The Influence of Overtime and Holiday Pay on Labour Turnover among Employees in Budget Hotels in Nairobi City County, Kenya
DOI:
https://doi.org/10.53819/81018102t4413Abstract
This study established the influence of overtime and holiday pay on labour turnover among employees in budget hotels within Nairobi City County (NCC), Kenya. The study was guided by Equity Theory, Herzberg's Two-Factor Theory, and Social Exchange Theory. A sequential explanatory mixed methods design was employed, incorporating both quantitative and qualitative data collection. The target population included 1,389 employees from 94 licensed budget hotels in NCC, comprising 81 HR managers, 239 line managers, and 1,069 non-management employees in the front office, food and beverage, and housekeeping departments. A sample of 311 respondents (18 HR managers, 54 line managers, and 239 non-management employees) was obtained using a finite-population formula with a 5% margin of error. Budget hotels and key informants were selected by purposive sampling, while individual respondents within each stratum were selected by stratified random sampling and simple random sampling. Structured questionnaires were used to gather quantitative data and semi-structured interviews were conducted with HR managers and the Chairman of the Kenya Association of Hotel Keepers and Caterers (KAHC) to collect qualitative data. Quantitative data were analysed using descriptive statistics and Pearson correlation, while qualitative data were analysed thematically. Findings revealed that overtime and holiday pay had the strongest negative association with labour turnover among all remuneration constructs examined, with Pearson correlation coefficients of r = −0.907 (p < .001) for employees and r = −0.861 (p < .001) for line managers. Overtime and holiday pay was found to be a significant individual predictor of labour turnover (β = −.390, p < .001). The null hypothesis that overtime and holiday pay have no significant influence on labour turnover was therefore rejected. The study recommends establishment and enforcement of sector-wide minimum overtime and holiday pay standards as the most urgent and cost-effective intervention for reducing labour turnover in budget hotels in Nairobi City County.
Keywords: Overtime Pay, Holiday Pay, Labour Turnover, Budget Hotels, Nairobi City County, Remuneration Practices
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