The influence of intrinsic and extrinsic employee rewards on turnover intention among Malaysian hospitality employees
List of Authors
  • Balan Rathakrishnan , Sanggari Krishnan

Keyword
  • Intrinsic Reward, Extrinsic Reward, Turnover Intention, Hospitality Industry, Hotel Sector

Abstract
  • This quantitative correlational research aims to study the influence of intrinsic and extrinsic employee rewards on turnover intention among Malaysian hospitality employees. It also aims to identify the strongest predictor influencing turnover intention in the current context. The problem investigated was the increasing level of turnover, which relates to the lack of rewards in this industry. Past research has mixed and inconsistent findings related to these variables. Moreover, limited research focuses on the connection between these variables in the Malaysian hotel sector. Conversely, current research focuses on the importance of both intrinsic and extrinsic rewards in determining turnover intention. This cross-sectional survey design consisted of a purposive sample of 402 Malaysian hotel workers. Data were collected using two instruments, namely the Employee Rewards Questionnaire and the Anticipated Turnover Scale (ATS). Pearson correlation analysis showed that there was a significant inverse relationship between both types of employee rewards and turnover intention. The Multiple Regression analysis yielded significant results that showed the relationship between employee rewards and turnover intention as suggested by previous research. It was concluded that extrinsic rewards influence turnover intention better than intrinsic rewards in this context. Understanding these relationships contributed to a new dimension of dealing with the turnover crisis in the hospitality industry. Organisations should focus on enhancing extrinsic rewards because they are crucial in satisfying employees and retaining them.

Reference
  • 1. AlBattat, A. R. S., & Mat Som, A. P. (2013). Employee dissatisfaction and turnover crises in the Malaysian hospitality industry. International Journal of Business and Management, 8(5), 62–71. https://doi.org/10.5539/ijbm.v8n5p62

    2. Barlow, K. M., & Zangaro, G. A. (2010). Meta-analysis of the reliability and validity of the Anticipated Turnover Scale across studies of registered nurses in the United States. Journal of Nursing Management, 18(7), 862–873.

    3. Beavers, G. S. (2010). The predictive value of selected extrinsic and intrinsic indicators of overall job satisfaction in diagnostic radiological technology, radiation therapy, and nuclear medicine Technology Allied Health Faculty. In ProQuest Dissertation and Theses. The University of North Carolina.

    4. Benest, F. (2008). Retaining and Growing Talent. Public Management, 90(9).

    5. Bordens, K., & Abbott, B. (2008). Research design and methods: A process approach (7th ed.). McGraw Hill.

    6. Boxall, P. (2003). HR strategy and competitive advantage in the service sector. Human Resource Management Journal, 13(3), 5–20. https://doi.org/10.1111/j.1748-8583.2003.tb00095.x

    7. Bu, V. N., Decleire, C., Hasselhorn, H., & Braeckman, L. (2010). Impact of the effort-reward imbalance model on intent to leave among Belgian health care workers : A prospective study. Journal of Occupational and Organizational Psychology, 83, 879–893. https://doi.org/10.1348/096317909X477594

    8. Cardy, R. L., & Lengnick-Hall, M. L. (2011). Will they stay or will they go? Exploring a customer-oriented approach to employee retention. Journal of Business and Psychology, 26, 213–217. https://doi.org/10.1007/s10869-011-9223-8

    9. Chaaban, H. A. (2006). Job satisfaction, organizational commitment and turnover intent among nurse anesthetists in Michigan. Dissertation Abstracts International, 67(1), (UMI No. 3206380).

    10. Chiang, F. T., & Birtch, T. A. (2008). Achieving task and extra-task related behaviors: A case of gender and position differences in the perceived role of rewards in the hotel industry. International Journal of Hospitality Management, 27, 491–503.

    11. Colding, L. K. (2004). Predictors of librarian turnover intentions in public University Librarians [University of Alabama]. In ProQuest Dissertation and Theses. https://doi.org/10.1177/001088048102200214

    12. Cotton, J. L., & Tuttle, J. M. (1986). Employee turnover: A meta-analysis and review with implications for research. The Academy of Management Review, 11(1), 55. https://doi.org/10.2307/258331

    13. Danish, R. Q. (2010). Impact of reward and recognition on job satisfaction and motivation : An empirical study from Pakistan. International Journal of Business and Management, 5(2), 159–167.

    14. De Gieter, S., De Cooman, R., Hofmans, J., Pepermans, R., & Jegers, M. (2012). Pay-level satisfaction and psychological reward satisfaction as mediators of the organizational justice-turnover intention relationship. International Studies of Management and Organization, 42(1), 50–67. https://doi.org/10.2753/IMO0020-8825420103

    15. Dhiman, G.R., & Mohanty, R. P. (2010). HRM practices , attitudinal outcomes and turnover intent : An empirical study in Indian oil and gas exploration and production sector. South Asian Journal of Management, 17(4), 74–104.

    16. Finster, M. P. (2013). Teachers’ job satisfaction, organizational commitment, turnover intentions, and actual turnover: A secondary analysis using an integrative structural equation modeling approach. University of Washington.

    17. Gawel, J. E. (1997). Herzberg’s theory of motivation and Maslow’s hierarchy of needs. Practical Assessment, Research & Evaluation, 5(11), 1–5.

    18. Given, M. L. (2008). Purposive Sampling. In The SAGE Encyclopedia of qualitative research methods (Ed, Vol. 2, pp. 698–699). Sage:Thousand Oaks. https://doi.org/10.1109/IPDPS.2011.210

    19. Henryhand, C. J. (2009). The effect of employee recognition and employee engagement on job satisfaction and intent to leave in public sector. ProQuest Dissertation and Theses, 1–120.

    20. Jenkins, A. K. (2009). Keeping the talent: Undestanding the scientists in the defense acquisition workforce. Defense Acquisition Review Journal, April, 18–32.

    21. Karpel, S. B. (2009). Measuring and examining correlates of attitudes towards mind-body connectivity in the pain experience. Columbia University.

    22. Kaye, B., & Evans, Jordan. S. (2000). Retention: Tag, you’re it! Training & Development, 54(4), 29–34.

    23. Khajeheian, D. (2017). Entrepreneurship and innovation in the service economy. AD-Minister, 30, 6–8.

    24. Kim, H., Im, J., Qu, H., & Namkoong, K. (2017). Antecedents and outcomes of burnout and turnover intention among restaurant employees. International Journal of Hospitality Management, 28(1), 68–79.

    25. Li, J., Galatsch, M., Siegrist, J., Müller, B. H., & Hasselhorn, H. M. (2011). Reward frustration at work and intention to leave the nursing profession-Prospective results from the European longitudinal NEXT study. International Journal of Nursing Studies, 48(5), 628–635. https://doi.org/10.1016/j.ijnurstu.2010.09.011

    26. Long, R. J., & Shields, J. L. (2010). From pay to praise? Non-cash employee recognition in Canadian and Australian firms. The International Journal of Human Resource Management, 21(8), 1145–1172. https://doi.org/10.1080/09585192.2010.483840

    27. Malone, P. (2010, February). A look at compensation & benefits trends around America. Compensation & Benefits.

    28. Martin, M. J. (2011). Influence of human resource practices on employee intention to quit. Virginia Polytechnic Institute and State University.

    29. Miller, P. E. . (2007). The relationship between job satisfaction and intention to leave : A study of hospice nurses in a for-profit corporation (Issue February). Capella University.

    30. Mohsin, A., Lengler, J., & Kumar, B. (2013). Exploring the antecedents of intentions to leave the job : The case of luxury hotel staff. International Journal of Hospitality Management, 35, 48–58. https://doi.org/10.1016/j.ijhm.2013.05.002

    31. Mottaz, C. J. (1981). Some determinants of work alienation. The Sociological Quarterly, 22, 515–529. https://doi.org/10.1111/j.1533-8525.1981.tb00678.x

    32. Oriarewo, G. O., Agbim, K. C., & Owutuamor, Z. B. (2013). Job rewards as correlates of job satisfaction : Empirical evidence from the Nigerian banking sector. The International Journal Of Engineering And Science (IJES), 2(8), 62–68.

    33. Rains, J. (2011). Job satisfaction among U . S . department of the army civilians : An analysis based on the minnesota satisfaction questionnaire. In Pro. Capella University.

    34. Randolph, D., Doisy, D., & Doisy, M. (2005). Predicting the effect of extrinsic and intrinsic job satisfaction factors on recruitment and retention of rehabilitation professionals. Journal of Healthcare Management, 50(1), 49–59.

    35. Ravinder, N., & Browne, J. J. (1977). Hours of work, job satisfaction and productivity. Public Productivity Review, 2(3), 46–56.

    36. Rehman, U., Khan, M. R., & Lashari, J. A. (2010). Effect of job rewards on job satisfaction , moderating role of age differences : An empirical evidence from Pakistan. African Journal of Business Management, 4(6), 1131–1139.

    37. Salie, S., & Schlechter, A. (2012). A formative evaluation of a staff reward and recognition programme. SA Journal of Human Resource Management, 10(3), 1–12. https://doi.org/10.4102/sajhrm.v10i3.422

    38. Samuel, M. O., & Chipunza, C. (2009). Employee retention and turnover: Using motivational variables as a panacea. African Journal of Business Management, 3(8), 410–415. https://doi.org/10.5897/AJBM09.125

    39. Sekaran, U., & Bougie, R. (2016). Research methods: A skill building approach. John Wiley & Sons. Leadership & Organization Development Journal.

    40. Shaughnessy, J. J., Zechmeister, E. B., & Zechmeister, J. S. (2010). Research methods in psychology (8th ed.). McGraw Hill.

    41. Shaw, J. D. (2011). Turnover rates and organizational performance: Review, critique, and research agenda. Organizational Psychology Review, 1, 187–213. https://doi.org/10.1177/2041386610382152

    42. Shoaib, C., Aamir, A., Adnan, M., Qazi, M., & Hussain, J. (2015). Total rewards and retention: Case study of higher education institutions in Pakistan. Procedia - Social and Behavioral Sciences, 210, 251–259. https://doi.org/10.1016/j.sbspro.2015.11.365

    43. Sledge, S., Miles, A. K., & Coppage, S. (2008). What role does culture play? A look at motivation and job satisfaction among hotel workers in Brazil. The International Journal of Human Resource Management, 19(9), 1667–1682. https://doi.org/10.1080/09585190802295157

    44. Suliman, A., & Al-Shaikh, F. (2006). Emotional intelligence at work: Links to conflict and innovation. Employee Relations, 29, 208–220.

    45. Vincent, M. J., Herzberg, F., Mausner, B., & Snyderman, B. B. (1960). The motivation to work. American Sociological Review, 25(2), 288. https://doi.org/10.2307/2092643

    46. Wallsten, K. (1998, November). Targeted rewards have greater value - and bigger impact. Workforce.

    47. Weiss, D., Dawis, R., England, G., & Lofquist, L. (1977). Manual for the Minnesota satisfaction questionnaire. University of Minnesota.

    48. Wells, M. (2018, November). Turnover and retention rates for hotels and hospitality industry. Human Resources Today.

    49. Woods, RH., Cho, S., & Johanson, M. (1999). The use of performance appraisals among NACUFS managers. National Association of College and University Food Services, 21.

    50. Wren, Brent. M., Berkowitz, D., & Grant, E. S. (2014). Attitudinal, personal, and job-related predictors of salesperson turnover. Marketing Intelligence & Planning, 32(1), 107–123. https://doi.org/10.1108/MIP-04-2013-0061