Poor employee remuneration within the Eastern Cape tourism and hospitality sector

Orientation: Addressing the issues affecting employee remuneration in the tourism and hospitality sector is crucial. Fair and adequate compensation is not only essential for the livelihoods of staff but also significantly impacts their performance and overall job satisfaction. Research purpose: This study sought to identify factors contributing to poor employee remuneration in the tourism and hospitality industry. Motivation for the study: Poor employee remuneration in the tourism and hospitality sector results in a less motivated workforce that performs poorly, leading to high staff turnover rates. Research approach/design and method: Purposive and convenience sampling methods were followed, which allowed for open-ended questions for semi-structured interviews to collect data from operational staff and managers (N = 24). The data were analysed using Creswell’s six-step approach. Main findings: The study identified that poor remuneration in the tourism and hospitality industry stem from a lack of educated staff, business owners’ discretion in setting pay, the seasonal nature of the industry and the absence of standardised payment structures. Practical/managerial implications: The study supports the need for better education and training opportunities for employees, the implementation of standardised payment structures and consideration of industry seasonality to improve compensation practices. Contribution/value-add: The study’s findings provide a detailed analysis of the challenges leading to poor employee remuneration within the tourism and hospitality sector and offers actionable insights for improving compensation practices.