Impact of Compensation on Employee Retention in the Hospitality Sector

Shrinjala Singh

Home / Current Issue / Paper 1708736

1708736 Vol 8 · Issue 11 Download Paper

Impact of Compensation on Employee Retention in the Hospitality Sector

Shrinjala Singh

Subject area: Management and Commerce · Area of research: Compensation and Employee Retention

Abstract

Employee retention remains a critical challenge in the hospitality sector, where high turnover rates disrupt operational efficiency and service quality. Compensation?encompassing salaries, bonuses, benefits, and non-monetary rewards?plays a pivotal role in influencing employees' decisions to stay or leave. This research explores the relationship between compensation structures and employee retention in the hospitality industry, using hypothetical survey data from 150 employees across hotels and restaurants. Findings suggest that competitive wages, performance-based incentives, and work-life balance benefits significantly enhance retention. The study concludes with recommendations for hospitality managers to design compensation packages that align with employee expectations while maintaining organizational sustainability.

References

[1] Davidson, M. C., Timo, N., & Wang, Y. (2019). Turnover in hospitality: A meta-analysis. International Journal of Hospitality Management, 78, 1 -12. https://

[2] Herzberg, F. (1959). The motivation to work (2nd ed.). Wiley.

[3] International Labour Organization. (2021). *Global wage report 2020-21: Wages and minimum wages in the time of COVID-19.* ILO. https://www.ilo.org/global/publications/books/ WCMS_762534/lang--en/index.htm

[4] Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370- 396. https://

[5] Poulston, J. (2008). Workplace culture in the hospitality industry: A review of compensation and retention issues. Journal of Human Resources in Hospitality & Tourism, 7(2), 143- 162. https://

How to cite this paper

Shrinjala Singh "Impact of Compensation on Employee Retention in the Hospitality Sector" Iconic Research And Engineering Journals Volume 8 Issue 11 2025 Page 1786-1790

Shrinjala Singh "Impact of Compensation on Employee Retention in the Hospitality Sector" Iconic Research And Engineering Journals, vol. 8, no. 11, May. 2025

Shrinjala Singh (2025). Impact of Compensation on Employee Retention in the Hospitality Sector. Iconic Research And Engineering Journals, 8(11).

Shrinjala Singh "Impact of Compensation on Employee Retention in the Hospitality Sector" Iconic Research And Engineering Journals, vol. 8, no. 11, May. 2025.

@article{1708736,
      author = {Shrinjala Singh},
      title = {Impact of Compensation on Employee Retention in the Hospitality Sector},
      journal = {Iconic Research And Engineering Journals},
      year = {2025},
      volume = {8},
      number = {11},
      pages = {1786-1790},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1708736.pdf},
      abstract = {Employee retention remains a critical challenge in the hospitality sector, where high turnover rates disrupt operational efficiency and service quality. Compensation?encompassing salaries, bonuses, benefits, and non-monetary rewards?plays a pivotal role in influencing employees' decisions to stay or leave. This research explores the relationship between compensation structures and employee retention in the hospitality industry, using hypothetical survey data from 150 employees across hotels and restaurants. Findings suggest that competitive wages, performance-based incentives, and work-life balance benefits significantly enhance retention. The study concludes with recommendations for hospitality managers to design compensation packages that align with employee expectations while maintaining organizational sustainability.},
      month = {May},
  }