Abstract

Employee benefits represent a significant cost to hospitality firms, yet they also influence a firm’s ability to attract talent. Despite benefits’ importance, little hospitality research has explored them. Drawing on organizational support theory, it is hypothesized that when a firm offers higher benefit levels, recruits will be more likely to pursue employment with that firm, conditional upon their exchange ideology. Results of an experimental study indicate that hospitality firms are more attractive to recruits with high levels of exchange ideology when they increase the levels of benefits offered. The findings emphasize the importance of communicating benefit offerings to recruits.

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