Best employers retain workers with bonuses and overtime pay, says study

Bonuses motivate employees to raise their performance to meet business targets. Fotosearch 

By David Herbling,

In Summary

• SAP Africa ranks top as research shows leading firms have budget for staff motivation.

Companies that attract and retain employees are those that pay performance-related bonuses and overtime allowances, a new survey shows.

The study by The Top Employers Institute Africa shows that the best companies to work for have specific budgetary allocation towards employee motivation and compensation.

The Cape Town-based organisation annually ranks the best companies to work for in Africa, surveying aspects such as working conditions, staff benefits, career training and development.

SAP Africa, an enterprise application software firm, has been named the best employer on the continent, making it the most coveted place to work.

“The primary benefit is still very important to our African participants given that many employees need to relocate,” said Samantha Crous, regional director Top Employers Institute Africa.

“Optimal employee conditions ensure that people develop themselves personally and professionally.”

The findings of the study highlight the importance businesses place on talent and people management, and explain the increased poaching of highly experienced and skilled staff among blue-chip companies.

“There is a great demand for talent and human capital and companies find themselves competing for the most experienced and skilled staff.”

The study polled company human resource directors to assess a firm’s working environment. It does not sample staff opinion.

“Our objective rating standard looks at the company’s HR strategy and HR policy implementation,” Top Employers Institute Africa said in a statement to the Business Daily.

Findings of the research show that nine of out 10 firms certified in the survey had special budgets to ensuring that action is taken regarding employee engagement while 76 per cent offered bonuses based on performance of the individual and or team.

It also shows just over half of the companies ranked as top employers offered overtime pay for all staff and that all of them monitor the implementation of action plans around employee engagement.

Conglomerates whose Kenyan units were certified as best places to work include Unilever, EY, G4S, Microsoft, Old Mutual Life Assurance and SAP, who were declared the overall winner.

“In order to be sustainably successful, winning organisations know that they cannot only focus on profits, but that they must prioritise human capital and motivate their employees,” said Pfungwa Serima, chief executive of SAP Africa.

No Kenyan or East African firm made it to the list of the continent’s top employers due to the stringent entry requirements for the listing.