COMPENSATION STRATEGIES AND EMPLOYEE TURNOVER AMONG FIVE STAR HOTELS IN NAIROBI CITY COUNTY, KENYA
Abstract
This study investigated the effect of compensation strategies on employee turnover in five star hotels in Nairobi City County, Kenya. A descriptive research design was adopted for the study. A sample size of 110 respondents (20% of target population) was included in the study. The study included a stratified random sample sampling technique with proportional allocation to each stratum, which were the five hotels at the time of September, 2019, and 556 employees working at the hotels at that time. The primary data was obtained through semi structured questionnaire. The study showed that the employees are paid overtime, bonuses, and that employees are relatively well-off compared to the other Hotels. According to the findings of the study, the majority of respondents agreed that job promotions are based on professionalism; changes in working environment are part of the promotion process; and job promotion slightly results in a change of position. The study also showed that employee policies within the hotel were unclear. It also found that younger age groups (regardless of gender) were more likely to move from one job to another compared to older age groups who had a high level of tenure in one job. The study also found that job promotions had no statistically significant impact on employee turnover at five star hotels in Kenya. The study also found that organisational culture had a moderate impact on employee turnover when it comes to remuneration strategy in five star hotels in Kenya. Recommendations were that it would be beneficial for firms to conduct a thorough evaluation of their wage structure with the aim of enhancing employee motivation, job retention, and overall performance. Organizations ought to prioritize the cultivation of positive relationships with their employees through the provision of attractive incentives, encompassing both monetary and non-monetary forms of compensation.
Key Works: Remuneration Strategy, Job Promotion Strategy, Compensation
CITATION: Odhiambo, E. A., Wainaina, L., & Makhamara, F. (2024). Compensation strategies and employee turnover among five star hotels in Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 11 (2), 1186 – 1201. http://dx.doi.org/10.61426/sjbcm.v11i2.2978
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2978
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