Optimizing Employee Engagement through Recognition Practices in 3-4 Star Rated Hotels in Kisumu County, Kenya: The Moderating Role of Leadership Style

Abstract

The success of any business, particularly in the competitive hospitality industry, is highly dependent on its employees. Their attitudes, behaviors, and commitment directly impact service quality and customer satisfaction. The hotel industry in Kenya is a significant contributor to the economy. However, it faces several challenges such as high employee turnover, long working hours, and the potential for burnout which negatively impact employee engagement and performance. Although recognition is a key driver, its effectiveness is not always guaranteed. Leadership style shapes how recognition is received and internalized. In hospitality industry where service quality depends on employee attitudes and behaviors, leadership style is not just a background factor but it is a performance drive. This study investigates the effect of leadership style on the relationship between recognition and employee engagement among staff in 3–4 star-rated hotels within Kisumu County, Kenya. Drawing on the Kahn’s theory of personal engagement, the research explores how recognition practices both formal and informal shape employee attitudes, motivation and workplace commitment in the hospitality sector. The study employed explanatory concurrent mixed methods design, combining quantitative data from 228 hotel employees and qualitative insights from nine hotel managers. Reliability and validity tests confirmed the robustness of the constructs. Collected data was analysed using descriptive and inferential statistics with the aid of SPSS version 29. The results indicate that employee engagement is strongly and positively correlated with employee recognition (r = 0.870, p < 0.001) and leadership style (r = 0.662, p < 0.001), suggesting that greater recognition and supportive leadership behaviours are associated with higher engagement levels. Regression analysis confirmed a significant positive relationship between recognition and engagement (β = 2.019, p < 0.05). Moreover, leadership style significantly moderated this relationship, with recognition (β = 4.400, p < 0.001) and leadership style (β = 1.421, p < 0.001) both exerting strong positive effects. The significant interaction term (β = 0.045, p = 0.001) indicates that recognition yields a stronger impact on engagement when delivered within an effective leadership framework. Hotel managers in Kisumu County should integrate structured recognition programs with leadership development initiatives that cultivate supportive and participatory leadership styles. Training leaders to provide timely, specific and sincere recognition can amplify its effect on employee engagement, leading to improved performance, retention, and service quality in the hospitality sector.