A study of employee satisfaction and its effects toward loyalty in hotel industry

Chan, Soo Yin and Chan, Yee Fen and Khoo, Yun Meng and Loh, Poh Yin and Wong, Wein Jack (2011) A study of employee satisfaction and its effects toward loyalty in hotel industry. Final Year Project, UTAR.

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Abstract

Nowadays, the number of hotels in Malaysia increasing year by year in Malaysia due to the effects of tourism in Malaysia. However, the employees’ turnover rate in hotel industry is declining year by year also. Thus, there is a issue that affects the employees’ turnover rate in the hotel industry which is the employee loyalty. Employee loyalty is an important issue for all organizations. There is not an easily way to maintain the employee loyalty in an organization to retain the employees. There have several variables that are influence the employee loyalty in the hotel industry such as career development, compensation and rewards, job security and workplace environment. Therefore, this research is conducted to study about the relationships between these four variables and the employee loyalty which can reduce the employee turnover rate in the hotel industry. Based on the past study, there is a significant relationship between these four variables and the employee loyalty. In the research, there has some evidence which can prove that employee loyalty is reliable to these four variables. So, organization needs to focus more on career development, compensation and rewards, job security and workplace environment to improve their employees’ loyalty towards the hotel industry. In this research, researchers have conducted this study by using the questionnaires. Researchers distributed the questionnaires to the employees who worked in the hotel industry. This can helps the researchers identify the variable more accurately. Besides, this study also describes the important role of employees for the company productivity and operation. Furthermore, there also has several recommendations are proposed in the last part of this research for cultivating the employee loyalty towards the hotel industry which can helps organization maximize the profits and improve the operation. In short, this research shows that the importance, information and awareness of employee loyalty in the hotel industry in Malaysia.

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