Journal article Open Access

Effect of employee recognition on employee retention in hotels in Kenya

Norah Sitati; Susan Were; Gichuhi A. Waititu; Alice Miringu

The aim of this research study was to find out the effect of employee recognition on employee retention in hotels in Kenya. The hotel industry in Kenya falls short of the industries turnover average and still leads in employee turnover. In the year 2011, labor turnover was at 68% in five star rated hotels. Today, the industry is confronted with the continuously evolving challenge of demand for retention of appropriate talent. Consequently, this has impacted negatively on hotel business sustainability due to high costs of training new employees, replacement and separation for the departing employees as well as affecting customer satisfaction. The objectives of the study were to establish the effect of career development on employee retention in the hotels in Kenya. This research problem was studied through the use of a survey research design. The target population of this study comprised of 213 hotels registered under the Kenya Association of Hotelkeepers and Caterers in Kenya. A representative sample of 137 hotels was selected from each hotel region using stratified random sampling. Data were collected using structured questionnaire administered by the researcher to get response from the sample population. A pilot test was conducted to test the reliability and validity of the data collection instruments. Descriptive and inferential statistics were used to analyze the data. The findings in the Deloitte correlation analysis indicated that employee recognition is positively and significantly associated with employee retention in the hotel industry in Kenya. From the univariate analysis, the study also found that employee recognition has a positive and significant influence on employee retention in the hotel industry in Kenya. The study recommended that the management of the hotels should enhance employee recognition through monthly or yearly recognition. The study concluded that employee recognition affects employee retention in the hotel industry in Kenya. There was a positive and significant relationship between employee recognition and employee retention in the hotel industry. This shows that when employee recognition in an organization increases, employee retention also increases and when employee recognition decreases, employee retention decreases.

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