This study explores the relationship between compensation, working conditions and employee satisfaction in the hospitality sector in Botswana. Data were collected from 105 respondents working for hospitality establishments in Gaborone (Botswana) and the surrounding areas. A series of Chi-square analyses were conducted to test relationships between compensation, working conditions and employee satisfaction. Findings demonstrated that working conditions had a greater effect on employee satisfaction than compensation. Furthermore, the study showed that current compensation strategies adopted in the hospitality industry in Botswana were counterproductive, not offering employees any real incentives to strive for higher achievement. The study provides evidence to support the need for strategic compensation in order to retain staff.

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