Reward Systems and Employee Engagement Boost Hotel Staff Performance Through Job Satisfaction
A new study demonstrates that effective reward systems and strong employee engagement significantly boost hotel staff performance when mediated by job satisfaction. Conducted by Nina Nurmaya Sitorus, Prof. Dr. Ritha F. Dalimunthe, and Dr. Elisabet Siahaan from Universitas Sumatera Utara, the research was published in June 2026. These findings provide vital strategic insights for the hospitality sector, where business survival and growth heavily depend on direct customer service quality and workforce operational efficiency.
Background and Practical Relevance
Human resource management in the hospitality industry faces ongoing challenges in maintaining consistent service standards and operational punctuality. At MBS Hotel Medan, preliminary observations indicated sub-optimal employee performance, characterized by inconsistent service quality and lapses in meeting standard operating procedures. Issues such as non-transparent incentive structures and low emotional attachment among staff directly hindered overall workforce productivity. Understanding the structural relationships between organizational rewards, staff engagement, job satisfaction, and individual performance offers business leaders a clear framework to improve operational outcomes.
Research Methodology
The research team from Universitas Sumatera Utara applied an explanatory quantitative design using a census (saturated sampling) approach. The study was conducted between December 2025 and June 2026, gathering data from the total population of 84 employees at MBS Hotel Medan. Data collection utilized structured questionnaires evaluating reward systems, employee engagement, job satisfaction, and work performance. The authors analyzed the relationships using Partial Least Squares Structural Equation Modeling (PLS-SEM) executed through SmartPLS version 4.
Key Research Findings
Statistical modeling confirmed that job satisfaction acts as a significant partial mediator connecting organizational practices to employee performance:
- Impact of Reward Systems: Transparent reward systems generated strong positive effects on both job satisfaction (path coefficient 0.503; t-statistic 5.822) and direct employee performance (path coefficient 0.350; t-statistic 4.214).
- Impact of Employee Engagement: Workplace engagement significantly enhanced job satisfaction (path coefficient 0.328; t-statistic 3.521) and direct work output (path coefficient 0.175; t-statistic 2.587).
- Dominant Role of Job Satisfaction: Job satisfaction exerted the strongest direct influence on employee performance, registering a path coefficient of 0.498 and an f-square effect size of 0.575.
- Significant Indirect Mediation: Job satisfaction successfully mediated the indirect impact of reward systems (indirect coefficient 0.250; p-value 0.000) and employee engagement (indirect coefficient 0.163; p-value 0.005) on job performance.
- Model Explanatory Power: The combination of reward systems, engagement, and job satisfaction accounted for 79.5% of the variance in employee performance (R-squared = 0.795).
Real-World Impact and Industry Implications
The study offers direct operational guidance for hospitality executives and human resource professionals. Establishing clear financial incentives, regular bonuses, and public recognition directly improves staff morale and job responsibility. Simultaneously, fostering employee engagement through open communication and supportive work environments reinforces long-term service consistency.
Highlighting the practical necessity of workplace satisfaction, the research team from Universitas Sumatera Utara emphasized the interconnected nature of HR practices. "Organizational reward systems and employee engagement become substantially more effective at driving job performance when management successfully cultivates high overall job satisfaction across the workplace," stated Nina Nurmaya Sitorus alongside Ritha F. Dalimunthe and Elisabet Siahaan.
Author Profiles
- Nina Nurmaya Sitorus, S.E., M.M.: Lead researcher and Master of Management graduate from Universitas Sumatera Utara, specializing in Human Resource Management and Organizational Behavior.
- Prof. Dr. Ritha F. Dalimunthe, S.E., M.Si.: Senior professor and researcher at Universitas Sumatera Utara, with expertise in Strategic Management, Entrepreneurship, and Human Resource Development.
- Dr. Elisabet Siahaan, S.E., M.Ec.: Lecturer and researcher at Universitas Sumatera Utara, specializing in Labor Economics and Operational Human Resource Management.
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