Abstract

MOHAPI, Pitso; NZIMAKWE, Thokozani I.  and  UTETE, Reward. The relationship between pay-for-performance and turnover intention. SAJHRM [online]. 2025, vol.23, pp.1-12. ISSN 2071-078X.  https://doi.org/10.4102/sajhrm.v23i0.2935.

ORIENTATION: The current business environment is highly competitive, and organisations use reward strategy as a strategic tool to motivate employees to remain in the organisation and exceed set performance standards. Therefore, keeping them would require sound reward strategies, which may come as competitive pay-for-performance. RESEARCH PURPOSE: Informed by the expectancy theory, the study sought to critically investigate the relationship between pay-for-performance and turnover intention. MOTIVATION FOR THE STUDY: While the need for a sound compensation system cannot be over-emphasised, the debate on the relationship between pay-for-performance and turnover intention remains inconclusive. Hence, spurring the attention of researchers. RESEARCH APPROACH/DESIGN AND METHOD: Using a quantitative research approach, data were collected from 176 participants utilising a closed-ended questionnaire. A convenience sampling technique nested in a non-probability method was employed to select participants from the largest bank in Lesotho. MAIN FINDINGS: The regression analysis results indicated that pay-for-performance has a significant relationship with turnover intention. The findings indicated that pay-for-performance helps in minimising turnover intention. PRACTICAL/MANAGERIAL IMPLICATIONS: Management should strengthen the reward strategy for long-term pay-for-performance. The management should allow employees to participate in the development of pay-for-performance, so that, from the outset, they understand the difference between outstanding and acceptable performance. CONTRIBUTION/VALUE-ADD: The study contributes to the scarce empirical evidence on the interplay between pay-for-performance and turnover intention, filling a gap in the existing literature by focusing exclusively on the unique dynamics in the banking sector.

Keywords : turnover; turnover intention; pay-for-performance; performance management; expectancy theory; South Africa.

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