The consulting industry is characterised by high performance demands, long working hours, and intense competition, factors that contribute to elevated turnover rates, particularly among younger employees. Retaining top talent has become increasingly complex, especially within Generation Y (Millennials) and Generation Z, who are redefining traditional employment expectations. These generational cohorts place growing importance on intrinsic motivators such as purpose-driven work, flexibility, recognition, and continuous learning, alongside traditional extrinsic rewards like compensation and benefits. In this context, total rewards comprising both financial and non-financial incentives play a critical role in shaping the employee experience and influencing retention.
This study investigates the psychological impact of total rewards on talent retention and organisational commitment among Gen Y and Z consultants in South Africa. Grounded in Self-Determination Theory and Social Exchange Theory, the research examines how various components of total rewards, including salary, performance recognition, career development opportunities, wellness initiatives, and work-life balance, influence consultants' psychological attachment to their firms and their intention to stay. Adopting a qualitative research design, the study gathers in-depth data through semi-structured interviews with consultants employed in leading firms within the South African consulting sector. The qualitative approach enables a rich exploration of generational expectations, emotional experiences, and perceived value of different reward elements. It also facilitates a nuanced understanding of how total rewards strategies can be tailored to meet the evolving psychological needs of younger employees. Preliminary insights suggest that affective commitment and retention are significantly influenced by non-monetary rewards that align with personal values and career aspirations. The findings aim to provide actionable recommendations for consulting firms to develop more holistic and generationally responsive total rewards frameworks. By aligning reward strategies with the values of Gen Y and Z consultants, firms can enhance employee engagement, reduce turnover, and improve long-term organisational performance in a rapidly changing talent landscape.