Impact of Reward Management on Employee Satisfaction at Hilton Central London

This research evaluates the impact of reward management on employee satisfaction at Hilton Central London. It examines the relationship between reward management and employee satisfaction and provides recommendations based on the findings.

Running head: HUMAN RESOURCE MANAGEMENT
Human resource management
Name of the student
Name of the university
Author note

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Abstract
This research had evaluated the impact of reward management on the employee satisfaction
in Hilton Central London. The research had aimed to examine the degree and nature of
relationship between the different aspects of reward management. The critical analysis of the
past literature had shown that there was contradiction among different authors. Therefore, the
research had to evaluate this contradiction. On the other hand, the mixed method analysis had
been conducted where both survey and interview had been conducted. The analysis of the
collected data had shown that there is moderate correlation between reward management and
employee satisfaction. The report had provided suitable recommendations based on the
findings.

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Table of Contents
Chapter 1: Introduction..............................................................................................................4
1.1Research Title....................................................................................................................4
1.2 Rationale (Background)...................................................................................................4
1.3 Significance of Research..................................................................................................4
1.4 Aim...................................................................................................................................5
1.5 Objectives.........................................................................................................................5
1.6 Research Question(s) or Hypothesis................................................................................5
Chapter 2: Literature Review.....................................................................................................6
2.1 Introduction......................................................................................................................6
2.2 Rewards............................................................................................................................6
2.3 Employee Satisfaction......................................................................................................7
2.4 Conceptual Framework....................................................................................................8
2.5 Literature Gap..................................................................................................................9
Chapter 3: Methodology............................................................................................................9
3.1 Research Methods............................................................................................................9
3.2 Research Instruments.....................................................................................................10
3.3 Sampling........................................................................................................................10
3.4 Ethical Issues..................................................................................................................10
3.5 Data Analysis.................................................................................................................11
Chapter 4: Interpretation, Findings and Discussion.................................................................11
4.1 Research Limitations......................................................................................................11

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4.2 Quantitative analysis and Interpretation.........................................................................11
4.3 Qualitative analysis and Interpretation...........................................................................12
4.4 Discussion......................................................................................................................13
Chapter 5: Conclusion and Recommendation..........................................................................13
5.1 Conclusion and key findings..........................................................................................13
5.2 Recommendations..........................................................................................................14
5.3 Future Research Scope...................................................................................................14
References................................................................................................................................16
Appendices...............................................................................................................................19
Appendix 1...........................................................................................................................19
Appendix 2...........................................................................................................................24
Appendix 3...........................................................................................................................25

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CHAPTER 1: INTRODUCTION
1.1Research Title
Reward management leading to employee satisfaction at Hilton central London
1.2 Rationale (Background)
Employee turnover is one of the key issues in the hospitality industry for decades and
recent studies and trends in the market shows that the turnover rate in the United Kingdom
hotel industry is 30% which is way higher, when compared to other companies in different
sectors (Muller-Heyndyk 2018). This means that out of 10 employees, 3 employees leave
organizations within a year. This has been a concern for the management in various
organization but on the other hand, there has been an increase in part time and casual workers
in the industry which makes this turnover ratio skewed. Moreover, lack of adequate payment
and compensation is another factor makes employees’ move to other jobs and industries.
This research has taken these factors into account to understand the influence of reward
management in enhancing the satisfaction level of the employees. Hilton hotels & Resorts
are group of services which provides full hotel and resort services (Www3.hilton.com 2019).
It is the flagship brand which represents the hospitality industry in United States of America.
In this study, Hilton Central London has been taken as the case study where different
employees within the organization would be surveyed and the managers would be
interviewed to identify the way reward management affects their satisfaction levels.
1.3 Significance of Research
This research has aimed to address the topic of employee satisfaction and past studies
have shown that there are different factors such as motivation, performance appraisal,
training and development, rewards, recognition and benefits which assists in contributing to
the satisfaction level of the employees. However, this research has narrowed the topic further

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to understand how reward management affects the satisfaction level and performance of the
employees. Rewards is a key aspect in the hotel industry as past studies have shown that
employee leave organizations for better compensation and benefits. This research would be
able to provide an understanding of the staffs view and bring about an awareness among the
management within Hilton Central London so that they can improve on their reward
management processes.
1.4 Aim
The main aim of the research is to examine the impact of reward management on
satisfaction level of the employees at Hilton central London. The different elements of
reward management and employee satisfaction will be linked and analysed and compared to
examine the degree, nature and direction of relationship between the variables.
1.5 Objectives
 To examine the different elements of reward management at Hilton central London
 To examine the different element of employee satisfaction at Hilton central London
 To evaluate the impact of reward management on satisfaction level of the employees
at Hilton central London
1.6 Research Question(s) or Hypothesis
What is the impact of reward management on satisfaction level of the employees at Hilton
central London?
H0: There is no impact of reward management on satisfaction level of employees at Hilton
Central London
H1: There is positive impact of reward management on satisfaction level of employees at
Hilton Central London

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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
This part of the research has critically evaluated the past literatures to examine the
significance of reward management in improving the employee satisfaction and performance.
An effective reward system is essential for the improvement of the performance of the
employees. Rewards has been considered as one of the major tools for measuring and
monitoring the performance of the employees. Management in various organizations use
rewards as a tool to motivate the employees and enhance their performance. Organization in
global environment seek to establish balance between employee performance and employee
commitment. Reward and recognition has been considered as the most contingent factor in
keeping the employees passionate and high on self-esteem. Terera and Ngirande (2014) states
that it is the function of the managers to keep the employee motivated in order to achieve
greater organizational efficiency. On the other hand, Massingham and Tam (2015) states that
the overall performance management process is one of the key elements of reward systems.
2.2 Rewards
Bustamam, Teng and Abdullah (2014) states that rewards has been considered as a
broad construct which represents everything that has high value for the employees and they
are willing to contribute for it. The lack of rewards is expected to generate an environment
which is unpleasant and will affect the performance of the employees. It may also lead to
high turnover within an organizational setting. Shahzadi (2014) opined that main objective of
a reward system to retain, attract and motivate the employees so that they can achieve a high
level of performance. Financial rewards is one of the most common form of rewards used by
the organizations keep employees motivated and improve their satisfaction level. On the
contrary, Adeoye and Fields (2014) states that there has been significant change in the global
workforce and in the long term, financial rewards may not be the best form of motivation.

7HUMAN RESOURCE MANAGEMENT
Bustamam, Teng and Abdullah (2014) supported the statement by stating the fact that even
though financial reward is not a motivator but absence of it can be a strong de-motivator.
Therefore, it is essential for the organizations to use financial rewards in shaping the human
resource strategy of the organizations. On the other hand, non-monetary rewards are tangible
benefits which do not any monetary benefit for the employees. This shows that employees
seek for different types of returns for contributing to the organizational goals. As stated by
Yousaf et al. (2014), the nature of the hospitality industry is labour intensive use of non-
financial rewards is essential for motivating and improving the satisfaction level of the
employees.
Rewards can be divided into two broad types one is extrinsic and second is intrinsic
rewards. Extrinsic rewards consist of the financial rewards and these intrinsic rewards
consists of the non-financial rewards. Extrinsic rewards consists of financial rewards such as
fringe benefits, formal recognition, payments and promotion. On the other hand, intrinsic
recognition consist of non-financial rewards such as accomplishments, recognition,
achievement, growth and job satisfaction. Terera and Ngirande (2014) states that rewards is
one of the most key factors in sustaining and developing commitment within the employees.
Nazir et al. (2016) investigated that there is positive relationship between reward, recognition
and performance.
2.3 Employee Satisfaction
As stated by Jacobs, Yu and Chavez (2016), employee satisfaction determines
whether an employee’s needs and desires are being fulfilled at work. Employee motivation,
employee morale and employee goal achievement requires employees to be satisfied. The
motivational theories, both process and content theories have considered satisfaction to be an
aspect of motivation in all the employees. Bustamam, Teng and Abdullah (2014) states that
employee satisfaction defines the attitude of the employees towards their job. It can also

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defined as the affective and cognitive evaluation of their job. Alegre, Mas-Machuca and
Berbegal-Mirabent (2016) defined employee satisfaction as the amalgamation of affective
reactions to the difference in perception for what they receive and what they want to receive.
Adeoye and Fields (2014) provided a simple definition which states that employee
satisfaction describes the degree to which employees are pleased with their job role.
Employee satisfaction not considers the satisfaction of the employees with their job
role but also with their satisfaction of their overall company policy. It is key to keep the
morale of the employees high so that the employees are loyal and committed to the
organization. Wheatley (2017) states that employees that are well satisfied are more willing
and contributes effective to the organizational goals and objectives. There are multiple
factors contributing to the satisfaction of the employees. Performance appraisal, recognition,
empowerment, relationship with the management, perks, compensation, benefits,
appreciation, job security, promotion, good working conditions and positive management
activities are few of these factors (Coetzee and Stoltz 2015). Employee satisfaction plays a
significant role in success of the organization. Organizations use different strategies to
improve the working environment and morale of the employees. This enhances the overall
productivity and performance of the employees which increases the satisfaction of the
consumers. This increases profit margin and retention of the consumers within the
organization.
2.4 Conceptual Framework
Extrinsic Rewards
(Financial benefits,
promotions)
Rewards Employee
Satisfaction
Intrinsic Rewards
(Recognition, appreciation,
empowerment and
autonomy)

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2.5 Literature Gap
Past literature has evaluated the importance of rewards in improving the satisfaction
level of the employees. However, there is difference in opinion among various authors which
suggest that significant evaluation in required to understand whether the relationship holds
true for the given case of Hilton Central London. Moreover, majority of the literatures have
used single research design which is a limitation to the past researches. The current research
has used a mixed research design to overcome this limitation of past researches.
CHAPTER 3: METHODOLOGY
3.1 Research Methods
This study has used a mixed method research design which has facilitated in
conducting both quantitative and qualitative analysis in the research. In this study, the major
goal of the research is explanation of the phenomenon and understanding the cause and effect
relationship between the variables (Kumar 2019). Assumptions are made at every stage of the
research and this research has made assumptions based on the research question. In this
research, pragmatism has been chosen as the research philosophy. Pragmatism believes in
existence of multiple realities where there are multiple ways of interpreting an issue. This
means that pragmatic approach accepts all concepts that are validated by actions (Mackey
and Gass 2015). Pragmatic approach facilitates in performing both quantitative and
qualitative analysis.
There are mainly two types of approaches in the research, deductive and inductive.
This research has used both inductive and deductive approach to validate the existing theories
and develop generalisations from specific observations (Saunders et al. 2015). This means

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that deductive approach has tested the hypothesis and the inductive approach has validated
the results from the quantitative analysis. This research design is known as sequential
explanatory design where initially quantitative data analysis is conducted and then the
qualitative data analysis is performed to validate the findings from the quantitative analysis.
3.2 Research Instruments
This research has used a survey questionnaire to collect the data from the lower level
employees. This survey questionnaire consists of demographic questions and questions on
five point Likert scale (Meyerhoff, Schleef and MacKenzie 2015). This means that the survey
questionnaire consists of only close ended questions. On the other hand, the interview
questionnaire will consists of semi structure open ended questions which were asked to
managers. The research has used Ms Excel to analyse the collected data by using statistical
techniques and coding.
3.3 Sampling
This research has chosen the employees of the Hilton Central London as the target
population in the research (Etikan, Alkassim and Abubakar 2016). In the survey, stratified
sampling has been used to select 30 employees from all the employees. On the other hand,
quota sampling has been used to select 3 employees in supervisory positions to gather in
depth answers on the research topic.
3.4 Ethical Issues
This research has followed the ethical guidelines and has adhered to the data
protection act of 1998 (Carey 2018). The research has avoided the three cardinal sins of
research, fabrication, falsification and plagiarism. None of the data collected has been
manipulated and falsified. The research has cited authentic journals and articles to avoid
plagiarism. The research has taken informed consent where the respondents have been

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provided information on the purpose of conducting the research. The respondents have made
voluntary participation and none of them have been forced to participate (Quinlan et al.
2019). The research has maintained the anonymity and privacy of the respondents and the
data collected has not been used for any other purpose in the research.
3.5 Data Analysis
The research has used inferential statistics and coding to analyse the collected data.
Inferential statistics consists of generating graphs and tables based on frequency responses.
The regression analysis has been conducted to analyse the nature, degree and direction of
relationship between employee satisfaction and reward management (Palinkas et al. 2015).
The regression analysis has also facilitated in developing a model which explains the
relationship between the variables. Open coding has been used to examine the patterns within
the data and identify key words and phrases. Axial coding has been used to relate the
identified data to the theories. The findings from the qualitative analysis has been used to
validate the results from the quantitative analysis.
CHAPTER 4: INTERPRETATION, FINDINGS AND DISCUSSION
4.1 Research Limitations
The major limitation of the research is the fact that the sample size in the quantitative
analysis is 30 which is quite small when compared to the overall population sampling.
Therefore, the sampling error in the assignment is expected to be around 30% which means
that the results may not be the appropriate representation of the whole population.
4.2 Quantitative analysis and Interpretation
The data collected from the respondents shows that the satisfaction level of the
employees lie at 2.39 in the 5 point Likert scale which means that majority of the respondents
have agreed to the research question. On the other hand, evaluation of the different elements

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of reward management both intrinsic and extrinsic shows that majority of the respondents
have agreed that reward management in Hilton central London is effective which is the
reason that majority of the employees are satisfied with their job role.
The regression conducted on the data collected to measure the impact of reward
management on the satisfaction level of the employees’ show that there is positive level of
satisfaction between the employees. The value of multiple R in the research is 0.419565768
which shows moderate correlation between reward management and employee satisfaction. R
square is the coefficient of determination which measures the goodness of fit of the model
and the variance in explaining capability of the predictors on the dependent variable. The
value of R square is 0.176035434 which is less than 0.7 which means that goodness of fit of
the model is low and the model is able to explain only 17.6% of the characteristics of
employee satisfaction. However, it is difficult to predict in studies with human involvement
as human beings are unpredictable. The F value in the research is 0.018791665 which is less
than 0.05 and this means that the values are significant and the null hypothesis can be
rejected. This means that reward management has positive impact on employee satisfaction
and improvement in reward management by 17.6% would have significant increase in
employee satisfaction. The regression model in the research is,
y = 0.313x + 1.7229
4.3 Qualitative analysis and Interpretation
The qualitative analysis of the data shows that reward management is important in
enhancing the satisfaction level of the employees. However, there are other factors that play
similar role in enhancing the satisfaction level. As stated by one of the respondents, “I agree
that rewards are important but there are other factors that are crucial such as employee
growth, inclusion, performance appraisal. However, reward is equally important and we aim

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to provide a reward based structure to retain the employees.” This shows that employee
satisfaction is not limited to only reward management and factors like performance appraisal
and diversity are important for job satisfaction.
4.4 Discussion
The comparison of both quantitative and qualitative shows that there is significant
importance of reward system in improving the satisfaction level of employees. The results
show that majority of the respondents have similar opinion on the questions and the managers
have had similar opinion where they have acknowledged the importance of reward
management in enhancing the performance and satisfaction level of the employees.
CHAPTER 5: CONCLUSION AND RECOMMENDATION
5.1 Conclusion and key findings
This part of the report has developed conclusion linking the data with the objectives in
the research. Reward system management is critical in improving the satisfaction level of the
employees and the research has developed the below mentioned findings based on the case
study of Hilton central London. The key findings in the research are as follows:
 The findings of the research showed that there is parity between the satisfaction level
of the employees and reward management system. The respondents that have agreed
to the questions on reward management have shown high satisfaction level.
Moreover, the majority of the employees have high satisfaction level and are happy
with the reward management system in in Hilton central London. However, this may
not be true for the overall company as this small data set may not represent the overall
population. Moreover, the managers’ responses show that they consider reward
management as a key component of employee satisfaction.

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 The findings also developed a regression model which follows a straight line
equation, y = 0.313x + 1.7229. However, as the number of respondent is small, the
data points are scattered. On the other hand, there is moderate correlation between
employee satisfaction and the predictors of reward management. The value of
Multiple R has represented the correlation between the values. On the other hand, R
square has shown the explaining capability for the independent variable on the
dependent variable. The value is 0.17 which shows that 17% increase in reward
management system increases the employee satisfaction.
5.2 Recommendations
The research has developed following recommendations based on the results from the
mixed method analysis:
 The organization needs to develop a better compensation package which is at least at
par to the industry standards. However, it is not enough to keep the employees loyal
and retain them. Hilton central London needs to develop a compensation which is
above the industry standards so they are providing more than the competitors in the
market.
 The organization should not focus on only the extrinsic benefits but also on the
intrinsic benefits such as promotion, recognition and customize the program based on
the needs of each type of employees. The modern workforce is diverse and the
organization needs to develop a reward system that is more diverse.
 The results in the survey may not hold true for all the employees and there are plenty
of employees that are not satisfied with the reward system. Therefore, the
organization needs to identify those employees and cater to their needs to enhance
their satisfaction level and productivity.

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5.3 Future Research Scope
In future the research can use a larger sample size to address majority of the
population so the sampling error in minimum in the research. Moreover, the research can
conducted by taking a different approach where focus on qualitative analysis would provide
in depth knowledge on the current practices in Hilton central London.

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REFERENCES
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satisfaction: A case of Nigeria. Journal of Social Sciences, 41(3), pp.345-352.
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job satisfaction: do they matter?. Journal of Business Research, 69(4), pp.1390-1395.
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Carey, P., (2018). Data protection: a practical guide to UK and EU law. Oxford University
Press, Inc..
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the role of career adaptability. Journal of Vocational Behavior, 89, pp.83-91.
Etikan, I., Alkassim, R. and Abubakar, S., (2016). Comparison of snowball sampling and
sequential sampling technique. Biometrics and Biostatistics International Journal, 3(1), p.55.
Jacobs, M.A., Yu, W. and Chavez, R., (2016). The effect of internal communication and
employee satisfaction on supply chain integration. International Journal of Production
Economics, 171, pp.60-70.
Kumar, R., (2019). Research methodology: A step-by-step guide for beginners. Sage
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Mackey, A. and Gass, S.M., (2015). Second language research: Methodology and design.
Routledge.

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Massingham, P.R. and Tam, L., (2015). The relationship between human capital, value
creation and employee reward. Journal of intellectual capital, 16(2), pp.390-418.
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guide to data collection and analysis. Routledge.
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Mar. 2019].
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Wheatley, D., (2017). Employee satisfaction and use of flexible working arrangements.
Work, employment and society, 31(4), pp.567-585.
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APPENDICES
Appendix 1

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21HUMAN RESOURCE MANAGEMENT

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24HUMAN RESOURCE MANAGEMENT
Appendix 2
SUMMARY
OUTPUT
Regression Statistics
Multiple R
0.41956
5768
R Square
0.17603
5434
Adjusted R
Square
0.14762
2863
Standard
Error
1.20794
1643
Observation
s 31
ANOVA
df SS MS F
Signific
ance F
Regression 1
9.04027
1309
9.04027
1309
6.19568
8248
0.01879
1665
Residual 29
42.3145
674
1.45912
3014
Total 30
51.3548
3871
Coeffici
ents
Standar
d Error t Stat P-value
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept
0.99788
077
0.59880
1059
1.66646
4604
0.10638
7494
-
0.22680
4906
2.22256
6447
-
0.22680
4906
2.22256
6447
X Variable 1
0.56242
5136
0.22595
3953
2.48911
3948
0.01879
1665
0.10029
7414
1.02455
2858
0.10029
7414
1.02455
2858
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
f(x) = 0.312993539124192 x + 1.72290021536253
R² = 0.176035433779975

25HUMAN RESOURCE MANAGEMENT
Appendix 3
Questions Comment Coding
Do you think that reward
management is important
for employee satisfaction?
Please Explain
“Reward management is
extremely important for
enhancing satisfaction level
of employees. There are still
plenty of employees who are
only motivated by reward
and recognition. “
“I agree that rewards are
important but there are other
factors that are crucial such
as employee growth,
inclusion, performance
appraisal. However, reward
is equally important and we
aim to provide a reward
based structure to retain the
employees.”
“Reward management is
very important to the
organization and I preferable
try to motivate employees
with both extrinsic and
intrinsic rewards.”
Reward management is
extremely important.

26HUMAN RESOURCE MANAGEMENT
Do you agree that reward
management is critical for
improving organizational
productivity? Please
Explain
“We need to manage our
workforce effectively and
the organization aims to
improve the organization
productivity and reward
management is a key
component in keeping the
employees motivated.”
“Yes, it is important but it is
not totally dependent on it.
We use different ways to
motivate our employees and
reward is one of its
components.”
“Reward is important to
keep the workforce
motivated so it is necessary
for organizational
productivity.”
Reward is important to keep
the workforce motivated
What strategies are you
implementing to improve
the reward management in
your organization?
“We are developing reward
and recognition plans to
provide opportunities to earn
more incentives and
benefits.”
Incentives, benefits, growth
opportunities

27HUMAN RESOURCE MANAGEMENT
“We develop reward
systems based on the needs
of each of the employee so
that we can motivate each
employee differently.”
“We have developed a
levelling system to provide
growth opportunities to the
employees along with extra
incentives.”