Impact of Work Life Balance on Employee Retention with Mediating Role of Job Satisfaction in the Hospitality Industry Employees

Abstract

The hospitality industry, known for its dynamic environment and high employee turnover rates, faces significant challenges in retaining skilled personnel. This research explores the influence of work-life balance (WLB) on employee retention, with job satisfaction serving as a mediating variable. The study employs a quantitative research design and collects data from a sample of 240 hospitality employees across hotels, resorts, and restaurants, selected through random sampling. The primary data collection tool was a structured questionnaire, validated through a pilot test, and analyzed using statistical techniques such as correlation, regression, and mediation analysis. Findings reveal that work-life balance significantly and positively affects job satisfaction, which, in turn, mediates the relationship between WLB and employee retention. Specifically, employees who perceive greater flexibility, supportive management, and sufficient time for personal life exhibit higher levels of job satisfaction and are more likely to remain with their organization. The study identifies key work-life balance initiatives, including flexible work schedules, wellness programs, and effective managerial support, as critical in addressing employee dissatisfaction and reducing turnover. The results underscore the importance of implementing targeted work-life balance strategies tailored to the hospitality industry's unique demands, such as irregular schedules and high stress. The research highlights the role of supportive organizational policies in creating a conducive work environment that fosters loyalty and commitment among employees. Methodological insights emphasize the use of Structural Equation Modeling (SEM) for examining the interrelations among WLB, job satisfaction, and retention, offering a robust framework for future studies. Practical recommendations are proposed for hospitality managers, including promoting flexible work arrangements, strengthening employee engagement initiatives, and training managers to prioritize work-life balance. By addressing the root causes of turnover, organizations can achieve sustainable growth, reduce recruitment and training costs, and enhance overall service quality. This study contributes to the academic literature by addressing the underexplored mediating role of job satisfaction in the WLB-retention relationship within the hospitality sector. It also provides actionable insights for industry practitioners to design and implement effective retention strategies, ensuring employee well-being and organizational success.