, their 

belief in the positive outcomes of the activity (valence) and the importance that they 

place on those outcomes are also determining factors (Dietrich et. al., 2019). The 

literature suggests that individuals are more likely to be motivated to perform a task 

when they believe that their effort will lead to a successful performance (expectancy), 

the successful performance will lead to desirable outcomes (valence), and the 

outcomes are personally valuable to them (valence) (E. Clark & Saxberg, 2018). In 

essence, the literature on this theory proposes that it offers a valuable framework for 

understanding the connection between compensation, motivation and employee 

retention. Organisations may be able to utilise this theory to create remuneration 

strategies and systems that meet employees' expectations. 

 

2.3. Remuneration 
 

Remuneration is retribution or a form of compensation that is received by employees 

for their contribution to a company (F Werdati, 2020). Murtiningsih (2020) opines that 

remuneration is a tool used by management to recognise and reward good employee 

performance in the work place. It is believed to be a major factor that may influence 

motivation amongst employees in various organisations. Onyekwelu et. al. describes 

remuneration to be all forms of payments or rewards used to compensate employees 

for their work (Onyekwelu R.U, 2023). This includes wages, bonuses, benefits and 

commissions (F Werdati, 2020). Onyekwelu et al further states that remuneration is 

the “glue” that is used to legally bind employees to an organisation in the form of a 

contract (Onyekwelu R.U, 2023). Some argue that remuneration has a positive effect 

on employee work satisfaction (Ni Komang Pertiwi, 2021). It may also include 

engaging in task assignments, challenging job responsibilities, possibilities for 

acknowledgment and advancement, motivated colleagues, a conducive work 

atmosphere, favourable policies and flexible work schedules (F Werdati, 2020). This 



 22 

means that remuneration cannot be limited to physical money alone, but rather it 

needs to be implemented holistically for total satisfaction.  

 

The following are the three principles of remuneration (F Werdati, 2020): 

 

• Conformity: remuneration is linked with employee contribution; 

• Fairness: employees to be remunerated based on their job complexities;  

• Effectiveness: remuneration is aligned with regulations and given with the long-

term value, and health of the company in mind (Fauchil et al., 2020). 

 

Compensation positively influences employee retention due to a direct relationship 

between the two factors (Murtiningsih, 2020). Remunerating employees for their work 

plays an important role in building and maintaining team work amongst employees as 

it helps to achieve set objectives (Bisaso I. W., 2020). Sardjana et al deduced that 

remuneration affects performance and other elements that could possibly influence 

performance positively (Sardjana, Sudarmo, & Suharto, 2018). This means that 

remuneration may have a direct relationship with performance; that is, the more 

employees are remunerated, the better they perform (Sardjana, Sudarmo, & Suharto, 

2018). 

 

Onyekwelu et. al stressed that it is necessary to determine whether an individual is 

social or economic in nature (Onyekwelu R.U, 2023). Understanding whether 

individuals are social or economic may assist an organisation to develop proper 

remuneration packages that will motivate employees and promote the right behaviour 

in the workplace. An effective remuneration system may have a direct relationship with 

employee retention due to employees’ staying if set at the right level (Bisaso I. W., 

2020). There more the employees are renumerated the more the likelihood that they 

will perform and vice versa (Sardjana, Sudarmo, & Suharto, 2018). The stability of the 

organisation is important and employee retention should be the number one priority 

for organisation. Sardjana et al deduced that remuneration affects performance and 

other variable driving performance positively (Sardjana, Sudarmo, & Suharto, 2018). 

 



 23 

Compensation positively impacts employee work satisfaction (Ni Komang Pertiwi, 

2021). Remuneration when structured properly may give employees power. Based on 

the McClelland’s Two-Factor theory, one can surmise that remuneration is a power 

motivator which encourages them to inspire others to excel in their workplace. 

Organisations should structure their remuneration systems to be financial and non-

financial for total satisfaction of their employees. Financial incentives alone are costly 

and not sustainable, and could potentially not garner the desired results (Brigman, 

2019).  

 

2.3.1. Employees’ perception about remuneration 
 

It is believed that organisations should structure their compensation schemes in such 

a way that their current salaries are higher than market standards (Brigman, 2019). 

Employers should determine if their employees' compensation preferences are solely 

financial or if they value other factors such as flexibility, safety, work-life balance, job 

stability, personal growth, or alternative kinds of compensation (Brigman, 2019). One 

is reminded of what Onyekwelu et al previously stated regarding determining whether 

individuals are social or economic beings. Employees feel their worth when their well-

being is prioritised and the trajectory of their careers is considered by an company 

(Onyekwelu R.U, 2023). Individuals such as these are more social than economic and 

they prefer to be rewarded emotionally than financially. Current literature on this 

subject does not clearly state what employees’ perceptions are regarding 

remuneration. The organisations do not understand their employees’ remuneration 

preferences (Brigman, 2019). 

 

2.3.2. The relationship between remuneration and work complexity 
 

Money is the primary motive for employees who work in manual labour environments, 

more so those with lower educational levels (Mura, 2019). Employee morale is 

enhanced when each person is assigned individual objectives rather than a single 

overarching objective (Alwaki, An Evaluation of the Impact of Remuneration on 

Employee Attitude and Performance in Organizations, 2018). Organisations 

commonly utilise Skill-Based Pay, Performance-Based Pay, and Seniority-Based Pay 

as remuneration methods to acknowledge and incentivise skill, performance and 



 24 

seniority (Yen Ping Ki, 2022). The employee levels of remuneration are determined by 

the levels of productivity of employees (Zyl, 2021). It is difficult to connect employees’ 

marginal efficiencies considering the complexities of their relationship with the 

employer (Zyl, 2021). Workplace complexities faced by employers are skills levels or 

competence, work experience, adoption of new technology and linking employee 

productivity, and remuneration (Zyl, 2021). Yen Ping does not relate remuneration with 

work complexity, but rather with competency, performance and responsibility. The 

dearth of research on the relationship between work complexity and remuneration is 

not as extensive as it should be. Hence, there seems to be a need to conduct further 

research on the relationship between remuneration and work complexity. Effective 

remuneration systems are essential motivating factors that create harmonious 

relationships between organisations and their employees (Mura, 2019). 

 

2.4. Employee retention 
 

Employee retention refers to the strategies and practices that organisations put in 

place to ensure that employees remain in their employment long-term (Ni Komang 

Pertiwi, 2021). Employees turnover is one of the biggest challenges faced by 

organisation to date (Panatik, 2019). Employees who feel that they belong to an 

organisation are unlikely to leave it (Ni Komang Ayu Yogi Pertiwi, 2021). Maslow, as 

mentioned earlier in this chapter, noted that a sense of belonging was one of the basic 

human needs and that there is an element of attachment that comes with a sense of 

belonging. McClellan emphasised in his theory that people yearn to be associated with 

social groups, friendships and organisations (A. Acquah, 2021). Thus, employees who 

feel that they belong to an organisation contemplate leaving. Organisations have an 

obligation to manage and motivate their employees so that they are satisfied with their 

work, and this may yield a high level of commitment to the organisation (Murtiningsih, 

2020). However, one difficulty encountered by human resource management is an 

employee’s desire to seek better working conditions in other organisations 

(Murtiningsih, 2020). Employee turnover does not only cost the company to recruit 

new workers, but productivity and sustainability are also impacted by turnover 

(Panatik, 2019). Employee retention assist the human resource department with the 

succession planning as it aims to determine the competent strategic positions in 

organisations (M.S.Kamalaveni, 2019). Attractive job offers, family issues and career 



 25 

growth are some of the issues that lead to employees voluntarily leaving the 

organisation (M.S.Kamalaveni, 2019) 

 

There is a need for organisations to become intentional about retaining hardworking 

and diligent employees by inspiring them, providing required adequate training and 

development to support them in advancing their skillset, and compensating them 

(Murtiningsih, 2020). The attitude of managers towards employees significantly 

influences employee retention in an organisation. Highly committed employees 

demonstrate strong qualities, exhibit thoroughness in their work and display loyalty to 

their company (Ni Komang Ayu Yogi Pertiwi, 2021). It has been argued that 

organisations should also be cooperative regarding employee welfare to ensure 

overall satisfaction at work and loyalty, thus maximising their contribution to the 

organisation (Murtiningsih, 2020). Organisations are now developing policies for 

recruitment, induction, training and development, compensation and benefits, job 

profiles and wage standards with the intention of retaining employees in a long run 

(M.S.Kamalaveni, 2019). Organisations incur costs of recruiting and invest money on 

training and development of employees to fit and improve efficiencies of employees 

thus these necessitates the need to retain employees (M.S.Kamalaveni, 2019). The 

organisation must get value from their investment on employees in terms of 

performance for their sustainability and competitive advantage.  

 

2.4.1. Factors influencing employee retention and turnover 
 
Organisational commitment is another aspect that influences employee retention (Ni 

Komang Ayu Yogi Pertiwi, 2021). Lack of promotional opportunities, unfair treatment 

among employees and lack of values are some of the factors that may lead to increase 

turnovers in a company (M.S.Kamalaveni, 2019). Kamalaveni et al further highlight 

that the occurrence of shock, whether positive or negative, may initiate thoughts of 

resignation within employees (M.S.Kamalaveni, 2019). They state that positive shock 

factors may include offers of employment and pregnancy among others, whereas 

negative shock factors may include friendships ending, poor performance appraisal 

and the relocation of a spouse (M.S.Kamalaveni, 2019). 

 



 26 

Another element that may contribute to employee retention is that of work satisfaction 

(Ni Komang Ayu Yogi Pertiwi, 2021). This is an important indicator for employers, 

since employees find working in an enjoyable environment to be conducive to their 

work performance. Should this not be the case, then individuals become frustrated 

and search for alternative employment elsewhere. It is opined by some that employee 

morale and performance may be directly influenced by work satisfaction. Generous 

remuneration could result in personnel remaining with an organisation for an extended 

period. This means that compensation is a vital contributing factor that employees 

consider when making the decision to leave or remain at a company (Ni Komang Ayu 

Yogi Pertiwi, 2021). Work environments, satisfaction at work, recruitment, 

compensation, development opportunities, performance appraisals, leadership, 

employee commitment and a balance between one’s work and daily life are some of 

the pull factors that were identified by research (M.S.Kamalaveni, 2019). Research 

has highlighted management practices, low compensation, limited career progression 

prospects, lack of peer support, inadequate supervision, limited learning opportunities, 

poor working conditions, lack of communication and employment insecurity as the 

primary factors that may cause employees to resign (M.S.Kamalaveni, 2019). 

 

2.4.2. The role of organisational culture on employee retention  
 
It is argued by some that organisational culture may significantly impact employee 

morale and is crucial for the success of any organisation. Organisational culture 

enforces the core values in a secure and accepted manner among employees 

(Murtiningsih, 2020). An effective organisational culture influences the way managers 

plan, organise and control their management functions (Murtiningsih, 2020). A toxic 

corporate culture is one of the contributing factors that forces employees to resign from 

an organisation (D. Sull, 2022). Sull et al identified failure to promote diversity, 

employment equity, inclusion, workers ill treatment, and unethical behaviour as some 

of the elements that may contribute to toxic work cultures (D. Sull, 2022). Research 

has observed that a toxic work culture was one of the striking contributing factors why 

employees left their companies. Toxic work cultures seem to have greater impact on 

employees than remuneration (D. Sull, 2022). A culture that is influential and instils 

core values has a significant effect on employee behaviour (Murtiningsih, 2020). 

 



 27 

Cloutier, Felusiak, Hill and Pemberton-Jones identified the following four strategic 

pillars that organisations may implement in order to retain their employees (Singh, 

2019):  

 

• Effective communication; 

• Work force diversity; 

• Recruiting skilled and competent employees; and  

• Training and development plans for employees. 

 

Onyekwelu stresses the importance of organisations creating a variety of policies and 

procedures to improve working conditions, employee management, competitive 

compensation and possibilities for career advancement (Onyekwelu R.U, 2023). 

 

2.4.3. The role of work satisfaction on employee retention 
 
Satisfaction at one’s workplace may determine what type of perception that one has 

of their work environment. This may be reflected through a positive attitude towards 

one’s duties at work (Murtiningsih, 2020). Employees who are satisfied with their work 

tend to remain longer at an organisation. They tend to be productive, efficient and offer 

themselves selflessly to assist their company to develop when their satisfaction is high 

(Murtiningsih, 2020). However, the opposite may be observed should their level of 

satisfaction decrease. Employees are unlikely to leave a company when they are 

comfortable and content (Murtiningsih, 2020). Work satisfaction of individuals is the 

important factor which organisations must aspire to achieve (Duong, 2020). 

Fundamentally, being content with one’s work and one’s self may be directly 

correlated, as an increase in work contentment may culminate in employee 

satisfaction (Duong, 2020). In addition, Murtiningsih highlighted personality, values, 

work environment and social influence as some of the factors that may affect 

employees’ work satisfaction (Murtiningsih, 2020).  

 

2.5. Empirical perspective 
 

Organisation must understand the factors that motivates the employees in the 

workplace. The factors driving employees’ motivation must be incorporated in the 



 28 

organisational culture to drive the right employee mindset. The success of every 

strategy, idea, plan etc is fully dependant on the organisational culture. The motivators 

and hygiene factors must be understood by organisation if they are to retain a 

motivated workforce.  

 

Onyekwelu is of the view that competitive compensation may be used as an incentive  

to retain the service of employees (Onyekwelu R.U, 2023). Though he argues that 

remuneration can also be used as an influencer, it is still not the main factor. 

Regardless how competitive the remuneration packages are, a toxic culture may 

cause employees to resign. According to research literature, remuneration definitely 

permits employees to have buying power which is also a motivator as stated by 

McClelland’s theory (A. Acquah, 2021). Young professionals may remain longer at an 

organisation if there is proper training, development and career growth opportunities. 

They are more aware of the fact that career growth is coupled with better remuneration 

packages, responsibilities and challenges. Training, development and succession 

planning may be some of the main reasons as to why young professionals choose to 

remain longer at companies. Work satisfaction mediates the effects of compensation 

and organisational commitment on employee retention (Ni Komang Ayu Yogi Pertiwi, 

2021). Employees who feel valued by their organisation are most likely to stay (Ni 

Komang Ayu Yogi Pertiwi, 2021).  

 

Onyekwelu mentioned the need to understand whether a “man” is social or economic 

(Onyekwelu R.U, 2023). This solution will help organisations tackle the problem of staff 

retention. This is a complex issue that has no specific answer but worth doing further 

research on. Human beings want different things so it will always be difficult to please 

everyone. If human beings can be understood to that level (social or economic) then 

it will be simpler to satisfy their needs. 

 

2.5.1. Prior research on remuneration and retention 
 

Previous studies suggest that salary, organisational culture, employee work 

satisfaction, training and growth may positively influence employee retention 

(Murtiningsih, 2020). It is argued that organisations need to implement fair and 

competitive compensation systems in order to recruit qualified employees, and 



 29 

maintain a productive workforce (Murtiningsih, 2020). The research also urges 

employers to value and take care for their employees so that they can stay longer in 

the organisations (M.S.Kamalaveni, 2019).  

 

Remuneration is the factor but not the main reason why employee will stay 

(M.S.Kamalaveni, 2019). Employees must be participation in policy and decision 

making creates a sense of belonging thus resulting in employees being committed and 

attached to the organisation. Employee committees must be established to investigate 

the reasons behind the turnover in the organisation (M.S.Kamalaveni, 2019). 

Employers must enhance employee retention by offering competitive salaries, 

recruiting top talent, implementing succession planning, providing attractive employee 

benefits, implementing human resource practices for high performance, and 

establishing binding contracts (M.S.Kamalaveni, 2019) 

 

2.5.2. Recent trends on employee remuneration and retention 
 

Onyekwelu emphasised how crucial it was for companies to assess and understand 

employees’ perception of remuneration and benefit policies (Onyekwelu R.U, 2023). 

Of late, many companies have rigorously begun competing with one another for 

employees who are not only highly skilled, but who are in search for more beneficial 

rewards and opportunities (Singh, 2019). Due to this reason, organisations are now 

reviewing and revising their reward systems in order to address both intrinsic, and 

extrinsic human factors. Intrinsic rewards focus on the psychological development of 

employees and includes benefits such as autonomy, feedback and inclusivity (O 

Amadi, 2021). Whereas extrinsic rewards are external and completing assignments 

are dictated by other people (O Amadi, 2021). Therefore, remuneration is an example 

of an extrinsic reward. 

 

More and more organisations are shifting from a culture of exclusivity to that of 

inclusivity and are currently extending their resources to local communities through 

social initiatives that aim to attract the youth (Singh, 2019). The intended goal for 

organisations is to keep employees engaged by communicating and sharing 

information in order to be transparent to employees (Poku, 2022). 

 



 30 

Table 1: Literature review matrix 

Author 

(Year) 

Organisational 

Problem 

Research 

Problem 

Conceptual 

Framework  

Sample Research 

Gap 

(Onyekwelu 

R.U, 2023) 

Compensation 

as a motivator 

for enhancing 

staff 

productivity 

(Onyekwelu 

R.U, 2023) 

The role of 

remuneration 

in enhancing 

workers’ 

performance 

(Onyekwelu 

R.U, 2023) 

Examining 

the 

relationship 

between 

elements 

such as 

wages, 

incentives, 

and indirect 

compensatio

n on worker 

productivity 

(Onyekwelu 

R.U, 2023) 

200 Are 

individuals 

social or 

economic? 

(Onyekwelu 

R.U, 2023) 

(Onyekwelu 

R.U, 2023) 

Compensation 

as a motivator 

for enhancing 

staff 

productivity  

(Onyekwelu 

R.U, 2023) 

The role of 

remuneration 

in increasing 

workers’ 

performance 

(Onyekwelu 

R.U, 2023) 

Examining 

the 

relationship 

between 

factors such 

as wages, 

incentives, 

and indirect 

compensatio

n on worker 

productivity   

(Onyekwelu 

R.U, 2023) 

200 Assessment 

of employees’ 

perception of 

remuneration 

(Onyekwelu 

R.U, 2023) 

Pertiwi &  

Supartha  

Work 

satisfaction 

The impact of 

remuneration 

and 

The effects of 

compensatio

n on 

45 The 

correlation 

between 



 31 

and employee 

satisfaction 

organisationa

l dedication 

on employee 

contentment 

and retention  

 

 

 

employee 

satisfaction 

and retention 

with 

organisationa

l commitment 

as a mediator 

salary, 

responsibilitie

s, and 

qualifications 

(Ni Komang 

Pertiwi, 2021) 

 

D Singh 

(2019) 

Create a 

comprehensiv

e retention 

policy to 

address 

employee 

retention 

effectively  (Si

ngh, 2019) 

 

A literature 

review on 

employee 

retention with 

focus on 

recent trends 

(Singh, 2019) 

 

- -  Predictability 

of future 

requirements 

of employees 

(Singh, 2019) 

O Amadi et 

al (2021) 

Inspiring the 

workforce for 

enhanced 

performance 

(O Amadi, 

2021) 

Examine how 

organisationa

l reward 

systems 

influence 

employee 

retention (O 

Amadi, 2021) 

 

Impact of 

reward 

systems on 

employee 

retention 

63  Types and 

blend of 

rewarding 

tools (O 

Amadi, 2021) 

      

 

 

 



 32 

 
2.6. Conceptual framework 
 

The conceptual framework of a research study provides a detailed understanding of 

specific, and important, concepts that were highlighted during literature research. The 

concepts for this particular research topic were marked to be remuneration, work 

satisfaction, motivation and retention; and they will be discussed and explained in this 

section. Including defining the variables, their relationships, and how they were be 

explored (Guntur, 2019). This framework assisted in determining the literature that 

was reviewed, the methodology and research design, and the type and size of the 

sample (Guntur, 2019). The literature reviewed focuses on research investigating the 

influence of compensation on work satisfaction, motivation, and retention. The studies 

also examined how work satisfaction and motivation mediate the relationship between 

salary and retention. 

 

2.6.1. Remuneration 
 

Remuneration is retribution or some form of compensation received by employees for 

their contribution to the company including salaries, bonuses, benefits, and other 

incentives (F Werdati, 2020). This factor was used to explore the level of 

compensation provided to employees in the diamond mining industry. Remuneration 

is important today because we have seen a lot of labour unrest in recent years 

especially in the mining industry.  

 

2.6.2. Work satisfaction 
 

Work satisfaction defines the employees’ perception of their job reflected through their 

positive attitude towards their work (Murtiningsih, 2020). The tool was utilised to 

evaluate employees' satisfaction levels about their compensation package and its 

influence on their decision to remain with or go from the organisation. 

 

2.6.3. Motivation 
 



 33 

Motivation is the act of encouraging people to do something because of interaction 

between the conscious and unconscious factors (Panatik, 2019). It was used to 

examine how remuneration impacts employees' motivation to work hard and achieve 

their goals. 

 

2.6.4. Retention 
 

Employee retention refers to the strategies and practices that organisations put in 

place to ensure that employees stays for a long time (Ni Komang Pertiwi, 2021). It was 

used to measure the impact of remuneration on employees' turnover rates in the 

diamond mining industry. 

 

Figure 1: Conceptual Framework 

 
 

The conceptual framework was used based on the following theories: 

 

• Equity theory: Employees' motivation and work satisfaction are influenced by their 

perception of fairness in the workplace, including the level of compensation they 

receive (Stie Dharma Bumiputera, Jakarta et al., 2022) 

• Expectancy theory: Employees' motivation is driven by the expectation that their 

efforts will lead to desired outcomes, such as higher pay or promotion opportunities 

(Uka & Prendi, 2021) 

• Maslow’s Hierarchy of Needs: Employees' basic needs, for example financial 

security, must be met before they can focus on higher-level needs, such as self-

actualisation (A. Acquah, 2021) 

Remuneration

Job Satisfaction

Motivation

Retention



 34 

• McClelland’s Theory: This theory of motivation highlights the importance of 

achievement, power and affiliation regarding people’s actions and behaviour 

(Adegboyega M. O., 2017) 

• Two-Factor Theory: The motivators are intrinsic that may influence employees’ 

work satisfaction, whereas hygiene factors are extrinsic and serve to prevent 

employees from being dissatisfied with their respective duties (Adegboyega M. O., 

2017)  

• The Self-Determination Theory: The self-determination theory identified the need 

for autonomy, need for competence and the need for relatedness as basic 

psychological needs that must be fulfilled (R.M. Ryan, 2020). 

 

2.7. Theoretical perspective 
 
2.7.1. Equity theory 
 

The equity theory is applicable to this research study, because it focuses on the 

balance between an individual's inputs and outputs in certain situations. Furthermore, 

how that balance compares to others in similar situations (Zhou et al., 2020). 

Employees who believe that their remuneration is not equitable in comparison to their 

peers, or to industry standards may experience lower levels of work satisfaction, 

motivation, and may ultimately resign from their company (Zhou et al., 2020). If two 

employees with the same responsibilities and qualifications receive vastly different 

salaries, the employee receiving the lower salary may believe that their inputs (effort, 

skills, and experience) are not being justly compensated with their outputs (salary, 

benefits) (Kim et al., 2019). This could cause an individual to become demoralised and 

disappointed with their employment, resulting in decreased motivation and a higher 

probability that they will resign (Kim et al., 2019). 

 

The equity theory was applied to this research to get feedback from the employees on 

the same level from different via focus group discussions since the research is 

qualitative in nature. The theory also assisted in addressing the research gap of the 

“assessment of employee perception of remuneration” (Onyekwelu R.U, 2023). 

Employees’ feedback regarding this theory assisted in gaining more insights into how 

equity theory plays a role in the impact of remuneration on employees' turnover in the 



 35 

diamond mining industry. The principles of equity theory assisted in deepening the 

understanding and provided insight into the motivational factors that influence 

employee behaviour (Hu, 2021). 

 
2.7.2. Expectancy theory  
 

The expectancy theory posits that individuals are driven to behave in a particular 

manner when they are confident that their activities will produce favourable results 

(Eder & Dignath, 2019). In terms of applicability, this theory may demonstrate how 

employees' impression of the connection between their pay and anticipated results, 

for example work satisfaction and career advancement, may affect their motivation. 

Moreover, their decision to either stay or resign (Murtiningsih, 2020). Employees who 

believe that their current pay does not match their expectations and efforts are 

generally demotivated, and tempted to seek better opportunities elsewhere. On the 

other hand, if they perceive that their remuneration is fair and equitable, they are 

motivated to stay and work towards achieving their desired outcomes at their 

companies. 

 

The possible application of this theory to the research topic is aimed at examining and 

illustrating how employees' expectations of compensation, and associated results are 

established, including how their perceived probability of attaining these results is 

affected by compensation. Furthermore, how influential the aforementioned factors 

are regarding employee motivation and their choice to remain at a company (Alwaki, 

An Evaluation of the Impact of Remuneration on Employee Attitude and Performance 

in Organizations, 2018). Additionally, this theory was chosen as it could also assist in 

understanding “the predictability of future requirements of employees” as it was 

identified as a research gap (Singh, 2019). Essentially, it is hoped that this theory may 

be employed by companies in order to effectively aid them in communicating the link 

between remuneration and outcomes to their employees. Not only that, but also how 

this may influence their motivation and retention (Alwaki, An Evaluation of the Impact 

of Remuneration on Employee Attitude and Performance in Organizations, 2018). We 

studied how employees' beliefs about the connection between their efforts, 

performance, and outcomes impact their motivation to remain with the organisation by 



 36 

integrating expectancy theory into our conceptual framework (Nucharee Supatn, 

Teeradej Puapradit, 2019). 

 
2.7.3. Maslow's Hierarchy of Needs 
 

Maslow’s Hierarchy of Needs suggests that human needs are arranged in a 

hierarchical order, and that individuals must satisfy their lower-level needs before they 

can move on to higher-level needs (Wei & Ma, 2022). A fair and acceptable level of 

pay may fulfil an employee's physiological and safety demands by providing the 

resources necessary for basic essentials such as food, shelter and security (Permana 

& Bharoto, 2021). The research utilised Maslow's hierarchy of requirements as a 

framework to comprehend the various levels of demands employees have and how 

these needs may be fulfilled through compensation, work happiness and motivation.  

 

An employee who feels valued and respected by their employer due to fair 

compensation may experience satisfaction of their esteem needs (Permana & 

Bharoto, 2021). It is important to note that while remuneration may satisfy lower-level 

needs, it does not necessarily motivate employees to reach higher-level needs such 

as self-actualisation. Some employees felt that their careers were stagnant and that 

no amount of compensation can provide them with the motivation to pursue further 

self-actualisation (Rosalba Reyes; Adriana Romo, 2019). In this instances 

remuneration employees’ did not get their required or expected work satisfaction and 

remuneration did not act as a motivating tool. 

 

Maslow’s Hierarchy of Needs theory was used to understand how different levels of 

needs are met through remuneration and the impact of those needs on employee 

turnover. Employees who believe their fundamental needs are not being fulfilled by 

their pay may be more inclined to depart from the organisation, even if their more 

advanced wants are being satisfied.  (Gillet et al., 2019). Employees who believe their 

higher-level demands are satisfied by their compensation are likely to remain with the 

organisation even if their basic needs are not fulfilled (Gillet et al., 2019). This research 

applied Maslow’s Hierarchy of Needs to determine employees' individual 

requirements, how they were fulfilled through compensation, and how these needs 

impacted turnover in the South African diamond mining business. Identifying the 



 37 

optimum sorts and mixtures of rewards was a research gap addressed through focus 

group discussions and expert interviews to determine the most suitable approach (O 

Amadi, 2021). The theory was utilised to develop the research questions aimed at 

addressing the research gaps discovered in the literature review. 

 

2.7.4. McClelland’s Theory 
 

According to McClelland, employees are motivated by their desire to achieve success, 

have control over their work environment, and build positive relationships with others 

(Adegboyega M. O., 2017). These needs may be satisfied when individuals undertake 

challenging tasks, recognition, and feedback. This theory suggests that employees 

who are motivated by achievement are most likely to search for opportunities of 

employment that offer greater avenues for growth and development. Some of these 

avenues may include higher salaries, and benefits (Dominique Mendoza et al., 2018). 

McClelland’s theory is considered to be is relevant to this research study because it 

brings to light the importance of an employee’s desires to achieve, have power and 

affiliation in their workplace (Adegboyega M. O., 2017).  

 

The theory assisted in explaining how remuneration impacts turnover by affecting 

employee needs for achievement, power, and affiliation. If employees feel that their 

salary and benefits are inadequate compared to their peers or to their desired standard 

of living, they may feel less motivated to achieve success in their job or to maintain 

positive relationships with co-workers. (Cullen & Perez-Truglia, 2022). Employees who 

felt disadvantaged as compared to their peers were mostly dissatisfied and 

demotivated thus opting to leave the organisation. The organisation gained an 

understanding of how achievement motivation can be used to structure the 

remuneration packages to align with the needs and expectations of the employees. 

By doing this, this will assist a lot with reducing the turnover rates. The theory was 

used to gain insights on the types and blends of remuneration tools which was 

identified as research gap from the literature. 

 

 

 

 



 38 

2.7.5. The Two-Factor Theory 
 

According to the Two-Factor theory, work satisfaction and motivation are influenced 

by two types of factors: hygienic factors and motivators. Hygiene considerations 

encompass elements such as wage, leisure activities, work environment and work 

security. These elements are essential for work satisfaction, however, they may not 

inherently serve as motivators for employees (Adegboyega M. O., 2017). Motivators, 

such as recognition, growth opportunities, and achievement may enhance work 

satisfaction and inspire people (Adegboyega M. O., 2017). 

 

In the context of this research study, remuneration was considered to be a hygiene 

factor as it is necessary for work satisfaction, however, it does not necessarily push 

employees (Adegboyega M. O., 2017). Perceiving their compensation as unjust or 

insufficient may result in individuals becoming discontent with their work and possibly 

lead to turnovers at companies (Adegboyega M. O., 2017). With this knowledge, it is 

plausible that the two-factor theory may be able to guide the planning and 

implementation of successful compensation, and retention strategies in the South 

African diamond mining industry. This may be achieved by recognising the 

significance of hygienic considerations and motivators in work satisfaction, and 

motivation (Siruri & Cheche, 2021). The two-factor theory was relevant to this research 

study as it elucidated elements that may influence work satisfaction and discontent 

(Adegboyega M. O., 2017). 

 

Focus group discussions and in-depth interviews were conducted to obtain a deeper 

understanding of employees' requirements. The idea proved beneficial in filling the 

research gaps highlighted in the literature.  

 

2.7.6. The Self-Determination Theory 
 

The self-determination theory argues that people yearn for independence, 

competence and relatedness (R.M. Ryan, 2020). Employees with increased autonomy 

in their work tend to experience a stronger sense of ownership and accountability, 

resulting in elevated levels of intrinsic motivation, and work satisfaction (Zhou et al., 

2019). Compensation may influence employees' feeling of independence by equipping 



 39 

them with the necessary tools to do their tasks efficiently (Khoshnaw & Alavi, 2020). 

Employees who feel competent in their roles are more inclined to be motivated and 

content with their employment (Sinha, 2020). Remuneration may impact employees' 

sense of competence by providing them with opportunities for development and 

growth through training, and education (Sinha, 2020). 

 

Employees who were connected to their colleagues and managers were motivated 

and satisfied in their jobs (Hee et al., 2018). Compensation can influence employees' 

feeling of connection by offering them a perception of equity and acknowledgment, 

which may enhance their feeling of inclusion in a company (Mahmud et al., 2018). The 

effects of remuneration on employees' turnover was examined using the principles of 

this theory to investigate how it affected employees' sense of autonomy, competence, 

and relatedness, and how these factors impacted their intrinsic motivation, work 

satisfaction, and ultimately their decision to stay or leave the organisation (Alwaki, An 

Evaluation of the Impact of Remuneration on Employee Attitude and Performance in 

Organizations, 2018). The employees feedback affirmed the theory. 

 

2.8. Relationship between identified factors 
 
This research study’s conceptual framework was to explore the link between factors 

and their effect on the desired outcomes, which was the ultimate objective. 

Understanding the interplay between them was crucial for the organisation to design 

a well-informed plan. 

 

2.8.1. The relationship between remuneration and motivation 
 

In light of the literature that has been discussed thus far, it seems that remuneration 

is a key factor that may influence employees’ morale as it provides tangible rewards 

for their efforts in the workplace. When employees believe that their rewards are 

directly linked to their efforts, they are more inclined to feel motivated and content in 

their roles (Jwmaa et al., 2022). Employees compare their inputs, for example effort, 

skills and experience, with their outcomes (salary, benefits and recognition), and 

evaluate whether they are being treated fairly (Husain et al., 2020).  

 



 40 

2.8.2. The relationship between remuneration and work satisfaction 
 

It was anticipated that there would be a favourable connection between remuneration 

and work satisfaction. There was a perception that employees who receive adequate 

compensation and benefits for their work are more likely to be satisfied with their jobs 

(Prasetio, Agathanisa, et al., 2019). Remuneration was a significant element in 

employees' work satisfaction as it immediately impacted their financial well-being and 

quality of life.  (Abdolshah et al., 2018). Satisfied employees are more likely to be 

motivated and perform effectively, increasing their retention percentage with their 

current employer. (Murtiningsih, 2020). 

 

Various factors, including work-life balance, employment security, professional growth 

prospects, and the work environment may impact work satisfaction (Abdirahman et 

al., 2020). The organisation should take into consideration all these other factors that 

affects employees’ work satisfaction (Murtiningsih, 2020). Understanding of factors 

that contributed to factors can assist the organisation in predicting the future 

requirements and needs of employees.  

 

2.8.3. The effect of motivation on the relationship between remuneration and 
retention 

 

In this research investigation, motivation served as a mediating variable between 

salary and retention. Therefore, motivation influenced the connection between 

compensation and employee retention. This research investigated how motivation 

mediates the relationship between salary and retention. The interviews and focus 

group discussion were designed to gather employees' perceptions on how motivation 

might enhance organisational commitment and ultimately reduce attrition rates. 

 

The effect of motivation on the relationship between remuneration and retention 

helped to understand how organisations can retain their employees by focusing on 

motivation, even when remuneration levels are not the highest (Zayed & Nahar, 2019). 

This can be useful for organisations that may not have the resources to offer high 

remuneration packages but still want to retain their valuable employees (Zayed & 

Nahar, 2019). 



 41 

 

2.8.4. The effect of work satisfaction on the relationship between remuneration 
and retention 

 

The effect of work satisfaction on the relationship between remuneration and retention 

with regards to this research study can be explained to mean the potential moderating 

role that work satisfaction has on the relationship between remuneration, and 

employee retention. Work satisfaction was a key factor that influences employee 

retention, as employees who are satisfied with their jobs are more likely to stay with 

their current employer (Irabor & Okolie, 2019). It is possible that work satisfaction could 

moderate the relationship between remuneration and retention (Al-Wareth Alrazehi et 

al., 2021). If employees are highly satisfied with their work, they may be less likely to 

leave even if their remuneration is not as high as they had hoped (Pekerşen & Tugay, 

2020). On the other hand, if employees are not satisfied with their jobs, even high 

levels of remuneration may not be enough to retain them (Pekerşen & Tugay, 2020).  

 

It was crucial to investigate how work satisfaction could influence the connection 

between compensation and employee retention. Discovering a significant interaction 

effect would indicate that the connection between salary and retention varies in 

strength based on the amount of work satisfaction.  (Desai, 2018). This information 

was utilised to assist employers in creating remuneration retention plans that 

considered the impact of work satisfaction on the remuneration-retention dynamic. 

 

2.9. Research gaps  
 

The following research gaps were marked during the literature review and will be 

discussed: 

 

• Is a man social or economic in nature (Onyekwelu R.U, 2023)? 

• Assessment of employees’ perception of remuneration (Onyekwelu R.U, 2023). 

• The relationship between salary, responsibility and qualifications (Ni Komang 

Pertiwi, 2021). 

• Predictability of future requirements for employees (O Amadi, 2021). 



 42 

• Types and blend of rewarding tools (O Amadi, 2021). 

 

2.9.1. Is a man social or economic in nature? 
 

Understanding whether individuals are social or economic in nature is important for 

this research topic as it may aid it to identify any key factors that could influence 

employee turnover. For instance, if an employee perceives that their remuneration is 

equitable compared to their colleagues in similar positions within an organisation, they 

may be more likely to stay at the company (Zhang & Li, 2019). On the other hand, if 

they feel that their social needs, such as recognition and appreciation, are not being 

met, they may seek employment elsewhere regardless of their remuneration package 

(Giauque et al., 2019). Therefore, understanding whether an individual is motivated by 

social or economic factors may provide valuable insight into how to design effective 

retention strategies that could address the needs and expectations of employees 

(Klopotan et al., 2018).  

 

2.9.2. Assessment of employees’ perception of remuneration 
 

An employee's view of their salary could significantly influence how satisfied they are 

with their work and their level of motivation, which subsequently may affect their 

decision to remain with or go from an organisation (Mahmud et al., 2018). By 

understanding employees’ perception of their remuneration, organisations can design 

their compensation packages to better meet employees’ expectations and needs, 

which may in turn increase their work satisfaction, motivation and retention (Mahmud 

et al., 2018). Employees’ perception of their remuneration has not always aligned with 

the actual remuneration that they should receive. If employees believe that their 

compensation is unfair or inequitable, they may become demotivated and dissatisfied 

with their job, which may ultimately lead to turnover (Cullen & Perez-Truglia, 2022). 

Therefore, understanding employees’ perception of remuneration can help 

organisations identify and address any discrepancies between employees’ perceived 

and actual compensation (Cullen & Perez-Truglia, 2022). 

 

Assessing  employees’ perception of remuneration provided valuable insights into the 

factors that contribute to employees’ decision to stay or leave an organisation (Alwaki, 



 43 

An Evaluation of the Impact of Remuneration on Employee Attitude and Performance 

in Organizations, 2018). By understanding why employees perceive their 

compensation in a certain way, organisations can identify the areas that need 

improvement in order to retain their top talent. Assessing employees’ perception of 

remuneration is critical for organisations to develop effective compensation strategies 

that support employee retention and work satisfaction. (Alwaki, An Evaluation of the 

Impact of Remuneration on Employee Attitude and Performance in Organizations, 

2018). 

 

2.9.3. The relationship between salary, responsibility and qualifications 
 

The relationship between salary, responsibility and qualifications are important 

elements that need to be explored in this research study, because they may aid in the 

comprehension of how these factors may impact remuneration and employee 

retention. The issue of salary was often considered to be the primary factor in 

determining remuneration, however, responsibility and qualifications also played a 

striking role (Dominique Mendoza et al., 2018). Employees with higher levels of 

responsibility may expect higher compensation, while those with more advanced 

qualifications may have higher salary expectations (Mahmud et al., 2018). However, 

there may also be cases where an employee's salary does not match their level of 

responsibility or qualifications. This contrast may affect their work satisfaction and 

ultimately lead to turnover (Hur & Bae, 2022). Therefore, examining the relationship 

between these factors may produce insight into how remuneration decisions are made 

and how they may impact employee retention (Shamsi & Alsinani, 2018). It can also 

inform strategies for improving remuneration practices and reducing turnover by 

ensuring that employees are compensated fairly based on their responsibilities, and 

qualifications (Shamsi & Alsinani, 2018). 

 

2.9.4. Predictability of future requirements of employees 
 

The predictability of future requirements of employees seems to be crucial for 

organisations in several ways. It allows companies to anticipate and prepare for 

upcoming staffing needs and requirements. This may guarantee that they have the 

essential human resources needed to achieve their operational and strategic 



 44 

objectives (Bilagi, 2022). To further elaborate, this may entail predicting future worker 

requirements by considering aspects such as business expansion, turnover rates and 

evolving demands for employment (Bilagi, 2022). Predictability helps organisations to 

retain their most talented workers by providing them with clear career paths and 

growth opportunities that align with their skills, and interests (Abdulai Sawaneh & 

Kanko Kamara, 2019). In essence, this may reduce the risk of losing valuable 

employees to competitors who may offer more attractive career opportunities. 

 

Predictability of future requirements can help organisations to control costs associated 

with recruitment, hiring and training by enabling them to proactively address workforce 

needs before they become critical (Jaillet et al., 2022). This can result in significant 

cost savings and improved operational efficiency. The predictability of future 

requirements of employees is an essential consideration for any organisation that 

wants to maintain a competitive advantage and achieve long-term success (Suciu et 

al., 2022). 

 

2.9.5. The types and blend of rewarding tools 
 
The importance of the types and blend of rewarding tools for organisations lies in their 

ability to attract, retain and motivate employees (Hussainy, 2020). Rewards can take 

various forms, for instance monetary compensation, benefits, recognition and the 

opportunity to evolve (Noor et al., 2020). By offering a blend of rewards that align with 

employees' needs and preferences, organisations can create a more engaging, and 

satisfying work environment (Abu Khalaf et al., 2019). It is the opinion of some in the 

field of business that the type and blend of rewarding tools may also have a direct 

impact on employee performance and productivity (O Amadi, 2021). Research has 

shown that financial incentives can increase employees' effort and output, especially 

when they are tied to specific performance goals (Aziri, 2019). Non-financial rewards, 

such as recognition and praise, may also enhance employee motivation and work 

satisfaction (Raman & Kumari, 2022). 

 

In the same vein, the type and blend of rewarding tools may also contribute to an 

organisation's culture and values (Kets, 2021). An organisation that values a work-life 

balance may offer flexible schedules or telecommuting options as part of its reward 



 45 

system (Rodríguez-Sánchez et al., 2020). Additionally, an organisation that values 

continuous learning and development may offer opportunities for training and career 

advancement (Rodríguez-Sánchez et al., 2020). Therefore, understanding the types 

and blend of rewarding tools that are most effective for different employee groups and 

work roles may assist organisations to create a more engaged, motivated and high-

performing workforce (Hussainy, 2020). 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 46 

CHAPTER 3: RESEARCH METHODOLOGY 
3.1. Introduction 
 

Research methodology refers to a systematic and structured approach used by 

researchers to conduct a study by aiding them in gathering information, analysing data 

and coming to meaningful conclusions (University of Jeddah & Alasmari, 2020). It 

details a sequential approach that is followed by researchers in carrying out 

investigations. In this chapter, the research design, data gathering methods, data 

analysis procedures and the interpretation of results will be discussed, and explained 

(Rashid et al., 2019). 

 

Quantitative, qualitative and mixed method (both the use qualitative and quantitative 

methods) are the three common research methodologies used in research endeavours. 

Quantitative methodology analyses numerical data to identify patterns and 

relationships, whereas qualitative methodology uses interviews or observations to 

explore participants' perspectives on certain issues in order to comprehend phenomenon. 

Mixed methodology combines both quantitative and qualitative approaches to yield an 

all-inclusive understanding of a research topic. The decision is contingent upon the 

research goals, questions, and resources at hand.  (University of Jeddah & Alasmari, 

2020). Hence, for the purposes of this research study, a qualitative method was chosen to 

explore the relationship between salary and turnover in the South African diamond 

mining business. 

 

3.2. Qualitative research approach  
 

A research approach refers to the overarching strategy or methodological framework 

that directs a research project  (University of Jeddah & Alasmari, 2020). It includes the 

general approach, design and techniques used to collect, analyse and interpret data 

in order to answer research questions or objectives (Strenalyuk, 2019). In addition, a 

research approach serves as a guide for the entire research process. For this specific 

research study, literature and other forms of information were used to guide decisions 

on a possible research design, data collection methods, as well as data analysis 

methodologies. This strategy guaranteed that this research study was carried out 

systematically and in an organised fashion. 



 47 

 

Adopting a qualitative research technique was a suitable way to explore the influence 

that salaries may have on employee turnover in the South African diamond mining 

industry. The industry's distinct socio-economic environment and the intricate 

connection between pay and employee turnover justified the use of a qualitative 

research method. Information for this study was gathered through interviews and focus 

group discussions, and these methods discovered intricate linkages that quantitative 

assessments had missed (Gundumogula, 2020). Qualitative research is focused on 

gathering participants' viewpoints to guarantee that workers' opinions on 

compensation and turnover are acknowledged (Müller & Klein, 2019). To achieve the 

aims of this research study, the sample included current personnel working in the 

diamond mining business as participants.  

 
This approach respected cultural context and allowed for a holistic examination of the non-monetary 

factors that contributed to turnover. This study's findings could transform industry policy by providing 

nuanced insights (Saoula et al., 2019). Qualitative research coupled well with the nuances of the 

industry and provided an in-depth understanding of how remuneration influenced employee turnover. 
In the case of the South African diamond mining industry, a qualitative research 

methodology was used to capture the unique socio-cultural, economic and 

organisational dynamics that may influence remuneration, and turnover (Allen & 

Vardaman, 2021). This research method allowed for an examination of the underlying 

challenges, issues and practices within the industry, and provided fruitful insights that 

could not be captured by quantitative methods alone (Konno, 2018). Moreover, it 

offered versatility in data collection techniques and the capacity to modify the study 

process