Compensation Benefits as Drivers of Employee Performance: Insight From the Hotel Industry in Cebu City
Year: 2025
Type: article
Abstract: Evaluating the core of compensation benefits that drives employee performance at selected hotels in Cebu City had been the primary purpose of this study. The study examined the relationship between financial compensation, indirect financial compensation, and non-financial compensation as components of compensation benefits and employee performance. A survey was conducted through questionnaires as instruments to collect the related data with a total number of 120 employees in the hotel as respondents. Descriptive methods were used in the study to gauge the frequency and percentage distribution of the participants' demographic profile. In addition, the relationship between compensation benefits and employee performance was examined through regression analysis. The respondents indicated that although employees recognized their financial and indirect financial compensation benefits, they had not perceived them as highly motivating or fulfilling enough to significantly enhance their engagement or performance level. The non-financial compensation had stood out as the key and primary factor influencing how employees had perceived their performance. The said analysis had rejected the study's hypothesis, showing a strong correlation between compensation benefits and employee performance. As a recommendation, hotels were encouraged to improve and refine their Compensation benefits; providing non-financial compensation is the highest priority, as revealed by this study. A competitive compensation benefits plan is the cornerstone of employee retention and motivation. Additionally, this study also holds a valuable resource for hotels within Cebu City and individuals pursuing a Master are in Business Administration (MBA), as it offers important perspectives to examine the significance of compensation benefits in improving business performance, especially in the hotel industry.
Author: Dianna May M. Alo
Language: English
Subfield: Human Factors and Ergonomics
Field: Social Sciences
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7082972709
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