What do hotel managers think of employee rewards? An exploration of five-star hotels in Cape Town

Abstract

Reward systems are important tools that management can use to motivate employees; the main objective of organizations in awarding rewards is to attract and retain efficient, productive, and motivated employees. However, there is no evidence available regarding managers' perceptions of employee rewards in five-star hotels in Cape Town. Therefore, this study aims to explore the perceptions of five-star hotel managers about the reward systems offered to employees. Further, this paper attempts to explore the influence and impact of the covid-19 pandemic on the employee reward systems offered at five-star hotels. A total of 14 interviews were conducted with managers working in four selected five-star hotels. The study used semi-structured interviews to collect qualitative data. The data were analysed using Creswell’s six steps. The study's findings indicate that managers offered distinct types of rewards to their employees, including extrinsic and intrinsic rewards. Managers revealed that extrinsic rewards, specifically money, are the most preferred rewards. The study revealed that the impact of the Covid-19 pandemic led to hotels adjusting their employee reward systems to offer less extrinsic rewards and more intrinsic rewards. This paper concludes by recommending strategies to hotel management for enhancing the type of rewards offered to employees and offering utilisation of effective intrinsic rewards. This is to ensure that employees increase their value towards intrinsic rewards as much as they value extrinsic rewards Implications for future research are also presented.