Organisations are increasingly recognising that retaining employees requires more than competitive pay alone.
According to the South African Reward Association (SARA), successful retention strategies now integrate reward, development and engagement across the employee lifecycle.
Ronél Camacho, master reward specialist and member of SARA’s thought leadership committee, says employers are moving away from fragmented initiatives towards more integrated approaches.
“Employees are looking for meaning, balance and authenticity in their work,” says Camacho. “Organisations that understand and respond to these needs are more likely to retain their talent.”
Tailoring strategies to organisational realities
Research referenced by SARA from the Academy to Innovate HR (AIHR), Gartner, Achievers and PwC shows retention begins early in the employee journey.
Hiring the right people, meaningful onboarding and fair, transparent reward structures form the foundation.
Retention is further supported by access to professional development, flexible work arrangements, wellbeing initiatives and a culture of belonging reinforced by leadership and communication.
However, Camacho notes these approaches are not universal solutions.
“There is no single formula,” she explains. “Practices are only effective when adapted to an organisation’s size, structure, resources and workforce.”
A practical example
One South African fintech company employing approximately 500 to 600 people illustrates this approach.
Competing with larger financial institutions offering more lucrative reward packages, the organisation also faces strict compliance requirements, limited promotional opportunities due to a flat structure, and higher turnover in telesales and contact-centre roles.
To address these challenges, the company redesigned its retention practices to suit its context.
It reduced compulsory retirement fund contributions to increase take-home pay without raising employer costs, introduced formal job rotation to broaden skills and succession opportunities, and implemented deferred cash incentives for executives linked to three-year performance periods.
Within the telesales division, improved onboarding and revised commission structures helped stabilise early turnover.
The organisation also encourages cross-functional project participation and uses learnership programmes to identify and develop high-potential employees aligned with its culture.
“Instead of copying a textbook model, the company developed a solution suited to its environment,” says Camacho.
The role of flexibility
Looking ahead, SARA expects flexibility to play an increasing role in retention practices.
Camacho describes a potential “bouquet” approach to benefits and conditions of service, where employees can select options aligned to their personal and professional needs.
“It is complex to implement, but reflects how employment relationships are evolving,” she says.
Key insights
SARA highlights three considerations for organisations: retention strategies must align with organisational context; engagement is most effective when solutions are co-designed with employees and managers; and providing genuine choice supports long-term commitment
As Camacho concludes, “One size does not fit all. When organisations understand their people and adapt intelligently, retention becomes more sustainable.”