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Gen Z and Millennials are redefining career growth and rewards in South Africa

28/3/2025

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In the workplace, the traditional notions of career growth and promotions are being reshaped by the ambitions of Generation Z (born 1997 - 2012) and Millennials (born 1981 - 1996).
 
These younger professionals are shifting the focus from tenure-based progression to more dynamic, purpose-driven career paths, forcing organisations to rethink their reward and promotion strategies.
 
The changing landscape of career progression
“Previous generations viewed career success through the lens of long-term loyalty and hierarchical advancement,” says Deon Smit, Master Reward Specialist and Executive Committee Member at the South African Reward Association (SARA).
 
Today’s young professionals, however, prioritise learning, flexibility and meaningful work. For them, career progression is not necessarily about climbing a corporate ladder. Rather, it’s about acquiring diverse experiences, continuous personal development, and making an impact.
 
A study by McCrindle revealed that 63% of Gen Z professionals consider opportunities for advancement as a key factor in their workplace decisions. “However, instead of waiting years for a promotion, they expect clear, merit-based progression pathways that reward skills, innovation and contributions rather than time served in a role,” says Smit.
 
Furthermore, job-hopping is no longer considered a red flag but a strategic move for exponential progression. Gen Z and Millennial professionals in South Africa change jobs regularly, not due to a lack of commitment but in search of better growth and career opportunities, better work-life balance, and organisations that align with personal values.
 
What younger generations expect from employers
Gen Z and Millennials are not just seeking a salary; they want to work for organisations that align with their personal values. According to research by Human8, 71% of South African Gen Z employees expect brands and employers to contribute positively to society. Also, 77% are willing to engage more with organisations that prioritise inclusivity and social responsibility.
 
Employers who fail to integrate purpose-driven initiatives into their corporate culture risk losing valuable young talent to competitors who do. Organisations must look beyond traditional corporate social responsibility and embed social impact into their daily operations, whether through sustainability efforts, ethical business practices, or employee-driven community projects.
 
Rethinking reward strategies
“South African organisations must evolve their reward strategies to cater to the shifting expectations of the modern workforce,” says Smit. Some innovative approaches that can help organisations attract, engage and retain Gen Z and Millennial employees:

  1. Customisable benefits packages - A one-size-fits-all benefits model no longer appeals to today’s workforce. Employers should offer tailored benefits that allow employees to choose what suits them best, such as mental health support, wellness programmes, extended parental leave, or flexible work arrangements.
  2. Frequent and real-time recognition - Unlike previous generations that were satisfied with annual performance reviews and bonuses, Gen Z and Millennials thrive on continuous feedback and recognition. Implementing peer-to-peer recognition programmes, instant reward systems and regular check-ins can boost morale and motivation.
  3. Clear career development pathways - Organisations must offer structured career development plans that include mentorship, training and leadership programmes. Providing employees with a roadmap for growth will reduce turnover rates and increase loyalty.
  4. Work-life integration and well-being initiatives - Young professionals place a high value on well-being. Organisations should invest in initiatives like mental health resources, employee assistance programmes and work-life balance opportunities to support their workforce’s overall health and happiness.
  5. Diversity, equity and inclusion initiatives - Gen Z and Millennials expect workplaces to be diverse and inclusive. Organisations that actively promote gender equality, representation and inclusive policies will attract a more engaged and committed workforce.
  6. Purpose-driven work and social impact - Employees are more engaged when they believe in their organisation’s mission. Providing opportunities for employees to contribute to meaningful causes, whether through volunteer days, sustainability initiatives or corporate giving programmes, enhances job satisfaction and loyalty.
 
The future of work in South Africa
As organisations navigate the future of work, they must acknowledge that career success is no longer defined by longevity or title alone. Instead, today’s workforce seeks meaningful engagement, rapid skills development and a balance between professional and personal aspirations.
 
Organisations that cling to outdated models of career progression and rewards risk alienating a generation that is more connected, informed and selective about where they work. By embracing flexible work arrangements, values-driven leadership and modern recognition strategies, businesses can build stronger, more committed teams and drive long-term success in the evolving job market.
 
Smit advises organisations to rethink their approach to career progression and reward structures. “Those that adapt will not only attract top talent but will also be able to foster increased innovation, productivity and sustainable growth,” he says.

ENDS
 
MEDIA CONTACT: Rosa-Mari Le Roux, [email protected], 060 995 6277, www.atthatpoint.co.za 
 
For more information on SARA please visit:
Website: www.sara.co.za 
X: @SA_reward
LinkedIn: South African Reward Association
Facebook: SARA – South African Reward Associatio

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Avoid these 5 mistakes when asking for a raise

4/3/2025

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You’ve decided it’s high time you got paid what you’re worth, and you’re about to knock on the boss’s door to ask for a raise. Before you do, take a moment to get your ducks in a row. 

“Convincing your employer to increase your salary can be challenging, and many employees make avoidable mistakes that weaken their case instead of strengthening it,” says Nicol Mullins, Master Reward Specialist and Past President of the South African Reward Association (SARA).

So, if you’re planning to negotiate your way to a bigger paycheck, make sure you steer clear of these five common pitfalls.

Getting the timing wrong
Asking for a raise just after joining the company or too soon after your last increase will probably be seen as premature or unprofessional. Salary reviews typically follow structured cycles, and approaching your manager at an inappropriate time reduces your chances of success.

“For example, if your company has not performed well or budget constraints have been imposed, your request will likely fall on deaf ears,” says Lindiwe Sebesho, Master Reward Specialist and Executive Committee Member at SARA.

Not demonstrating added value
Many employees ask for a raise without first establishing a strong case for why they deserve one at all. Simply fulfilling job responsibilities is not enough - you need to showcase consistent, measurable achievements, contributions and reliability.

“Demonstrating how your work has positively impacted the business strengthens your request, especially if your manager agrees with your evidence,” says Deon Smit, Master Reward Specialist and Executive Committee Member at SARA.

Using anecdotal evidence
Hinging your request on personal financial needs or comparisons with colleagues will prove fruitless. Most employers base remuneration on individual performance, trusted market benchmarks and business impact - not personal expenses, informal discussions about peer salaries, or arbitrary remuneration data gleaned from the Web.

“Instead, focus on your unique contributions to the company and the value you bring to your role and responsibilities,” says Mullins.

Using ineffective communication and approach
Approaching the conversation with threats, ultimatums, or vague references to news articles and generalised salary data weakens your credibility. Instead, rely on your company’s remuneration policy, verified industry benchmarks and a professional, well-prepared presentation of your case.

“A well-informed, positive and collaborative approach fosters a more constructive negotiation, and a greater probability of winning your raise,” says Sebesho.

Failing to take responsibility for your career
Employees often assume their employer is solely responsible for their career advancement, and consequently neglect their own professional development and growth. So, they miss out on opportunities for salary progression.

“Proactively engaging with your manager on your skill development, performance differentiation, and career planning ensures a stronger position when requesting an increase or even a promotion,” says Smit.

Revising your strategy
So, to recap - poor timing, not demonstrating value, using anecdotal evidence, ineffective communication, and no career initiative are all big mistakes. Individually or in any combination, they will likely see you leaving your boss’s office no better off than before.

“By avoiding these mistakes and approaching your salary negotiation strategically, you greatly enhance your chances of a successful outcome,” says Mullins.
ENDS

MEDIA CONTACT: Idele Prinsloo, [email protected], 082 573 9219, www.atthatpoint.co.za 
 
For more information on SARA please visit:
Website: www.sara.co.za 
X: @SA_reward
LinkedIn: South African Reward Association
Facebook: SARA – South African Reward Association

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The importance of having employees who connect multiple generations in the workforce

21/8/2024

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"Cuspers" excel at connecting multiple generations within the workforce. But what exactly is a cusper, and why should organisations pay attention to them? A cusper is someone born at the intersection of two generations, embodying a blend of traits from both. These individuals act as a generational bridge, often referred to as "generational glue" or a "micro-generation," linking one generation to the next. Understanding the generational makeup of your team is crucial, says Deon Smit, Master Reward Specialist and Executive Committee Member at the South African Reward Association (SARA). The major generation groupings can be defined along the following date ranges:

• Before 1945: Traditionalists or Silent Generation
• 1946 – 1964: Baby Boomers
• 1965 – 1979: Generation X
• 1980 – 1995: Millennials or Generation Y
• 1996 – 2016: Generation Z, iGen or Centennial

So, what is a cusper, and what is their purpose?

• An unbalanced generational mix in an organisation could have an impact on certain key employee metrics like turnover, engagement and employee satisfaction. It also creates diversity to have a healthy mix.
• The question is: Does your organisation have enough employees who are considered generational glue or cuspers to connect the major generational groupings in your organisation?
• These cuspers will be this vital generational glue as they link the generation groupings.
• The main purpose of generational glue would be to link the different generation groupings to a common purpose, culture and jargon language. This will also facilitate cross-collaboration, improving teamwork and positively impacting team dynamics.
• These micro-generations or cuspers are roughly defined according to the following date ranges with their unique cluster names:
o 1943 – 1948: Troomers, Shhh-oomers, or Swing generation
o 1962 – 1967: Baby X’s, Boomerex or Tweeners
o 1977 – 1983: Xennials
o 1993 – 1998: MinionZ, Zillennials, Zenials or Snapchat Generation

So, why is generational glue or cuspers then so important for the organisation?

• Having a balanced generation mix could ensure higher employee engagement levels in your organisation as you have the important generation glue that interlink them.
• Higher engagement levels in your organisation could, in turn, lead to higher productivity levels.
• Higher productivity levels will positively impact the organisation’s bottom line.
• Cuspers or micro-generations will also positively impact an organisation’s culture and lead to more team cohesiveness and a greater sense of belonging for all employees.
• Too much of one generation grouping without the right amount of generation glue could make it difficult to create a unified workplace.
• A mix of generations create diversity – not just of age, but of thinking, ideas and perspective.
• Cuspers or micro-generations will ensure better communication between generations, creating a better understanding of each other.
• The absence of cuspers could also lead to increased employee turnover and dissatisfaction in the workplace.

What does rewarding these cuspers or micro-generations look like?

Cuspers are proof that a one-size-fits-all approach around reward solutions does not work and why flexibility in benefits, working methods, and pay structures is important. It is key to accommodate these employees who do not feel they fit in a specific generational construct. Allowing a great range of choices will empower all employees to customise their employee remuneration journey to meet their needs and wants.

Smit further says that generations in the workplace will always be fluid as one generation ends and a new generation starts their careers. Having the right balance can have a long-term positive effect on employees and the organisation. So, it is worth looking more closely at the generational demographics of your organisation and making generational glue work for you.

Deon Smit is a Master Reward Specialist and SARA Executive Member. He is the Group Remuneration Manager at Pepkor.
​
ENDS

MEDIA CONTACT: Idele Prinsloo, idele@atthatpoint.co.za, 082 573 9219, www.atthatpoint.co.za 
For more information on SARA please visit:
Website: www.sara.co.za 
X: @SA_reward
LinkedIn: South African Reward Association
Facebook: SARA – South African Reward Association

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Financial data no longer enough to determine employee reward

5/2/2018

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Companies usually base how they pay and reward their employees on financial data. Deon Smit, Chartered Reward Specialist and Executive Committee Member at the South African Reward Association (SARA), says that corporate communications like emails or instant messages, social media posts and many other data sources should be used to provide deeper insights.

These insights can help to keep financial and non-financial elements of remuneration relevant to what employees need as motivation.

“Good data management and analytics will play a central role in developing future reward strategies. Effective reward solutions must be designed based on reality rather than assumptions,” says Smit.

“Reward practitioners must start taking responsibility to gather the right information and develop the ability to draw valid conclusions from the data available.”

Smit offers the following practical guidance:

Start with a purpose
It’s important to decide what business problems should be solved first and what data is best suited to that purpose.

“Tackle the simple business problems first and build up to the big ones,” advises Smit. “This will help you get your data and your process right at each discrete level of growing complexity.”

HR and people data will be central to efforts, but strategic, financial, and corporate communications data will also play an important role.

Be a visionary

For most problems, a large set of historical data is needed to facilitate predictive analysis and produce accurate results.

“You have to decide what you want to measure in 6 months from now, build the datasets and make sure the data is accurately captured,” says Smit. “Only after that period will you have enough to work with.”

Clean up
“One of the first mistakes companies make is to start with incomplete, incompatible or mismatched data,” reports Smit. The data collection methodology employed must be consistent to ensure there are no information gaps that could produce misleading results.

Learn
Reward practitioners should understand how datasets are constructed, how relational databases work and how unstructured data found in emails, social posts and other digital sources can be collected. They also need to evolve past Excel and embrace programming languages like R (a statistical language), Python (a general programming language) or SQL (a database query language). In addition, business intelligence and data analysis skills are essential.

This may seem unnecessary for reward programmes but Smit foresees that these competencies will be in demand in the future.

“HR will start hiring data specialists over people specialists because data will become the key to understanding workforce behaviours and motivators,” says Smit. He suggests that practitioners become self-educated to increase their value. Universities now offer numerous free courses on these subjects through MOOC (massive open online courses) platforms.

Don’t forget qualitative inputs
Although quantitative analysis - mathematical and statistical modelling - is critical, reward specialists should not overlook qualitative analysis - the study of observable behaviour or structure. “Don’t become too focused on the numbers,” recommends Smit. “They need to be viewed in conjunction with phenomena like group dynamics, behavioural psychology, generational concerns, cultural norms and other non-numerical inputs.”

Start over
Data analysis must always solve a business problem. Once the collected information has been studied and understood, reward specialists can develop innovative solutions and drive their implementation forward.
 
Smit concludes: “After a solution has been found, the cycle will start over so that another – more complex – business problem can be targeted.”

ENDS

MEDIA CONTACT:
Juanita Vorster, 079 523 8374, [email protected], www.atthatpoint.co.za  

For more information on SARA please visit:
Website: www.sara.co.za  
Twitter: @SA_reward
LinkedIn: South African Reward Association
Facebook: SARA – South African Reward Association
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