Year: 2024
Type: article
Study design: Observational Study
Abstract: This study investigates the impact of incentive systems on employee turnover in the service sector, which relies heavily on human resources to provide high-quality services and ensure customer satisfaction. Drawing on a quantitative research design, a structured questionnaire was administered to employees in different service-oriented organizations, including hospitality, retail, and healthcare. The data revealed that both financial incentives (e.g., salary increments, bonuses) and non-financial incentives (e.g., recognition, training, flexible scheduling) significantly influence job satisfaction and organizational commitment, ultimately reducing turnover intentions. Interestingly, the results suggest that non-financial incentives can exert a greater long-term impact by fostering intrinsic motivation, while financial incentives often address immediate economic needs. A multiple regression analysis demonstrated that incentive systems explain a substantial portion of the variance in turnover intentions, indicating theirvital rolein maintainingastableworkforce. Thestudyconcludes that organizations should adopt a holistic and balanced incentive strategyto enhance employee retention, combiningboth monetary and non-monetary rewards. Moreover, management should cultivate a supportive culture that emphasizes professional development and acknowledges individual contributions. Future research is recommended to include cross-sectional and longitudinal comparisons across various service sectors to provide broader insights into how incentives can be optimized for different organizational contexts.
Author: Mohammed Ahmed Al-Suhaymi
Institution: Saudi Electronic University
Language: English
Subfield: Human Factors and Ergonomics
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4406575535