In a country where economic uncertainty, inequality, and unemployment are daily realities, it is assumed that primarily money is what keeps South Africans in their jobs. But this is no longer the full picture.
As the workplace evolves, so do employee expectations. For many South African employees today, pay is not just a number on a payslip, it is a symbol of value, recognition, and trust. Non-monetary benefits such as the flexibility to work from home, have become as increasingly valuable. Not only is it an additional means for employees to increase their cash flow with regards to savings on transportation costs etc. it also provides them with a means of achieving work life balance. Â Understanding the psychological side of remuneration and reward is now a critical part of any organisation’s talent retention strategy.
So, what really drives employees to stay or leave? And what can South African organisations do about it?
The Traditional View: Pay as the Primary Motivator
In the past, remuneration has been viewed in singular terms: pay employees well, and they will stay; pay them poorly, and they will leave. In South Africa, this perspective has been reinforced by high unemployment rates (hovering around 32% in 2025), significant income inequality, and rising living costs.
While salary remains important, it is no longer the only factor. For the growing knowledge workforce and younger professionals, emotional factors now weigh equally, if not more.
Maslow’s Hierarchy of Needs provides a valuable lens here. At the foundational level, competitive salaries help meet employees’ physiological needs- food, shelter, basic living expenses. When these are unmet, employees are primarily motivated to leave for survival reasons.
Beyond the Pay cheque: The Emotional Drivers of Retention
Security and Stability
Given the high unemployment rate and economic instability in South Africa, job security is a major psychological benefit. Employees want reassurance that they are safe from retrenchments or business closures. This directly satisfies Maslow’s safety needs. A stable job, along with structured benefits (Retirement and medical benefits), offers emotional peace of mind. It is not always the size of the pay cheque that matters, but the certainty of it.
Perceived Fairness
South Africans are acutely aware of fairness and equity. In a country still grappling with structural inequality and pay gap, whether along racial, gender, or role-based lines, these issues are emotionally charged.
Maslow’s social belonging and esteem levels are relevant here. Employees who feel underpaid in comparison to peers (internal equity) or the market (external equity) often feel excluded or disrespected. This perceived injustice, even if inaccurate, erodes trust and team cohesion, and eventually leads to disengagement or turnover.
Recognition and Feeling Valued
Recognition, or the lack thereof, is one of the most underappreciated drivers of turnover. In South Africa’s largely collectivist culture, employees want to feel part of something greater. Regular praise, career conversations, and symbolic rewards often hold more emotional weight than a small bonus.
This aligns with Maslow’s esteem needs. When pay structures include performance bonuses or visible acknowledgment, employees feel their contributions matter, a key component in boosting self-worth and loyalty.
Purpose and Alignment
For younger generations in South Africa, work must align with their values. Many employees want to contribute to social good, support transformation efforts, or work for organisations that care about uplifting communities.
This speaks directly to Maslow’s highest level: self-actualisation. Purpose-driven workplaces provide opportunities for employees to fulfil their potential and contribute meaningfully, making them more likely to stay even in the face of modest compensation.
Growth and Development Opportunities
People do not just want a job; they want a future. In competitive industries like finance, technology, and engineering, the promise of career growth, upskilling, and mentorship plays a huge role in retention.
When organisations support employees’ career ambitions, they help satisfy esteem and self-actualisation needs. Initiatives like bursaries or promotion pathways show belief in an employee’s potential, fostering loyalty and motivation.
The Hidden Costs of Ignoring Emotional Pay
When organisations ignore the emotional dimensions of pay, the costs pile up:
- Higher turnover and recruitment costs
- Increased absenteeism
- Quiet quitting, where employees disengage but remain in their role
- Reduced productivity and lack of discretionary effort
- Reputational risk, as negative word-of-mouth spreads on social media platforms
Maslow’s model highlights how unmet needs at any level can create friction. An employee stuck at the safety level due to inconsistent pay will struggle to engage at higher levels like growth or purpose.
What the Data Tells Us: An African Snapshot
The PwC Global Workforce Hopes and Fears Survey 2024 – African Perspectives found that:
- 56% of African workers prioritise opportunities to acquire new skills when deciding to stay with or leave their employer, reflecting a shift towards a skills-centric paradigm where skills are the currency of the future.
- 81% of African employees express excitement about opportunities to learn and grow in their roles, indicating a strong desire for personal and professional development.
- Africa’s younger workforce places a high priority on fair pay, fulfilment, flexibility, and a collaborative working environment, emphasising the importance of feeling valued and aligned with organisational culture.
- The survey highlighted that employees are seeking clarity and openness from their employers, especially concerning remuneration and benefits.
This data confirms a growing gap between organisational assumptions and employee expectations, particularly around esteem and self-actualisation needs.
What Can Organisations Do?
To create emotionally intelligent reward strategies, organisations should:
-Run regular pay perception and engagement surveys. Use the results to track whether employees feel fairly remunerated, not just if they are. This supports social and esteem needs.
-Provide flexibility within your total reward framework. Both from a monetary and non–monetary perspective
-Ensure you have defined and communicated job descriptions and competency frameworks in place. This documented information forms the basis for all reward and pay related decisions including job sizing, performance management, career path and succession planning.
-Communicate total rewards clearly. Explain benefits, bonuses, incentives, and non-monetary perks in a way that connects emotionally. Transparency enhances belonging.
-Invest in career development. Create visible pathways for promotion and continuous learning. This nurtures esteem and self-actualisation.
-Train managers to have empathetic pay conversations. Managers are often the make-or-break point in how remuneration is perceived.
-Conduct regular pay equity and gap audits. These audits should not be just for compliance, but to build internal trust on the fairness of the processes, strengthening both safety and belonging.
Conclusion
In South Africa’s evolving work environment, organisations must reframe how they think about pay. It is not just a line item on a spreadsheet; it is a deeply personal and emotional part of the employment relationship.
Maslow’s hierarchy reminds us that compensation must do more than meet basic needs. It must evolve to support psychological security, belonging, esteem, and personal growth. Organisations that understand this psychology, and respond with empathy, transparency, and fairness, will be the ones who retain top talent and build cultures that thrive.
After all, people do not leave jobs. They leave experiences. And pay, when done right, can be one of the most powerful experiences of all.
