Vol 4, Issue 4, 2016 ISSN- 2321-6824 THE IMPACT OF WAGES AND INCENTIVE SYSTEM AT THE LEVEL OF JOB SATISFACTION FOR WORKERS IN MERCURE HOTELS IN YEMEN YASSER HASHEM EMAD ALHIAGI* Department of Tourism and Hotel Management, Ibb University, Yemen. Email: yasseralhiagi@gmail.com Received: 29 July 2016, Revised and Accepted: 06 August 2016 ABSTRACT Objectives: This research primarily aims to identify the extent of the impact of wages and incentive systems at the level of job satisfaction in hotels of Mercure in Yemen, and submit proposals and recommendations that will help the hotel management to improve the level of satisfaction among their employees. Methods: The study relied on descriptive analytical method also based on a questionnaire as a tool to collect data from 50 employees who work in Mercure Sana’a Hotel and Mercure Aden Hotel. In addition to interviews with human resources managers in the sample hotels. Results: The study results indicate a feeling of higher satisfaction of employees in the case of access to incentives, which is a positive indicator of the high degree of satisfaction among workers toward incentives. The results also indicate the low wages between workers. Conclusion: The study recommends better pay and incentive system better to be keep up with the social and economic changes experienced by the state, through the revision of the foundations and wage policies and incentives, and linked it with the worker’s efforts. Keywords: Incentives, Job satisfaction, Wages systems, Mercure hotels. INTRODUCTION These days the movement of tourists increases, and the high number of tourists coming to Yemen in the past years; the demand for the establishment of hotels has increased, so the private sector and hotel chains invest in building several hotels which need to provide by qualified and efficiency human resources to offer the best hotel services. For that had to be an attention to job satisfaction through training, motivation, development, and rehabilitation because the employees are center of concern and basic premise to increase productivity. Which is reflected positively on the level of customer satisfaction and the performance of the hospitality industry? Also lead to increase profits and strengthen the competitive position in the hotel market. Problem statement The problem of the study lies in high job turnover rates among workers in the Mercure HOTELs in Yemen, non-reassuring situation of the workers in these hotels with low occupancy rates, and the decline levels of hotel service that resulting from the absence of the enthusiasm and motivation to work and innovation in providing services by employees. The study focused on impact of the wages and incentive systems at the level of job satisfaction among workers in the Mercure Hotels in Yemen, which can make them comfortable and reassured on the future of their work in these hotels. And try to answer the question: Is wages and incentive systems affect the level of job satisfaction among workers in the Mercure Hotels in Yemen? Objectives 1. To know the effect of wages and incentive systems at the level of job satisfaction among workers in the Mercure Hotels in Yemen. 2. To identify the relevant variables on wages and incentive systems. 3. Measure the individual’s satisfaction toward their jobs and hotel business. 4. To get the results and recommendations that will help hotel management to develop an effective and successful policy in the field of wages and incentives. Importance of the study Measuring the individual’s satisfaction about their jobs and their work has studied by many researchers as one of the important factors that lead to efficiently performance. For importance of this factor, this study came to shed light on a wider understanding of job satisfaction in the hotel sector in Yemen. Through search behind, the factors that lead to the satisfaction of the individual in his work; because increasing of satisfaction usually leads to increase the performance of employees. Furthermore, the importance of the study come from the possibility of access to the analytical field study related to one of the basic phenomena in the hotel management and the possibility its contribution to serve other studies related to hotels and the future development of services. Research Article Table 1: The distribution of Mercure hotels by region Region Number (%) Hotels Rooms France 228 (31) 21.808 (24) Europe ex. France 277 (38) 35.419 (40) Latin America and Caribbean 69 (10) 9140 (10) Middle East and Africa 29 (4) 4836 (5) Asia pacific 122 (17) 18.057 (20) Total 725 (100) 89.260 (100) *Annual report Mercure Hotels - Accor (2011) Literature review Numerous earlier studies discussed the topic of job satisfaction for workers in the different organizations, early comprehensive empirical research conducted by Porter and Steers (1973) and Muchinsky and Tuttle (1979) showed a negative relationship between job satisfaction and employee turnover intentions [1,2]. Job satisfaction has been shown to have a positive relationship to many variables. For example, several studies suggest that job satisfaction is significantly related to job performance [3-5]. Employees’ sense of self-worth may be enhanced if they feel well-paid for the job they do, if it confers social status or if it