Employee Satisfaction As A Predictor Of Organisational Performance In The Hospitality Industry

Job satisfaction is considered to be one of the key determinants of organisational performance. However, the said relationship has been given insufficient attention in the hospitality literature. The purpose of this paper is to analyse the impact of employees’ job satisfaction on financial and operational performance of hospitality organizations, examining the moderating role of tenure and frontline jobs. The hypotheses were tested using a regression analysis. The results of empirical research, conducted on a sample of 226 hotel employees, confirmed the positive impact of job satisfaction on both the financial and operational performance. However, a positive moderating effect of tenure was only established in the relationship between job satisfaction and financial result, while the moderating role of frontline jobs was found to be non-significant. The research results contribute to hospitality management research, thus enabling a better understanding of the relationship between employees’ job satisfaction and hospitality company’s performance. Managerial implications are primarily related to the necessity of measuring not only financial, but also operational performance, as well as the implementation of human resource management practices that contribute to employees’ job satisfaction and retention.