Effect of Remuneration on Employee Commitment: Empirical Evidence from Hotel Industry

Abstract

The purpose of the research is to evaluate the effect of remuneration on employee commitment. It explores how remuneration of employees can affect the employee’s commitment. A self-administered questionnaire based upon previously validated instrument was completed by 165 customer contact employees. Pearson correlation and Simple Regression techniques were employed to ascertain the relationship between remuneration and commitment. Consistent with  Gift Exchange Model of Adams and Jacobsen (1964),the statistical analysis confirms that remuneration has positive and significant effect on employee commitment. This study provides implications and future research directions.