Advisers

Roland Rambo B. Jayoma, MBA, CHP

Discipline

Hospitality Management

Abstract

The study titled “The Impact of Employee Compensation on Service Delivery at Café Lyon, Shangri-La Mall, Mandaluyong City: Basis for Employee Incentive and Retention Programs” examined how compensation influences employee performance in the hospitality sector. Conducted at Café Lyon in Mandaluyong, the research focused on managers, team leaders, and service staff who directly affect customer satisfaction. It aimed to assess the extent of compensation provided salaries, benefits, incentives, and non-monetary rewards, determine whether a significant relationship exists between compensation and service delivery, and develop incentive and retention programs. The study used a descriptive-correlational design. Respondents were selected through proper sampling, and data were gathered using a structured questionnaire covering respondent profile, compensation, and service delivery. Compensation variables included basic pay, allowances, incentives, and non-financial rewards, while service delivery indicators included timeliness, courtesy, attentiveness, and product knowledge. Ethical standards such as confidentiality and voluntary participation were observed. Results showed that employees were generally satisfied with their compensation. Non-monetary rewards ranked highest, followed by incentives, indicating strong motivational value. However, some employees expressed concerns about salary competitiveness and career advancement opportunities. Service delivery indicators were rated high, reflecting professionalism, promptness, courtesy, and strong product knowledge. Correlation analysis revealed no statistically significant overall relationship between compensation and service delivery. However, incentives and non-monetary rewards showed the strongest positive association with service performance. Although no significant overall relationship was found, the study emphasizes the importance of fair and structured compensation systems in maintaining employee motivation and commitment. It recommends improving performance-based incentives, enhancing non-monetary benefits, reviewing salary structures, and ensuring transparency in compensation policies. The findings contribute to a better understanding of compensation strategies in the hospitality industry.

Keywords

service delivery, customer satisfaction, motivation, retention, employee compensation, incentives, benefits, non-monetary rewards