• Zakes Ndembele Stellenbosch University
  • Nadine Paston Stellenbosch University
  • Njambulo K. Zuma Stellenbosch University


Purpose of the Study: The main purpose of the study was to establish the relationship between employee compensation and employee turnover in star rated hotels in Cape Town in South Africa.

Methodology: The study applied a multi-stage strategy where the population was divided in to a number of groups from which the sample was drawn from. Descriptive statistics data analysis method was applied to analyse quantitative data using SPSS version 25 and quantitative method. Completed questionnaire was verified, coded and summarized using frequencies, table and bar chart. Chi-squire was applied to establish relationships between employee compensation and employee turnover.

Result: The findings were; that majority of employees in the star rated hotels were between the age of 31- 40 and had Diploma level of education. Although base pay and commissions were the most popular compensation alternatives, they were not significantly related to employee turnover, whereas indirect and non-financial compensation were significantly associated with employee turnover with 42.2% indicating that they would likely leave.

Recommendation: The study recommends that the Hotels under study apart from base pay and commissions, should also provide their employees with special employee retention packages such as retirement benefits, insurance cover, medical allowance, travel, and meal and recognition allowances. In addition, periodic review of employee benefits based on the prevailing market dynamics.

Keywords: Compensation strategies, Turnover intention, Real estate sector, South Africa.


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How to Cite
Ndembele, Z., Paston , N., & Zuma , N. K. (2021). COMPENSATION STRATEGIES AND TURNOVER INTENTIONS IN HOSPITALITY SECTOR IN SOUTH AFRICA. African Journal of Emerging Issues, 3(9), 1-8. Retrieved from