INVESTIGATING THE EFFECT OF EMPLOYEE RECOGNITION ON EMPLOYEE RETENTION IN HOTELS IN BAFOUSSAM, CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The hotel industry is a vibrant service sector that demands optimal human resource management to uphold professionalism and efficiency in service provision (Hanzaee and Mirvaisi, 2021). Consequently, hospitality-based organizations face challenges in recruiting and developing potential service providers to enhance service quality for both domestic and international guests. Given that the hospitality industry offers intangible services and products, effective human resource management (HRM), particularly in recruitment, is vital for its success (Walker, 2004). According to Norah et al(2019), employee retention is vital for the hospitality sector as it employs more people than any other industry in the private sector both domestically and globally. Employee recognition is crucial for organizations and brings several benefits. Recognizing employees in the organization helps them understand that their work is valued and appreciated, which boosts their morale and motivation, enhancing their loyalty to the organization. This recognition fosters a sense of ownership among employees, creates a supportive and conducive work environment, and significantly improves retention rates. In addition, the knowledge, skills, and competencies of employees are vital for organizational success. According to Bhatt (2018), recognizing and maximizing employee talent is essential, as it serves as a distinct source of competitive advantage. Managers should focus on identifying and retaining highly skilled employees, continually reminding them of their value to the organization (Bhatt, 2018). This approach helps prevent dissatisfaction and reduces turnover (Noe et al., 2019). Furthermore, to align employees' goals with organizational objectives and maintain high morale, organizations need to reward and recognize their workforce (Selden & Sowa, 2018). Investing time and resources in developing employees as future leaders and cultivating a positive work environment is essential for improving employee retention (Selden & Sowa, 2019).  Employee retention, as defined by Business Dictionary.com (2018), refers to the efforts made by a business to create a working environment that encourages current staff to remain with the company. Employee retention is the act of employees choosing to stay with their current organization and not actively seeking other job prospects. Similarly, Hassan and Govindhasamy (2020), asserts that employee retention is crucial since high turnover has a negative influence on morale and, as a result, the performance of the organization. This, in turn, affects customer service, production efficiency, and overall productivity. Beyond that, Zin et al (2022) stated that employee retention is a crucial aspect of a company's operational activities, particularly in the long run, since it enables growth and market dominance.While much research had been done to review employee retention strategy which could be used by employers or organisations in determining the steps to be taken to retain their employees (Raj and Brinda, 2018). Many organizations implement employee retention policies to address the needs of their employees and enhance their job satisfaction. By prioritizing retention, companies aim to minimize the costs associated with recruiting and training new employees. Nevertheless, achieving employee retention requires effective leadership with a long-term vision (Enderwick, 2021). Equipping employees with the necessary skills is essential for achieving employee retention (Singh, 2019). However,  since the retention of employees on job is the major issue faced by all the organizations. Hence, top management should recognize this and take proactive measures to retain talented individuals (Parry and Kelliher, 2019). Therefore, a survey will be conducted in order to investigate the effect of employee recognition on employee retention in hotels in Bafoussam, Cameroon

1.2 Statement of the Problem

The level of employee appreciation and satisfaction directly influences employee retention. It's undeniable that recognizing and rewarding employees significantly impacts their intention to stay in their current jobs. Similarly, the organization's system of appreciating employees directly affects their satisfaction levels, thereby contributing to their retention in their current positions. Previous research conducted in various countries has demonstrated a positive correlation between employee retention and factors such as recognition, rewards, and work-life balance. Nasir and Mahmood's (2018) study specifically examined how supervisor support, recognition, rewards, and work-life policies impact employee retention. Numerous studies have highlighted that recognition and relationships with co-workers are major factors influencing employees to stay in their jobs. On the other hand, research emphasizing the relationships between factors like work-life balance, compensation, rewards, and recognition with employee retention is widely available. However, for hotel industry, retaining employees poses a significant challenge, particularly for those in the human resource department (Kwasira, 2018). Moreover, employees are perceived to have high expectations regarding their work and the organizations they work for, along with specific considerations when accepting job offers (Arora and Kshatriya, 2018). With multiple factors to consider, employees may readily change jobs and move between organizations. Therefore, employee retention, especially for this generation, presents a distinct challenge for organizations. Thus, it is in the light of these that the study seeks to investigate the effect of employee recognition on employee retention in hotels in Bafoussam, Cameroon.

1.3 Objectives of the Study

The main purpose of this study is to investigate the effect of employee recognition on employee retention in hotels in Bafoussam, Cameroon. Specifically, the study will;

Assess the factors contributing to employee turnover in hotels in Bafoussam, Cameroon.

Determine the recognition and retention strategies adopted in hotels in Bafoussam, Cameroon.

Determine the impact of employee recognition on employee retention in hotels in Bafoussam, Cameroon. 

Investigate the relationship between employee recognition and employee retention.

1.4 Research Questions

The following questions have been prepared for the study:

What factors contribute to employee turnover in hotels in Bafoussam, Cameroon?

What recognition and retention strategies are adopted in hotels in Bafoussam, Cameroon?

How does employee recognition impact employee retention in hotels in Bafoussam, Cameroon?

What is the relationship between employee recognition and employee retention in hotels in Bafoussam, Cameroon?

1.5 Research Hypotheses

Ho: Employee recognition has no significant effect on employee retention in hotels in Bafoussam, Cameroon.

Ha: Employee recognition has significant effect on employee retention in hotels in Bafoussam, Cameroon.

1.6 Significance of the Study

The research results will provide insights and recommendations for industry-wide programmes focused on enhancing workforce stability and service quality. Stakeholders will be able to promote the implementation of effective recognition programmes to improve standards in the sector, which will benefit hotels and the whole tourism economy. Furthermore, owners and investors will be able to recognize the importance of employee recognition programs and provide support initiatives that improve retention rates, thereby reducing turnover costs and enhancing the hotel’s financial performance. Additionally, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the effect of employee recognition on employee retention in hotels in Bafoussam, Cameroon.

1.7 Scope of the study

The scope of this study is boarded on the investigate the effect of employee recognition on employee retention in hotels in Bafoussam, Cameroon. Empirically, this study will assess the factors contributing to employee turnover, determine the recognition and retention strategies adopted in hotels, determine the impact of employee recognition on employee retention and investigate the relationship between employee recognition and employee retention.

Geographically, the study will be delimited to employees in hotels in Bafoussam, Cameroon.

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.9 Definition of Terms

Recognition: means appreciation with a show of gratitude.

Employee recognition: refers to the acknowledgment, appreciation, and praise given to employees for their contributions, achievements, and performance in the workplace.

Employee retention: is the ability of an organization to keep its employees engaged and committed to their jobs for an extended period. 

Employee turnover: the rate at which employees leave an organization and need to be replaced.