Compensation and Employee Loyalty in the Hospitality Industry: Evidence from Nigeria

The study investigated the direct effect of compensation on employees’ loyalty in the hotel industry in Bida, Niger State, Nigeria. The descriptive survey research generated data from 100 service employees and their supervisors with the use of a well structured questionnaire containing 12 scale items, with four demographic items. The result of the inferential statistical analysis with the aid of SPSS showed that employee loyalty towards hotels is driven by compensation. Accordingly, employee compensation had a significant effect on employee commitment and employee engagement. Entrepreneurs and their managers operating/managing hotels in the hospitality industry are expected to determine and implement fair wages/salaries and incentives that are appropriate in the eyes of the employees.