The Influence of Rewards and Job Satisfaction on Employees in the Service Industry

Abstract

The purpose of this study was to find out the relationship between employees’ rewards, and the dimension of their job satisfaction in the service sector. We hypothesized that rewards play a significant role in employee satisfaction, resulting in increased customer satisfaction and loyalty. Thus the role of job satisfcation and rewards was explored with samples from workers in two large Ghanian private organizations. The implications of job satisfcation on customer satisfaction and loyalty towards organzations were also invetsigated. A questionnaire was constructed, tested and administered to a total 110 subjects at two private organizations. Out of that 104 usable surveys were analyzed with microsoft excel to test the hypotheses of the study. Findings showed that rewards induced positive job satisfaction of employees. Additionally the findings also showed that job satisfaction of employees stimulated their loyalty to the organization. However, a very high level of employee dissatisfaction was recorded for employee pay and the amount work they do. The study result highlights the role of employees’ job satisfaction and the responsibilities of organizations in fostering good quality HRM practices in the service sectors, and offers an alternative pathway in employee satisfaction and performance. These results add to the evidence that HR practises influences business outcomes rather than the other way around.