Reward systems and employees’ performance in selected star-rated hotels in Nakuru City, Kenya

Abstract

The aim of this study was to evaluate the influence of reward systems on employee performance in the Hospitality Industry. An employee reward system is the structure an organisation puts in place to provide tangible forms of recognition to its employees. Employee performance is driven by reward systems, which provide a framework to inspire, recognise, and retain top talent across industries. Employees are the driving force of exceptional visitor experiences in the vibrant landscape of the hospitality industry. The study was done in star-rated hotels within Nakuru City. Star-rated hotels are an indication of the range of facilities available, such as number of restaurants, location, food services, conference, room variation, swimming pool and spa service. The sample size comprised 42 employees selected through stratified and simple random sampling techniques from various departments in the selected star-rated hotels. Descriptive statistics were used to analyse the data. The results indicated that reward systems have a positive effect on employee performance. In addition, some reward systems were observed to be preferred by employees over others. Therefore, hotels should consider adopting various reward systems in their establishments in order to meet the needs of their employees for enhanced performance. The findings of the study will benefit senior management and the human resource division of hospitality establishments as it will help them determine the most effective reward systems for improved employee performance.