Impact of COVID-19 on Employee Retention in Hospitality Industry

RESEARCH PROJECT
(ANALYZE THE IMPACT OF COVID 19 ON
EMPLOYEE RETENTION IN THE
HOSPITALITY INDUSTRY)

ABSTRACT
Purpose: The main purpose of doing the present study is to carry out the impact of global
pandemic COVID-19 over retention of employees within hospitality industry. It also includes
various factors that play major role in the process of retaining employees.
Methodology: The current investigation has used qualitative as well as quantitative
research methods for accumulating appropriate piece of information. It has also used primary as
well as secondary source to collect information.
Findings: The main findings of the study is that majority of respondents believe that
employee retention is very important within hospitality industry because they are the assets to
carry out operations and activities of the entity.
Originality: This study is original work because it has conducted primary research for
supporting the information collected through secondary sources.
Key words: COVID-19, Employee retention etc.

ACKNOWLEDGMENT
I am grateful that I was capable enough to put efforts in this research project. But it was
not possible for me to conduct this research project without the kind support and assistance of
many people. I would like to show my sincere gratitude to my professor, supervisor, family and
friends.
It was my great privilege and honour that I conducted investigation on the impact of
global pandemic over employee retention within hospitality industry. I am highly thankful to my
professor and supervisor for their constant support and guidance. They have provided their
precious time in giving essential information in relation to the research project. My supervisor
has shared their vast knowledge and experience so that I can complete my investigation in an
effective and efficient manner.
I would like to show my gratitude to my family and friends because they have provided
their kind support, cooperation, empowerment and encouragement. All these have assisted me in
completing the whole investigation.

Contents
ABSTRACT.....................................................................................................................................2
ACKNOWLEDGMENT..................................................................................................................3
1. INTRODUCTION.......................................................................................................................5
Background of the topic..............................................................................................................5
Research aim, objectives and questions......................................................................................5
Rationale of the research.............................................................................................................6
Significance of the research........................................................................................................6
Structure of the research..............................................................................................................7
2. LITERATURE REVIEW............................................................................................................8
How Covid-19 has affected employee retention in the hospitality industry?.............................8
What were the challenges of this industry during the pandemic time?.....................................10
What are the effective recommendations for employee retention in the hospitality industry?.12
3. METHODOLOGY....................................................................................................................15
4. FINDINGS AND ANALYSIS..................................................................................................18
Discussion on the basis of primary information.......................................................................18
Frequency Distribution Table...................................................................................................18
Data Interpretation....................................................................................................................20
Discussion on the basis of secondary information....................................................................25
Covid-19 has affected employee retention in the hospitality industry......................................25
Challenges of this industry during the pandemic time..............................................................26
5. CONCLUSION AND RECOMMENDATIONS......................................................................29
REFERENCES..............................................................................................................................31
APPENDIX....................................................................................................................................34
Questionnaire............................................................................................................................34

1. INTRODUCTION
Background of the topic
The outbreak of global pandemic COVID-19 has impacted the performance of every
organisation and company (Bajrami and et. al., 2021). Hospitality industry is the industry that
has majorly affected with the outbreak of global pandemic. It is being determined that 50 million
employees have lost their job especially working and operating within hospitality industry. It is
being analysed that the ratio of employee retention was very down during the outbreak of global
pandemic COVID-19 because people were afraid of working due to coronavirus disease (Salem
and et. al., 2021). Many people have suffered during COVID-19 because Government has
imposed restriction of lockdown which directly put ban on movement of the people from one
place to another. It has also recorded that hospitality industry has cut their workforce's strength
so that they gatherings could be avoided in the workplace (Yu, Seo and Hyun, 2021).
Research aim, objectives and questions
Research Aim
The principal aim of this research paper is to find out the factors which can mitigate
employee retention in the hospitality industry.
Research Objectives
The major objectives of the existing study are:
 To evaluate the state of employee retention in the hospitality industry.
 To find out those factors that influences the employees' retention in this industry.
 To provide useful recommendations that can mitigate this problem.
Research Questions
The main questions of the current study are:
 How Covid-19 has affected employee retention in the hospitality industry?
 What were the challenges of this industry during the pandemic time?
 What are the effective recommendations for employee retention in the hospitality
industry?

Rationale of the research
The main purpose of conducting the current investigation is to carry out information
about the impact of COVID-19 over operations and functions of the hospitality industry (Wong
and et. al., 2021). Thus report also highlights the challenges faced by hospitality industry in the
time of global pandemic in relation to retention of employees, lay-off of employees, remote
working, attracting customers, maintaining brand image and many more. In the end this report
also focuses over showcasing the different recommendations through which employees can be
easily retained within hospitality industry. There are two important objectives which are aimed
by researcher through this study which are: personal and professional objective. In respect of
personal perspective, I will learn about how people have behaved in the tough time like COVID-
19. I have learned that these people have behaved with great patience and calmness and I have
also learnt that it is necessary to be always patient in every situation. I have also got chance to
clear my concept about different research methods for the collection and evaluation of
information in a systematic way. In respect of professional perspective, I will learn about the
different practices used by hospitality industry in the period of COVID-19. These strategies have
given me idea about forming strategies in the uncertain and difficult times. This will assist me in
my professional career as I will be aware of dealing with uncertain and unpredictable situations.
Significance of the research
The existing study is significant because it takes out information about the challenges
faced by hospitality industry in retaining their talented employees during global pandemic
COVID-19. It also focuses over taking out strategies used by hospitality industry to retain their
existing talent in the workplace (Khawaja and et. al., 2021). Thus, this shows that this study is
beneficial for organisations, researchers as well as students. In respect of students, this study is
very useful as they can easily know about detailed data about the impact of COVID-19 on the
procedure of retaining employees or staff in the workplace and this is the information they can
simply use for their academic purpose such as assignments or projects. In terms of researchers,
the existing study is quite important because they can use this as foundation or secondary source
for conducting their own investigations. This study will give them idea and base for starting their
own work in a systematic and precise manner. In respect of companies, this study is helpful as
they can also adopt strategies recommended in this investigation to retain employees in the

organisation in uncertain and unpredictable times. Hence, this is the study that has mainly
focusing over employee retention strategies of the company.
Structure of the research
Introduction: This chapter holds great significance because it covers research aim,
objectives and questions of the whole study. It defines the main purpose of conducting the study
with its importance in practical terms.
Literature review: The other chapter is literature review that records second-hand
information for addressing each research question in a systematic manner. This chapter is wholly
dependent over secondary sources such as journals, books, newspapers, publications, conducted
surveys, interviews and many more.
Research methodology: This is the third chapter that provides justification of each selected
research method in the study. Qualitative as well as quantitative research methods are used.
Under quantitative, questionnaire will be developed and 50 respondents will be chosen. On the
other hand, under qualitative research method, only secondary sources are used.
Data analysis and findings: This is the chapter that analyses collected qualitative and
quantitative information. Thematic analysis is used for analysing theoretical and qualitative data.
On the other hand, for analysing numerical information frequency distribution analysis is
considered.
Conclusion and recommendations: After completing all the chapter, there is conclusion
which summarises each chapter in a brief manner. Then certain recommendations is also given to
chosen industry so that they can improve in their lacking areas.

2. LITERATURE REVIEW
How Covid-19 has affected employee retention in the hospitality industry?
As per the view of Elsafty and Ragheb (2020), employee retention is the most important
factor of the company as it helps in retaining employees for achieving the short term as well as
long term goals in the competitive market. Employee retention means employing employees of
the company in interesting activities so that they work with high efficiency and effectiveness for
performing the tasks. Covid-19 has impacted the employee retention in a negative manner within
the hospitality industry and this has reduced the growth and profitability in the business market.
The pandemic situation has reduced the morale and motivation of employees within the business
as they are scared of being infected from the effect of the deadly virus. Because of the strict lock-
down situation and travel restrictions has forced the customers to stay at their home which results
in reduced success of the hospitality industry. Retaining employees in the hospitality industry has
become difficult because of the adverse effect of the Covid-19 across the world which not only
impacts the employee performance but also their productivity level. The situation of pandemic
has resulted in creating unemployment in the hospitality industry which has cut down jobs of
various people (Chi, Saldamli and Gursoy, 2021). The effect of Covid-19 has reduced the
working capability of the employees as they work in a more stressed manner and this affects the
overall growth and productivity of the hospitality industry. The hospitality industry is majorly
labour intensive as it includes different types of employees for carrying out the operations of the
business in an effective manner. The hospitality industry has created a lot of employment
opportunities but despite of the high opportunity for the prescribed job the Covid-19 pandemic
has brought some negative effect on the performance and productivity of the hotels and
restaurants existing in the business market. It is important for the hospitality industry to offer
specialized services to their employees that helps in increasing their motivation and
encouragement level for making the work done. With the surge of pandemic globally has created
a situation of making employees work from their homes in order to keep them protected from the
virus as it is easily transferable from one person to another. The restrictions imposed on
travelling has resulted in low rate of occupancy in the hotels and restaurants as people do not feel
safe in staying at hotel. Putting team members at the top priority is essential for the hotels and
restaurants because customers are their only base and they need to deliver better services to them