Rethinking performance ratings and motivators to get the best out of employees

Mid-year is the perfect time to re-evaluate your performance and reward management processes and practices, as this marks the financial year-end for several organisations in South Africa. ‘Many are already reviewing the performances of individuals and the organisation as a whole and could use this opportunity to also reflect on how their reward systems could be improved or developed,’ says Janine O’Riley, Chartered Reward Specialist and EXCO member at the South African Reward Association (SARA). ‘It’s crucial to ensure that these systems truly drive the right employee behaviours in our fast-changing environment.”
 
Beyond financial rewards
“In South Africa, many organisations still use performance ratings and hierarchical structures to evaluate performance and allocate mostly financial rewards,” says O’Riley. “This traditional approach often emphasises individual achievement and measurable outputs, which can lead to a focus on visible accomplishments like meeting sales targets or project milestones rather than equally valuable contributions like teamwork, mentorship, or fostering a positive organisational culture.”
 
Research shows that employees are increasingly motivated by non-financial factors. They seek meaningful work, independence, opportunities to “make a difference”, and earn acknowledgement that resonates with their personal values and aspirations.
 
O’Riley says that by evolving or adapting performance and reward strategies to incorporate intrinsic motivators – such as individual purpose, growth and development opportunities, flexible work arrangements, and personalised reward and recognition – organisations can build deeper engagement with their employees, boost productivity, and build a more loyal, motivated, innovative workforce.
 
Blending intrinsic and extrinsic motivators
Financial incentives will always remain an extrinsic motivator. “Being paid a market related salary and short- and long-term incentives or performance bonuses will almost always have a motivating effect on employees, especially in South Africa with our volatile economic situation,” says O’Riley. She gives the example of a call centre that offers performance-based bonuses that motivate employees to improve service quality, which benefits both employees and the organisation.
 
In contrast, a strong intrinsic motivator could be enabling employees to work independently and empowering them with decision making and ownership. This could, for example, mean allowing them to provide suggestions on continuous improvements or innovation, thereby boosting their daily motivation. 
 
Meanwhile initiatives around employee wellness programmes can serve as both intrinsic and extrinsic motivators. An organisation might implement a reward system that combines financial incentives for meeting objectives with recognition programmes that celebrate community involvement and personal growth. For instance, employees who participate in financial literacy outreach programmes could receive certificates of appreciation as well as opportunities for professional development.
 
How to remain competitive
Organisations should critically review and consider innovating their performance and reward systems. They should aim to embed trust and purpose into their culture and use technology to support these innovations. O’Riley gives two specific suggestions:
 
*             Create a culture of psychological safety, where employees feel comfortable sharing ideas, giving feedback, and admitting mistakes without fear. This is critical for nurturing genuine trust and collaboration, especially in the South Africa context where historical and socio-economic factors influence workplace dynamics.
 
*             Integrate social purpose and community impact into performance and reward systems to significantly boost intrinsic motivation, particularly for younger generations like Gen Z and Millennials who prioritise purpose and social responsibility above financial motivation. Recognising and rewarding contributions that benefit society or align with personal values can deepen engagement, motivation, and loyalty.
 
“Open-minded organisations are experimenting with more holistic performance and reward systems, peer recognition programmes, and recognition of soft skills that support organisational agility and social impact,” says O’Riley. “Ultimately, performance management should be an ongoing journey rather than something to tick off on the calendar.”

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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