Current Issue

THE EFFECTS OF EMPLOYEES' PAY SATISFACTION AND LABOR BURDENS ON TURNOVER INTENTION IN THE HOSPITALITY INDUSTRY

Hsi-Tien Chen

Department of Healthcare Industry Technology Development and Management,

National Chin-Yi University of Technology, Taichung City, Taiwan

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Feng-Chia Li

Department of Marketing and Distribution Management,

National Chin-Yi University of Technology, Taichung City, Taiwan

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Hsueh-Feng Chang

Department of Tourism Management,

National Kaohsiung University of Science and Technology, Kaohsiung City, Taiwan

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Abstract

Based on the Conservation of Resources Theory, this study aims to investigate the mechanism by which salary satisfaction and labor burden influence turnover intention among employees in the hospitality industry. The hospitality sector, characterized as a labor-intensive industry, requires frontline employees to endure long working hours, high job demands, and relatively low pay. Such conditions often lead to job burnout and high turnover rates, adversely affecting both service quality and organizational performance. The construct of labor burden is operationalized into four dimensions—physical labor, cognitive labor, emotional labor, and aesthetic labor—to capture the multifaceted nature of employees’ work efforts. According to the Conservation of Resources Theory, labor burden represents a process of resource depletion, while compensation satisfaction embodies a method of resource acquisition. When employees continuously expend physical and psychological resources in their work without adequate compensation or recognition, they are more likely to experience emotional exhaustion, depersonalization, and reduced personal accomplishment, which can lead to decreased job satisfaction and heightened turnover intentions.

A questionnaire survey was conducted among full-time frontline employees of tourist hotels in Taiwan, yielding 329 valid responses. The hypothesized model was tested using Structural Equation Modeling (SEM). Empirical results reveal that: First, labor burden has a significant positive effect on job burnout. Second, job burnout has a significant and negative impact on job satisfaction. Third, compensation satisfaction has a positive influence on both job engagement and job satisfaction. Fourth, job engagement enhances job satisfaction while reducing turnover intention. Fifth, job engagement and job burnout are significantly and negatively correlated. The findings suggest that compensation satisfaction and labor burden are critical antecedents of employees’ turnover intention in the hospitality industry. Establishing equitable and competitive compensation systems, along with effectively managing labor demands, can mitigate burnout, enhance employee engagement and satisfaction, and reduce turnover intentions. The results of this study could provide valuable references for education and training, as well as human resources planning, for frontline employees in the catering industry. 

Keywords: burden of labor, burnout, employees' satisfaction, work engagement, turnover intention