EXAMINING THE INFLUENCE OF COMPENSATION, CAREER GROWTH AND LEADERSHIP ON EMPLOYEE SATISFACTION: AN EQUITY THEORY PERSPECTIVE IN THE MALAYSIAN HOSPITALITY INDUSTRY
DOI:
https://doi.org/10.35631/JTHEM.1145028Keywords:
Career Growth, Compensation or Rewards, Effective Leadership, Employee SatisfactionAbstract
Employee satisfaction remains a critical issue in the hospitality industry due to its influence on employee retention, service quality, and organisational performance. Despite extensive research on employee satisfaction, limited studies have examined the combined effects of compensation and rewards, career growth, and effective leadership within Malaysian resort hotel settings from the perspective of Equity Theory. Therefore, this study investigates the influence of compensation and rewards, career growth, and effective leadership on employee satisfaction among employees of Bayou Lagoon Park Resort, Melaka. A quantitative research design was adopted using a cross-sectional survey approach. Data were collected from 72 employees through a structured questionnaire and analysed using descriptive statistics, Pearson correlation analysis, and multiple regression analysis. The findings revealed that all independent variables were positively associated with employee satisfaction. Effective leadership recorded the strongest correlation with employee satisfaction followed by career growth (and compensation and rewards. However, multiple regression analysis indicated that only effective leadership significantly predicted employee satisfaction, whereas compensation and rewards and career growth were not significant predictors. The findings highlight the importance of leadership effectiveness in enhancing employee satisfaction within the hospitality sector. The study contributes to the application of Equity Theory by demonstrating that leadership-related perceptions of fairness and support play a more influential role in employee satisfaction than compensation and career advancement opportunities. Practically, the findings suggest that hospitality organisations should prioritise leadership development initiatives to improve employee satisfaction and organisational performance.
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