High Performance Work System and Turnover Intentions in Hospitality and Tourism: Examining the Mediating Role of Employee Happiness

Abstract

The hospitality and tourism (H&T) sector grapples with an attrition rate significantly higher than other industries, leading to lost revenue and profitability. This situation could worsen, especially as more H&T organizations adopt High-Performance Work Systems (HPWS). Therefore, there is a need to explore the effect of such practices on employee experience (such as happiness at work) and attitudes (like turnover intentions) and present the findings to practitioners, enabling them to make well-informed decisions. The current study uses the conservation of resources theory to explore how HPWS impact happiness at work (HAW) and turnover intentions (TI) within the H&T context. Structural equation modelling was used to analyse data collected from 451 employees working in seven high-end luxury hotels. The results revealed that HPWS influence employee TI and HAW. Additionally, employee HAW serves as a partial mediator in the relationship between HPWS and TI. This study has theoretical significance by advancing our understanding of Conservation of Resource theory, HPWS and happiness at work in the H&T industry. It has practical relevance, providing insights to enhance employee happiness, reduce turnover, that may ultimately improve guest experiences. Additionally, the study aligns with UN-SDG 3, focusing on well-being, and UN-SDG 8, emphasizing decent work.

Keywords: High Performance Work System, Happiness at Workplace, Turnover Intention, Hospitality and Tourism Employees

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