A mediated-moderation model of non-financial rewards, employee engagement and innovative work behaviour in a culturally pluralistic public sector
This study utilizes a mediated-moderation model grounded in the Job Demands-Resources and Social Exchange theories to demonstrate that non-financial rewards significantly enhance innovative work behaviour in South African public sector municipalities through full mediation by employee engagement, with collectivist culture exerting a stronger moderating influence than individualistic culture.
Original paper licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). This is an AI-generated explanation of the paper below. It is not written or endorsed by the authors. For technical accuracy, refer to the original paper. Read full disclaimer
In the vast machinery of public service, where government offices serve millions of citizens, the engine that keeps everything running is not just policy or budget, but the people themselves. When these workers feel disconnected from their jobs, services stall, and innovation grinds to a halt. For decades, managers have believed that the only way to keep employees motivated is through money: higher salaries, bonuses, and cash incentives. However, a growing body of thought suggests that human beings are driven by more than just a paycheck. They crave recognition, the freedom to make decisions, and a sense that their work matters. This idea forms the backbone of a new investigation into how public sector workers in South Africa are motivated. The study explores a specific chain of events: how non-monetary rewards, such as praise or flexible schedules, might spark a deep sense of involvement in one's work, and how that involvement, in turn, leads to creative new ideas. It also asks a deeper question about the soil in which these seeds are planted: does the cultural background of the workers, specifically whether they value the group over the individual or vice versa, change how well these rewards work?
The researchers focused their attention on two distinct public sector organizations in South Africa: the Nkangala District Municipality and the City of Johannesburg Metropolitan Municipality. These are large, complex institutions facing the daily pressure of delivering services to a diverse population. The team wanted to understand why some employees remained stagnant while others found ways to improve their work, despite the fact that both groups operated under the same rigid government salary rules. Because the government controls how much money can be paid, these municipalities cannot compete on salary alone. They must rely on other tools to keep their staff engaged. To find out what works, the researchers surveyed 278 employees, asking them about the non-financial rewards they received, how engaged they felt in their daily tasks, and whether they were coming up with new ideas. They also asked questions to gauge whether the employees leaned toward a culture of individual achievement or a culture of group harmony and shared responsibility.
The study found a clear pattern connecting these elements. When employees received non-financial rewards, such as being recognized for their efforts or given more autonomy in their roles, they reported higher levels of engagement. This engagement was not just a feeling of happiness; it was a state of being fully absorbed and dedicated to their work. Crucially, this heightened engagement was the bridge that linked rewards to innovation. The data showed that the rewards were associated with higher engagement, which in turn was associated with greater innovation. While the study suggests that rewards may drive engagement which then drives innovation, the researchers explicitly noted that because the data was collected at a single point in time, they could not prove that the rewards definitely caused the innovation, only that the two were strongly linked in a specific pattern. In short, the rewards were associated with sparking the fire, and engagement was the fuel that kept the innovation burning, though the exact causal order requires further testing.
A surprising and significant layer to this story emerged when the researchers looked at culture. They discovered that the cultural orientation of the employees acted as a powerful amplifier for these effects. The study found that a collectivist mindset, where the group's success is prioritized over the individual's, strengthened the link between rewards and innovation even more than an individualistic mindset did. This was a nuanced finding. While the employees did not necessarily rate themselves as highly collectivist in their personal values, the structure of the workplace and the way they interacted with one another seemed to operate on a collective level. The research suggests that in these South African municipalities, the environment itself fosters a sense of shared responsibility, often rooted in the local philosophy of Ubuntu, which holds that a person is defined by their relationships with others. When non-financial rewards acknowledged this collective spirit—through team recognition or shared decision-making—they resonated more deeply and produced stronger results than rewards focused solely on the individual.
The researchers were careful to note the limits of their work. Because the data was collected at a single point in time, they could not prove that the rewards definitely caused the innovation, only that the two were strongly linked in a specific pattern. They also acknowledged that their survey tools for measuring cultural values had some weaknesses, meaning the precise numbers for how much culture mattered might need refinement in future studies. However, the overall picture was robust enough to offer clear guidance. The study concludes that for public sector organizations to thrive, they cannot rely on money alone. They must build systems that recognize the human need for connection and purpose. By designing reward systems that honor both individual achievement and the collective good, and by fostering an environment where employees feel truly involved, these organizations can unlock a wave of innovation that benefits the entire community. The findings suggest that the most effective way to modernize public service is not just to pay people better, but to treat them as valued members of a shared mission.
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