Effect of Rewards On Employee Commitment in Star Rated Hotels in Western Tourism Circuit, Kenya

Abstract

The tourism and hospitality industry is one of the fastest growing and largest employers in the world despite continued global economic challenges. However, keeping employees committed to their work has become a growing concern. Lack of motivation and job dissatisfaction have been deemed to lead to high employee turnover. Scholars and practitioners agree that there exist a positive association between rewards and employee commitment in organizations. Despite some hotels having adopted formal and informal rewards, it is not quite clear which set of rewards could enhance employee commitment in hotels in the best way. Additionally, few studies have explored the moderating role of employee motivation on the effect of rewards on employee commitment in hotels. The main objective of the study was to determine the effect of rewards on employee commitment in star rated hotels in the Western Tourism Circuit in Kenya. The specific objectives were; to identify rewards put in place; to assess the level of employee commitment; to determine the relationship between the rewards and employee commitment and finally to investigate the moderating influence of employee motivation on the relationship between rewards and employee commitment. The study used a cross-sectional research design to collect primary data. Thirty questionnaires were tested in order to check their content, construct and face validity. A reliability coefficient of .72 was obtained from the pre tested questionnaire thus the research instrument was considered reliable for the study. A population of 760 employees was drawn from 13 target hotels. Multi-stage sampling was used to draw 144 respondents. Quantitative data was analysed using descriptive and inferential statistics. Means and standard deviations were used to rank the rewards put in place by hotels and the level of employee commitment. Pearson’s correlation was used to analyse the effect of rewards on employee commitment and finally multiple regression analysis to analyse moderating role of employee motivation on the relationship between rewards and employee commitment. A Pearson’s r data analysis revealed a