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Abstract

Despite the issues that the hospitality industry encounters in retaining talented employees, little attention has been paid to the development of retention strategies, resulting in poor organizational performance and sustainable growth. The current study, therefore, aims to review and discuss the employee retention strategies in the hospitality industry in order to keep talented employees for a longer period of time. The study is based on past literature and peer-reviewed articles published between 2010 and 2020. The databases Web Knowledge, Emerald, Google Scholar, and Science Direct were used to find the relevant papers using the key words such as “Hospitality Industry”, “employee retention”, “employee turnover”, and “employees”. The findings of this study suggest that employee retention is contingent on employee satisfaction, which is comprised of four factors: sustainable positive work environment; sustainable growth opportunities; sustainable & effective communication; and sustainable & effective recruitment and selection practices. The paper contributes to a comprehensive review of the literature on employee retention strategies in the hospitality context. The study proposes a model for the hospitality industry to revamp its recruitment and selection practices in order to retain its employees. Furthermore, the study provides a focused directions that will aid in the establishment of employee retention strategies and practices. It was concluded that satisfied employees are less likely to leave their current job, while unsatisfied employees are expected to leave their current job for a better career opportunity. Managerial implications were also discussed.
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Citation: Ghani, B.; Zada, M.;
Memon, K.R.; Ullah, R.; Khattak, A.;
Han, H.; Ariza-Montes, A.;
Araya-Castillo, L. Challenges and
Strategies for Employee Retention in
the Hospitality Industry: A Review.
Sustainability 2022,14, 2885. https://
doi.org/10.3390/su14052885
Academic Editors: Peter Holland and
Renee Paulet
Received: 28 December 2021
Accepted: 21 February 2022
Published: 2 March 2022
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4.0/).
sustainability
Review
Challenges and Strategies for Employee Retention in the
Hospitality Industry: A Review
Bilqees Ghani 1, Muhammad Zada 2, *, Khalid Rasheed Memon 3, Rezwan Ullah 4, Afraseyab Khattak 5,
Heesup Han 6, * , Antonio Ariza-Montes 7and Luis Araya-Castillo 8
1College of Business Management, Institute of Business Management, Karachi 75190, Pakistan;
bilqees.ghani@iobm.edu.pk
2Business School, Henan University, Kaifeng 475001, China
3Graduate School of Business, Universiti Sains Malaysia, George Town 11800, Malaysia;
khalidilm@hotmail.com
4School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China;
rezwanullah1990@yahoo.com
5Institute of Business and Management Sciences, University of Agriculture, Peshawar 53130, Pakistan;
siab4@aup.edu.pk
6College of Hospitality and Tourism Management, Sejong University, Seoul 05006, Korea
7Social Matters Research Group, Universidad Loyola Andalucía, C/Escritor Castilla Aguayo, 4,
14004 Cordoba, Spain; ariza@uloyola.es
8Facultad de Economía y Negocios, Universidad Andres Bello, Santiago de Chile 7591538, Chile;
luis.araya@unab.cl
*Correspondence: mzada@henu.edu.cn (M.Z.); heesup.han@gmail.com (H.H.)
Abstract:
Despite the issues that the hospitality industry encounters in retaining talented employees,
little attention has been paid to the development of retention strategies, resulting in poor organiza-
tional performance and sustainable growth. The current study, therefore, aims to review and discuss
the employee retention strategies in the hospitality industry in order to keep talented employees for
a longer period of time. The study is based on past literature and peer-reviewed articles published
between 2010 and 2020. The databases Web Knowledge, Emerald, Google Scholar, and Science Direct
were used to find the relevant papers using the key words such as “Hospitality Industry”, “employee
retention”, “employee turnover”, and “employees”. The findings of this study suggest that employee
retention is contingent on employee satisfaction, which is comprised of four factors: sustainable
positive work environment; sustainable growth opportunities; sustainable & effective communi-
cation; and sustainable & effective recruitment and selection practices. The paper contributes to a
comprehensive review of the literature on employee retention strategies in the hospitality context.
The study proposes a model for the hospitality industry to revamp its recruitment and selection
practices in order to retain its employees. Furthermore, the study provides a focused directions that
will aid in the establishment of employee retention strategies and practices. It was concluded that
satisfied employees are less likely to leave their current job, while unsatisfied employees are expected
to leave their current job for a better career opportunity. Managerial implications were also discussed.
Keywords:
comprehensive literature review; recruitment and selection; HR practices; employee
retention; hospitality industry
1. Introduction
It has been acknowledged that people are a significant source of competitive advan-
tage; organisations adopt numerous policies and procedures in order to retain their talented
employees for a long time. As a result, employee retention has emerged as one of the key
drivers for organizational success, alongside reducing unnecessary expenses and improv-
ing employees’ motivation and capabilities [
1
]. Employee retention, on the other hand,
has been identified one of the biggest challenges in the 21st century, particularly in the
Sustainability 2022,14, 2885. https://doi.org/10.3390/su14052885 https://www.mdpi.com/journal/sustainability
Sustainability 2022,14, 2885 2 of 26
hospitality industry. Because the hospitality industry is continuously dealing with the
problem of shifting a workforce, retention is an ongoing and ever-evolving endeavor to
keep its skilled personnel [
2
,
3
]. It is implied that environmental and social activities in the
hospitality industry contribute a lot more to revamping the HR activities, especially when
it comes to retaining the employees. Through sustainable HR, the hospitality industry can
better address its employees issues and their employment concerns, which ultimately help
them to develop a positive attitude and a strong commitment towards longer staying [
4
]. It
is expected that in the next 10 years, the hospitality industry will offer around 72 million
jobs [
5
]. The hospitality industry, therefore, found a most dynamic and globally growing
industry, plays a significant role in the economic and social development. Furthermore, it
is a significant component in boosting economic growth by attracting millions of foreign
visitors annually. The spectacular development of this industry is necessary for the growth
of the economic health, since it’s may create great employment opportunities and attract for-
eign investment into the country. Research shows that human resource management is one
of the most important organizational functions that influences employee retention [
6
,
7
]. Or-
ganizations that do not focus on their human resource practices are more likely to lose their
skilled and trained employees, in turn they bear twice cost on account of financial and op-
erational ineffectiveness [
8
]. Human resource management practices such as compensation
management, recruitment and selection, training and development, performance appraisal
and management, and benefits administration shape employees’ overall experience in an
organization. Human resource practices that contribute to employee growth and develop-
ment increase employee retention. Additionally, effective human resource management
practices not only ensure the desired skills, abilities, and knowledge of employees but also
employee motivation. It also helps to reduce turnover, increase productivity, and improve
employees’ performance, job satisfaction, and overall organizational
performance [9].
The
global turnover rate is increasing, and employee retention has become a global challenge for
the industry like hospitality industry [
10
]. Research highlights that production and service
are major constituents of the hospitality industry. This shows that rendering services to
customers is contingent on employees. Hence, the primary objective of the hospitality
industry is to manage their employees effectively and keep them on staff in order to get the
best out of them [
11
]. From this point of view, keeping employees longer and gaining an
advantage from them is an important task, which is perhaps the biggest challenge for the
hospitality industry [
12
]. The study, therefore, aims to review and suggest the best retention
strategies, particularly in the realm of the hospitality sector. In line with the discussion, the
study specified various reasons/root causes from the existing literature contributing to the
high staff turnover rate in the hospitality industry, which are listed in Table A1, shown in
Appendix A.
2. Problem Statement
Research posits that retaining employees, especially in the hospitality industry, is
highly challenging due to varying demand and job-hopping by a number of employees
from time to time [
11
]. The employees working in the hospitality industry are supposed
to deal with visitors and customers globally on a day-to-day basis, which causes stress.
As a result, their satisfaction level may be reduced, and they may be unwilling to stay
there [
13
,
14
]. The lack of growth and development is highlighted as the most discussed
cause of the high turnover rate globally, particularly in the hospitality industry. Research
highlights that the management of the hospitality industry still focuses on old traditional
methods to retain employees, i.e., one-way communication and feedback, where employees
cannot share their long-term plans with their respective bosses and cannot get feedback or
suggestions for their career development. In view of the 21st century, such methods are no
longer effective to reduce the employee turnover rate [15].
Although the hospitality industry continue to put in efforts to maintain proper staffing
levels, issues relating to retaining employees continue to surface. Alongside the challenges,
there are a series of employment opportunities in the hospitality industry [
16
,
17
]. Of
Sustainability 2022,14, 2885 3 of 26
these, employee retention is one of the most demanding challenges around the globe. The
research highlighted that the hospitality industry is encountering difficulty in maintaining
the balance between the supply and demand of human capital [
18
]. Employee turnover
is expensive, as it accounts for around 40% of total expenses. In order to control labor
expenses or labor costs, this industry needs to retain its employees.
3. Research Questions
In today’s world, where the hospitality industry is encountering an increasing number
of customer demands and expectations, keeping employees who are committed with their
work and produce quality customer service has become its ultimate goal [
19
]. Previous
studies have focused on a single aspect of human resource management practices that can
contribute to the performance of the hospitality industry. However, research on human
resource management practices has advanced significantly, but little research has been
done about the challenges and prospects for employee retention strategies [
20
,
21
]. This
study, therefore, seeks to review and analyze the role of HR management in formulating
and implementing retention strategies in the hospitality industry, this leads to our first
research question:
RQ1. What is the role of the HR department in formulating and implementing reten-
tion strategies in the hospitality industry?
Employee retention has emerged as a critical strategic concern for the global hospitality
business. Researchers and academics are increasingly worried about employee retention
in the hospitality industry [
2
]. A poor retention rate undermines the organization
'
s com-
petitiveness, operational and financial effectiveness, and profitability. Low retention is
related with a loss of human capital, which threatens the organization
'
s profitability and
performance. Organisations that understand the causes of employee turnover can imple-
ment the measures to increase their competitiveness and profitability. [
22
] To establish
effective retention strategies, the root causes of the high turnover and low retention rates
must be investigated. According to a past study, the causes of high turnover vary from
organization to organization, which is why there is no general or universally accepted
cause for the high turnover rate in the hospitality industry [
23
]. Researchers linked high
turnover with low compensation, limited growth opportunities, a poor work environment,
and long working hours [
24
]. According to a previous study, if the main cause of the low
retention rate in the hospitality industry is unknown, developing effective strategies will
be extremely challenging [
25
]. Thus, the second research question of this paper is to study
the challenges faced by the hospitality industry in retaining its employees.
RQ2. What are the most common reasons for the high turnover rate in the hospitality industry?
Furthermore, in the service industry, frontline employees need to be the center of
management concern because they serve customers, and customer satisfaction is a key
component in the overall success of the service business [
26
]. Investment in employees
(e.g., revamping recruitment and training practices and compensation) is more necessary
than setting profit goals. Since, the hospitality industry is a customer-oriented industry,
serving employees to be satisfied must be its first priority [
27
]. A past study stated that
retention should be an integral part of the overall talent management strategy [
28
]. This
is why the hospitality industry needs to satisfy its employees by implementing different
retention strategies to prevent and reduce high turnover rates. These strategies will help
the organization to encourage employees to stay with them for a longer period of time.
Additionally, it is believed that if the right strategies are proposed and implemented in
this industry, they will help the industry to accomplish its goals and bring organizational
success. Conversely, the existing literature offers extrinsic as well as intrinsic employee
retention policies and strategies, yet the retention rate remains quite low [
29
]. Extensive
literature suggests that good compensation packages, effective growth opportunities, train-
ing, and development can all contribute to the retention of employees. The third research
objective of this paper is to suggest strategies that can help the hospitality industry reducing
its turnover rate [30,31].
Sustainability 2022,14, 2885 4 of 26
RQ3. What are the interventions that can help improving the retention strategies in
the hospitality industry?
4. Purpose of the Study
This study aims to review and identify the challenges and strategies regarding em-
ployee retention in the capacity of hospitality industry. The primary goal of the hospitality
industry is to provide great customer service. In order to increase its contribution to eco-
nomic development and survive in a competitive market, the hospitality industry needs
to invest in its human capital. In the service industry, employees’ direct interaction with
customers adds a lot to the competitive advantage of a company.
5. Literature Review
A past study by the Professor of Business Administration at Harvard Business School [
32
]
defined human resource management as one of the most important management activities
in decision-making, and in all activities that influence the nature of life (the employee–
agency relationship) [
33
]. Human resource management is also defined as a powerful term
which is used to define the principles, philosophies, and practices that follow the leadership
of people in an organization. In addition, human resource management is defined as
all of the activities related to the workplace and employee management. According to
Armstrong, the concepts of human resources and human resource management have been
completely replaced by human resource management, which is the process of managing
employees and their needs in organizations. Furthermore, human resource management
has been defined as the process of recruitment and selection, performance management
and appraisal, the wellbeing of workers, training and development, and relationships with
employees aiming to achieve the organizational goals [32,34].
5.1. Employee Retention
The term “retention” can be defined as a systematic effort to create and improve an
environment that continues to encourage employees to work while implementing policies
and practices that suit their diverse needs. Employee retention is the process of retaining
employees, or encouraging them to stay with the company for as long as possible. Employee
retention is “a method by which companies maintain an efficient workforce and meet
operational requirements” [
35
]. It is a method of encouraging employees to stay with the
organization, or to stay with the organization until a project is completed [
36
]. According
to [
16
], human resources are a systematic effort to create and improve an environment that
encourages employees by promoting policies and practices that meet their diverse needs.
5.2. Employee Turnover
There are two types of staff turnover: voluntarily and involuntarily. involuntary
turnover can be defined as the employees deliberately being terminated by employer or
employees are being forced to resign their job due their undesired or low performance. If the
person can make a personal decision to leave the company, then this is known as “voluntary
turnover” (e.g., to take the best opportunity to work in another organization). A termination
that is not officially issued by the employee is voluntary. This type of turnover is consistent
with the controls and settings of the employees alone, not the management. Employees
who resign on their own are aware of their current job and employment opportunities
in other, more successful organizations. Employees who leave the company tend to be
more skilled and talented than others, as they take better jobs. On the other hand, the
employees who leave may not reveal the real reason or the purpose of their leaving. For
this reason, most studies of retention or turnover are on the subject of voluntary, rather
than involuntary, turnover.
The hospitality industry is recognized as one of the elements of the service sector that
focuses on customer leisure activities and customer satisfaction, rather than more basic
needs. This is why customer experience that leads to customer satisfaction is the top priority
Sustainability 2022,14, 2885 5 of 26
in this industry. The hospitality industry is highly dependent on its employees; therefore, it
is a very labor-intensive industry in which the growth of the industry has a strong impact
on employment [
37
]. The nature of the services—such as event planning, lodging, and
serving food and beverages—provided by this industry requires skilled employees who
directly interact with customers and represent the organization. In general, the industry
is composed of four major categories: restaurants, travel, tourism, and accommodation.
These four categories are further divided into tea shops, drink shops, cafes, bars, clubs,
resorts, and hotels.
Globally, the hospitality industry is facing a very serious challenge in the form of its
low retention rates. This research examines and discusses the effects of the factors propping
up the high turnover rate in the hospitality industry. These factors arise in organizations
that influence employees to quit their jobs. There are several aspects that, surprisingly or
simultaneously, can contribute towards such a situation [
38
]. Data from around the world
shows that high turnover is a major challenge in the hospitality industry [
6
]. It is believed
that high turnover usually leads to business failure, a lack of motivation, and the poor
performance of the organization [39,40].
In recent years, the economy has changed dramatically as a result of globalization, in
which organizations are judged against international standards and best practices. With
expansion, workforce diversity, and the new nature of organizations, the focus is on people.
As a result, organizations have found that these changes had a huge impact on their
performance, and that the key to quality transfer was the organization’s ability to motivate
employees to participate [
41
]. Because the hospitality industry needs to achieve results
through its employees, the focus should be on motivating and caring for people through
HR practices such as evaluation, regular feedback, and continuous support, as well as
sustainable development.
Globally, researchers have the same opinion regarding the role of human resources
in the success of an organization. They recognize human resources as the most valuable
resource in the organization [
2
]. Successful organizations create their competitive advan-
tage through their employees because they know how to satisfy their employees and how
to unleash the human potential of the organization [
42
]. From the perspective of these
circumstances, several factors can combine to further complicate retention. According
to SABMiller, one of the world’s leading and most recognized breweries, their human
resources set them apart from their competitors. Moreover, their employees’ commitment
and passion have helped SABMiller to build its recognition among customers. This shows
that, along with attracting and developing employees, it is also very important to acknowl-
edge their contribution. This means that employee retention is a serious concern for most
large companies, especially in the service sector.
The hospitality industry offers services and caters to its customers through its em-
ployees, which is why this industry needs to invest in its employees [
43
]. Being a service-
oriented industry, the hospitality industry is human-intensive, and in order to drive success
and provide better customer service, having an efficient workforce is necessary. Effec-
tive human resource management (HRM) is one of the main approaches, especially in
recruitment, which is critical to the success of the hospitality industry. Additionally, in
order to invest in employees, it is necessary to implement the best HRM practices and
develop the skills of employees. Recruitment and selection is the first function of human
resource management, acting as the backbone of any organization [
2
]. Recruitment and
selection is the process of searching for and selecting the best fit for the organization. This is
why the most important thing for the hospitality industry is to encourage potential career
seekers to join this industry and make it their first preference. Recently, the industry has
started to focus on hiring from university placement programs, but they are not successful
in retaining these fresh graduates because their internal culture does not fulfil the needs
of these fresh graduates. There is no focus on the post-hiring promise. This shows that
their recruitment and selection process is not effective, which is what is causing the high
turnover rate in this industry.
Sustainability 2022,14, 2885 6 of 26
Table A2, depicted in Appendix A, shows the ways in which human resource manage-
ment practices such as administrative policies, compensation and benefits, performance
management, recruitment and selection, and growth and development influence employee
retention. Furthermore, in order to analyze the essence and relationships of the study’s key
themes and variables, content analysis was carried out as shown in Table A3 (Appendix A).
6. Materials and Methods
6.1. Research Design
The study used the literature review method to answer the formulated research
questions and achieve the set objectives. The study included literature from March 2010
to 2020 from the following databases: Web Knowledge, Emerald, Google Scholar, and
Science Direct. The study used the key terms such as “hospitality Industry”, “employee
retention”, “employee turnover”, and “employees” to search and identify the relevant
papers. Continuing on from this, we added a filter to collect all studies published between
2010 and 2020. First, we collected the total number of published studies. In the second
phase, we excluded articles based on eligibility criteria, title, and relevancy. In the third step,
we selected the final sample of 48 articles, based on further reading of the complete article.
The selected research papers included a broad range of sample sizes. Comprehensive
literature reviews were also included, in which the sample size was based on past literature.
Most of the studies considered middle- and lower-level employees, whereas various studies
used random sampling techniques to estimate the population value.
6.2. Search Outcome
In total, 163 papers were found from 3 databases. By applying the inclusion and
exclusion criteria over a 10-year period (2010–2021), 77 studies were excluded, and the
remaining 86 papers were accessed and reviewed at their full length. Based on the classifi-
cation of the studies, a PRISMA (Figure 1) was developed and is depicted below. A total of
48 papers were selected. Before 2010, the relevant studies were much more focused on the
determinants of retention, instead of challenges and strategies. The objective of the current
study, however, is to seek out retention strategies. The study, therefore, included papers
from 2010 to 2020. Table 1shows the inclusion and exclusion criteria for the studies.
Table 1. Exclusion and inclusion criteria.
Inclusion Criteria Exclusion Criteria
Peer Reviewed Journals
Papers published in English
Papers published between 2010–2021
Articles related to Employee Retention
Primary, Secondary data Research
Literature Reviews
Qualitative, Quantitative Researches
Full Text Available
Observational Studies
Original Research Papers
Articles relevant to both employee
retention/Turnover and hospitality Industry
Non-peer reviewed
journal
All papers published before 2010
Papers published in other languages
Duplicated Work
Papers that do not focus on Employee
Retention
6.3. Search Method
Three electronic databases were used for the literature searches: Google Scholar,
Science Direct, and Emerald. The following keywords were included in the searches: “re-
tention”, “turnovers”, “employee retention”, “employee turnover”, “hospitality industry”,
“service sector”, “retain”, “hospitality”, “intention to leave”, “employee management”,
“retention rate”, “turnover rate”, “leave”, “stay”, and “hospitality employees”. These
keywords were used to locate research papers that have examined the factors affecting
employee retention in the hospitality industry or the intention of employees to leave the
Sustainability 2022,14, 2885 7 of 26
hospitality industry. In order to consider or examine only relevant and updated papers, the
time frame of the research study was restricted to the period of 2010 to 2021.
Figure 1. Prisma flow diagram (flow diagram of the literature search and selection process).
7. Results and Findings
The results were achieved by reviewing and synthesizing all of the relevant studies.
The study covered around 48 studies based on the inclusion criteria. Based on the analysis
of identified theories and relevant research on sustainable HR practices, the study provided
new insights into employee retention and how to reduce the high turnover rate in the
hospitality industry. The findings suggest that the retention rate in the hospitality industry
is highly contingent on employees
'
level of satisfaction, which is composed of four factors:
sustainable and positive work environment, sustainable growth opportunities, sustainable
and effective communication, and sustainable and effective recruitment and selection.
Figure 2, showing the identified theories and factors that can help to retain the employees.
7.1. Equity Theory
This theory, from John Stacey Adams, claims that people not only consider the reward
that they receive in return for their performance or efforts but also what other people are
receiving [
44
46
]. They consider the relationship between their reward and the rewards of
other people. If we implement this theory in an organizational context, we can conclude
that employees compare their efforts—such as qualification, experience, performance, com-
Sustainability 2022,14, 2885 8 of 26
petence, and skills—and rewards—such as appraisal, promotion, bonuses, salary increase,
and recognition—to other employees’ efforts and rewards. When employees perceive
disparities or differences in the rewards that they are receiving relative to other employees,
conflict is created. These employees have a difficult time receiving their expected or per-
ceived fair reward [
47
,
48
]. Equity theory is based on the following three main components
or assumptions.
Figure 2. Model of theories which are relevant to employee retention.
People perceive rewards as fair or equitable according to their own beliefs or expecta-
tions for their efforts. People compare their reward with the reward of other employees
according to their perception of their contribution. When people realize that their contribu-
tions or efforts are not equitable compared to those of other people, they act to contribute
more or to improve their performance.
This theory helps managers to create a positive association between the performance
and rewards of employees. According to this concept, we can assume that an employee
who leaves an organization due to biased, unfair, and inequitable treatment develops these
feelings when they do not receive a fair reward for their contributions or efforts [
49
51
].
These feelings can be based on actual inequity as well as perceived inequity. This is why it
is challenging for organizations to develop reward systems such as compensation, growth
opportunities, and appraisals that are perceived as equitable and fair by employees. In
addition to this, it is also very important to distribute rewards according to the actual
performance of employees [
52
]. Employees reduce their contribution and efforts, start to
search for better opportunities in the job market, and restrict their work output when they
perceive that there is an imbalance in their reward compared to other employees’ rewards.
Consequentially, this behavior of employees leads to high turnover and lower productivity.
Sustainability 2022,14, 2885 9 of 26
7.2. Job Characteristics Theory
The approach of this theory is to develop jobs that satisfy and motivate employees.
This theory suggests some features that can help managers make the jobs of their subordi-
nates attractive [
53
,
54
]. The theory proposes that intrinsic motivation can be experienced
by employees if their job produces three important psychological factors, including the
personal responsibility of the employee, the meaningfulness of work, and the contribution
of the employee [
55
]. Employees are intrinsically motivated when the job is meaningful
and the consequences of the job are considered the personal responsibility of the employee.
This helps the employee to understand that their contribution directly affects the overall
effectiveness of the organization [
56
58
]. To sum up this concept, we can say that a job
should be designed in a way that creates an experience of responsibility, meaningfulness,
and knowledge of the consequences of the contribution. Skill variety, i.e., different activities
in a job using different skills; task identity, i.e., the degree to which employees identify the
outcome of their efforts; and task significance, i.e., the impact of the job on other people,
are three main elements to the creation of an experience of feeling intrinsically motivated.
Autonomy and feedback are the remaining two factors required to make a job mean-
ingful. An employee needs substantial freedom and continuous feedback on their work.
If we use this theory for the retention of employees, we can see that this model helps
the employee to consider their work as being meaningful, which motivates them to take
responsibility and contribute through better performance. This automatically leads to
employee satisfaction, which is essential to employee retention. Thus, this theory suggests
that, along with other factors, feedback is also very critical for reducing turnover. A proper
feedback system can be implemented through effective communication in the organization.
7.3. Expectancy Theory
This theory claims that people behave in a certain way due to the expected outcome.
According to Victor Vroom, behavior is reinforced by consequences. In light of this theory,
we can say that employees behave in a certain way based on the expected consequences.
For example, employees will perform better if they are rewarded, but the reward needs
to be meaningful. This theory helps managers to identify factors that affect employee
motivation and choose among various alternatives [
59
,
60
]. In the workplace, employees
exchange their performance, efforts, or contributions for salary, compensation, or any other
reward. This input may also include the qualifications, work experience, and skills of
employees. Here, the important outcomes exchanged for inputs are cash and non-cash
benefits, titles, and recognition.
Employees put more effort in when they know they will receive a reward for their
efforts. The behavior of task accomplishment is motivated by the type of reward or value
that the employee receives. Porter explained this behavior in terms of the relationship
between the effort and the performance of the employee. He stated that, in the prediction
of the performance of an employee, this relationship acts as a moderator [
61
]. Furthermore,
employees who are skilled and have more abilities put in more effort than less-skilled
employees. For employee retention, this theory can be used to predict the level of employee
satisfaction. Employee satisfaction can be achieved through an employee’s perception of
equity in the organization [
62
64
]. They are more satisfied when they know that they are
receiving fair rewards, because they expect fair and unbiased rewards.
7.4. Social Exchange Theory
George Homans proposed the social exchange theory. According to this theory, hu-
man behavior is directed by an exchange process, because their decisions are based on
rational thinking. Employee commitment, employee motivation, and employee retention
are predicted by social exchange. For example, if employees are working hard and putting
their maximum effort into performing better but are not getting any reward in exchange
for their efforts, these employees will no longer put in effort and their performance will go
down [
65
,
66
]. This theory is usually used by researchers to explain the desired attitude and
Sustainability 2022,14, 2885 10 of 26
behavior of employees. From the perspective of this theory, organizational justice, organi-
zational trust, and effective communication are important components for the retention
of employees.
7.5. Maslow’s Theory
According to Maslow, people want to become self-actualized, and they have different
needs at different levels. This idea was proposed by Abraham Maslow in 1943. According
to this theory, there are five levels, or stages, of needs (physiological, security, affiliation,
esteem, and self-actualization) for humans (refer Table 2). Levels of motivation increase
as needs are met. This theory is used in organizations to determine the level of needs of
employees, and to motivate them through the provision of rewards. Furthermore, it offers
useful insights for managers and organizations to retain their employees through a better
reward system [
67
]. It is important to satisfy the unmet or emerging needs of employees
through different programs. When managers design a reward system without knowing
the unmet or emerging needs of employees, it results in poorer performance and lower
employee satisfaction, and ultimately leads to an increase in the turnover rate. According to
this theory, compensation, job security, safe working conditions, work relations, recognition,
growth, and training and development are critical for retaining employees because these
factors lead to employee satisfaction [68,69].
Table 2. Maslow’s hierarchy of needs.
Needs Application
Physiological Food
Security Job security, appraisal, non-cash benefits (such as medical or health
insurance, life insurance), working conditions
Affiliation Employee engagement, collaborations, team spirit, social activities
Esteem Job rotation, Job enrichment, Career development, training
and development
Self-Actualization Encouraging creativity, innovation and learning
8. Interventions That Can Help to Improve Retention Strategies in the Hospitality Industry
Based on the above-mentioned theories, a model (Figure 2) was developed. This
model clearly shows that employee retention is dependent on employee satisfaction, and
employee satisfaction depends on four factors including sustainable and positive work
environment, sustainable and effective communication, sustainable growth opportunities,
and sustainable and effective recruitment and selection practices [
70
72
]. These factors
will not only lead to high satisfaction and, subsequently, a high retention rate but will
also assist them in the development of economic and social sustainability growth. The
notion of sustainability in HRM practices is important because it can intensify employment
relationships and social participation, as well as helping employees to stimulate their
positive attitude towards workplace retention. It has been found that there is a strong
association between the identified factors and employee retention, as the organization’s HR
support, along with the social and economic contributions, facilitates employees’ behavior
to develop long-term retention commitment [
73
76
]. Hence, it has been deduced that the
existence of such organizational factors and the promotion of sustainability growth through
having good internal and external relationships will not only help the organization to
reduce turnover but also attract new and talented employees [77].
8.1. Sustainable and Positive Work Environment
The work environment is a very critical factor for employee satisfaction. It has an
impact on employees’ perceptions of the organization. A conducive and environmentally
protected work environment encourages and motivates employees to perform better, and
this behavior is sustained throughout the day. Researchers believe that the working
conditions, workplace culture, and work environment play important roles in deciding
Sustainability 2022,14, 2885 11 of 26
if employees will leave the organization or stay with it. The low employee retention rate
in the hospitality industry is the result of low satisfaction levels and a poor quality of
leadership [
78
]. The relevant literature suggests that employees’ perceptions regarding the
working environment in which they work is crucial and holds immense importance due
to its impact on their intention to remain, customer retention, profitability, and customer
loyalty [
79
,
80
]. Scott conducted a study in 2016 regarding employee retention in the
hospitality industry. He found out that the operations of an organization in the hospitality
industry are greatly affected or influenced by environmental factors, i.e., the person and
environment fit together to create the appearance of a positive work environment. It is
suggested that it’s the manager’s responsibility to create a conducive and sustainable work
environment that motivates and inspires employees to perform better, accomplish their
goals, and achieve organizational objectives. Employee dissatisfaction, low morale, poor
performance, low productivity, and emotional exhaustion result from poor or negative work
environments [
28
]. The work environment, flexible work hours, a humanistic workplace,
a culture of recognition, and a diverse work environment influence employee decisions
regarding quitting their jobs [29].
In the hospitality industry, employees usually do not have a balance between their
work and private lives, and their workplace is not aligned with environmentally sustainable
programs; this makes them more stressed at work as well as outside of work. These
employees, with their poor work/life balance, also experience conflicts at work as well
as in their private life. They experience more problems in their relationships, which lead
to mental and physical health issues. Employees usually work night shifts as well. The
industry puts burdens on their employees where they are expected to complete their work
before leaving without considering the time. Most of the employees leave because they
don’t have opportunities to participate in the sustainable growth programs and/or have a
clash between their personal life and professional life.
Work/life balance is affected by factors such as a lack of working hours, poor leave
policies, an increased quantity of workload, and the unavailability of support structures
within the workplace. When an organization or sector faces such challenges, they design
policies that can help them handle the situation, but in the hospitality industry, strict
policies have been implemented. The industry has designed and implemented very strict
policies where employees do not have the authority to decide their working shift, benefits,
or working hours, etc. Job rotation and job enrichment add variety to employees’ daily
responsibilities. Furthermore, employee empowerment helps employees to make decisions
regarding their job responsibilities and working hours. However, in the hospitality industry,
there is very little focus on these (mentioned) strategies. In the hospitality industry, the
working hours are usually long. Employees have to work more than 9 h per day, which
means that per week, the total number of working hours exceed 48 h. Organizations need
to show their employees that they are a valuable resource by creating a sustainable and
positive working environment.
8.2. Sustainible Growth Opportunities
Sustainable growth opportunities refer to the sustainability of financial growth, ca-
reer growth, and professional and personal growth opportunities for employees. Career
growth or development can be defined as a formal perspective that is followed by com-
panies/organizations to determine whether employees are available who are skilled and
meet every aspect of the required job. It is the process of providing an ongoing mechanism
that enhances the skills and knowledge of employees. Career development and growth
opportunities are very critical for the success of the hospitality industry. The hospitality
industry is growing very fast, but still, it has not adopted modern HR practices in its
workplaces, and it is encountering challenges of environmental uncertainty. In 2016, most
organizations in the hospitality industry introduced management trainee programs in
which all of the employees (fresh graduates) completed their 6 months of training, but they
always failed to promote them. For this reason, after 6 months of training, when employees
Sustainability 2022,14, 2885 12 of 26
are not promoted, they leave the organization. The industry invests a huge amount in its
MTOs but fails to retain them. The main reason is that the industry not have structured
career development programs or sustainable and environmental initiatives. The industry
is not focusing on succession planning, talent management, and leadership development.
The majority of the employees join this industry for a short period of time and use it as a
stepping stone, not as a long-term career [30].
Employee career satisfaction can be achieved by providing a high level of career
adaptability [
31
], which ultimately leads to a high retention rate [
33
,
34
]. According to
Messmer, for employee retention, investing in training and career development programs
is essential [
81
]. It is the responsibility of an organization to ensure that employees are
growing and their skills are being developed [
35
]. Hospitality is a target-driven job,
which is why the uncertainty and job insecurity level are very high at the entry level.
Employees want to meet their desired level of productivity, for which they need support
from the human resource department. Most organizations in the hospitality industry
do not have sustainable management programs, and they don’t have room to find the
right direction for growth and development. This discourages the employee, and then
they start looking for alternative options in other organizations and leave the company
when they find another better opportunity. For this purpose, Figure 3suggests that career
development opportunities and self-directed and dynamic learning opportunities are
essential for employee retention because they lead to employee satisfaction.
Figure 3. Impact of HR policies on employee retention.
8.3. Sustainible and Effective Communication
Sustainable and effective communication is a strategy that involves the integration of
sustainable activities into the industry’s operational and strategic objectives. A sustainable
communication strategy assists organizations in developing and maintaining a healthy
work culture by allowing them to effectively develop interpersonal, group, departmental,
and intercultural communication. It also plays an important role in creating an open envi-
ronment where employees have more opportunities to speak up in terms of suggestions
regarding the organization’s sustainable growth. The most effective way of communicating
Sustainability 2022,14, 2885 13 of 26
in the workplace is by creating a quality relationship between employees and their supervi-
sors. When effective communication is implemented through the lowering of the power
distance, providing regular feedback, conducting performance management meetings,
conducting effective orientation programs, and encouraging teamwork, it helps employers
to retain their employees. In the hospitality industry, if employees are allowed to participate
in decision-making and they are provided with information regarding what is happening in
the organization, they are more likely to stick with the organization because they consider
themselves part of that company. Currently, this industry is struggling to engage employees.
The power distance between managers and their subordinates is higher. Furthermore, due
to poor communication, employees are not satisfied with their current salaries, rewards, or
other benefits. The primary causes for this poor communication are that employees do not
receive feedback, there is no idea of performance management meetings, no sustainability
measures are implemented to ensure the organization
'
s long-term survival, and there is
no concept of mentorship. This is why employees lack confidence in their abilities [
36
]. In
order to increase employee retention rates, managers must genuinely care about employees’
social and environmental concerns, and must encourage effective communication in the
workplace by providing timely feedback, conducting performance management meetings,
encouraging transparency, and encouraging teamwork [
37
]. Researchers believe that em-
ployee engagement leads to employee retention because it encourages an employee to stick
with the same organization for a longer period of time, and it gives a sense of satisfaction to
employees [38]. Figure 3shows the HR policies and their impacts on employee retention.
8.4. Sustainable Recruitment and Selection Process
The most significant reason behind the high turnover rate is the seasonal nature of the
hospitality industry [
39
]. Usually, in the hospitality industry, managers recruit employees
based on seasonal fluctuations. They remain ignorant of proper staffing plans and pre-
recruitment planning. Moreover, the hospitality industry greatly overlooks economic and
social sustainability practices in the recruitment and selection process, which may cause
employees’ negative attitudes and them quitting the job.
Currently, the hospitality industry is focusing on hiring new fresh graduates with good
academic backgrounds, and introducing their management trainee programs in universities
to hire candidates with formal education, as many of their senior employees do not have a
sound academic background. However, the industry is unable to retain them.
The recruitment and selection process of an organization determines the behavior and
attitude of the hired employee, and whether or not the employee behavior and attitude
are in accordance with the internal culture of the organization. Furthermore, it determines
who might be the best fit for the organization. A properly designed recruitment process
attracts competent candidates who are best matched with the job position and internal
culture of the organization. When organizations use the best sustainability recruitment
and selection practices, i.e., person–job fit and person–environment fit, it helps and enables
them to choose the right person to fill a vacancy for a longer period. Skilled and best-fit
employees introduce innovative ideas and unique methodologies for performing different
processes; they increase the efficiency level of the task, which helps the organization to
meet its organizational goals by increasing its productivity. Different researchers have
identified positive relations or associations between the effective recruitment process and
the retention rate of the organization. The use of formal selection and recruitment processes
helps the organization to earn profits.
Sophisticated recruitment and selection procedures, as well as the critical role of
sustainability practices, aid in the selection of the right person and increase the likelihood
of retention for the organization. It has been found that the best recruitment practices and
organizational performance are positively related. They help the company to achieve good
results and improve the quality of its products and services. When the best employees are
hired and then retained, it saves the cost of hiring the wrong people, who frequently leave
the organization after some time. When the best people are identified, hired, trained, and
Sustainability 2022,14, 2885 14 of 26
retained, the financial burden is reduced. The role of sustainability in fostering and enabling
an effective recruitment and selection process is crucial because, through sustainable
practices, organizations can attain economic development and social participation that can
help them greatly to attract and retain talented staff. A fast and efficient recruitment and
selection process enhances the reputation of the company, makes it attractive to the best
candidates, reduces the costs of the organization, and ensures that the very best talent is
identified, engaged, and brought into the business.
9. Proposed Model of Recruitment and Selection
The proposed model (Figure 4a–c) of the recruitment and selection of employees
in the hospitality industry can be divided into three phases: (1) staffing planning (pre-
recruitment), (2) implementation, and (3) onboarding (post-recruitment).
9.1. Staffing Planning (Pre-Recruitment)
A staffing plan is the first step to effective recruitment and selection (Figure 4a).
Through a staffing plan, the human resource department identifies the personnel needs
of the organization, such as the number of positions required to be filled, the number of
employees to be trained, and the number of employees to be promoted in order to achieve
organizational goals. Figure 4shows the pre-recruitment scenario, in which the staffing
plan is the first step, which is followed by job analysis, recruitment and on-boarding. In
order to hire the best candidate for any organization, it is necessary to prepare the best job
description that explains the job responsibilities, specifications, roles, and other important
aspects of the job position. This helps the candidate to determine if the role is suitable to
align with their skills and career goals, and makes the organization attractive to candidates.
In order to design the job description, the recruiters must first understand the specific
job position (by understanding the job role, position, specification, responsibilities, and
importance of the position). Furthermore, he/she should understand the importance of
the role to the achievement of the goals of the organization. Recruiters can understand
it by discussing it with the senior head or lead of the division where the recruitment is
needed. A clear, detailed, and effective job description can be created based on discussion.
The staffing plan does not end with recruitment and selection; it also includes onboarding,
succession planning, employee satisfaction, and employee retention.
9.2. Implementation (Recruitment Process/Recruitment Strategy)
The second phase is the recruitment and selection strategy. The problem with the
industry’s recruitment system is that they are still following traditional methods of hiring
employees (see Figure 4b), in which recruiters think that their role ends when they hire
employees. After recruiting, when employees join the organization, the task of the recruiter
does not end. They should plan how to retain those employees. They should provide
opportunities for them to learn and grow in their field. This can be done through continuous
and ongoing performance management.
For effective recruitment, they should identify advanced sources of recruitment and
communication methods. Understanding each step and implementing the correct proce-
dure is necessary in order to find the right applicant. The manager should be aware of the
type of experience required for the specific job. The following are some of the suggested
ways of hiring the best fit. The model for recruitment and selection in Figure 4suggests
several steps for recruiting employees. It includes assessments, reference checks, physical
exams, personality tests, and ongoing performance management that helps the employer
to evaluate an employee’s job success. Employers can also use the option of internal hiring
as this imperative can strengthen the process of succession planning and subsequently
motivate the employees to keep staying. Another option is visiting different educational
placement offices. This will help the company to find fresh graduates and skilled students
who are sharp, intelligent, and ready to join the organization. When a company hires this
type of student and retains them in the company, it can benefit them in several ways. The
Sustainability 2022,14, 2885 15 of 26
first thing is that their cost (salary cost) is lower compared to other candidates. It is easy to
fit them into the company culture. They also want to grow, for which they work hard. In
addition, the most important and frequent using platform is social media i.e., Facebook,
Twitter, and especially LinkedIn etc., where companies search for candidates to promote
themselves to.
Figure 4. Cont.
Sustainability 2022,14, 2885 16 of 26
Figure 4.
(
a
) Phases (1), staffing planning (pre-recruitment); (
b
) phase (2), implementation;
(c) phase (3), onboarding (post-recruitment).
9.3. Internal Hiring (Strengthening Succession Planning)
This is the most important task for any organization. They should strengthen their
succession planning so that when any member leaves the job, they will be able to assign
that position to another person who has been trained and guided to do that task. This will
help them to provide better services to their customer accounts. They will not face issues
when employees leave the job.
The company needs to consider this option and frequently visit different educational
institutes’ placement offices. This will help the company to find fresh graduates and skilled
students who are sharp, intelligent, and ready to join the organization. When a company
hires this type of student and retains them in the company, it can benefit them in several
ways. The first thing is that their cost (salary cost) is lower compared to other candidates.
It is easy to fit them into the company culture. They also want to grow, for which they
work hard.
In today’s world, the most important platforms for job ads are social media: websites,
Facebook, etc., and especially LinkedIn, where companies search for candidates to promote
themselves to. For this industry, it will be very helpful to maintain a social media presence.
9.4. Onboarding (Post-Recruitment)
On-boarding is overlooked by most of the organizations in this industry, but it is
the most important factor that affects employee retention in an organization. With the
help of onboarding, organizations can explain the work and social environment of the
organization, which will help the candidates to align their behavior with the internal culture
of the organization before joining. Furthermore, the organization should identify things
that make them more interesting and attractive for candidates to share with employees
during the onboarding session. Likewise, mentioning perks and benefits (including non-
cash compensation as well) makes the organization interesting because it makes a big
difference. Candidates (especially fresh graduates) always look for a role that allows them
to learn and develop. This is why explaining the role is necessary. For example, mentioning
how a particular role will help the candidate to learn and develop is a good idea. For
effective onboarding, the organization should decide what impression they want to make
on newly hired employees before implementing the onboarding session. For example,
they should decide the role of each department, the goals that are to be communicated
with newly hired employees, the expectations of the organization from them, and most
importantly, the culture and working environment of the organization. Another important
factor that affects employee retention in an organization that should be discussed in the
onboarding program is career opportunities. Newly hired employees should be encouraged
to communicate their expectations of the job and the organization regarding their career
growth and learning and training programs.
This will help the employer to set clear expectations and goals for the newly hired
employees. Likewise, it will help the newly hired employees to know the expectations of
the employer and set their goals accordingly. Effective onboarding will help this industry
Sustainability 2022,14, 2885 17 of 26
retain its employees. An effective onboarding process results in clear expectations, clear
goals, employee engagement, increased productivity, promoted communication, job satis-
faction, and commitment to the organizational goal. At the end of the first year, traditional
onboarding transitions into retention and employee satisfaction.
10. Discussion
The purpose of this review study was to identify and recommend strategies that can
reduce employee turnover rates in the hospitality industry. The study proposed a model
through which employee retention issues can be effectively addressed. This model helps
practitioners and academicians to understand the strategies for retaining employees. Based
on the study findings, it is suggested that the hospitality industry should pay more attention
to their recruitment and selection practices. It was observed that, due to traditional HR
practices, the industry was following a traditional way of hiring employees. The hospitality
industry is currently using a traditional method of hiring, but the most advanced methods
of recruitment (Figure 4a–c) were suggested, which are used by most other industries. This
includes some additional steps that will help the company find the right person for the
right job.
In this industry, most of the senior employees are satisfied with their respective
organizations. The problem is that this industry needs qualified employees who have a
sound academic background with new skills, such as a command of advanced technology
(software) and new techniques to increase their productivity and the overall performance of
the organization. All of the employees who have less or no qualifications and are working
in this industry based on their extensive experience are loyal to the organization and do
not want to leave, but most of the newly hired employees who join this industry leave
after 6 months (approximately) and start looking for better opportunities. This shows that
these organizations should consider compensation as the most important factor in the
recruitment process, and for employee retention; on the other hand, salary is an important
factor only at the beginning [
82
,
83
]. After some time, employees consider other factors as
well, such as career development, the working environment, opportunities for growth, and
learning and development. Moreover, they should revise their administrative policies to
create a positive working environment in the organization. If an employee is required to
work on weekends or a national holiday as a part of his/her normal work schedule to keep
the business operations functional 24 h a day, then a shift arrangement should apply. For
example, the organization should enable the employee to take annual leave to spend time
with their family and to maintain a work/life balance, and should help the employee to
take casual leave when required to attend to their obligations. They should also establish,
maintain, implement, and communicate consistent, fair, transparent, and simple criteria for
internal movement and promotion.
The internal work environment of this industry has become mediocre, as senior
employees are happy but most of the newly hired employees leave the organization due to
a lack of employee engagement, learning opportunities, training and coaching sessions, and
management support for growth. Today’s generation prefers coaching, learning, growing,
and development over compensation. They need a job that can help them learn new skills,
interact with other people, and receive continuous feedback on their performance. In order
to retain employees, this industry needs to focus on growth opportunities; a positive work
environment, effective communication skills, and most importantly, the implementation of
effective recruitment and selection practices.
10.1. Contributions/Significance of the Study
The study has contributed in a twofold manner. First, it reviewed the literature to
identify the causes and challenges of a rising rate of employee turnover in general, and
particularly in the context of the hospitality industry. Second, the study proposed effective
retention strategies that practitioners can use to keep their employees. In addition, the study
Sustainability 2022,14, 2885 18 of 26
provides a basis for future research to test the suggested model for employee retention in
the hospitality industry.
10.2. Limitations of the Study
This research paper provides both practical and theoretical implications for the hospi-
tality industry and other professionals. However, some limitations remain. The literature
review provides a detailed overview of employee retention in the hospitality industry.
However, only those research papers that were published in English between 2010 and
2021 were considered. The second limitation of this study is that it is a literature review,
in which the results are based on the interpretation of other researchers. Furthermore, the
concept of employee retention is very broad. In every study, the researcher defined it from
a different perspective. Some researchers defined it in the sense of the tendency to leave the
current job, while others considered it to be leaving a current job for a better opportunity.
Some studies considered involuntary turnover, while some considered voluntary turnover.
A few studies even considered both, and generalized the results for both types of turnover.
A large number of selected studies were based on internal factors affecting retention, while
few studies considered external factors as well. This may lead to an incomplete analysis of
employee retention in the hospitality industry.
10.3. Future Research
Due to limited time, only 163 studies were collected, but a literature review produces
good results if it is based on a larger number of studies.
This study included research papers based on the international hospitality industry,
however, future research can also be done on the comparison of local hospitality industry
and international hospitality industry in order to highlight a gap and more insights that
what other factors can affect employee retention rates in the hospitality industry.
10.4. Managerial/Practical Implications
The findings suggest that the hospitality industry can cope with the challenge of
employee retention by employing the proposed model. The proposed model suggests
that employee retention is dependent on employee satisfaction, which is comprised of
four factors: a sustainable and positive work environment; sustainable growth opportuni-
ties; sustainable, effective communication; and sustainable and effective recruitment and
selection practices. The integrated role of social and economic activities, along with all
such factors, is also manifested due to their inclusive nature, ensuring the organization’s
sustainable growth and, consequently, employee retention. The top management of the
hospitality industry, therefore, needs to pay close attention to it, and needs to expend
effort to create a positive work environment that must be fair, unbiased, and socially and
economically developed. A negative work environment reduces the level of employee
engagement and employee satisfaction. Managers can start this process by identifying the
root cause of the problem. Problems can be solved by establishing trust and transparency,
prioritizing onboarding and training programs, offering flexible hours, and developing a
strong work culture.
Another guideline regarding the retention of employees is offering career growth
opportunities. Employees in the hospitality industry usually suffer from stress regarding
their career growth. When employees are not provided with proper guidelines or men-
torship regarding their career growth, a succession planning program, or proper lines of
communication, this leads to a high turnover rate. Management needs to address this
issue by identifying the root cause and associated behaviors of employees. In addition,
management should focus on reducing the power distance in their respective organization,
as well as the implementation of technology to facilitate effective communication among
employees. Furthermore, it is necessary to have transparency in the workplace.
Effective recruitment and selection practices are the most important guidelines for
employee retention in the hospitality industry. The results of this research study suggest
Sustainability 2022,14, 2885 19 of 26
some important managerial implications concerning the recruitment and selection of em-
ployees in the hospitality industry, which can be divided into three phases: (1) planning
(pre-recruitment), (2) implementation, and (3) onboarding (post-recruitment). Effective
hiring practices with a proper staffing plan and an on-boarding system will help organiza-
tions to retain their employees. They should use different assessment methods, personality
testing, and different software to know every aspect of employee behaviors and attitudes.
This will help the organizations to know the short- and long-term goals of the candidates,
their plans, and the competence of the employees, and it will also help them to ensure the
long-term retention of an employee.
11. Conclusions
This research paper synthesized the results and findings of 48 papers. It was concluded
that developing and implementing different retention strategies would help the hospitality
industry to be satisfied with their employees, and would consequently make the employees
more committed to continuing to stay at their workplace. The findings of this study
suggested that employees’ levels of satisfaction, and subsequently their retention rate,
are contingent on four factors: a sustainable, positive work environment; sustainable
growth opportunities; sustainable, effective communication; and sustainable effective
recruitment and selection practices. The suggested model is also beneficial in the era of
COVID-19 due to its feasibility and applicability. At the time of COVID-19, the hospitality
industry encountered various difficulties, especially for frontline workers interacting with
customers, because they had to take care of customer safety and themselves as well [
84
].
Given that unexpected situation, keeping those employees at work is quite challenging;
thus, organizations need effective strategies through which they can retain their employees.
The study also found out that the reason for the low retention rate in the hospitality industry
is complex, and is affected by several external as well as internal factors. This literature
review indicated that satisfied employees are less likely to leave their current job, while
unsatisfied employees are expected to leave their current job for better career opportunities.
Different theories suggest different retention strategies. However, the hospitality industry
must focus on revamping its recruitment and selection process.
Author Contributions:
Conceptualization, B.G. and M.Z.; methodology, B.G.; validation, B.G. and
K.R.M.; formal analysis, B.G.; investigation, B.G. and K.R.M.; resources, B.G., M.Z., K.R.M., R.U.
and A.K.; data curation, B.G. and K.R.M.; writing—original draft preparation, B.G.; writing—review
and editing, B.G.; visualization, B.G.; project administration, B.G., H.H., M.Z. and R.U.; funding
acquisition, M.Z., H.H., A.A.-M. and L.A.-C. All authors have read and agreed to the published
version of the manuscript.
Funding: This research received no external funding.
Institutional Review Board Statement:
Because of the observational nature of the study, and in the
absence of any involvement of therapeutic medication, no formal approval of the Institutional Review
Board of the local Ethics Committee was required. Nonetheless, all subjects were informed about the
study and participation was fully on a voluntary basis. Participants were ensured of confidentiality
and anonymity of the information associated with the surveys. The study was conducted according
to the guidelines of the Declaration of Helsinki.
Informed Consent Statement:
Informed consent was obtained from all subjects involved in the study.
Data Availability Statement:
The dataset used in this research is available upon request from
the corresponding author. The data are not publicly available due to restrictions, i.e., privacy or
ethical restrictions.
Conflicts of Interest: The authors declare no conflict of interest.
Sustainability 2022,14, 2885 20 of 26
Appendix A
Table A1. Reasons for personnel movement.
Reasons/Root Causes Author’s/Studies Findings/Occurrence
Toxic Workplace Culture
and Values [2023]
Toxic workplace cultures badly influence employees’ perception leading their
high turnover rate.
Non-toxic culture and ethical values helps retaining employees.
Not having proper policies
of Monetary rewards [2426]
When employees’ best performance not get rewarded by the incentives,
bonuses, and other monetary rewards, they become demotivated and quit
their workplace.
There should be competitive reward and compensation policies to retain
the employees.
Rigid Organizational
Policies [2731]
Rigid organizational policies influence employees’ perception badly.
There must be flexible policies as it helps employees to get connect with the
organization for long.
Less opportunities for
learning and growth [3236]
When employees don’t have learning opportunities and career growth, their
level of energy might get down and they feel dissatisfied that lead them
switching somewhere better place.
Learning opportunities and career growth boost employees’ motivation to
keep staying at their workplace.
No balance in employees
personal and
professional life
[37]
When employees are having maximum conflicts between their personal and
professional life they would likely to leave the organization.
A good balance between work and life helps employees to enjoy their work
and get connected with the organization.
Less Quality relationship
between supervisor
and subordinate
[3840]
When employee’s good performance doesn’t get recognized and they don’t get
respected by his/her supervisors, they feel bad and likely to leave
the workplace.
A quality relationship between supervisor and subordinate is important to
retain the employees.
Table A2. The role of human resource practices in the hospitality industry for employee retention.
HR Practices
Administrative Polices
Administrative policies are comparatively strict as compared to other industries which show that it
has role in low retention rate. Most of the employees prefer employee empowerment over other
benefits especially millennial.
Compensation and Benefits
Cash and non-cash both benefits of this sector are comparatively lesser than other industries. They
are not providing good salary packages that can attract best talent or retain existing employees. It is
evident that for retaining and attracting good employees it is necessary to offer
attractive compensation.
Performance Management
This industry has traditional performance management and do not have proper performance
management system. They conduct annual appraisals and promote employees on the basis of
appraisal ratings. Other industries have implemented modern HR practices where they follow
progressive approaches for engaging employees which help them to retain employees.
Recruitment and Selection
Their recruitment and selection system is also traditional where they are not considering modern
tools for hiring. Recently they have started focusing on hiring from university placement programs
but they are not successful in retaining these fresh graduates as their internal culture is not fulfilling
needs of these fresh graduates. There is no focus on post hiring promise. This shows that their
recruitment and selection process is not effective that is causing the high turnover rate in
this industry.
Growth and Development
Lack of growth and development is the most discussed cause of high turnover rate globally. In this
industry there is very less focus on career development of employees. Old traditional method is
used for communication and feedback where employees cannot share their long-term plans with
their respective bosses and cannot get their feedback/suggestions for their career development.
Sustainability 2022,14, 2885 21 of 26
Table A3. Studies used for the content analysis.
Author’s Name and Year Title Publication Details
Aman-Ullah, A., Aziz, A., and
Ibrahim, H. (2020).
A Systematic Review of Employee Retention: What’s
Next in Pakistan?
Journal of Contemporary Issues and
Thought, 10, 36–45.
Dwesini, N. F. (2019). Causes and prevention of high employee turnover
within the hospitality industry: A literature review.
African Journal of Hospitality, Tourism
and Leisure, 8(3), 1–15.
Ampofo, J. A. (2020). Contributions of The Hospitality Industry (Hotels)
In the Development of Wa Municipality In Ghana.
International Journal of Advanced
Economics, 2(2), 21–38.
Caselli, F., and Ciccone, A.
(2019).
The human capital stock: A generalized
approach: comment.
American Economic Review, 109(3),
1155–1174.
Pandita, D., and Ray, S. (2018).
Talent management and employee engagement–a
meta-analysis of their impact on talent retention. Industrial and Commercial Training.
Hales, Jeffrey, James R. Moon
Jr, and Laura A. Swenson.
(2018).
“A new era of voluntary disclosure? Empirical
evidence on how employee postings on social media
relate to future corporate disclosures.”
Accounting, Organizations and Society
68 (2018): 88–108.
Griffin, Ricky W. (1991). “Effects of work redesign on employee perceptions,
attitudes, and behaviors: A long-term investigation.”
Academy of management Journal 34, no.
2 (1991): 425–435.
Santhanam, N., T.J., K.,
Dyaram, L. and Ziegler, H.
(2017).
“Impact of human resource management practices
on employee turnover intentions: Moderating role of
psychological contract breach”
Journal of Indian Business Research, Vol.
9 No. 3, pp. 212–228. https:
//doi.org/10.1108/JIBR-10-2016-0116
(accessed on 12 December 2021).
Nivethitha, Lata Dyaram,
T.J.Kamalanabhan, S. (2014).
Human Resource Practices and Employee Turnover
Intentions in Hospitality Industry.
Global Journal of Management and
Business Research,
https://journalofbusiness.org/index.
php/GJMBR/article/view/1244
(accessed on 12 December 2021).
Curran, Sandra Revona.
(2012)
“Assessing employee turnover in the Language
Services Section of Parliament of the Republic of
South Africa.
PhD diss., Stellenbosch: Stellenbosch
University, 2012.
Ezeuduji, Ikechukwu
Onyekwere, and Thandokazi
Lulu Mbane. (2017).
“Length of service versus employee retention factors:
Hotels in Cape Town, South Africa.”
Acta Universitatis Danubius. Œconomica
13, no. 2 (2017).
Crawford, Alleah and
Riscinto-Kozub, Kristen
(2011).
“The Role of the Employee: An Exploratory Study in
Service Recovery Satisfaction in the Luxury
Resort Industry,”
Journal of Tourism Insights: Vol. 1: Iss. 1,
Article 4. Available at:
https://doi.org/10.9707/2328-0824.1003
(accessed on 12 December 2021).
Lee, Chang, and Kelly Way.
(2010).
“Individual employment characteristics of hotel
employees that play a role in employee satisfaction
and work retention.”
“International Journal of Hospitality
Management 29, no. 3 (2010): 344–353.
Mita, M., Aarti K. and
Ravneeta, D. (2014). Study on Employee Retention and Commitment.
International Journal of Advance
Research in Computer Science and
Management Studies, 2, 154–164.
Bidisha, L. D and Mukulesh, B.
(2013). Employee Retention: A Review of Literature. Journal of Business and Management, 14,
8–16.
Rehman, N. and Mubashar, T.
(2017).
Job stress, Psychological Capital and Turnover
Intentions in Employees of Hospitality Industry.
Journal of Behavioral Sciences, 27(2),
59–79.
Kuria, S., Ondigi, A. and
Wanderi, P. M. (2012).
Assessment of causes of labor turnover in three and
five star–rated hotels in Kenya.
International Journal of Business and
Social Sciences, 3(15), 311–317.
Ming-Chu, Y. (2017).
How Can Human Resource Management Practices
Lead to Increased Corporate Social Performance?
Institutional Theory Perspective.
Management Challenges in a Network
Economy, 17–19.
Sustainability 2022,14, 2885 22 of 26
Table A3. Cont.
Author’s Name and Year Title Publication Details
Rehman, N., and Hassan, A.
(2019).
Transforming into a learning organization through
HR initiatives and managerial factors: A case of
avari hotel, Lahore.
Journal of Management and Research,
3(1), 1–24. https:
//doi.org/10.29145/jmr/31/0301001
(accessed on 12 December 2021).
Rok, M. and Mulej, M. (2014). CSR-based model for HRM in tourism
and hospitality. Kybernetes, 43(3/4), 346–362.
Davidson, M. C. G., Timo, N.,
and Wang, Y. (2010).
How much does labor turnover cost? A case study
of Australian four-five star hotels.
A case study of Australian four-five star
hotels. International Journal of
Contemporary Hospitality Management,
22(4), Pp.451–466.
Doi:10.1108/09596111011042686q
Faldetta, G., Fasone, V., and
Provenzano, C. (2013).
Turnover in the hospitality industry: Can reciprocity
solve the problem?
Pasos: Revista de Turismo y Patrimonio
Cultural, 11, 583–595. Retrieved from
http://www.pasosonline.org (accessed
on 12 December 2021).
Shukla, A., Srinivasan, R. and
Chaurasia, S. (2013).
Impact of work related attitudes on
turnover intentions.
Indian Journal of Industrial Relations,
49(1), 111–122
Chan, S. H., and Kuok, O. M.
(2011).
A study of human resources recruitment, selection,
and retention issues in the hospitality and tourism
industry in Macau.
Journal of Human Resources in
Hospitality and Tourism, 10(4), 421–441.
https://doi.org/10.1080/15332845.2011.
588579 (accessed on 12 December 2021).
Nombeko Felicity Dwesini.
(2019).
Causes and prevention of high employee turnover
within the hospitality industry: A literature review.
African Journal of Hospitality, Tourism
and Leisure, Volume 8 (3) - (2019). https:
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63688/article_38_vol_8_3__2019.pdf
(accessed on 12 December 2021).
Chan, S. H. J. and Mai, X.
(2015).
The relation of career adaptability to satisfaction and
turnover intentions.
Journal of Vocational Behavior, 89,
130–139.
Barusman, A. R. P., Rulian, E.
P., and Susanto, S. (2019).
The Antecedent of Customer Satisfaction and Its
Impact on Customer Retention in Tourism as
Hospitality Industry.
Sherkar, A. (2015). A study on use of E- Resources in recruitment and
selection process in 5 star hotels.
ATITHYA: A Journal of Hospitality, 1(1).
https://doi.org/10.21863/atithya/2015
.1.1.002 (accessed on 12 December 2021).
Eversole, B., Venneberg, D.
and Crowder, C. (2012).
Creating a flexible organizational culture to attract
and retain talented workers across generations.
Advances in Developing Human
Resources, 14 (4), 607–625.
Tews, Michael J., John W.
Michel, and Kathryn Stafford.
(2020).
“Social support and turnover among entry-level
service employees: Differentiating type, source, and
basis of attachment.”
“Human Resource Management 59, no. 3
(2020): 221–234.
Zopiatis, A. and Theocharous,
C.P. (2014).
Job involvement, satisfaction and turnover:
Evidence from hotel employees in Cyprus. Tourism Management, 41, 129–140.
Chytiri, A., Filippaios, F., and
Chytiris, L. (2018).
Hotel recruitment and selection practices: The case
of the Greek hotel industry.
International Journal of Organizational
Leadership, 7(3), 324–339. https:
//doi.org/10.33844/ijol.2018.60465
(accessed on 12 December 2021).
Chan, Sow Hup Joanne, and
Xin Mai. (2015).
“The relation of career adaptability to satisfaction
and turnover intentions.”
“Journal of Vocational Behavior 89 (2015):
130–139.
Raub, S. and Robert, C. (2013).
Empowerment, organizational commitment, and
voice behavior in the hospitality industry evidence
from a multinational sample.
Cornell Hospitality Quarterly, 54(2),
136–148.
Mohsin, A., Lengler, J. and
Kumar, B. (2013).
Exploring the antecedents of intentions to leave the
job: the case of luxury hotel staff.
International Journal of Hospitality
Management, 35, 48–58.
Sustainability 2022,14, 2885 23 of 26
Table A3. Cont.
Author’s Name and Year Title Publication Details
Marinakou, E., and
Giousmpasoglou, C. (2019).
Talent management and retention strategies in
luxury hotels: Evidence from four countries.
International Journal of Contemporary
Hospitality Management.
Irabor, I. E., and Okolie, U. C.
(2019).
A review of employees’ job satisfaction and its effect
on their retention. Annals of Spiru Haret University.
Economic Series, 19(2), 93–114.
Davidson, M. C. G., Timo, N.,
and Wang, Y. (2010).
How much does labor turnover cost? A case study
of Australian four-five star hotels.
International Journal of Contemporary
Hospitality Management, 22(4),
Pp.451–466.
Doi:10.1108/09596111011042686q
Faldetta, G., Fasone, V., and
Provenzano, C. (2013).
Turnover in the hospitality industry: Can reciprocity
solve the problem?
Pasos: Revista de Turismo y Patrimonio
Cultural, 11, 583–595. Retrieved from
http://www.pasosonline.org (accessed
on 12 December 2021).
Shukla, A., Srinivasan, R. and
Chaurasia, S. (2013).
Impact of work related attitudes on
turnover intentions.
Indian Journal of Industrial Relations,
49(1), 111–122.
Nombeko Felicity Dwesini.
(2019).
Causes and prevention of high employee turnover
within the hospitality industry: A literature review.
African Journal of Hospitality, Tourism
and Leisure, Volume 8 (3).
https:
//www.ajhtl.com/uploads/7/1/6/3/71
63688/article_38_vol_8_3__2019.pdf
(accessed on 12 December 2021).
Sherkar, A. (2015). A study on use of E- Resources in recruitment and
selection process in 5 star hotels.
ATITHYA: A Journal of Hospitality, 1(1).
https://doi.org/10.21863/atithya/2015
.1.1.002 (accessed on 12 December 2021)
Dwesini, N. F. (2019). Causes and prevention of high employee turnover
within the hospitality industry: A literature review.
African Journal of Hospitality, Tourism
and Leisure, 8(3), 1–15.
Chytiri, A., Filippaios, F., and
Chytiris, L. (2018).
Hotel recruitment and selection practices: The case
of the Greek hotel industry.
International Journal of Organizational
Leadership, 7(3), 324–339.
https:
//doi.org/10.33844/ijol.2018.60465
(accessed on 12 December 2021)
Marinakou, E., and
Giousmpasoglou, C. (2019).
Talent management and retention strategies in
luxury hotels: Evidence from four countries.
International Journal of Contemporary
Hospitality Management.
Mohsin, A., Lengler, J. and
Kumar, B. (2013).
Exploring the antecedents of intentions to leave the
job: the case of luxury hotel staff.
International Journal of Hospitality
Management, 35, 48–58.
Pitts, D., Marvel, J., and
Fernandez, S. (2011).
So hard to say goodbye? Turnover intention among
US federal employees.
Public Administration Review, 71(5),
751–760.
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... On the other hand, some authors determine the importance of improving the integrated information system in hotels with the aim of better data processing, reporting and ultimately more efficient control in the organization through the examination of managers in IT sectors of hotels. In this way, the system would be better informed about what guests want from hotel services, what is good for them, and what needs to be improved (Ghani et al. 2022). They believe that the costs of such an implementation are high and that this is the reason that hotels have not yet recognized the importance of networking all functional units of the organization. ...
... Furthermore, in this research, the human resources available to the hotel and their ability to know how to apply them in certain business processes are put into relation. The hospitality industry has long faced challenges in recruiting and retaining talent due to its reputation for lower wages and physically and emotionally demanding tasks (Ghani et al. 2022). An existence of the right leaders is crucial for the implementation of ICT because of the large degree of operational and cultural changes that these technologies require. ...
... This research presents a certain unreadiness for the ICTs implementation in hotel organizations from the aspect of providing services, technological improvement and the ecosystem, which is demonstrated in the rejection of hypotheses H2, H4 and H5 at a significance level of 5% (H1 is accepted at 10%). In the research review, some authors emphasized the possible challenges and difficulties that arise in connection with the implementation of ICTs in hotels (Mihalic and Buhalis, 2013;Ghani et al. 2022;Wynn and Jones 2022), but for the majority this is not the case because they consider that the application of certain technologies that are recognized as necessary for hotel business should be a necessity for improving the business of the entire ecosystem, raising the quality of technological equipment and developing innovations with regard to market dynamics (Domanski 2020;Infante-Moro et al. 2021;Singgalen and Timisela 2021;Wahab et al. 2022;Yorkulov et al. 2022). In particular, if one looks at the groups of variables in the "Platform" and "Strategy" constructs, it can be concluded that in those areas of business that are key to the implementation of ICTs in the hotel, a sufficient level of readiness was not achieved according to the hypothesis test for those groups of variables. ...
Conference Paper
Purpose – Information and communication technologies (ICTs) usage is one of the key elements in the competitive struggle and achieving a competitive advantage in the hotel industry. The main goal of this paper is to empirically analyze the existence of readiness to implement ICTs in a sight of the potential challenges which hotels face due to the lack of such technology in their business. Methodology – This article, through researching the attitudes of managers at the top, middle and operational management levels, analyzes the readiness of the organizations in hotel industry to implement ICTs as well as the main opportunities and advantages of their application. The data were analyzed by acting the methods of descriptive and inferential statistics in order to test the significance of the examination attitudes obtained from respondent. Findings – The obtained results indicate the importance of the readiness for companies in the hotel industry to apply ICT and the inclination for digital transformation of business. There is exigency to provide an insight into the state of readiness for the implementation of digital technologies in the hotel industry, as well as a proposal for the values that these actions result. Contribution – The main contributions of this paper are fulfilling the literature gap towards the mentioned research issue for the implementation of ICT in the hotel industry at the regional level and providing insight from the viewpoints of managers rather than from technology experts. Keywords: Information and communication technology, readiness, hotel industry, digital implementation
... Although, to the best of our knowledge, there is no direct study on solely restaurant labour and the future in the existing literature, some scholars (Bharwani & Butt, 2012;Ghani et al., 2022;Jin-zhao & Jing, 2009) identified challenges and coping strategies for labour in the hospitality industry context. They offer valuable insights for practitioners to find long-term solutions to labour-related issues and for scholars to gain an understanding of hospitality labour. ...
... They offer valuable insights for practitioners to find long-term solutions to labour-related issues and for scholars to gain an understanding of hospitality labour. For example, Ghani et al. (2022) proposed four major themes that might help to overcome issues employees face in their work environment: 'sustainable positive work environment', 'sustainable growth opportunities', 'sustainable and effective communication' and 'sustainable and effective recruitment and selection practices'. Besides, some researchers have studied the challenges related to skilled labour in the hospitality industry (Baum, 2019;Tiwari & Munjal, 2019). ...
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This study contributes to the literature by delving into the perspectives of restaurant employees and managers in the USA about the future of restaurant labour. Through a qualitative research approach, we conducted 25 semi-structured interviews with employees and managers. The findings reveal the challenges of restaurant labour, including high turnover rates due to long hours and working during holidays and weekends, lack of work-life balance, and high levels of stress and pressure on employees. The impacts of the COVID-19 pandemic on the future of restaurant labour are extracted as restaurant operations-related, management-related, employee-related, and patron-related impacts. Finally, this research highlights the requirements for the future of restaurant labour, which are requirements to enhance the quality of working conditions and decrease the turnover rate and requirements to sustain in the restaurant industry as an employee.
... Achieving this requires understanding individual employees' needs, as not all employees share the same values and attitudes. Retaining competent employees is crucial because of the costs associated with human resources, a loss of skills, and team dynamics [3]. Employee retention strategies include transparent selection processes, fair compensation, recognition programs, growth opportunities, and open communication [4]. ...
... About 72% of the participants responded positively to management effectiveness ("Agree" = 49.97% and "Strongly Agree" = 21.54%). The average median score for career development was three (IQR = [3][4][5]. Approximately 52% of the participants responded positively to career development ("Agree" = 42.32% and "Strongly Agree" = 9.26%). ...
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Background: Community pharmacists face challenges in job retention due to compensation, work-life balance, and career growth concerns. With pharmacists' evolving roles in healthcare, retaining them becomes crucial for maintaining quality service. Addressing their needs is vital for a skilled healthcare workforce. This study evaluates job retention among community pharmacists, considering various workforce management domains and demographic characteristics. Materials and methods: A cross-sectional study was employed with a self-administered questionnaire among community pharmacists in Kuala Lumpur and Selangor, Malaysia. Spearman's correlations and ordinal logistic regression analysed job retention relationships with workforce domains and predicted the demographic characteristics. Results: A total of 414 participants attempted the survey, of which 311 completed the study. Strong correlations linked job retention with value, trust, and work-life balance. Female pharmacists had higher retention odds, while younger pharmacists had lower retention odds. Pharmacists with over 10 years of experience showed higher retention odds. Discussion: 'Value and trust' and 'work-life balance' were pivotal for the job retention of community pharmacists. Strategies boosting value, trust, and work-life balance was vital. Gender, age, and experience also predicted job retention. Conclusions: Cultivating trust, valuing contributions, and providing a work-life balance can enhance job retention and commitment.
... Allen et al. (2003) also showed that perceived organizational support leads to decreased turnover intention and actual turnover behavior through increased job satisfaction, based on two samples of salespeople and insurance agents, respectively. Ghani et al. (2022), in turn, observed that job satisfaction and the resulting reduced turnover intention are contingent on hotels' effective internal communication. The present study sought to add to the literature by analyzing the chain of effects between the four aforementioned variables in the context of Portuguese hospitality. ...
... The findings include that internal communication strengthens perceived organizational support, thereby increasing employees' job satisfaction and ultimately reducing their intention to quit their job. These results expand on prior studies' analysis of how some but not all of the variables incorporated into the current proposed model intercorrelate with each other (Ahmed and Nawaz 2015;Allen et al. 2003;Ghani et al. 2022;Price and Mueller 1981;To and Huang 2022). ...
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Managing employee turnover is a key function in human resource management (HRM) that has become especially relevant given current staff shortages. The travel and tourism industry has been strongly affected, with many organizations having difficulty attracting and retaining workers. Portugal, as a prominent player in tourism, is no exception, and the workforce shortage crisis has been discussed in various forums and has attracted media attention. The present study examined hotel employees’ turnover intention and its relationship with their job satisfaction and positive perceptions of internal communication and organizational support. The proposed theoretical model included that internal communication contributes to the quality of employee–organization relationships by increasing perceived organizational support and job satisfaction, which in turn serve as sequential mediators of hotel workers’ diminished intent to leave their employer. Multiple regression analyses were performed using data collected from 12 hotels (number = 370 workers). The results support the model as they confirm that a statistically significant negative relationship exists between employees’ satisfaction with internal communication and their turnover intention. These variables are both directly and indirectly connected through perceived organizational support and job satisfaction. Implications for HRM are discussed including the importance of refining internal organizational communication to strengthen employee–organization ties.
Chapter
This chapter explores the drivers of innovation and entrepreneurship, looking at the various psychological, cultural, economic, and social motivations that drive people to develop new ideas and turn them into successful businesses. It is of research interest to look at how these drivers interact with each other and how they can be used to foster innovation and entrepreneurship in an organization. The role of the public sector and private sector in the promotion of innovation and entrepreneurship and the need for an enabling environment for the development of innovative and entrepreneurial activity is covered in this research. Finally, the importance of education and training in developing the skills necessary for innovation and entrepreneurship will be discussed. The contribution to the area of study is the conceptual model portraying the disruption innovation theory and the multi-level integration processes theory to propose the multi-level innovation theory.
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The current research examined the relationship of green human resource management practices with employees’ retention in the pharmaceutical industry of Oman. The study also checked the mediating effect of work engagement in the relationships of Green HRM practices with employee retention. Following the current purpose, the study targeted employees in the pharmaceutical industry as the unit of analyses. Five hundred seventy-six respondents were selected through simple random sampling. Data were collected through a self-administrative questionnaire. Collected data was screened through SPSS23, which concluded with 349 usable questionnaires for data analysis and assessment. Structural equation modeling via Smart PLS 3.2.8 was employed to test the proposed model. The findings of the study show a positive but insignificant association of green HRM practices toward employee retention. However, the study found a significant positive influence of green HRM practices with work engagement and work engagement with employee retention. The study also reported the mediation of work engagement in the green HRM and employee retention relationship. The findings of the study have contributed theoretically and practically.