Although staff turnover intentions are widespread and affect many global economic sectors, some sectors are more affected than others. The hotel industry is one of the sectors greatly affected by this problem, yet this and other allied businesses are important in sustaining economies. From this angle, the effects of reward satisfaction on turnover intentions were investigated in the hotel industry. This research investigated the main objective by identifying reward types, analysing turnover intentions in the hotel sector, assessing the impacts of financial, material, and psychological rewards on turnover intentions, and evaluating the study area’s effects perceived. The study was undertaken through a survey administered to 38 employees of different ranks across different departments at the Hyatt Hotel in Riyadh in Saudi Arabia. The survey sought to measure their level of satisfaction for the three different types of rewards. In assessing this, other factors like age, gender, nationality, experience, and the hotel department were considered. Theories like Vroom’s Expectancy Theory, Adam’s Equity Theory and Lawler’s Discrepancy Theory were used. Although generally, the respondents were satisfied with their financial and material benefits, some respondents were not confident with these rewards. However, most respondents were quite happy with the psychological rewards across all the other factors considered in the study. The older age groups, more experienced and male respondents exhibited higher satisfaction levels for most reward types than their counterparts, perhaps because of progressing in their career ladders over the years. As a result, they earned more remuneration, ultimately resulting in low turnover intentions. Conversely, the younger employees and less experienced employees had relatively higher turnover intentions than their older counterparts. Overall, some of the employees at Hyatt Regency have turnover intentions, although they are not strong.
Research topic: Does reward satisfaction affect employee turnover intentions in the hotel industry? A study based on workers of the Hyatt Regency Riyadh, the Kingdom of Saudi Arabia.
Research relevance and significance
High employee turnover is one of the most common challenges that the hotel industry experiences. Jung et al., (2012) and Holston-Okae (2017) observed that stress and burnout are common among culinary employees in deluxe hotels due to the nature of their jobs. They also observed that employees who experience burnout and stress are more likely to leave work. The high turnover rates in the hotel industry begin as intentions to leave and jeopardise performance and profitability due to the significant loss of corporate resources and assets (Simons and Hinkin, 2001). Moreover, lack of job satisfaction among hotel employees in the Kingdom of Saudi Arabia (KSA) leads to turnover intentions, and many workers eventually leave their company when their issues are unaddressed (Alqusayer, 2016; Alferaih et al., 2018; Allam & Shaik, 2020; Farrukh et al., 2020). However, the impact of reward satisfaction on turnover intentions remains unanswered (De Gieter & Hofmans, 2015), hence the need for this study.
Retaining employees have various positive impacts on the hotel industry. Wuttaphan (2017) asserted that high turnover rates lead to loss of corporate revenue and assets, as employees form part of the most significant assets in the hotel industry. Frequent hiring is expensive, and it also leads to a loss of essential time that companies can otherwise spend on pursuing strategic goals (Su, 2014; Sarwar & Abugre, 2013). The hotel industry primarily relies on employees to achieve customer satisfaction. Dissatisfied workers cannot deliver the best services; hence loss of revenue as customers leave to pursue services in hotels that offer unmatched customer experience. Human resource (HR) practitioners can utilise the findings of this study to design and implement effective reward programs that satisfy the employees, hence reducing turnover intentions.
Research rationale and focus
This study bears critical implications in the theoretical context for HR practitioners. Job satisfaction is one of the most studied concepts in the business field due to its ability to demonstrate organisational outcomes (De Gieter et al., 2010). However, there is a universal belief that pay satisfaction translates to job satisfaction, alleviating all adverse outcomes associated with job dissatisfaction (Jung et al., 2012). This study provides background literature exploring the effects of other reward satisfactions – material and psychological – to determine their impact on turnover intentions among hotel employees at the Hyatt Regency Riyadh (Hyatt). Future research can rely on the findings to expand the scope of the study to other work settings and industries other than the hotel sector.
Employees are one of the most valuable assets for corporates, retaining them for as long as possible. However, challenges emanating from the organisational context tend to compromise the workers’ length of stay in employment (Alhmoud & Rjoub, 2019). Identifying the causes of turnover intention was crucial in outlining effective strategies to curb leaving. The study provided essential information that HR practitioners can utilise to enhance the work environment and reduce intentions to leave (Chachibaia et al., 2015). The study also highlighted pertinent insights regarding theory application in resolving organisational issues such as high turnover ratios (Al-shaibah & Habtoor, 2015). The insights are also essential to employees who wish to optimise their job opportunities to achieve maximum satisfaction in other aspects of their lives.
The world of Hyatt branches is spread worldwide in more than 175 cities and towns (Our History, 2021). Moreover, the Hyatt Regency is considered one of the luxury branches under the world of Hyatt chain. This study focuses on Hyatt Riyadh, the capital of KSA, which was opened in 2016 with less than 500 employees (Linkedin:ruhhr, 2021). To provide the researcher with context and a better understanding of the position of Hyatt in the KSA hotel industry, an internal and external analysis, SWOT & PESTLE analysis, were conducted. The results are recorded in Appendices A&B.
Research question and objectives
What is the perceived impact of reward satisfaction on employee turnover intention in the hotel industry?
The main objective of this research is to examine the impact of reward satisfaction on employee turnover intentions at Hyatt-Regency. The study further investigated the following subordinate objectives to achieve the main goal and produce a set of recommendations.
- To investigate the employee turnover intention in the hotel industry.
- To identify reward types
- To evaluate the relationship between reward satisfaction and turnover intention.
- To examine the effect of financial, material, and psychological rewards satisfaction on employee turnover intentions
- To identify the perceived impact of reward satisfaction on employee turnover intentions at Hyatt Regency Riyadh.
Definition of terms
- Employee turnover intentions: employees’ resolve to change jobs willingly (Bothma and Roodt, 2013).
- Employee reward: any form of benefits that a company offers its workforce to attract and retain it while reinforcing and encouraging desirable behaviours and attitudes towards work (AlkhalielAdeeb, 2021).
- Reward satisfaction: an employees’ feeling or view towards the reward they receive from the employer (James, 2020).
- Financial and non-financial rewards: financial rewards refer to the monetary and other tangible benefits that employees receive as compensation for their input at work (AlkhalielAdeeb, 2021). Non-financial rewards, also known as intrinsic rewards, are intangible rewards that employees receive as incentives for their contribution, skills, and effort at work (James, 2020).
- Material rewards: intangible benefits that employees receive from their employer for their contribution to the organisation (Eshun and Duah, 2011). Material rewards are not compensation for the work done but rather incentives to motivate staff members to perform better and reduce their intentions to leave work.
- Psychological rewards: incentives that include support and a positive work environment that appreciates workers’ input. For example, a word of thank you does not have any financial benefits for the employee, but it motivates them to do better because they feel appreciated (Ren et al., 2021).
This chapter reviewed the relevance and importance of the research, rationale and focus, the relevance and importance of the research. It also shows the research framework and a definition of the most important terms related to the research. In addition, outlined the remaining chapters. The following chapter covers the literature review related to the study.
This chapter provided a comprehensive overview of the literature and the current knowledge through the theories and contributions of other researchers concerning employee reward satisfaction and its relationship to turnover intentions.
Employee turnover intention in the hotel industry
Employee turnover intention in the hospitality industry is unique, critical, and is of significant concern (Park and Min, 2020). They define employee turnover intention as the thinking or awareness of employees on leaving the job. Furthermore, it forms a critical foundation that results in actual voluntary turnover. Different factors influence employee turnover intention in the hotel business. Su (2014) states that the main factors include the fringe benefits, wage rate, mentoring process, and trust among co-workers. According to Narkhede (2014), One of the significant operational challenges of the hotel industry includes high employees’ turnover rates, an average of 200 and 300 per cent per year. In this study, he revealed that employees at hotels who had changed jobs about 2 to 3 times a year were unsatisfied with not receiving overtime and night shift allowance or other benefits. Also, this can be very problematic for the hotel industry as it results in significant increases in direct and indirect costs for the hotels (Emiroğlu et al., 2015; AlkhalielAdeeb, 2021).
Accordingly, the phenomenon has attracted wide attention mainly because of the costs involved, both direct and indirect. Direct costs arise from the organisation’s expenses like recruiting and training new staff members (Kelbiso et al., 2017). On the other hand, indirect costs refer to decreased productivity, organisational commitment, and job satisfaction (AlkhalielAdeeb, 2021). Moreover, Narkhede (2014) highlighted that some of the common problems of high employee turnover include high costs of recruitment and training of the workforce, poor quality of service, reduced productivity, and poor hotel standards resulting from a low Improperly trained workforce. The net effect of these dynamics includes an overall lower standard of the hotel systems and low reduced profits as patrons look for alternative hotels.
Human resources are a significant component of the operations in the hotel business. Firms in the sector compete mainly on the quality of the services provided to the clients; it forms the basis for survival and competitiveness (Su, 2014). Also, Su stated that a high employee turnover intention would negatively affect the organisation’s productivity. The mood of the employees is critical when it comes to handling clients at the establishment. Therefore, employee turnover is regarded as a negative factor in hospitality with a significant impact on the quality of service provided (Siew, 2017). Once the customers note a reduced quality of service, they may prefer other facilities. The current facility suffering from poor quality of service will ultimately report a loss of customers that will lead to a fall in the reputation and profitability of the hotel.
Rewarding employees, considered a solid basis for building organisational competitiveness, is deemed the most effective tool (De Gieter and Hofmans, 2015). This is because they have the power to elicit and encourage improved performance in the workforce. According to De Gieter and Hofmans (2015), there are three main types of rewards, namely, financial rewards, material rewards, and psychological rewards. Financial rewards are monetary, while material rewards are tangible and non-monetary, but they have an attached economic value (Haggalla and Jayatilake, 2017). Financial rewards are monetary incentives which a worker earns in addition to the regular remuneration. These financial gain is extrinsic in nature. The benefits encourage beneficiary to achieve the company’s goals. When an employee helps an organization achieve its goals, they often get rewarded. Rewards such as pay raises, bonuses, and paid time off are extrinsic motivation (Allen and Bryant, 2012). Material reward is an intrinsic scheme that include awarding employees with gifts and take-away goods whose monetary value is appreciative. Similarly, some material rewards do not necessarily have a bigger value of the money but are rare material things whose significance is better than the financial reward.
Furthermore, financial rewards can either be fixed, such as salaries, overtime payments, and other fringe benefits, or variable based on the performance of the organisation, group, or an individual employee (Chiang and Birtch, 2012). Examples of variable rewards include training and personal development opportunities provided by the organisation, alternate work arrangements, and talent recognition. Organisations have shown a preference for material rewards resulting in their increased and intensified use. However, in the present day, each organisation is keen on managing costs to remain competitive; hence financial rewards have become less lucrative (Chiang and Birtch, 2012).
Another category constitutes psychological rewards that are internal to the individual. They are less tangible, great personal, and characterise a subjective perception of the job and its worth. De Gieter and Hofmans (2015) indicated that psychological rewards do not imply a monetary cost for the organisation; instead, they have positively evaluated the exchange relationship between an employee and their supervisor, colleagues, or clients. According to Farrukh et al. (2020), psychological rewards are characterised by motivational elements such as independence, feedback, and skill variety. They also constitute employee involvement in decision-making and the clearness of the roles (Wafula et al., 2017).
Some variations of psychological rewards include compliments from a colleague, recognition from the supervisor, meaningful work, healthy relationships, competency, self-development, and choice.
Previous studies indicate a correlation between the levels of reward satisfaction in employees and the extent of their turnover intentions. However, in their study, Farrukh et al., (2020) confirmed that introducing psychological rewards, namely, an emotional support system for employees, encourages them to develop an appreciation for and loyalty toward the organisation. In turn, since increased motivation and commitment suggest being comfortable and content with the workplace conditions, staff members are unlikely to resign, hence the reduced turnover rate. In turn, Chiang and Birtch (2012) paper confirm that introducing incentives into the workplace environment is a powerful motivator for many employees. Thus, apart from establishing the correlation between the extent of reward satisfaction and motivation rates, the studies in question suggest that three is also substantial causation between the two.
Relating reward satisfaction to turnover intentions
Organisations own massive assets and resources, all of which cannot match up to the pre-eminence of employees as the core assets of any organisation (Devece et al., 2016). They stated that most of the well-to-do-off organisations had got a dependable workforce across their different business categories. Most of these organisations perceive rewards as a channel of motivating particular conduct among the employees. Rewards are specially intended to encourage employees to perform effectively and efficiently towards achieving organisational goals (Sari et al., 2019). Therefore, employers can use rewards as a tool to manage employee turnover intentions (Alferaih, 2017; Alqusayer, 2016). Based on the agency theory, the desire to work turnover intentions can be managed through the objective of the different types of rewards. Employees can use them to direct employee behaviours and align employee-employer interests (Alferaih, 2017; Alqusayer, 2016). According to Allam and Shaik (2020), organisations can control and bring into line preferred conduct with precedence on strategic performance. They can realise the power through carefully recognising and understanding the performance effects of the organisation’s total reward structure.
Different rewards come with varying motivational material that employers can use to complete other performance objectives, including managing the employee turnover intentions. In fact, according to Koo et al., (2019), sentimental commitment and job satisfaction is inclined to lessen employee turnover intention. Even as rewards are used to inspire or encourage certain behaviours in the workforce that are considered helpful to the organisation, they can also be instrumental in inhibiting conduct considered damaging to the organisation, such as turnover intentions (Farrukh et al., 2019; Habtoor and Al-Shaibah, 2015). The rationale is best supported under Vroom’s expectancy theory:
Vroom looked at motivation from a behavioural viewpoint through the Expectancy Theory fashioned in 1964 through a paradigm that perceives motivation as a response to favourable conditions and a specific reward. Also referred to as the path-goal theory, Vroom’s proposition points out that rewards are a factor of particular individual conduct (Nair & Subash, 2019). Therefore, if a person is inclined to act in a specific way, there ought to be a connected reward structure based on the individual’s values that the reward targets to inspire. Furthermore, Vroom stressed the pre-eminence of motivation, effort, and performance in inspiration (Ngo-Henha, 2017). Accordingly, he emphasised that the three elements of motivation, effort, and performance must be connected for an individual to feel inspired. Vroom’s theory is further reinforced by three key factors, namely expectancy, instrumentality, and valence.
Although Vroom’s Expectancy theory has been in use for quite a while, it has not overstayed its welcome, as it is still providing ample opportunities for identifying the approaches toward employee motivation. Namely, Vroom’s theory offers an entirely rational explanation of the underlying motives of employees’ willingness to perform (Nair & Subash, 2019). However, the described advantage also introduces a significant weakness into Vroom’s theory; namely, it posits that every choice made by an individual should be rational, which is far from the truth given the factor of emotions as the key driver behind decision-making in a range of situations (Nair & Subash, 2019).
The effect of financial rewards satisfaction on employee turnover intentions
Logically, the economic exchange implies that remunerations derived from financial rewards are the foundational drivers of performance. According to Williams et al. (2008), employees are motivated to work hard since they identify a clear and valuable economic exchange for their work to the organisation. He also argues that employees act greedily to get the most out of exchange value with their organisation. Therefore, the employment relationship can consider as transactional and pigeonhole by short-term monetary exchanges (AK, 2018; Williams et al., 2006). De Gieter and Hofmans (2015) suggested that the risk of turnover intention is exceptionally high among young employees having the lowest work tenure. They stated that these youths’ satisfaction levels are solely based on financial rewards, which form the ultimate predictor of turnover intention.
Additionally, this category of employees tends to be less satisfied with their financial rewards. Therefore, they characterise stronger turnover intentions, and they attach less value to the need to cultivate healthier interpersonal relations. In general, research has established that the more employees feel dissatisfied with their financial rewards, the higher the risk of leaving the organisation (Williams et al., 2008; Devece et al., 2016; Ren et al., 2021).The idea is explained in the Adams’s Equity Theory (1965). Adams has also contributed to the paradigm of motivation by introducing the Equity Theory of Job motivation. The theory looks at motivation from a broader sense away from an individual perspective.
Adam’s theory states that inspiration encompasses the plight of other people, such as friends and colleagues in the same job (De Gieter and Hofmans, 2015). Accordingly, a person’s contemporary working environment can only be adjudicated as fair or prejudicial based on some reference point, for example, other people’s wages, salaries, or other benefits. In addition, equity can be realised once there is a balance between one individual weighed against the comparison target (De Gieter and Hofmans, 2015). A disturbance in the perceived balance, either positive or negative, would result in inequity. Once people feel they have been treated fairly, they become motivated. If not, they become exposed to feeling disappointed or demoralised. In general, Adam’s theory indicates that the comparison process is predisposed to yield two probable results, equity or inequity. The theory has a substantial advantage of explaining what factors define the rates of employee motivation within an organisation. Likewise, the approach provides insight into employee retention in the corporate setting (Nguyen and Do, 2020). However, the Equity Theory does not allow taking into consideration differences in employees’ perspectives and, therefore, gaining a more nuanced look at what motivates them.
The effect of material rewards satisfaction on employee turnover intentions
The influence of material rewards is mainly founded on the social exchange viewpoint (Gabriel et al., 2015). They stated that once the employees feel that the organisation they are working for shows the will to accommodate their needs through specific arrangements. Moreover, they suggested that the positive feelings among the employees may stimulate them to act favourably even on other formal duties that can benefit their organisation in different ways. These involve alternative work or that an organisation is disposed to invest in them through training and development. As a result, there is a very high likelihood that they will post improved performance on the job (Gabriel et al., 2015; Yousef, 2016). Some benefits could include responding with prosocial and extra-role citizenship conduct (Wu et al., , 2017). Therefore, material rewards characterise a relational connection with the organisation. They are further characterised by long-standing and socio-emotional components of an employment exchange. Seman and Suhaimi (2017) state that material rewards are predisposed to have a wider latitude and longer-term application in terms of performance. They also argue that satisfaction with material rewards has a limited influence among the employees to reduce their turnover intentions.
The effect of psychological rewards satisfaction on employee turnover intentions
HR practices have the power to influence the employees’ supposed psychological contract fulfilment and their organisational commitment. Furthermore, HR management practices have a positive correlation to psychological contract fulfilment and organisational commitment (Zopiatis et al., 2017; Urbancová and Šnýdrová, 2017). Therefore, some employees’ turnover intentions can solely be influenced by their satisfaction with psychological rewards. The category of employees whose turnover intentions can be managed through psychological rewards entails those with a lower level of education, especially a secondary school degree (De Gieter and Hofmans, 2015). However, they also acknowledged that these employees could not be successfully influenced by satisfying their financial and material rewards. The reason could be because they are psychologically aware that they have somewhat restricted financial and material reward options (Seman and Suhaimi, 2017). Therefore, they suggested that organisations advise the supervisors to offer these employees psychological rewards, such as compliments and regular recognition, to contain their turnover intentions.
The model established for this study will be based on examining the relationships between the key variables.
As per figure 2.1 above, changes in the dependent variable, namely, the turnover intentions, will be evaluated based on the effects of independent variables, namely financial, material, psychological rewards satisfaction. In addition, the intensity and extent of each independent variable’s influence will be assessed separately to understand what impact each produces on employees’ turnover intentions in the context of the hotel industry of KSA.
Previous research studies have also been conducted to establish the relationship between reward satisfaction and turnover intentions. De Gieter and Hofmans (2015), Alhamoud and Rjoub (2019), and Eshun (2011) researched this effect and found that financial, material, psychological rewards satisfaction has a marked impact on employee turnover. Establishing the relationship between satisfaction with the above rewards and turnover intention has gained popularity over the last few years. Merging the three reward types is essential in demonstrating the reward with the highest satisfaction scores among employees. De Gieter and Hofmans (2015) found that satisfaction with psychological rewards is highest even among employees with lower satisfaction levels for other reward types. This information is essential to HR practitioners who wish to leverage the tips with the highest satisfaction levels.
This chapter presents an overview of the turnover intention in the hotel industry in general and in KSA in particular. It also covered the types of rewards and the most important theories related to employee reward satisfaction and employee turnover intentions. In addition, it illustrates the relationship between employee reward satisfaction and employee turnover intentions. The next chapter is the research methodology and data collection mechanism to achieve the purpose of the study.
The following chapter highlights how the research data was collected. This study followed an exploratory research approach to find answers to the study questions as it is flexible and suitable for the aim of this research. According to Saunders et al. (2016), exploratory research is defined as research used to investigate a phenomenon to understand it in depth. This chapter includes the research approach, strategy and design, the timeframe, techniques for data collection, ethical considerations, reliability, and validity, ending with the study limitations. Exploratory research method is used to investigate a problem that is unclear. Exploratory research is done to gain a better understanding of a problem, but it rarely yields conclusive results. The researcher begins with a broad idea and uses the research to identify issues that can be the focus of future research. The researcher should be willing to change course if new data or insights emerge. This type of research is usually done when a problem is just beginning.. It begins with a general idea and utilizes the research’s research results to discover out related issues. It begins with a general idea and utilizes the research’s research results to discover out related issues (Opstad, 2021). Similarly it is also known as interpretive research or grounded theory approach. Exploratory research is used to learn more about an existing phenomenon and form a more precise problem. The process of exploratory research varies according to the discovery of new data or insight. This type of research provides answers to questions such as what, how, and why?
The research utilised deductive strategies. That allows a researcher to read relevant completed research to create theories emerging from those studies (Azungah 2018). These techniques helped address the study objectives and close the research gap on how reward satisfaction influences Hyatt employees’ turnover intentions. Deductive researchers start with a compelling social theory and then test its implications with data, moving from a general to a specific level. People usually associate scientific research with a deductive approach (Zhen, 2020). The researcher reads existing theories of whatever phenomenon they are studying and then tests hypotheses derived from those theories.
The study and research period was conducted in a span of ten weeks. These ten weeks were spent on planning, development, implementation, data collection, data analysis, and evaluation of the results. The planning included defining research question, reviewing existing research and selecting relevant data to formulate your own answers. Planning and development were done concurrently for the period of four weeks where planning was done exhaustively alongside with the early stages of development (Zhen, 2020). However, implementation of the actual research was carried out after the fourth week. Similarly, data collection was done after the implementation stage was finished; this stage took two weeks to successfully carry it out. The remaining time was used to carry out data analysis and evaluation of the research results.
Research strategy and design
A quantitative method was used to collect data in this research. This method helps the researcher examine the relationship between numerical variables and display them in graphs using statistical ranges (Saunders et al., 2016). Statistics, math, and numbers are used to analyse data collected through polls, questionnaires, and surveys or by manipulating existing statistical data using computational techniques (Opstad, 2021). Important statistical packages such as SPSS are usually used to analyse the data and provide charts and graphs.
Data collection techniques
This study employs a single data collection technique, which is surveys. Figure 3.1 below illustrates the process to apply the chosen method. Surveys were used to collect the data to answer the research question. They were relatively easy to administer and can be administered remotely, especially in the Covid-19 pandemic.
According to Gordon and McNew (2008), this technique involves surveying employees in various departments within the study area to acquire data and facts. Surveys were established using Google Forms services and were presented through online platforms to participants within the study area of Hyatt. In addition, a pilot study of 10 respondents was run before administering the actual survey.
The survey questions were measured with a five-point scale ranging, outlined in table 3.1. Respondents spend an average of 7 minutes answering the whole survey. The questions used in this survey are already validated by other researchers (Heneman and Schwab, 1985; De Gieter et al., 2008; Dysvik and Kuvaas, 2013). Also, they are simple and direct questions.
The survey link was emailed to the Hyatt employees by the HR admin of the hotel. Table 3.2 outlines the inclusion and exclusion criteria of selecting respondents in this study. All Hyatt employees were included in the survey except for the outsourcing employees, who were excluded from the sample. This is because they are not subject to the hotel’s HR systems or rewards but instead to the hotel management’s contractual companies.
The collected data were sorted into various groups according to their level of importance and nature. After that, the data was analysed using two software, which is Excel and SPSS software. Excel was used to sort raw data and making graphs for each variable. on the other hand, SPSS software was used to check the data’s quality and extract the relationship between the variables. Which eventually leads to deliver clear conclusions on the objectives of the study.
The researcher informed the respondents early about the nature of the study, the reasons for researching to make them aware of its importance, and why they should participate (Louis-Charles et al., 2020). Respondents were informed that participation in the research should be voluntary. Thus, the surveys would not force the respondents to provide information about the research (Hsu et al., 2021). Therefore, participation who wished to discontinue their engagement in the study were free to leave without being implicated. Arigo et al. (2018) recommended that all the data collected through surveys should not be disclosed to third parties but will only be used to help realise the identified objectives. Thus, the researcher did not seek any personal information or require the respondent to disclose their identity. All the information that the respondents disclosed was only used for this study’s purposes and shall remain confidential unless they consent to the disclosure. According to Jakobsen et al. (2020), research can only release respondent information if they agree. Nevertheless, participating in the research did not result in any physical and mental harm.
Reliability ensures that results are valid for their intended purpose and means that the researcher can obtain similar products at different instances (Korkmaz, Çakir, and Özden 2017). The researcher ensured reliability by eliminating personal bias and following the standard research procedures. In addition, the same survey link was given to all the research participants in the survey.
Validity means that the respondents answer the questions correctly (Cevik Senturk 2019). A pilot test was conducted first to examine the validity of the survey questions to ensure the quality of the data collected. During the pilot study, the researcher sent ten surveys to random respondents and within 48 hours. Rahi (2017) suggested that after collecting the filled pilot surveys, the researcher must compare the data from the respondents and then do corrections on the questionnaires based on the respondents’ comments. The completed surveys were analysed to ensure that the received data was measurable and transparent for respondents. The pilot study questions and results are recorded in Appendices C.
The number of respondents to the survey was 38, which is almost 22%. However, the survey questionnaire was sent to the whole population, 177 employees of Hyatt-Regency. Follow-ups were made, but the number of respondents didn’t improve. Saunders et al. (2016) argue that better participants’ numbers might reflect more diversity. However, according to Sivo et al. (2006), assuring that the sample was randomly picked and avoiding biased is more crucial than the number of respondents. Moreover, according to Wang et al. (2020), the stress caused by Covid-19 may result in a low turnout and response rate. Due to this pandemic, all surveys were done online, which exclude the interaction and follow-up questions elements yet helped to reach the target audience (Wang et al. 2020).
Exploratory research produces provisional and inconclusive results where the aim of such research is to obtain a clearer understanding of the issue. These findings cannot be used to make effective decisions. One disadvantage of exploratory research is the use of qualitative data. It is difficult to derive accurate, objective insights (Opstad, 2021). Consequently, qualitative data is so variable, evaluating it is a difficult and time-consuming process.
The small sample size used for exploratory research increases the risk of non-representative sample responses. Smaller groups of people as samples, while it is essentially useful for a quick study, it can hinder a cohesive understanding, reducing the current research quality and adversely impacting future research along similar lines (Gray and Drew, 2012). Secondary data can provide outdated information that does not contribute to the current understanding of a problem. In a volatile market, outdated data is neither actionable nor helpful in providing clarity.
This methodology is the research guidelines to find the relationship between the independent variables financial, material, psychological rewards satisfaction, and the dependent variables turnover intentions in the Hyatt-Regency. In addition to measuring some control variables such as age, gender, Nationality, Department, and years of experience. The data collection technique was a survey, and it was analysed using Excel and SPSS software. Thus, the next chapter discusses the research findings.
This chapter analyses quantitative data collected from the Hyatt employees. Data quality was first checked and illustrated the demographics of data. After that, a statistical description of the primary measurement elements in this research was presented: financial, material, and psychological rewards and turnover intentions. Additionally, the study examined the effect of the control variables on the factors under study. Finally, this chapter was concluded by analysing the relationship between reward satisfaction and employee turnover intentions.
Data analysis of quantitative data
The analysis of quantitative data was conducted using statistical techniques. The SPSS software and Microsoft Excel were used in the analysis. The tables for analysing the measurement items are recorded under Appendices D.
Quality check of data
It is essential to ensure that the data relied upon in the study is of good fit. Data for this study was scrutinised to assess its quality in terms of its relevance, reliability, completeness, accuracy, and timeliness. Data for this study were checked for two main aspects, namely assessing whether all the data points were valid or not and checking for any missing values or anomalies across the data set.
The Shapiro-Wilk test was used to test the normality of data because of its applicability to small sample sizes of less than 50. The test on each variable under the study indicates a significant value; the p-value is less than (<) 0.05. The results show that the dataset did not observe normality. Rawat (2019) indicates that the Ordinal Logistic Regression (OLR) shows the relationship among the variables to guarantee quality for the outcome.
Demographics of data
Data for the study was collected using questionnaires administered online (see Appendices E for the survey form). A total of 177 questionnaires were sent out to all the participants. Out of the 177 questionnaires, 38 participants responded, representing a response rate of 22 per cent. The Human Resources Department helped stimulate a response by sending emails and messages to all employees in the WhatsApp teamwork group to fill the survey. Table 4.1 below provides a summary of the demographic data about the respondents. The demographic under consideration includes Age, Gender, Nationality, Department, and tenure.
The statistical description of measurement items
The statistical description of financial reward satisfaction
About 37% of the respondents were satisfied with their take-home pay, followed by 24% who were very satisfied, whereas 16% were dissatisfied and 5% were very dissatisfied. Thus, a total of 37% and 18% of the respondents were satisfied and very satisfied respectively with their current salary whilst 8% were either dissatisfied or eight very dissatisfied with their current salaries. Regarding the overall pay level, 57% of the employees were satisfied to very satisfied; on the other hand, 27% of Hyatt-regency employees were dissatisfied to very dissatisfied, and 16% were neutral. Regarding the size of the current salary, 55% of the employees were satisfied to very satisfied, while 24% were dissatisfied to very dissatisfied whereas 21% were neutral as shown in Figure 4.1 below.
The statistical description of material reward satisfaction
As displayed in Figure 4.2 below, regarding satisfaction with the benefits package, the majority expressed some satisfaction (34% were satisfied and 29% were very satisfied), whereas, in contrast, fewer respondents indicated some dissatisfaction. Concerning the amount paid towards benefits, 34% and 24% indicated that they were satisfied and very satisfied respectively, whereas in contrast 11% and 5% indicated that they were dissatisfied and very dissatisfied respectively. Concerning the value of benefits, 29% indicated that they were either satisfied, satisfied or neutral, whereas 8% highlighted being dissatisfied. Finally, most respondents (32%) were either satisfied or neutral regarding the number of benefits received, and 26% were very satisfied. A mere 5% indicated being dissatisfied or very dissatisfied.
Statistical description of psychological reward satisfaction
Concerning the recognition received from the supervisor, 5% were either dissatisfied or very dissatisfied. Conversely, a total of 84% were satisfied and very satisfied. Asked about the reward of receiving a compliment from the supervisor about work, 77% of the respondents showed some satisfaction (45% were very satisfied and 32% were satisfied) whilst 16% showed some dissatisfaction. The same trend of high satisfaction and low dissatisfaction levels was noted concerning receiving a word of thanks from the supervisor. Under the encouragement from the supervisor, the majority of respondents showed some satisfaction (47% expressed being very satisfied, and 34% were satisfied). In contrast, 5% each were dissatisfied or very dissatisfied, as presented in Figure 4.3 below.
The statistical description of employees’ turnover intentions
Figure 4.5 below presented the survey respondents of turnover intentions. Where employees were asked if they will look for a job in the next year, the majority (45%) were neutral, whereas 21% differed (disagree and strongly disagree) and 34% agreed (agree and strongly agree). A total of 21% of respondents indicated that they would not actively look for a job in the next three years (strongly disagree and disagree), and 45% expressed interest in looking for a job. Regarding whether they often thought about quitting, 53% objected (disagree and strongly disagree), whereas 21% concurred (agree and strongly agree). About being prepared to quit in the next 12months, 53% overall disagreed, whilst 16% overall agreed that they might quit. Regarding not seeing prospects at Hyatt, most respondents disagreed (32% strongly disagreed, and 29% disagreed). Conversely, a mere 8% strongly agreed, and 16% agreed. Thus, overall turnover intentions were noted among some respondents, although they were not strong.
The first control variable to be examined was age. The results are indicated in Figure 4.5 below.
- Financial rewards: the 41-50 age group indicated being more satisfied than the younger age groups. However, some younger age group respondents expressed being dissatisfied with financial rewards.
- Material rewards: 86%, 71%, and 44% of the respondents in the 41-50, 31-40, and 21-30 age groups respectively expressed satisfaction (very satisfied and satisfied) with material rewards, whereas a smaller proportion of respondents expressed dissatisfaction.
- Psychological rewards: generally, all age groups highlighted being satisfied with the psychological rewards. A total of 100%, 82%, and 74% were satisfied (satisfied and very satisfied) for the 41-50, 31-40, and 21-30 age groups, respectively.
- Turnover intentions: among all the age groups, the highest turnover intention of 35% (Agree and Strongly Agree) was in the 21-30 age group whilst the highest opinion against a turnover intention was in the 31-40 age group with a 55% (Disagree and Strongly disagree).
The second control variable to be examined was gender. The results are indicated in Figure 4.6 below.
- Financial rewards: the highest number of males were satisfied, 37%, followed by those who were very satisfied, 27%, whereas 13% were dissatisfied. Likewise, most female respondents were satisfied 39%, and the least 5% were very satisfied, while 32% were dissatisfied to very dissatisfied.
- Material rewards: more males were satisfied (64%) than females (41%) with material rewards (satisfied and very satisfied). Likewise, more satisfaction levels were recorded in males (64%) than females (36%) for material rewards. On the other hand, females had a higher proportion of neutral respondents, constituting 43%.
- Psychological rewards: both males (82%) and females (79%) recorded very high total satisfaction levels for psychological rewards.
- Turnover intentions: generally, more females had stronger turnover intentions than males, and overall, more males disagreed with nursing turnover intentions than females.
In considering the respondents’ nationality, Figure 4.7 generally indicates an overall satisfaction level among both the Saudis and the Non-Saudis. For financial and material rewards, Non-Saudis expressed slightly higher levels of satisfaction than Saudis. However, both Saudis and Non-Saudis expressed relatively high satisfaction levels towards psychological rewards, i.e., 79% and 81%, respectively. Regarding turnover intentions, a large proportion of both groups were neutral, at 31% and 30% for the Saudis and Non-Saudis, respectively. However, the proportion of both groups that strongly agreed to turnover intentions is low.
Generally, almost all Departments had moderately high levels of satisfaction towards financial rewards. Likewise, most Departments had high levels of satisfaction towards material benefits except 2 Departments. Regarding psychological rewards, all departments showed high levels of satisfaction. Although some respondents agreed and some disagreed with turnover intentions, overall, there were more substantial disagreements towards having turnover intentions than the agreements. The results are indicated in Figure 4.8 below and in the Appendices F.
The experience was also considered as a control variable against reward satisfaction, the results in Figure 4.9.
Financial rewards: there were high satisfaction levels (75%) among the 11-20 years’ experience respondents compared to the less experienced groups. The over 20 years’ group was excluded because of a lack of statistical representativeness.
Material rewards: generally, all respondents exhibited relatively high satisfaction levels towards material rewards, with the more experienced 11-20 years’ experience cohort indicating a total of 80% (satisfied and very satisfied). There was a significant proportion of neutral respondents.
Psychological rewards: the levels of satisfaction are high across employees of all experience levels. Surprisingly even the less than 1-year experience indicated a total of 96% for satisfied and very satisfying levels.
Turnover intentions: the 11-20 years’ experience and the less than 1-year experience expressed relatively high levels of disagreements to the turnover intentions. On the other hand, all experience levels showed smaller proportions of respondents having turnover intentions. Thus, although turnover intentions do exist in some employees at Hyatt, they are not strong.
The relationship between employees perceived rewards satisfaction (financial, material, and psychological rewards) and employees’ turnover intentions in Hyatt
The first step involved testing the fitness of the independent variables in predicting the dependent variable. The results showed a p-value of 0.001, which is less than 0.05. The p-value suggests that the model is significant; therefore, the predictors (the independent variables: Age, Gender, Nationality, Department, and Years of experience) have a significant influence over the dependent variables. In addition, the model is tested for goodness of fit to assess whether the preferred model is a good fit for the data at hand (Rawat, 2019). The resultant p-value was 0.815, which is greater than 0.05. Therefore, the model is of good-fit, and the data fit this particular model well. The data was run through the SPSS software to produce a pseudo-R-squared. The model generated a pseudo-R-squared of 81.7%. This data indicates that 81.7% of changes in turnover intention is the result of financial rewards, material rewards, and psychological rewards. The model produced the parameter estimates as indicated below in Figure 4.10.
All the parameter estimates are positive. However, only 2 of the three independent variables are significant because their p-value is less than 0.05. That is p-value for financial rewards is 0.033 < 0.05, and p-value for psychological rewards is 0.002 < 0.05. Therefore, the financial rewards and the psychological rewards are the two significant independent predictors. The results indicate that as the values of either the financial rewards or the psychological rewards variables increase, there is an increased probability of falling at a higher level on the turnover intentions Using the odds. For every one-unit increase in financial and psychological rewards, there is a predicted increase of.569 and.848, respectively, in the Log odds of being at a higher level of turnover intention rate.
This chapter presents the survey results by providing a statistical description of the different rewards satisfaction levels and employee turnover intentions. Then, it covered the effect of the control variables on the measurement items. The last part focused on the analysis of the relationship between reward satisfaction and employee turnover intentions. Organizational culture varies by industry, employer, and even department. Job satisfaction has been linked to better job performance in previous studies. According to Gray and Drew (2012)
High performing cultures produce excellent results, motivate and retain talented employees, and adapt quickly to change. Low turnover has been shown to increase organizational productivity and performance.
This chapter analysed and explained the survey results from the previous chapter and how it relates to the literature review in chapter two, intending to find the effect of reward satisfaction on employee turnover intentions in the life of the Hyatt.
Financial rewards satisfaction
The study showed that most employees were satisfied with their financial rewards, categorised into the size of current salary, overall pay, current salary, and take-home pay. The research assumed that employees satisfied with the financial rewards they receive for the skills, time, and effort they invest in the company reduce their turnover intentions. Therefore, the study concluded that financial reward satisfaction reduces turnover intentions. The findings are similar to those by Williams et al. (2006), who found that one of the consequences of pay level satisfaction is higher employee retention rates. Similarly, Ongori (2007), De la Torre-Ruiz et al. (2019), and Yu et al. (2020) also found that wage payment, alongside other factors such as job description, training, and induction, play a critical role in employees’ intentions to switch jobs. Although the articles adopt different approaches in determining the effects of financial rewards on employee intentions to leave, they prove that satisfaction with financial, material, and psychological rewards reduces turnover intentions and enhance performance.
Alqusayer (2016), Okae (2018), and De Gieter and Hofmans (2015) also acknowledged the importance of financial rewards in retaining employees. They, however, argued that the rewards have different effects on the employees, based on individual differences; for example, employees who have achieved financial goals may not find significance in a pay rise. Social-demographic factors and work values were some of the employee characteristics that De Gieter and Hofmans (2015) identified as individual factors influencing turnover intentions. The findings resonated with the equity theory as discussed in the literature review section. The theory states that people are more motivated if they feel that their input is fairly and equitably compensated compared to the output (Ngo-Henha, 2017). The theory is also based on the assumption that people give something and expect compensation in return. Therefore, employees give their time, skills, and effort to a job and expect fair and equitable remuneration in return. If they perceive the remuneration as insufficient or unfair, they will likely lose motivation to work and perhaps resign. Lawler’s discrepancy theory also underpins the importance of financial rewards in influencing employees’ behaviours and attitudes. The theory states that satisfaction with rewards stimulates desirable behaviours and attitudes (De Gieter and Hofmans, 2015) relates to the current study because the younger employees who were dissatisfied with the financial rewards had relatively high turnover intentions. Therefore, the HR practitioners should design financial rewards that satisfy the employees to reduce turnover intentions and improve performance.
Materials reward satisfaction
Material compensation has also proven essential in employee retention. The study categorised the material rewards into benefits packages, the amount a company pays towards benefits, the value of benefits, and the number of benefits an employee receives. The findings indicated no significant statistical difference between employees satisfied with their material benefits and those who were neither satisfied nor dissatisfied. These findings are similar to other research studies investigating the role of material rewards satisfaction in employee turnover intentions. AK (2018), Deconinck and Stilwell (2004), and Holston-Okae (2017) found that satisfaction influences employees’ intentions to change jobs. The findings focused on employees from different work settings, including the hotel industry.
Similarly, Chiang and Birtch (2012) and James (2020) also concurred that material benefits reduce employee turnover intentions. However, there is a discrepancy regarding the circumstances under which material rewards impact employees’ choices to switch jobs. For example, Su (2014) and Koo et al. (2020) found that certain individual factors like affective commitment determine employees’ dedication towards the employer. On the other hand, according to Rahman and Nas (2013), material rewards such as employee development enhance staff members’ dedication and commitment to the employer, reducing their turnover intentions.
The literature revealed that investing in material rewards is crucial in addressing employees’ turnover intentions. However, HR practitioners must pay close attention to the circumstances that may inhibit the overall effect of material rewards. Su (2014) also found that fringe benefits and mentorship played a significant role in promoting employee retention in the hotel industry. In addition, Farrukh et al. (2020) offered pertinent insights regarding the factors influencing employees’ turnover intentions in Saudi Arabia. The articles confirmed the study’s assumptions that material rewards satisfaction enhances performance and reduces turnover intentions. In addition, they offered valuable insights on how employers can achieve material rewards satisfaction among their employees. Although the studies adopted different approaches in determining the effectiveness of materials reward satisfaction, the findings are similar to those of the current study because they confirmed that the value of rewards reduces turnover intentions and enhances employee performance. These findings align with Vroom’s expectancy theory, which underpins the importance of rewards’ value in enhancing performance. Employees are likely to be gloomy if they do not value the desired reward (De Gieter and Hofmans, 2015). Therefore, HR practitioners should design and implement valuable rewards to reduce turnover intentions and enhance performance.
Psychological rewards satisfaction
The study categorised the reward into four sections: recognition from the supervisor for doing my job, supervisor compliments for doing my work, word of thanks from the supervisor, and encouragement from the supervisor while doing my work. The study showed higher satisfaction rates with psychological rewards among the participants compared to other rewards. In addition, Dysvik & Kuvaas (2013) found that perceived supervisor support encourages job autonomy while reducing turnover intentions. Also, Alhmoud and Rjoub (2019), Alshammari et al. (2016), and Budie et al. (2019) found that psychological benefits determine employee performance and loyalty to an organisation. These articles underpin the current study’s assumption that psychological rewards that involve receiving support from supervisors encourage better performance and reduce employee turnover intention.
Improving the quality of life among employees is an example of psychological benefits that employees can acquire from work. Allam and Shaik (2020), Jung et al. (2012), and Park and Min (2020) agreed that the quality of life affects employees’ performance and intentions to leave work. However, Emiroğlu et al., (2015) found that demographic factors such as age, marital status, education, and gender may affect psychological rewards. Therefore, HR practitioners must pay attention to individual characteristics that may hinder the optimal potential rewards outcomes. Wu et al.’s (2017) findings also supported the current research findings, particularly relevant to the Muslim culture prevalent in Saudi Arabia. Muslims’ expectations and perceptions regarding the quality of life may differ from employees from other denominations. According to Wu et al. (2017), embedding religious beliefs into the work environment is one approach HR specialists can use to enhance employees’ psychological wellbeing to reducing turnover intentions. The social exchange theory supports the importance of psychological reward satisfaction among employees. The theory assumes that the relationship between two social entities depends on how each respects social norms of explicit and implicit exchange (Ngo-Henha, 2017). Employees who do not accrue the expected social exchange benefits from their employers are likely to quit. Interestingly, the satisfaction levels for the psychological rewards were generally high throughout the different age groups, even from respondents who had low satisfaction levels for other reward types or criteria. Employers can capitalise on these findings to maximise the type of rewards they offer employees.
High turnover rates are usually a result of turnover intentions among the employees. Bothma and Roodt (2013) defined turnover intentions as employees’ willingness or voluntary action to terminate employment with an organisation to pursue employment opportunities elsewhere. The will to leave work occurs as a result of various factors, including job dissatisfaction. Therefore, the intentions translate into turnover rates if left unaddressed. According to Park and Min (2020), reward systems can help managers address employees’ intentions to leave. Turnover intentions are exceptionally high among employees who are generally dissatisfied with their work, but the purpose and eventual leaving are heightened if the management does not address these factors. Turnover intentions, which translate to high turnover ratios if unaddressed, lead to high losses. In the hotel industry, high turnover is a costly phenomenon that leads to loss of profit (Simons and Hinkin, 2001). Therefore, HR practitioners must implement effective strategies that prevent these occurrences.
Managing turnover intentions helps in reducing the costs of frequently hiring and orienting new employees. According to Eshun (2011), employee performance largely depends on their commitment to work. Employees dissatisfied with their jobs are likely to perform dismally, while satisfied employees exhibit higher productivity. A more recent study by AlkhalielAdeeb (2021) hypothesised that the hotel industry is experiencing high turnover due to poor remuneration, insufficient employee training, job stress, and management incapability. Addressing these issues is vital in reducing employees’ intentions to leave work (Okae, 2018). The current study points out that 32% agreed that they likely would actively look for a job in 3 years, and 18% of the respondents strongly agreed that they could look for a job in the next year. The current study revealed that integrating different reward systems can alleviate the problem of turnover intentions. Financial, material, and psychological rewards have proven effective in enhancing performance and reducing turnover intentions among employees in the hotel industry (De Gieter and Hofmans, 2015). However, employers must comprehend the factors that may influence the effectiveness of each reward system, which include individual factors like age, gender, education, and social-economic status.
The study also tallies with the study by Narkhede (2014), In which staff turnover was found to result in younger hotel employees changing jobs 2 to 3 times in the previous decade. The younger age groups were less satisfied with the financial rewards and expressed being dissatisfied with the financial rewards. Furthermore, by analysing experience as a control variable on reward satisfaction, one can deduce that the younger respondents were not entirely satisfied with the financial rewards. This dissatisfaction might be because they started low on their career ladders, so they were still earning less because of low skills or experience.
Impact of rewards satisfaction on turnover intentions
The effect of rewards satisfaction on turnover intentions is a hotly debated issue in the labour industry. Individuals who support reward satisfaction argue that compensation positively appeals to employees’ behaviours and attitudes (de la Torre-Ruiz et al. 2019). Although there is sufficient evidence showing that reward satisfaction is beneficial in reducing intentions to leave work (Ongori, 2007), the application of these rewards vastly differ. HR plays a significant role in promoting customer service in this industry (AlkhalielAdeeb, 2021). Therefore, employers must ensure that the employees are satisfied with their jobs. Therefore, employers must implement different rewards to enhance staff performance and reduce turnover intentions. Analysis of the literature revealed three rewards that improve employee performance and reduce their intentions to leave.
Financial rewards, including salaries, bonuses, and other financial incentives, play a vital role in reducing employee turnover intentions. Moreover, financial incentives have enhanced performance among employees (De Gieter & Hofmans, 2015). The study revealed that employees who perceive their pay as low compared to the industry levels are likely to be dissatisfied with work. Moreover, such employees perform dismally, but they are also expected to invest their time looking for better-paying jobs (De Gieter & Hofmans, 2015). The employees’ intentions to leave are based on the employer’s belief that they do not sufficiently reimburse their skills and effort. Therefore, they are dismal while awaiting better employment opportunities that will offer more financial benefits.
Similarly, employees exhibit intentions to switch jobs when the material benefits do not match their expectations. De Gieter et al. (2008) argued that employment offers other benefits that supersede financial gains. However, these opportunities contribute to the employee’s progress and status within an organisation. Therefore, material rewards encompass any benefits that improve turnover intentions even if they do not affect the employee’s economic implications. However, De Gieter and Hofmans (2015) argued that organisations must recognise the effects of individual characteristics on the effectiveness of material rewards. For example, an employee who has not achieved financial stability may not be satisfied by material rewards contributing to his economic growth.
Employees who have achieved financial stability embrace material rewards that include accolades and recognition. Work-life balance is an essential aspect of an employee’s psychological wellbeing, and organisations must integrate such strategies to improve workers’ quality of life (De Gieter & Hofmans, 2015). Consequently, a higher quality of life motivates employees to perform better and stay loyal to the company. HR practitioners should consider the individual factors that may influence the effectiveness of this reward system.
The discrepancy theory proposes a different paradigm to motivation that entails comparing an individual’s measure of evaluation of the level of satisfaction to a perceived state. Through such a comparative process, it is possible to ascertain a discrepancy between an approved anchor and a personal consideration of feat along the same aspect. The anchor is founded on different elements, such as social pressure, personal expectations, established employment goals, free markets, threshold requirements, or some existing prejudice (Allen and Bryant, 2012). Indeed, job satisfaction is centred on whether the employee recognises that their job delivers the level they value. Also called the value-percept theory, it proposes that people look at job satisfaction regarding particular job angles. For example, the perception may be connected to the promotion, pay, managers, colleagues, or the job itself.
The aspect of pay satisfaction involves the employees’ frame of mind about their pay. Promotion satisfaction relates to the employees’ emotional state regarding the organisation’s promotion policies and how they are implemented (Allen and Bryant, 2012). Supervision satisfaction embodies the employees’ feelings and a general and qualified assessment regarding their boss (Allen and Bryant, 2012). Colleague satisfaction characterises the employees’ frame of mind and professional/relational appraisal regarding their fellow workers (Usha and Rohini, 2018). In the workplace, satisfaction embodies the employees’ feelings about the design and the attributes of their actual work responsibilities.
This chapter discussed the main findings of the study conducted at the Hyatt. In addition to comparing these study outcomes with what was found in the literature. Therefore, the next chapter is the conclusion and recommendations.
Conclusion and Recommendations
This chapter illustrated the research key findings and limitations along with its contributions to literature and practice. Also, it provided timeline recommendations for practice and future research recommendations. The objective of rewards is to significantly increase the number of employees motivated to accomplish exceptional results over a specified period of time. This will be accomplished by maximizing the channels used for motivation beginning on the first day of work and continuing throughout the job tenure (Allen and Bryant, 2012). Because turnover is the major metric used to determine the effectiveness of our rewards for salaried workers signup, increasing both the financial and material rewards will ultimately result in increased of desired results.
The research has sufficiently answered its question (What is the perceived impact of reward satisfaction on employee turnover intention in the hotel industry?). Also, the study met all its objectives in the context of the Saudi hotel industry. This research examines the impact of reward satisfaction on employee turnover intentions at the Hyatt Regency Riyadh. The following subordinate purposes were investigated to achieve the main objective and produce a set of recommendations:
- To analyse the employee turnover intention in the hotel industry.
- To identify reward types
- To evaluate the relationship between reward satisfaction and turnover intention.
- To examine the Effect of Financial, Material, and Psychological Rewards Satisfaction on Employee Turnover Intentions
- To identify the perceived impact of reward satisfaction on employee turnover intentions at the Hyatt Regency Riyadh.
A study was successfully conducted to understand the effects of rewards on turnover intentions at the Hyatt. One of the findings is that although generally, the respondents were satisfied with their financial and material benefits, some respondents were not happy with their rewards. However, across all the different criteria, most respondents were quite pleased with the psychological rewards. In addition, the older respondents, more experienced and male respondents, showed higher satisfaction levels than their counterparts, perhaps because of more remuneration resulting in low turnover intentions.
A total of 63% of the participants said they were satisfied with the financial rewards offered at the Hyatt, which were categorised into the size of current salary, the overall level of pay, current salary, and take-home salary. Key findings showed that 37% of the participants were satisfied with their salary size, current salary, and take-home pay, while 39% were happy with the overall pay level. Overall, 63% of the employees were satisfied with the material benefits, while 29% were satisfied. The value of the benefits package produced the highest score for ‘very satisfied’ at 29%, compared to the other satisfaction measures. However, the benefits package had the highest score for ‘satisfaction’ at 34%. In addition, 45% of the participants were very satisfied with compliments and recognition from supervisors, while 47% were very satisfied with words of thanks and encouragement. Overall, a small number of the Hyatt employees shows some turnover intentions.
Contributions to literature and practice
This study contributes to the existing literature by providing a bridge between past and future research. Future researchers can build on this information to conduct further research in other hotels in Saudi Arabia and beyond. The study also explored equity theory, Vroom’s expectancy theory, and Lawler’s discrepancy theory in enhancing employee satisfaction with rewards. The findings offer a pertinent background for future investigation of other theories within the same context. The study also demonstrates theory application in research, which is crucial to other researchers who wish to replicate the analysis to other contexts of different sets of participants. One of the most significant contributions is represented by comprehensive quantitative data collected and analyzed throughout the study. Even though the research encountered several statistical limitations, several tests have shown that the data is reliable and suitable for the current research and any further investigation.
The study also makes significant contributions to HRM practice. Managers can utilise the findings to design and implement effective reward systems to reduce turnover intentions. Leadership in the hotel industry can also use the information to improve the working environment and set ideal pay packages for employees to reduce intentions to leave. The study also offers pertinent insights regarding factors that influence reward satisfaction levels, including individual and organizational aspects. For example, the study showed that words of thank you and encouragement produce higher psychological reward satisfaction compared to recognition and compliments from supervisors. Even though the scope of the study was primarily focused on the hotel industry, its findings may be broadly utilized in other fields. These findings may be implemented in businesses that rely on human resources. Reducing turnover intentions is particularly critical for organizations that require highly qualified specialists, and hence information regarding the use of reward systems may represent significant practical value.
Research limitations and future recommendations
The first limitation to this study was that the results could not be generalized to all hotels in KSA, although the focus was the Hyatt-Regency in KSA. Yet, generalizing the results to other hotels may not be advisable because work settings differ. Thus, the first recommendation for future research is to expand the scope to include other hotels in KSA. Broadening the scope will offer broader insights regarding the connection between reward satisfaction and intent to leave work. The expected benefits of this recommendation include increasing the generalizability of study findings and enhancing the validity and reliability of the results. Meiklejohn et al. (2012) recommended using a broader sample population to reduce bias. Measuring the success of this recommendation would require ascertaining employees from other hotels participate in the study.
The second limitation was that the researcher experienced low response rates to the effects. One of the possible causes of the inadequate response is that the questionnaires were distributed online to the respondents. For that, improving the response rate to include more participants in the other recommendation for future research and increasing the response rate reduces the risk of bias due to a small sample population that does not represent the larger population sufficiently. Thus, increasing the response rate will reduce bias and enhance the validity of the study findings. Meterko et al. (2015) argued that a higher response rate is essential in reinforcing the application of the study findings to the larger population.
The third limitation was that the study did not include interviews but solely relied on the survey questions to gather sufficient data. As a result, combining interviews with surveys is the other recommendation for future practice. The expected benefits include improving the overall quality of the research data, consequently enhancing the validity of the study results. According to Harrison et al. (2020), a mixed-methods approach that combines qualitative and quantitative data is beneficial because it counters each data type’s weaknesses while amplifying the strengths.
Recommendations for Practice
Short-term recommendation (0-11 months)
Enhancing a sense of purpose by appreciating employees’ input and efforts is an ideal short-term recommendation for reducing turnover intentions. As discussed in previous chapters, acknowledging the employee’s input, and praising their efforts appeal positively to their attitudes and behaviours. It might be implemented by encouraging the supervisor to thank employees for their work. Additionally, as mentioned in the discussion chapter, material rewards could help reduce turnover intentions among employees within the hospitality sector. The expected benefits of increasing material rewards include better productivity and higher revenues.
Medium-term recommendation (1-3yrs)
Financial rewards should be based on performance and applied uniformly across the firm. Goal-oriented rewards only those who directly contribute to the company’s strategic goals or bottom line for the period of 1 -3yrs. It is easy to reward tangible outcomes like sales objectives or client retention that take time to realize, and top performers strive for it. Success requires teamwork, in order to build cooperation, develop a rewarding system that will involve the workers (Allen and Bryant, 2012). If some team members clearly put in more effort than others, consider a tiered team or individual incentive system to avoid animosity among top achievers.
Long-term recommendation (3-5yrs)
Promoting overall psychological wellbeing is an ideal long-term recommendation for practice that would enhance work-life balance. Where this study proves that psychological reward satisfaction helps reduce turnover intentions. This recommendation can be applied by adjusting the working schedule to promote work-life balance and implemented within four years. Furthermore, this study found that employees tend to leave their current positions to pursue better employment opportunities. For that reason, providing growth opportunities can help in reducing turnover intentions in the hospitality industry. This can be achieved within five years by offering promotions and better career opportunities within the organization.
A comprehensive model and measure of compensation satisfaction
Human resource practitioners, to a great extent, are the organization department that is in charge of rewarding employees. They assess performances of each department including HR and measure the value of compensation that is satisfactory for the individual employees (Alzalabani, 2017). Rewards, and in particular their satisfaction, have often been the channel through which organisations spur and promote appropriate employee conducts and attitudes, such as commitment and good performance, and depress unfavourable behaviours i.e. absenteeism and employee turnover (De Gieter and Hofmans, 2015). The proposition is founded on the critical motivation theories, including Vroom’s Expectancy Theory, Adams’s Equity Theory, and Lawler’s Discrepancy Theory.
However, for the rewarding process to be effective, the organisation must rethink its reward structure and move towards a ‘total reward management’ approach. This involves seeing a reward as any cherished result an employee obtains from the employer in exchange for their performance (Kim et al., 2017, 2017; Alshammari et al., 2016). Total reward management not only involves providing suitable financial rewards but also stresses the need to complement them with extra rewards, namely, material and psychological rewards. Ren et al. (2021) state that reward management is based on the premise that rewards influence employee conducts and attitudes, albeit not straightway. The influences are inclined more on the value that employees attach to rewards and satisfaction obtained from the rewards.
This chapter reviewed the research key findings, limitations, contributions to literature, and practice. Also, it provided timeline recommendations for practice and future research recommendations. The next chapter is the personal learning reflection.
Personal Learning Reflection
The final chapter of this research covers the significant challenges the researcher has faced and the personal performance analysis, in addition to the future development plans.
Developing this thesis was initially tough due to the various challenges that I encountered before I began. First, I had chosen the healthcare sector as my topic. However, I quickly learned that the ongoing pandemic adversely affected the healthcare sector, compromising research efforts. This experience helped me realise that sometimes, selecting the topic is not as easy as focusing on areas of personal interest. Townsend et al. (2020) argue that the subject should potentially advance existing empirical, theoretical, and methodological literature and attract substantial attention from field experts. I realised that the healthcare sector is currently focused on the pandemic, and any topic that does not align with this theme may not attract substantial attention. Therefore, changing my topic and concentrate on the hotel industry was the best step to take. The experience intensified my curiosity about new fields that I can explore in the future.
I also encountered challenges collaborating and communicating remotely with various parties when disseminating the questionnaires. Direct communication alleviates issues related to miscommunication that may arise from misunderstandings. This experience encouraged me to discover other forms of communicating that mimic face-to-face communication. For example, I found that I could use video conferencing to communicate with the participants and provide any clarifications they may have needed (Archibald et al., 2019). During the initial stages of thesis writing, I made a mistake confusing turnover intention with turnover rate. I had to make many corrections, a process that consumed substantial time that I would have invested in writing and researching. The challenge taught me the importance of organising and simplifying a more extensive project into smaller parts (Townsend et al., 2020). Simplifying enabled me to identify errors before writing a section, saving me a lot of time
Selecting the topic on the effects of reward satisfaction on employees’ turnover intentions helped me discover my passion for managing employees. Although my initial focus was on the healthcare sector, I found that employee management is almost similar across all disciplines. Work environments contain stressors that affect employees the same. For example, De Gieter et al. (2010) found that nurses experience the same challenges that employees in the hotel industry encounter. Recommendations for addressing these challenges were also similar. For example, De Gieter et al. (2010) recommended implementing psychological rewards to enhance nurses’ productivity and reduce turnover intentions. Similarly, AlkhalielAdeeb (2021) observed that psychological rewards reduced hotel employees’ turnover intentions. Discovering this new interest opened my mind to the number of future possibilities I could pursue in my profession.
The exercise also helped me discover self-confidence, which I noticed during the personal interview with Hyatt-Regency hotel management. I introduced myself and presented the goal of the study to the panel. Initially, I doubted my capacity to convince such a team of knowledgeable and experienced experts in the hotel industry about the significance of the study. At the same time, I lacked similar qualifications and experience. However, I noted their interest in the topic when they kept asking questions regarding the study, which heightened my self-confidence and negotiation skills. At the end of the interview, I had won the whole team, and they looked forward to the final findings and how they would affect practice. This experience prepared me for future endeavours that may require negotiation with individuals in senior positions.
Writing the thesis gave me a first-time experience of handling pressure without breaking it, which is an important lesson applicable to my future endeavours. Mandal et al. (2018) acknowledged that writing a thesis is a daunting task for post-graduate students. However, the exercise was an opportunity to explore literature related to my topic systematically. Saunders et al. (2016) book were vital resources in organising my thesis. I was overwhelmed by the amount of literature that is available regarding different topics. Yet, the hotel industry is a bit far from solving high turnover among its employees. Discovering knowledge gaps in the literature amplified my resolve to contribute to the existing empirical evidence by conducting future research.
In the future, I would like to explore the differences in labour laws across different countries and establish how these differences affect employee turnover intentions and productivity. The study offered me an opportunity to learn about employment laws in Saudi Arabia, which are set by the Ministry of Human Resources and Social Development. Thus, I want to learn more about these laws through programs available to the public via the ministry. My knowledge is currently a bit limited to labour laws in Ireland and the European Union. In the future, I will invest sufficient time in the study to ensure I comprehensively address the questions raised in my subject. Although writing the thesis was initially a daunting task, it was equally satisfying and empowering because it helped me discover exciting workplace points. I will use this new knowledge to improve employees’ working experiences in the future.
This chapter has clarified the strengths and weaknesses that were discovered while working on this research. It also reviewed its impact on the researcher’s professional future.
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Appendices A: SWOT Analysis
- Hyatt Regency Riyadh has global recognition and attracts numerous local potential customers and from abroad, contributing to the growth of positions in the hospitality industry (Puri-Mirza, 2020).
- The tourism sector is the third most crucial industry of Saudi Arabia after energy and manufacturing. Consequently, it plays a pivotal role in job creation and foreign exchange earnings in Riyadh’s Hyatt Regency (Bashir, Balaraman and Mukherjee, 2020).
- The opportunities to participate in work and travel programs result in foreign employees’ growth in the hospitality industry. Therefore, residents might not get a position in the Hyatt Regency Riyadh (Bashir, Balaraman and Mukherjee, 2020).
- The previous lockdowns because of the global pandemic led to the job cuts in the tourism sector due to the high cost of their militainment (Malhotra, 2021)
- The potential growth and advancement of the tourism sector are promising in the following types: youth, leisure, religion, medical, and business. As a result, it might yield fruitful benefits in the form of income potential and employment generation (Bashir, Balaraman and Mukherjee, 2020).
- Saudi Arabia is expecting to soar the hospitality industry’s contribution to GDP (Jamel, 2020). Tourism and National Heritage is planning on attracting 100 million visitors by 2030 annually with an investment of SR115 billion (Jamel, 2020). As a result, the Kingdom of Saudi Arabia is bound to enter the top five countries in receiving tourists, which will lead to the need of expanding the staff (Jamel, 2020). As a result, the employment generation might rise, and therefore, more positions might be available for residents in the Hyatt Regency Riyadh.
- Due to the growing number of companies in the hospitality industry, the local distributors raise their supply prices. Therefore, organisations attempt to save up their funds in other ways: denying the pay raises to the staff and employing fewer potential workers.
- Possible global lockdown due to the Covid-19 pandemic has made businesses costly to maintain. Thus, employers will dismiss workers to invest less into wages and bonuses for the staff (Malhotra, 2021).
Appendices B: PESTLE Analysis
- Organisations in the service industry are required to provide employees with fringe benefit packages mandatory (Alzhrani, 2020).
- The economic power of the country depends mainly on three industries: energy, manufacturing, and tourism. Therefore, as the hospitality industry in Saudi Arabia is crucial, it is bound to grow and develop, resulting in employment generation (Bashir, Balaraman and Mukherjee, 2020; Jamel, 2020).
- The organisation is forced to alternate the educational requirements for employees regarding the academic level in Saudi Arabia.
- Opinions and beliefs on safety, environment and leisure considerably determine the meaning of the company’s policies and employers attitudes to the workers (Alzhrani, 2020).
- Society and hierarchy norms strongly impact the brand’s image and operating strategies in the Hyatt Regency Riyadh (Alzhrani, 2020).
- Modern technological trends tend to be costly, and sometimes companies in the hospitality industry cannot invest such sums into machinery advancement. However, for hotels to be competitive, they need to embrace technology in their space (rooms, receptions, dining rooms, bars, room safety etc.).
- Hyatt Regency Riyadh needs to make sure that their laws are aligned laws of the country: health, safety, trade practices, monopoly, and data protection. This way, the company can guarantee the employees safe working settings in the organisation (Alzhrani, 2020).
- Human Resources and Social Development of the country promise the employees rights protection in the company. Thus, workers become more satisfied and content with their positions as they are fairly rewarded and safe at their workplaces (Bashir, Balaraman and Mukherjee, 2020).
- International conferences held in Riyadh’s capital regarding environmental conditions led to the organisations adjustment to the ecological norms. As a result, the companies are eager to develop their functioning, relying on the shortening of the carbon emissions, decreasing air and water pollution. Thus, they invest more funds into such an advancement, motivating employees to tackle the organisation’s environmental issues with pay raises and higher wages (Jamel, 2020).
References for SWOT and PESTLE analysis
Alzhrani, A.M. (2020). Strategic Management of the Tourism Sector in Saudi Arabia. Global Journal of Management and Business Research: a Administration and Management, 20(4), pp.45–50.
Bashir, N.A., Balaraman, P. and Mukherjee, A. (2020). Strategic Business Enablers and Infrastructure Insights of the Saudi Arabian Tourism Industry. Advances in Hospitality, Tourism, and the Services Industry, pp.33–60.
Jamel, L. (2020). The Relation between Tourism and Economic Growth: a Case of Saudi Arabia as an Emerging Tourism Destination. Virtual Economics, 3(4), pp.29–47.
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Appendices C: Pilot study questions and results
Appendices D: Tables for analysing the measurement items
Appendices E: Survey form
Appendices F: Department as a control variable