Perceptions of how decent work affects employee retention in a South African financial services institution

Abstract

The financial services sector in South Africa faces unprecedented challenges regarding employee retention, with high turnover rates threatening organisational sustainability and competitive advantage. Increased flexible employment has resulted in more casual labor, often characterized by deficient decent work practices like poor remuneration, which disfavor successful employee retention. This research aimed to understand perceptions of how decent work affects employee retention in a South African financial services institution. The ILO encapsulates decent work as productive employment characterized by equity, freedom, human dignity and security. Understanding how decent work perceptions affect retention is essential for organisations seeking to develop evidence-based strategies for effective talent management and sustainable organisational development in an increasingly challenging labor market. A qualitative approach and case study strategy allowed us to explore participants' lived experiences regarding how decent work affects retention in the selected South African financial services institution. Purposive sampling was employed and semi-structured interviews were conducted with 17 employees from various departments within the organisation explored. Thematic analysis was used to analyse the data. Four perceptions of decent work were developed including security-based perceptions, emphasizing employment stability; relationship-centred perceptions, focusing on supportive management and workplace relationships; compensation and recognition-focused perceptions, highlighting fair remuneration and acknowledgement; and development and growth-oriented perceptions, emphasizing professional advancement opportunities. Six critical retention factors were identified including career development and growth opportunities, recognition and reward systems, work-life balance and flexible work arrangements, compensation and benefits structure, job security and employment stability, and alignment of company culture and values. This research provides evidence-based insights for developing comprehensive retention strategies within the South African financial services institution by promoting decent work practices. Key organisational recommendations include establishing clear pathways from temporary to permanent employment, implementing inclusive development programmes accessible to all employees, creating transparent compensation structures with comprehensive benefits, institutionalising flexible work arrangements, and developing multi-layered recognition systems.