The Impact of Reward Systems: Remuneration on Job Satisfaction Within the Hospitality Industries in Ghana

INTRODUCTION

This is a qualitative research method that reviews remuneration and job satisfaction by which they both improve how the employee feels about their job. Job satisfaction is seen as important characteristic of employees work and also, remuneration is considered as a quality reward to employees' working life which is a crucial factor used to determine the quality of employees' engagement in the hospitality industry in Ghana.

Job satisfaction is an emotional or pleasurable state of workers that results from the appraisal of the individual job and their experiences (Baffoe & Bediako, 2021). It is stated that managers are particularly concerned about remuneration and job satisfaction among their workers (Rapai, 2017). Lack of Job satisfaction may lead to increased employee turnover, absenteeism, and undesirable behaviors. In this case, employers should create and implement satisfaction among employees at least to boost their career development. Wahyuhadi et al. (2023) stated that previous research on remuneration indicated that it will not directly lead to employee satisfaction at work. Remuneration has a direct beneficial connection to company employees’ desires and likewise their expectations. Hence, the remuneration packages offered by the employer have a significant impact on how long employees are willing to stay on the job as loyal staff (Armstrong, 2016; Valentyna & Inesa, 2019; Mitsel et al., 2021; Zayed et al., 2022).

Problem Statement

AH Hotel is among the oldest, most popular, and one of the largest hotels in Accra, Ghana. Most hotels in the country experienced a severe drop in occupancy numbers from 2014 up to date and currently include the problem of COVID-19 (because the hotel has not yet fully recovered from its losses). The annual reports of the Ghana Tourism Authority reveal that the major cause of these sharp drops in hotel occupancy statistics in the hospitality industry is mainly associated with reward systems management. Job dissatisfaction and low remuneration have been noted as some of the most dreadful challenges facing organizations today which leads to a reduction in productivity (Musyoki, 2012). Thang and Buyens (2008) distinguished that this increase in employee dissatisfaction can lead to fatigue which inspires this study to focus on the study of remuneration as a reward system and employee job satisfaction within the hospitality industry. Donthu and Subramanyam (2022) indicated that many organizations in today’s global context are facing immense challenges in improving their employees’ job satisfaction which could have improved their organizational commitment to competitive advantage for the organization and also help to maintain and retain their key employees. This is a big challenge to the hospitality operators in Ghana and this must be researched for possible recommendations.

Remuneration as a reward system is very essential for the survival and growth of every company and the ability to handle it can predict how far an organization can go in terms of attracting, retaining, and motivating employees to perform duties and roles that are not part of their normal contractual duties (Baffoe & Bediako, 2021). The companies or institutions who are reconstructing themselves are finding it difficult to keep up the morale of their employees.

Several studies have been done on the association of remuneration as a rewards system and job satisfaction, based on the articles reviewed, most of them did not focus on the context of Ghana (Agustiningshi et al., 2017).

Purpose

This study seeks to examine the impact of remuneration as a reward system and job satisfaction among AH Hotel employees.

Research Objectives

1. To determine the impact of remuneration on job satisfaction of employees.
2. To further understand how remuneration policies were affected during the COVID-19 pandemic as part of employees' reward system.
3. To establish how remuneration as a reward system is implemented within Ghana organizations.

Literature Review

Conceptualization of Remuneration Systems

Previous research concluded that a remuneration as remuneration package does not directly lead to employee satisfaction since motivation is the main factor that determines employees’ job satisfaction (Wahyuhadi et al., 2023). It is time over the years now that, the necessary reviews must be done on the remuneration (reward system) that has been running for some time now since it relates to the job satisfaction of workers (Dewi & Analisis, 2019; Cita Rosita Sigit Prakoeswa et al., 2021; Ihinmoyan, 2022).

Bratton and Ray (2000) explained reward as being financial, non-financial remuneration (like gifts), and other benefits packages provided by the employer to increase employees’ performance and productivity or to appreciate the extra effort of employees. Gross and Friedman (2004) summarized reward as total remuneration, benefits packages, and other advantages designed by the organization to motivate employees to increase their performance and productivity in the workplace. A reward can be anything or remuneration that attracts employees’ attention and stimulates them to work and receive from the organization for their services and contributions rendered to the organization. According to Kibet et al. (2013), the reward system is a method, procedure, and strategy designed by the human capital manager to retain and attract employees to the company.

Griffin and Moorhead (2013) commended that the purpose of the reward system is to attract, retain, and motivate qualified employees and Armstrong (2013) then took a similar stance when it opined that a reward system should have an effective combination of both monetary and non-monetary reward and incentives to satisfy the needs and expectation of employees to induce them to contribute their best toward achieving organizational goals effectively and efficiently. Finish and Usman (2010) held a similar view when they established in their study that an effective reward system and adequate recognition of performance in an organization create favorable working conditions for employees and serve as a key motivator for employees to increase productivity effectively and efficiently. Remuneration has the utmost impact on employees’ performance to the motivation inherent in it (Armstrong, 2013). This means that the role of rewards in motivating employees cannot be exaggerated due to their contribution toward organizational effectiveness and accomplishment.

Remuneration as Reward Practices or System

The following are the number of remuneration reward packages that can be used to show appreciation for employees’ efforts. However, a few remuneration reward packages are explored as follows:

Wages and Salaries

‘‘Wages and salaries are the remunerations paid or payable to employees for performing work on behalf of an employer or services provided.’’ As is always the case, an employer is not mandated to withhold the wages and salaries or pay part thereof, it is required by law. It is worth noting that wages and salaries include amounts payable at regular intervals, such as weekly, monthly, or other intervals as agreed between the employer and the employee. This helps employees to meet their physiological needs that is, food, clothing, and shelter as in Maslow’s theory of need.

Bonus

A bonus is defined as something given or paid in addition to what is usual or expected. However, employees do not have the right to claim bonuses, unless it has been agreed upon in their employment contract or collective agreement. In such a manner, non-payment of bonuses constitutes an unfair labor practice. The inception of bonuses in an organization helps to ensure job satisfaction among employees thereby increasing their job performance (Anik et al., 2013).

Allowances

Allowance is money that a company or government agency provides to an employee for a specific purpose, such as transportation, healthcare cost, cost of living, risk, and many others. Allowances are paid in addition to basic pay for special circumstances or features of employment such as overtime, shifts, or working unsocial hours. This is because employees feel that their organization cares about them and they feel a sense of reciprocating this kind gesture (Simanjorang & Tumbuan, 2016).

Recognition

Recognition is the acknowledgment, appreciation, or approval of the positive accomplishments or behavior of an individual or team (Caligiuri et al., 2010). It can also be said that employee recognition plays a vital role in ensuring the motivation of employees to enable them to demonstrate good behaviors such as offering to help customers and or co-workers. This is because employees want to be publicly seen or recognized in the workplace for their achievements.

Fringe Benefit

Today’s companies focus more and more attention on the fringe benefits to motivate their employees, reduce labor turnover, and increase employees’ commitment and performance (Kose et al., 2015). Fringe benefits include various types of non-financial remuneration that prove to workers in addition to their base salaries and belong to the type of extrinsic rewards and they are designed to make remuneration packages more attractive.

Job Satisfaction Concepts

According to Wahyuhadi et al. (2023), the COVID-19 pandemic that health workers went through, brought a phenomenon that they were not satisfied with since they had challenging issues with a sustainable hospital management service. This is the same way that the Pandemic affected the hospitality industry workers as well. They also had a devastating prolonged period of lockdowns without social contacts that rendered their work redundant in the mix of the COVID-19 pandemic. Donthu and Subramanyam (2022) wrote that the job satisfaction dimensions of the study such as supervision, pay, promotion, and the job itself affect the performance of employees. Besides this means that attention should be given to the employees’ job satisfaction and the changes in job satisfaction dimensions can bring a significant change to the worker's performance productively.

Budiman et al. (2014) stated that there is no consensus on the dimension of job satisfaction. Nevertheless, the most popular ones are as follows; pay, working conditions, promotional opportunities, supervision, and co-workers. They further stated that these indicators are also considered situational factors of the organization. In identifying the most significant dimension of job satisfaction, pay is considered as one most popular dimensions that influences the satisfaction of employees (Budiman et al., 2014). Many studies have shown that five (5) main important components of job satisfaction, including the general work or the job itself, namely superiors (supervision), rewards (pay), promotion opportunities, and co-workers' behaviors (Wahyuhadi et al., 2023). Below is a research review framework.

MATERIALS AND METHODS

Research Design

Since this research aims to assess the impact of remuneration and job satisfaction among hotel workers, there is a need to gather data on remuneration and job satisfaction of hospitality services in Ghana. Due to this, the study adopted a qualitative approach.

Sample and Sampling Technique

A sample is a smaller but hopefully representative collection of units from a population used to determine the truth about that population. A quota sampling of 50 AH Hotel workers responded to the interview questionnaire. Quota sampling is a non-probability sampling method that relies on the non-random selection or convenience of a predetermined number or proportion of units. AH Hotel comprises many segments of workers and since the population is not readily available, the best option is to consider the quota of the workers which is within the qualitative study and not the quantitative study.

Data Collection Instrument

The research designed closed-ended and open questions in the interview questionnaire (as a data collection instrument qualitative in nature) which the respondents replied. The interview questionnaires are made up of three sections. The secondary segment is associated with the private profile (bio-data) of the respondent which includes their age, marital status, education, and gender. The primary section is related to the question relevant to remuneration and job satisfaction.

Interview

An interview process is deemed fit for this research design. Participants were approached with questionnaires (as a research tool or instrument developed) and then asked to give their feedback as to how they understood it. Questionnaires can be qualitative or quantitative and can be conducted online, on paper, or face-to-face. The researcher's presence means that when questions are asked they it is answered instantly and further clarifications are given to participants, especially, when conducting a qualitative study.

Procedure for Data Collection

The interview questionnaires were administered to the hotel service workers within the facility to solicit their views and help the researcher gain an in-depth insight into the phenomenon under investigation. This is self-data collection and so therefore the researcher first made a self-introduction and explained to the respondents what the questionnaire is about and then asked them to provide answers or feedback designed qualitatively.

Method and Procedure for Data Analysis

The empirical analysis for the study aims to find out how remuneration would impact job satisfaction among AH Hotel workers. The data was collected through an interview using an interview questionnaire and analyzed based on descriptively thus, frequency, bar chat, pie charts, and percentages were used in the analysis. SPSS/Excel was used to analyze the data. Descriptive statistics for qualitative analysis are specific methods used to calculate, describe, and summarize collected research data in a logical, meaningful, and efficient manner. Its centrality is based on the mean, median, and mode which can be determined also in charts or graphs. Descriptive statistical analysis is not just for regression or structural equation modeling tools or packages as in the quantitative study.

RESULTS AND DISCUSSION

Below are the results of the data that was collected from primary sources of participants. It highlights the analysis and discusses the findings of the results. First of all, when the interview questionnaires were done, some of the questions were not answered by the participants due to personal reasons. Therefore, all the checks and reconciliations were done before entering the data for the results. The following is a detailed presentation of the data results and findings.

Table 1. Demographics of the interviewees

Table 1 above depicts the results for the participant’s profile. It shows that the highest number of staff ages working at AH Hotel is between 18 – 25 years representing 48% as the least age. This is followed by the ages between 26 – 33 years representing 24% of the participant’s age. Meanwhile, nobody falls within the 50-plus years in AH Hotel. What this means is that the majority of employees in AH Hotel are young people who have the energy and strength to do the job.

Table 1 above shows that the female workers in the hotel are 70% as against 30% male. However, it appears that most of the participants are degree holders since they were 38 out of 50 respondents. The educational level SSS/SHS was the next educational level of workers in the Hotel representing 18%. In this regard, there are more women in the Hotel than men whereas many of the workers are degree holders from universities. It also means that the workers are well educated in doing their work. However, the only concern is that no single individual in the hotel is a master's degree holder.

The results in Table 1 further showed that 70% were married whereas 30% of them were singles. In this instance, many workers in the hotel are not married and are single. Only a few are married and this shows how this type of industry engaged their human resources. It may mean that the singles are easy to use and maneuver around their work easily. The single workers may be those who can work flexibly without absenteeism.

The results clearly showed that 36% of the workers hold Office Assistant/Receptionist positions, 26% of them are cleaners, 18% are security men, and 14% are chefs or caterers. These results show that there are more Office Assistants or Receptionists than others but cleaners too are many in the AH Hotel.

The above Figure 2 indicates the charts of the various results in Profiles like Age, Gender, Educational Level, Marital Status, and the Positions they occupy with others they listed by themselves.

Remuneration (Wages and salaries)

Table 2. Data Results on Remunerations

Table 2 above, shows the various forms and categories of remuneration received by staff of AH Hotel. With regards to the wages and salaries matters, 32 out of the 50 participants representing 64% indicated that they are not happy with their wages and salaries whereas 18 out of the 50 participants representing 36% said they are happy with their wages and salaries. As a result, many of the workers are not happy with their pay because of the lower rank position they occupy. This could also mean that AH Hotel is not willing to pay more salaries or wage packages due to low patronage of visitors, especially under COVID-19 conditions.

As to whether the workers receive their pay on time as shown the Table 2 above, 56% of them answered no and 44% answered yes. This shows that AH Hotel does not pay its staff on time, which means there are payment delays sometimes.

The results in above Table 2 show that the whole staff body is paid monthly in terms of duration or time bound for their pay. This means that the company does not have a piece rate or part-time payments.

The results in Table 2 above revealed that 74% of the participant's SSNIT are being paid whereas 24% of them said no SSNIT payment for them. This implies that at least the company pays many staff SSNIT contributions but does not pay casual or temporary workers with SSNIT deductions.

Salary and wages range between 501 – 600 Ghana cedis representing 30% of the participants and 6% is the lowest pay between 201 – 300 Ghana cedis. Others provided their figures in writing of the amount they are paid at the end of the month between 1000 Ghana cedis and 5000 Ghana cedis as the highest pay range within the company. The length or duration of years of service is also, between, 1 year to 6 years, although only one participant indicated 2 months (which means newly recruited employee). This means that AH Hotel meets the minimum wage limits and also has some attractive pay ranges because what the workers stated shows that the graduate workers receive more salaries done contract or lower rank workers.

Allowances

The above Table 2 shows that 76% of the participants said no they don’t receive an allowance and 42% said yes that they get an allowance. This result speaks volumes because many of the company staff will not be happy because they are not paid allowances to boost their morale. Allowances are set to increase employees’ satisfaction but not to demoralize them.

The types of allowances they commonly receive are Health, Transportation, and Overtime. Health and transportation are the highest since they both have 40%. The type of allowance that the company pays most is the Health and Education allowance. This means that staff are given support for their family to get treated free of charge as well as school fees for employees' children.

Recognition

The staff mostly get recognized for their hard work and performance, 74% said yes and 24% said no recognition for their hard work as shown in Table 2. The implication of these results simply means that the company gives recognition where it is due and who deserves it. The staff is happy when being recognized by management when praises or statements of commendations are being poured into the staff.

The types of recognition that the staff normally receive are adding shoulder/handshake, Announcement on Notice board, Publication in Newspaper/Company website, and Letter/Voice praise which is the highest percentage – 38%. The staff receives various recognitions which boost their morale. It motivates them to want to do more for the company. They show them appreciation whenever it is due for them to be more productive and with good performance.

Bonus

Table 3. Data Results on Other Reward Systems

The company pays bonuses to the staff, 74% said yes and 26% said no bonus is paid to them in the above Table 3. In a nutshell, it means that the company pays bonuses which increases the morale or performance of the workers. It makes them highly productive since they will show strong team spirit among their colleagues.

The bonus payment time is yearly since almost 85% answered yearly and only 12% answered monthly in the above Table 3. This is a normal practice since bonuses must be given after the yearly statement when the profits or dividends are declared and paid to shareholders and then the surplus is paid as bonuses. This function motivates the staff to do more for the company.

Fringe Benefits

As to whether they receive fringe benefits, 70% said no fringe benefits are given or paid and 30% said yes they are paid fringe benefits in Table 3 above. The company lacks this aspect of fringe benefits since only a handful are given such fringe benefits. This can cause apathy if not addressed. Other specific fringe benefits that were written by some of the participants are as follows: Healthcare/Health Insurance, Free meals, Shoe Allowance, Cloth Allowance, Fuel Allowance, Time off pay, Employee discount, Tuition Assistance, Free Transportation benefits, and Vacation.

The above Figure 3 is the pictorial view of the remuneration results which show clearly the frequencies and the percentages obtained per each question in the questionnaire.

Job Satisfaction

Job satisfaction results from above Table 3 show that staff motivation is increased through wages or salaries that make them loyal to the company as 54% said yes and 44% said no. This means that whenever the workers’ salary or wages are increased they become motivated and highly productive. Wages and salaries are the basic motivational activity that employer uses to settle worker’s demands.

Do the allowances increase their retention with the company? The results in Table 3 above show that 62% said no whereas 34% answered yes. Meaning that hadn’t been allowances the workers would not stay at the workplace. This invariably corresponds to those who said they were not paid allowances in Table 3 as above. It means that the staff are at work not because they were not paid allowances but also because they increase others' allowances to retain them. It is basically because they are loyal and feel comfortable with whatever they are getting apart from the fringe benefits.

In terms of recognition increasing their stay with the company, 72% said yes and 22% said no. This implies that many of the workers also stay with the company because they are recognized for their achievements and performance. Staff recognition is one of the most functional activities that every employee must gear towards achieving because it is fulfilling.

Table 3 above as to whether bonus payment makes them happy, 72% said yes while 24% said no. It means that most of the workers enjoy bonuses at the end of the year since they are motivated and become happier. This is what every employee wants to happen to him or her. Working and getting bonuses to satisfaction.

In Table 3 above, many of the employees said that fringe benefits automatically motivate them and only 36 out of 50 participants representing 72% said yes and 24% said no. Many workers certainly would be glad to be receiving fringe benefits from their employer, the same way the staff of AH Hotel feels because they feel their motivation and satisfaction are automatically affected as soon as they are paid fringe benefits.

Participation/Involvement

With regards to participation or involvement, the staff said in Table 3 above that they are not involved in the company decision-making since 46% said no and 36% said yes. This implies that the company does not apply the modern trend of motivating and managing employees because it lacks the strategic edge of involving the workers in their decision-making.

Meanwhile, 78% said they are allowed to participate in all programs of the company and 22% said no they have not participated in all programs of the company in Table 3 above. This simply means that in general majority of the workers are made to participate in company programmes which is a fair way of working in harmony. It means that all staff are team players for the success of the AH Hotel.

Morale

For moral grounds of good behavior, constant punctuality, and on time, and being a team player at work all received 100% from the employees that they are of good personalities and character from Table 3. This means that naturally workers will praise themselves when given the chance, hence, no human being will bring himself down or low but everybody replies positively. Meaning they are team players, punctual and on time, and have good behavior at work.

Figure 4 above is a picture of all the job satisfaction questions that were answered by the participants. The picture shows the satisfaction of likes and feelings of the worker's motivation, participation and involvement, Morale and Recognition.

CONCLUSION

From the above discussion, and analysis of the findings, it can be concluded that the remuneration of employees is a major factor that the employer must take seriously by providing the workers the appropriate and fair benefits and allowances across the board. Even though there appear to be some pay disparities that can lead to pay discrimination, the employer must avoid being selective in paying staff and do proper and accurate assessment of their responsibilities. Pay of all kinds must be pegged against the performance of duties and responsibilities given but not necessarily titles. The ages of staff are a young class with some university studies qualification. It can also be concluded that the type of personnel in such service companies are mostly single men and women to avoid pressure and lack of punctuality and absenteeism. In this instance, this inductive study shows that different theories support remuneration as a major motivational tool for employee satisfaction but other theories do not support this but rather introduce financial or non-financial inducement as the main motivation and job satisfaction of employees.

Recommendation

In a nutshell, it is recommended that employees must be treated equally and fairer when it comes to remuneration matters to get the employees satisfaction for better performance and high productivity. Non-satisfaction of employees will result in low productivity or poor performance of staff. It would be appropriate for future research to dwell on remuneration and job satisfaction with quantitative methods and measurements for its effects and relationship.

ACKNOWLEDGMENTS: I acknowledge that this research is my original piece of work and that all theories have been cited and referenced accordingly.

CONFLICT OF INTEREST: None

FINANCIAL SUPPORT: None

ETHICS STATEMENT: There was no any privacy or damaging questions that would have made the participants unsatisfactory to participate in the data collection stage. All, participants were happy and contributed their feedback passionately.