WORK–LIFE BALANCE AND EMPLOYEE RETENTION IN THE HOTEL INDUSTRY: THE MODERATING ROLE OF LEADERSHIP EMPATHY
DOI:
https://doi.org/10.35631/IJEMP.935004Keywords:
Employee Retention, Hospitality Industry, Hotel Employees, Klang Valley, Malaysia, Leadership Empathy, Leader–Member Exchange (LMX) theory, Structural Equation Modeling (SEM), Work-life BalanceAbstract
Despite the challenging working conditions, irregular working hours and significant emotional labor that the hotel industry is known for, the industry in competitive urban destinations like the Klang Valley, Malaysia, is still struggling to retain employees. While work–life balance (WLB) has received a great deal of attention as a key factor in the retention of employees, the nature of the relationship between WLB and employee retention may differ depending on the context of the relationship in which WLB is experienced. Based on Leader – Member Exchange (LMX) theory, this study explores the relationship between WLB and employee retention (ER), as well as the moderating and direct role of leadership empathy (LE) in the WLB – ER relationship. A quantitative, cross-sectional survey design was utilized in this study with a total of 311 respondents who are employees of four-star hotels in Klang Valley, Malaysia. After data cleaning, 306 valid responses were used for data analysis. The measurement instruments were based on proven scales and the data were analyzed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) using 5,000 bootstrap resamples. The results show that WLB is positively and statistically significant with ER (β = 0.272, t = 3.847, p < 0.001). There is also a positive and statistically significant correlation between LE and ER (β = 0.544, t = 8.549, p < 0.001). Importantly, the relationship between WLB and LE is positive and statistically significant (β = 0.138, t = 2.562, p = 0.010; f² = 0.032), which is indicative of the moderating effect of LE. The findings suggest that the strength of the WLB–ER association varies according to employees’ experience of LE. The study builds on LMX theory by using LE as a relational predictor of employee retention, and as the relational condition through which an organizational support practice (WLB) is related to employee retention. The findings provide practical implications for hotel management by highlighting the importance of combining WLB practices with empathetic leadership to support employee retention and workforce sustainability.
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