A review of the reward system and reward management at Nkangala District Municipality

Dickson Mdhlalose

EconStor Open Access Articles and Book Chapters, 2026, vol. 20, issue 1, 56-66

Abstract: In the public sector, employee rewards have not kept pace with time and fail to keep up with shifts in the workforce and societal expectations. This study aims to understand the public sector's reward system and reward management. The data were gathered through standardised, open-ended interviews, followed by a document review using reputable sources to collect relevant thoughts and facts. Content analysis was employed to support the continual comparative data analysis method, which classified the data according to their commonalities and differences. It was found that the Nkangala District Municipality uses an antiquated and traditional reward system that is centrally organised and non-employee-centric, with choices enforced from the top down, lacking interaction; unappealing and insufficiently competitive and non-inclusive; and does not have versatility, such as no adjustable rewards consisting of cards for gifts or coupons. Rewards are also not delivered equally or honestly, thus contributing to disengagement. The majority of workers are resentful because their pay is lower than that of comparable employees in other municipalities, while bonuses and extra hours are given only to specific employees. Furthermore, there is a lack of complete or contemporary reward systems, such as missing intrinsic benefits like professional progression. Employees also reported a sense of mistrust, fostered by insufficient communication about reward schemes. There is also no formalised process for productivity synchronisation or award distribution, with senior management being disproportionately rewarded over lower-level employees. This study offers useful insights for public sector organisations to re-evaluate their outdated reward systems and adopt modern reward management practices.

Keywords: Equity; Reward management; Reward System; Public sector; Total rewards (search for similar items in EconPapers)
JEL-codes: H83 J3 M54 O15 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:338886

DOI: 10.15282/ijim.20.1.2026.12069

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