Assessing asymmetric effects in the formation of employee satisfaction

Abstract

Employee satisfaction is a central concern in the service industry in general and in hospitality and tourism in particular. Employee satisfaction is typically viewed as a multi-factorial construct, assuming that some satisfaction factors are more important than others. In this study we investigate whether there is an asymmetric relationship between satisfaction involving single satisfaction factors and overall employee satisfaction. Two theories serve as a framework: prospect theory and the three-factor theory of customer satisfaction, which can be understood as an extension of Herzberg's two-factor theory, adapted to explain the formation of customer satisfaction. The authors report the findings of an empirical study (N=752) in the Austrian hotel industry that tests this asymmetric relationship using a regression analysis with dummy variables. The authors find an asymmetric relationship between satisfaction involving individual factors and overall employee satisfaction, thereby confirming the three-factor theory in the context of employee satisfaction.