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EFFECT OF MOTIVATION ON EMPLOYEES RETENTION AND ORGANIZATIONAL PERFORMANCE

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EFFECT OF MOTIVATION ON EMPLOYEES RETENTION AND ORGANIZATIONAL PERFORMANCE

 

Abstract

The primary issue in the majority of hotels nowadays is keeping skilled employees from leaving the facility. This has increased the requirement for appropriate incentive strategies in order to achieve employee retention in hotels. While there is substantial literature on motivation, it is generally focused on other industries, and the focus has largely been on its influence on performance and productivity, leaving out the function of staff retention.

The study aimed to evaluate the association between motivation and employee retention in Malaysian luxury hotels. This study’s population consisted of 304 employees from various luxury hotels in Selangor and Kuala Lumpur. A self-administered questionnaire was utilized to collect data, and the data was analyzed using regression analysis.

The results show that there is a considerable relationship between motivation and staff retention, as well as work satisfaction and employee retention. According to the study, training and development, as well as salary and fringe benefits, have the most statistical relevance with regard to employee retention.

Leadership has a negative association with employee retention and job happiness. The survey also discovered a considerable disparity in training and development, communication, and employee involvement between male and female employees.

Female employees place a higher value on these variables than their male counterparts. The professions differ significantly in terms of training and leadership. The study advises hotel managers to assist and support subordinates in growing and achieving corporate goals.

The report also advises managers to foster morale and team spirit among their subordinates. This study assists hotel management in developing employee satisfaction and retention strategies. It will also contribute to research and practice by serving as a point of reference for scholars and researchers on the topic of study and other connected areas. The study can potentially be used to do additional research.

 

1. Introduction

In the future years, Asia will have the fastest developing tourism economies. Travel and tourism directly provided 105,408,000 jobs in 2014 (3.6 percent of total employment), and this figure is expected to rise by 2% in 2015 to 107,519,000. (3.6 percent of total staff).

This includes recruiting in hotels, travel agencies, airlines, and other modes of passenger transportation (excluding commuter services). This covers, for example, catering, restaurant, and1 associated industries that are directly funded by tourism.

Travel and tourism will directly account for 130,694,000 jobs by 2025, a growth of 2.0 percent every year over the following ten years (World Travel & Tourism council 2016). Tourism has been and will continue to be an important economic sector in Malaysia.

Tourist arrivals increased from 20.9 million in 2007 to 27.44 million in 2014. With the assistance of the hotel business, Malaysia can generate sustainable tourism. Malaysian hotels must improve their guest service in order for this to occur.

Only motivated personnel can provide exceptional guest service, resulting in a memorable guest experience. However, hotels in Malaysia are confronting a labor crisis due to rising staff turnover (Iverson & Deery, Lee &Chon, 2000).

Because the hotel sector is a labor-intensive industry, it is critical to address the importance of employee retention. Hotel managers should develop ways to attract and retain productive personnel. Different people require different motivational variables at different times due to changes in personal requirements, educational levels, social standing, and environmental circumstances.

The degree of success in employee motivation is determined by the manager’s selection of appropriate motivational items after evaluating the employees. In some circumstances, monetary instruments may be more suited than psychological elements.

Managers should select the appropriate tool by taking into account the elements that affect their workforce. Problem identification The two biggest issues for HRM in the Malaysian hotel business are a labor shortage (due to high turnover) and a lack of enthusiasm among hotel employees. Nor Zafir Md Salleh Abu et al. (2010)

There is adequate empirical evidence linking motivation to retention (Sandhya, 2011) and job satisfaction and turnover intention (Ahamed et al, 2012), but there have been no studies in Malaysia, particularly in the hospitality industry, studying the relationship between staff motivation, work satisfaction, and employee retention.

The study aimed to predict the types of motivational elements for employees’ job satisfaction and retention in Malaysian hotels. Goal and Objective The primary goal of this study was to identify appropriate motivational elements and their impact on employee retention, as well as to investigate the causes of staff turnover in Malaysian hotels.

This study is being conducted because the Malaysian hotel industry is experiencing a severe scarcity of competent workers (due primarily to staff turnover) and low employee motivation. In Malaysia, there have been limited studies on motivation and employee retention in hotel segments, as most previous research was conducted outside of Malaysia, in other nations.

There may be cultural variations between Malaysia and other nations, and strategies that work in other countries may not work in Malaysia, thus more research is needed, particularly in the hospitality sector.

The purpose of this study was to examine the motivational techniques, job satisfaction, and employee retention in Malaysian hotels. This paper’s aims are as follows:

1. Investigate the relationship between motivation and staff retention.

2. Investigate the relationship between employee job satisfaction and employee retention.

3. Examine the relationship between gender and position and retention and motivational variables.

4. Make recommendations to management on how to improve staff retention.

 

 

 

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EFFECT OF MOTIVATION ON EMPLOYEES RETENTION AND ORGANIZATIONAL PERFORMANCE

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