The Relationship Between Financial Literacy and Individual Financial Behaviour of Employees of the Hotel Industry: a Case Study of Serena Hotels

Abstract

The study on financial literacy has continued to gain greater prominence in the field of education and beyond. The objective of this study was to examine the relationship between financial literacy and individual financial behaviour of employees of the hotel industry with focus on Serena Hotels. The study population was 1327 employees from 9 properties of Serena Hotels in Kenya. A sample of 140 employees was selected using stratified random sampling technique. Primary data was collected through semi-structured questionnaires. The questionnaires were edited for accuracy and completeness. The collected data was tested for validity and reliability. 112 questionnaires were sent back complete and accurate representing a response rate of 80%. Quantitative data was analyzed through descriptive statistics while qualitative data was analyzed through content analysis. The study also used regression analysis to establish the extent to which financial literacy, age, level of education, gender and level of income influence individual financial behaviour. The model significance was tested at 95% confidence level. Data presentation was done by use of tables. The study findings revealed that the employees of Serena Hotels had a moderate background of financial literacy. The results of the regression showed that there was a positive relationship between financial literacy and individual financial behaviour of employees of Serena Hotels. Age, level of education and income also had a direct relationship with individual financial behaviour. On the other hand it was found that there was an inverse relationship between gender of respondents and individual financial behaviour. Males were found to be more financially literate than females. From the results of the findings, the study recommends that employers in the hotel industry review their employees pay to level off with those of employees in other sectors of the economy, this is because most of the respondents cited their inability to save, plan for retirement, purchase insurance, set long term financial goals and pay bills on time due to the relatively low pay they received. The study also recommends that employees be on the lookout for their own financial well-being by sponsoring themselves for financial trainings, and having other sources of income to improve their financial health.