Employee retention in the hospitality industry

Abstract

Employee retention is a central challenge in the hospitality industry due to high turnover rates and the sector's dependence on skilled human capital for service quality and business continuity. This study investigates how three interrelated factors—work-life balance, leadership styles, and organizational practices—influence employee retention within the hospitality sector in Finland. The research adopts a quantitative approach, utilizing a structured questionnaire administered to hospitality employees, yielding 72 valid responses.

Correlation analysis revealed strong positive relationships between each of the independent variables and retention intention: work-life balance (r = 0.77), leadership style (r = 0.80), and organizational practices (r = 0.82). The findings underscore that flexible scheduling, transformational leadership, and supportive workplace policies significantly enhance employees' intention to remain with their organizations. Organizational practices showed the strongest influence, yet also had the lowest satisfaction scores among respondents, indicating a strategic gap and opportunity for intervention.

The results align with established theories, including the Work-Family Border Theory, Transformational Leadership Theory, and the Job Demands-Resources Model. The study concludes that retention in hospitality requires a holistic approach that simultaneously addresses individual well-being, managerial support, and structural organizational practices. Recommendations include implementing adaptive scheduling, investing in leadership development, and standardizing HR policies to improve employee satisfaction and reduce attrition. The study also suggests areas for future research, including longitudinal and mixedmethod investigations across diverse hospitality contexts.