Human resource management practices as a predictor of employee turnover intentions in the hospitality industry: Mediating role of psychological capital

Abstract

Orientation: The hospitality industry is known for its high employee turnover rates, which pose challenges to organisational stability and service quality. Human resource management practices play a crucial role in shaping employees’ job satisfaction, engagement and retention.
Research purpose: Using empirical data from formally employed hospitality employees, this study examined how selected human resource management practices, notably training and development, teamwork, work-life balance and compensation, impact turnover intentions with psychological capital as a mediating variable.
Motivation for the study: As a result of the labour-intensive and customer-oriented focus of the hospitality industry, high employee turnover rates are a continuous concern.
Research approach/design and method: A structured questionnaire was administered using QuestionPro. Participants were identified using snowball sampling. One hundred and fifty respondents who are formally employed in the hospitality industry completed the questionnaire.
Main findings: The findings of this study suggest that human resource management practices significantly enhance psychological capital, leading to lower turnover intentions. Organisations that invest in employee well-being and development should foster resilience, hope, optimism and self-efficacy, reducing the likelihood of voluntary turnover.
Practical/managerial implications: The value of sound human resource management practices for hospitality establishments is a main implication, and management needs to develop strategies to retain talent in an increasingly competitive labour market.
Contribution/value-add: The findings support the importance of strengthening compensation and benefit structures, fostering work-life balance, and leveraging teamwork as a retention strategy for hospitality establishments.