Mid-year offers a strategic moment for South African organisations to re-evaluate how they measure and reward employee contributions. As the financial year wraps up for many, companies are already reflecting on performance reviews. This provides a valuable opportunity to assess whether their workplace performance ratings and reward systems are effectively supporting the behaviours and outcomes they aim to promote.
“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).
The limitations of traditional rerformance ratings
In many South African organisations, performance is still measured using ratings and hierarchical structures. This often results in financial rewards tied to tangible outputs like hitting sales targets or completing projects. While these are important, workplace performance ratings that focus solely on measurable achievements can overlook critical soft contributions.
“This traditional approach often emphasises individual achievement and measurable outputs,” explains O’Riley, “which can lead to a focus on visible accomplishments rather than equally valuable contributions like teamwork, mentorship, or fostering a positive organisational culture.”
Intrinsic vs. extrinsic: what truly motivates?
As workplaces evolve, employees increasingly seek more than just a paycheque. Research reveals that motivation today stems from intrinsic drivers – purpose, autonomy, personal growth, and the ability to make a difference.
O’Riley highlights this shift, noting: “By evolving or adapting performance and reward strategies to incorporate intrinsic motivators… organisations can build deeper engagement with their employees, boost productivity, and build a more loyal, motivated, innovative workforce.”
That’s not to say financial rewards have lost their place. “Being paid a market-related salary and short- and long-term incentives or performance bonuses will almost always have a motivating effect on employees,” says O’Riley, pointing to the local economic challenges that heighten the importance of monetary security.
Blending motivators in workplace performance ratings
An effective performance strategy blends both intrinsic and extrinsic motivators. For instance, in a call centre, bonuses might drive better customer service. Meanwhile, giving employees autonomy – like encouraging their input in innovation – can foster long-term commitment and satisfaction.
Furthermore, wellness initiatives provide a compelling hybrid. A rewards programme that combines financial incentives with community recognition can meet multiple employee needs. Imagine a system where employees receive development opportunities for volunteering in financial literacy drives – a mix of purpose, growth, and reward.
Future-proofing your performance systems
To remain competitive, organisations must evolve their workplace performance ratings strategies. This starts with creating cultures of trust and purpose while also embracing technology for smarter tracking and recognition.
O’Riley offers practical advice:
“Create a culture of psychological safety, where employees feel comfortable sharing ideas, giving feedback, and admitting mistakes without fear.”
This, she adds, is particularly important in South Africa’s complex socio-economic context, where trust can be the difference between disengagement and innovation.
Secondly, companies should look outward, integrating social purpose into their reward systems. Gen Z and Millennials, in particular, value alignment with societal impact over financial gain. Recognising socially conscious actions can significantly increase loyalty and performance.
“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,” O’Riley concludes. “Ultimately, performance management should be an ongoing journey rather than something to tick off on the calendar.”
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