The Effect of Work Compensation on Intention to Stay in the Hotel Industry During the COVID 19 Pandemic with Job Embeddedness as Mediation (Study On Hotel Management Graduates, Universitas Negeri Padang)
Keywords: Work compensation, Intention to stay, Job embeddedness, COVID 19 pandemic
Abstract
Purpose - This study aimed to analyze the effect of work compensation on the intention to stay in the hotel industry during the COVID 19 pandemic mediated by job embeddedness.
Methodology - A quantitative approach was used on 670 graduates who majored in hotel management based on purposive sampling. The sample size was estimated at 30% of the total population (201 graduates) working in the hotel industry, collecting 145 respondents. Furthermore, the data were analyzed using the Partial Least Square Structural Equation Modelling (PLS-SEM).
Findings - The results showed that work compensation affected the graduates’ intentions to stay and job embeddedness in the hotel industry during the COVID 19 pandemic. Job embeddedness affected the intention to stay and mediated its relationship with compensation.
Originality - The effect of work compensation on graduates’ intention to stay in the hotel industry during the pandemic was investigated to gain a better understanding. Furthermore, testing job embeddedness as a mediator of the relationship between work compensation and staying intentions produced a new theoretical understanding. Novelty in this study found that graduates still have the intention to stay in the hotel industry due to the job embeddedness that has been formed as a result of the work compensation received which is still in line with their expectations even in the conditions of the COVID 19 pandemic.
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References
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Akgunduz, Y., & Sanli, S. C. (2017). The effect of employee advocacy and perceived organizational support on job embeddedness and turnover intention in hotels. Journal of Hospitality and Tourism Management, 31, 118-125.
Ampofo, E. T. (2021). Do job satisfaction and work engagement mediate the effects of psychological contract breach and abusive supervision on hotel employees’ life satisfaction? Journal of Hospitality Marketing & Management, 30(3), 282-304.
Anggreni, N. W., Sitiari, N. W., & Indiani, P. (2018). The Effect of Leadership and Work Environment on Employee Performance Through Mediation of Work Spirit at Prama Sanur Beach Hotel. Jurnal Ekonomi & Bisnis JAGADITHA, 5(2), 84-91.
Arasli, H., Bahman Teimouri, R., Kiliç, H., & Aghaei, I. (2017). Effects of service orientation on job embeddedness in hotel industry. The Service Industries Journal, 37(9-10), 607-627.
Asghar, M., Tayyab, M., Gull, N., Zhijie, S., Shi, R., & Tao, X. (2021). Polychronicity, work engagement, and turnover intention: The moderating role of perceived organizational support in the hotel industry. Journal of Hospitality and Tourism Management, 49, 129-139.
Bajrami, D. D., Terzić, A., Petrović, M. D., Radovanović, M., Tretiakova, T. N., & Hadoud, A. (2021). Will we have the same employees in hospitality after all? The impact of COVID-19 on employees’ work attitudes and turnover intentions. International Journal of Hospitality Management, 94, 102754.
Balz, A., & Schuller, K. (2021). Always looking for something better? The impact of job insecurity on turnover intentions: Do employables and irreplaceables react differently? Economic and Industrial Democracy, 42(1), 142-159.
BaÅŸer, G., & Ehtiyar, R. (2021). The effects of COVID-19 on the hotel physical environment from the perspectives of tourists and hotel employees. In COVID-19 and the Hospitality and Tourism Industry. Edward Elgar Publishing.
Bellamkonda, N., Santhanam, N., & Pattusamy, M. (2021). Goal Clarity, Trust in Management and Intention to Stay: The Mediating Role of Work Engagement. South Asian Journal of Human Resources Management, 8(1), 9-28.
Chang, H. P., Hsieh, C. M., Lan, M. Y., & Chen, H. S. (2019). Examining the moderating effects of work–life balance between human resource practices and intention to stay. Sustainability, 11(17), 4585.
Chen, T.-J. and Wu, C.-M. (2017), "Improving the turnover intention of tourist hotel employees: Transformational leadership, leader-member exchange, and psychological contract breach", International Journal of Contemporary Hospitality Management, 29(7), 1914-1936.
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Ferdian, F., & Denitri, S. (2020). Pengaruh Kepuasan Kerja Karyawan Terhadap Komitmen Bekerja Di Industri Hotel Pada Masa Pandemi Covid-19. Jurnal Sains Terapan Pariwisata, 5(3), 248-254.
Frye, W. D., Kang, S., Huh, C., & Lee, M. J. M. (2020). What factors influence Generation Y’s employee retention in the hospitality industry?: An internal marketing approach. International Journal of Hospitality Management, 85, 102352.
Götz, O., Liehr-Gobbers, K., & Krafft, M. (2010). Evaluation of structural equation models using the partial least squares (PLS) approach. In Handbook of partial least squares (pp. 691-711). Springer, Berlin, Heidelberg.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (7th Edition). London: Pearson.
Hayat, A., Azeem, M., Nawaz, R., Hasan, M. A., & Rehman, R. A. (2019). Human resource practices as antecedents of employee performance in the hotel industry of Pakistan. Australian Journal of Basic and Applied Sciences, 13(4), 11-17.
Immaneni, K. M., Sailaja, D., & Naga, V. (2021). A Review of HR practices and Employee Retention in Hospitality Industry. European Journal of Molecular & Clinical Medicine, 7(7), 6698-6704.
Jung, H. S., Jung, Y. S., & Yoon, H. H. (2021). COVID-19: The effects of job insecurity on the job engagement and turnover intent of deluxe hotel employees and the moderating role of generational characteristics. International journal of hospitality management, 92, 102703.
Koo, B., Yu, J., Chua, B. L., Lee, S., & Han, H. (2020). Relationships among emotional and material rewards, job satisfaction, burnout, affective commitment, job performance, and turnover intention in the hotel industry. Journal of Quality Assurance in Hospitality & Tourism, 21(4), 371-401.
Kosmajadi, E. (2021). The Impact of Human Resources Development and Organizational Culture on Employee Performance. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(2), 2227-2233.
Mohamed, R. K. M. H., Nor, C. S. M., Subramaniam, C. R. S., & Ramayah, T. (2020). Employee retention and unfair labour practices: perspective from Malaysian hotel industry. Middle East Journal of Management, 7(6), 557-581.
Naveed, A. R., Akhtar, C. S., Naveed, S., & Khalid, A. (2021). Effect of relational compensation on employee retention: case of hotel industry of Pakistan. Elementary Education Online, 20(2), 934-940.
Octafian, R., & Nugraheni, K. S. (2020). Employee Performance Analysis Through Motivation and the Work Environment at Patra Semarang Hotel & Convention. Nusantara Journal of Social Sciences and Humanities, 1(1), 101-105.
Redondo, R., Sparrow, P., & Hernández-Lechuga, G. (2021). The effect of protean careers on talent retention: examining the relationship between protean career orientation, organizational commitment, job satisfaction and intention to quit for talented workers. The International Journal of Human Resource Management, 32(9), 2046-2069.
Sadiqe, M., Muzaffar, B., & Wasif, M. (2021). Organizational Cynicism and Turnover Intention in Hotel Industry at Delhi. International Journal Of Economics, Business And Human Behaviour, 2(1), 58-66.
Sarstedt, M., Ringle, C. M., Smith, D., Reams, R., & Hair Jr, J. F. (2014). Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers. Journal of family business strategy, 5(1), 105-115.
Sarwar, A. and Muhammad, L. (2021), "Impact of organizational mistreatment on employee performance in the hotel industry", International Journal of Contemporary Hospitality Management, 33 (2), 513-533
Shehawy, Y.M., Elbaz, A. and Agag, G.M. (2018), "Factors affecting employees’ job embeddedness in the Egyptian airline industry", Tourism Review, 73(4), 548-571.
Shi, X., Gordon, S., & Tang, C. H. (2021). Momentary well-being matters: Daily fluctuations in hotel employees’ turnover intention. Tourism Management, 83, 104212.
Sidhu, G. S., Rai, J. S., Khaira, K. S., & Kaur, S. (2020). The Impact of COVID-19 Pandemic on Different Sectors of the Indian Economy: A Descriptive Study. International Journal of Economics and Financial Issues, 10(5), 113.
Sobaih, A. E. E., & Hasanein, A. M. (2020). Herzberg’s theory of motivation and job satisfaction: Does it work for hotel industry in developing countries?. Journal of Human Resources in Hospitality & Tourism, 19(3), 319-343.
Syardiansah, S., Latief, A., Daud, M. N., Windi, W., & Suharyanto, A. (2020). The Effect of Job Satisfaction and Organizational Culture on Employee Performance of the Royal Hotel in East Aceh District. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 3(2), 849-857.
Teo, S. T., Bentley, T., & Nguyen, D. (2020). Psychosocial work environment, work engagement, and employee commitment: A moderated, mediation model. International Journal of Hospitality Management, 88, 102415.
The Indonesia Association of Hotels and Restaurants. (2020). “Corona Bikin 8,1 Juta Pegawai Hotel & Restoran RI Dirumahkan.†CNBC Indonesia.
The Indonesian Central Bureau of Statistic. (2021). Number of tourist visits to Indonesia. Retrieved July 26, 2019, from https://www.bps.go.id/pressrelease/2021/06/02/1800/jumlah-kunjungan-wisman-ke-indonesia-april-2021-mencapai-127-51-ribu-kunjungan-.html
Viseu, J., Pinto, P., Borralha, S., & de Jesus, S. N. (2020). Role of individual and organizational variables as predictors of job satisfaction among hotel employees. Tourism and Hospitality Research, 20(4), 466-480.
Wang, C., Xu, J., Zhang, T. C., & Li, Q. M. (2020). Effects of professional identity on turnover intention in China's hotel employees: The mediating role of employee engagement and job satisfaction. Journal of Hospitality and Tourism Management, 45, 10-22.
Widokarti, J. R., Kartini, D., Oesman, Y. M., & Sari, D. (2019). An Analysis of the Relationship between Compensation and Employees’ Working Motivation Controlling for Proactive Behavior in Indonesian Hotel Industry. Mediterranean Journal of Social Sciences, 10(3), 70-70.
Wong, A. K. F., Kim, S. S., Kim, J., & Han, H. (2021). How the COVID-19 pandemic affected hotel Employee stress: Employee perceptions of occupational stressors and their consequences. International Journal of Hospitality Management, 93, 102798.
Wono, H. Y., Herdono, I., & Ronaldo, J. (2021). The Effect of Compensation and Workload on Loyalty Employees at Hotel Tanjung Surabaya. PROPAGANDA, 1(1), 1-11.
Yu, J., Lee, A., Han, H., & Kim, H. R. (2020). Organizational justice and performance of hotel enterprises: Impact of job embeddedness. Journal of Quality Assurance in Hospitality & Tourism, 21(3), 337-360.
Zakaria, R., & Astuty, I. (2017). Pengaruh Kompensasi Terhadap Turnover Intention Dengan Job Embeddedness Sebagai Variabel Intervening (Studi Pada Karyawan Di PT. Primissima). Jurnal Manajemen Bisnis, 8(1), 82-97.
Afsar, B., Shahjehan, A. and Shah, S.I. (2018), "Frontline employees’ high-performance work practices, trust in supervisor, job-embeddedness and turnover intentions in hospitality industry", International Journal of Contemporary Hospitality Management, 30(3), 1436-1452
Akgunduz, Y., & Sanli, S. C. (2017). The effect of employee advocacy and perceived organizational support on job embeddedness and turnover intention in hotels. Journal of Hospitality and Tourism Management, 31, 118-125.
Ampofo, E. T. (2021). Do job satisfaction and work engagement mediate the effects of psychological contract breach and abusive supervision on hotel employees’ life satisfaction? Journal of Hospitality Marketing & Management, 30(3), 282-304.
Anggreni, N. W., Sitiari, N. W., & Indiani, P. (2018). The Effect of Leadership and Work Environment on Employee Performance Through Mediation of Work Spirit at Prama Sanur Beach Hotel. Jurnal Ekonomi & Bisnis JAGADITHA, 5(2), 84-91.
Arasli, H., Bahman Teimouri, R., Kiliç, H., & Aghaei, I. (2017). Effects of service orientation on job embeddedness in hotel industry. The Service Industries Journal, 37(9-10), 607-627.
Asghar, M., Tayyab, M., Gull, N., Zhijie, S., Shi, R., & Tao, X. (2021). Polychronicity, work engagement, and turnover intention: The moderating role of perceived organizational support in the hotel industry. Journal of Hospitality and Tourism Management, 49, 129-139.
Bajrami, D. D., Terzić, A., Petrović, M. D., Radovanović, M., Tretiakova, T. N., & Hadoud, A. (2021). Will we have the same employees in hospitality after all? The impact of COVID-19 on employees’ work attitudes and turnover intentions. International Journal of Hospitality Management, 94, 102754.
Balz, A., & Schuller, K. (2021). Always looking for something better? The impact of job insecurity on turnover intentions: Do employables and irreplaceables react differently? Economic and Industrial Democracy, 42(1), 142-159.
BaÅŸer, G., & Ehtiyar, R. (2021). The effects of COVID-19 on the hotel physical environment from the perspectives of tourists and hotel employees. In COVID-19 and the Hospitality and Tourism Industry. Edward Elgar Publishing.
Bellamkonda, N., Santhanam, N., & Pattusamy, M. (2021). Goal Clarity, Trust in Management and Intention to Stay: The Mediating Role of Work Engagement. South Asian Journal of Human Resources Management, 8(1), 9-28.
Chang, H. P., Hsieh, C. M., Lan, M. Y., & Chen, H. S. (2019). Examining the moderating effects of work–life balance between human resource practices and intention to stay. Sustainability, 11(17), 4585.
Chen, T.-J. and Wu, C.-M. (2017), "Improving the turnover intention of tourist hotel employees: Transformational leadership, leader-member exchange, and psychological contract breach", International Journal of Contemporary Hospitality Management, 29(7), 1914-1936.
Davern, D. (2021). Talent Management, The Employer Brand, and Employee Retention: Evidence from the Irish Hotel Sector. In Talent Management Innovations in the International Hospitality Industry. Emerald Publishing Limited.
Ferdian, F., & Denitri, S. (2020). Pengaruh Kepuasan Kerja Karyawan Terhadap Komitmen Bekerja Di Industri Hotel Pada Masa Pandemi Covid-19. Jurnal Sains Terapan Pariwisata, 5(3), 248-254.
Frye, W. D., Kang, S., Huh, C., & Lee, M. J. M. (2020). What factors influence Generation Y’s employee retention in the hospitality industry?: An internal marketing approach. International Journal of Hospitality Management, 85, 102352.
Götz, O., Liehr-Gobbers, K., & Krafft, M. (2010). Evaluation of structural equation models using the partial least squares (PLS) approach. In Handbook of partial least squares (pp. 691-711). Springer, Berlin, Heidelberg.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (7th Edition). London: Pearson.
Hayat, A., Azeem, M., Nawaz, R., Hasan, M. A., & Rehman, R. A. (2019). Human resource practices as antecedents of employee performance in the hotel industry of Pakistan. Australian Journal of Basic and Applied Sciences, 13(4), 11-17.
Immaneni, K. M., Sailaja, D., & Naga, V. (2021). A Review of HR practices and Employee Retention in Hospitality Industry. European Journal of Molecular & Clinical Medicine, 7(7), 6698-6704.
Jung, H. S., Jung, Y. S., & Yoon, H. H. (2021). COVID-19: The effects of job insecurity on the job engagement and turnover intent of deluxe hotel employees and the moderating role of generational characteristics. International journal of hospitality management, 92, 102703.
Koo, B., Yu, J., Chua, B. L., Lee, S., & Han, H. (2020). Relationships among emotional and material rewards, job satisfaction, burnout, affective commitment, job performance, and turnover intention in the hotel industry. Journal of Quality Assurance in Hospitality & Tourism, 21(4), 371-401.
Kosmajadi, E. (2021). The Impact of Human Resources Development and Organizational Culture on Employee Performance. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(2), 2227-2233.
Mohamed, R. K. M. H., Nor, C. S. M., Subramaniam, C. R. S., & Ramayah, T. (2020). Employee retention and unfair labour practices: perspective from Malaysian hotel industry. Middle East Journal of Management, 7(6), 557-581.
Naveed, A. R., Akhtar, C. S., Naveed, S., & Khalid, A. (2021). Effect of relational compensation on employee retention: case of hotel industry of Pakistan. Elementary Education Online, 20(2), 934-940.
Octafian, R., & Nugraheni, K. S. (2020). Employee Performance Analysis Through Motivation and the Work Environment at Patra Semarang Hotel & Convention. Nusantara Journal of Social Sciences and Humanities, 1(1), 101-105.
Redondo, R., Sparrow, P., & Hernández-Lechuga, G. (2021). The effect of protean careers on talent retention: examining the relationship between protean career orientation, organizational commitment, job satisfaction and intention to quit for talented workers. The International Journal of Human Resource Management, 32(9), 2046-2069.
Sadiqe, M., Muzaffar, B., & Wasif, M. (2021). Organizational Cynicism and Turnover Intention in Hotel Industry at Delhi. International Journal Of Economics, Business And Human Behaviour, 2(1), 58-66.
Sarstedt, M., Ringle, C. M., Smith, D., Reams, R., & Hair Jr, J. F. (2014). Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers. Journal of family business strategy, 5(1), 105-115.
Sarwar, A. and Muhammad, L. (2021), "Impact of organizational mistreatment on employee performance in the hotel industry", International Journal of Contemporary Hospitality Management, 33 (2), 513-533
Shehawy, Y.M., Elbaz, A. and Agag, G.M. (2018), "Factors affecting employees’ job embeddedness in the Egyptian airline industry", Tourism Review, 73(4), 548-571.
Shi, X., Gordon, S., & Tang, C. H. (2021). Momentary well-being matters: Daily fluctuations in hotel employees’ turnover intention. Tourism Management, 83, 104212.
Sidhu, G. S., Rai, J. S., Khaira, K. S., & Kaur, S. (2020). The Impact of COVID-19 Pandemic on Different Sectors of the Indian Economy: A Descriptive Study. International Journal of Economics and Financial Issues, 10(5), 113.
Sobaih, A. E. E., & Hasanein, A. M. (2020). Herzberg’s theory of motivation and job satisfaction: Does it work for hotel industry in developing countries?. Journal of Human Resources in Hospitality & Tourism, 19(3), 319-343.
Syardiansah, S., Latief, A., Daud, M. N., Windi, W., & Suharyanto, A. (2020). The Effect of Job Satisfaction and Organizational Culture on Employee Performance of the Royal Hotel in East Aceh District. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 3(2), 849-857.
Teo, S. T., Bentley, T., & Nguyen, D. (2020). Psychosocial work environment, work engagement, and employee commitment: A moderated, mediation model. International Journal of Hospitality Management, 88, 102415.
The Indonesia Association of Hotels and Restaurants. (2020). “Corona Bikin 8,1 Juta Pegawai Hotel & Restoran RI Dirumahkan.†CNBC Indonesia.
The Indonesian Central Bureau of Statistic. (2021). Number of tourist visits to Indonesia. Retrieved July 26, 2019, from https://www.bps.go.id/pressrelease/2021/06/02/1800/jumlah-kunjungan-wisman-ke-indonesia-april-2021-mencapai-127-51-ribu-kunjungan-.html
Viseu, J., Pinto, P., Borralha, S., & de Jesus, S. N. (2020). Role of individual and organizational variables as predictors of job satisfaction among hotel employees. Tourism and Hospitality Research, 20(4), 466-480.
Wang, C., Xu, J., Zhang, T. C., & Li, Q. M. (2020). Effects of professional identity on turnover intention in China's hotel employees: The mediating role of employee engagement and job satisfaction. Journal of Hospitality and Tourism Management, 45, 10-22.
Widokarti, J. R., Kartini, D., Oesman, Y. M., & Sari, D. (2019). An Analysis of the Relationship between Compensation and Employees’ Working Motivation Controlling for Proactive Behavior in Indonesian Hotel Industry. Mediterranean Journal of Social Sciences, 10(3), 70-70.
Wong, A. K. F., Kim, S. S., Kim, J., & Han, H. (2021). How the COVID-19 pandemic affected hotel Employee stress: Employee perceptions of occupational stressors and their consequences. International Journal of Hospitality Management, 93, 102798.
Wono, H. Y., Herdono, I., & Ronaldo, J. (2021). The Effect of Compensation and Workload on Loyalty Employees at Hotel Tanjung Surabaya. PROPAGANDA, 1(1), 1-11.
Yu, J., Lee, A., Han, H., & Kim, H. R. (2020). Organizational justice and performance of hotel enterprises: Impact of job embeddedness. Journal of Quality Assurance in Hospitality & Tourism, 21(3), 337-360.
Zakaria, R., & Astuty, I. (2017). Pengaruh Kompensasi Terhadap Turnover Intention Dengan Job Embeddedness Sebagai Variabel Intervening (Studi Pada Karyawan Di PT. Primissima). Jurnal Manajemen Bisnis, 8(1), 82-97.
Published
Jun 16, 2022
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Ferdian, F., Abrian, Y., Suyuthie, H., Kasmita, K., & Sinensis, R. A. (2022). The Effect of Work Compensation on Intention to Stay in the Hotel Industry During the COVID 19 Pandemic with Job Embeddedness as Mediation: (Study on Hotel Management Graduates, Universitas Negeri Padang). Jurnal Organisasi Dan Manajemen, 18(1), 60–73. https://doi.org/10.33830/jom.v18i1.2134.2022
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