Losing talent due to COVID-19: The roles of anger and fear on industry turnover intentions

Abstract

Early in the COVID-19 pandemic, the US hospitality industry workforce experienced significant job loss via furloughs and job eliminations. Over a year later, the American hospitality industry is now facing a labor shortage. However, there is a dearth of literature explaining why the hospitality industry's response due to a mega-event, like the pandemic, can motivate employees to leave the hospitality industry. Instead, theory and research have primarily focused on organizations as the focal point for understanding turnover, while neglecting the industry. Using the affect theory of social exchange, this paper examined how anger and fear related to job status changes (i.e., being furloughed or laid-off) due to the pandemic, influence intentions to leave the industry. Study 1 used a survey of management-level employees, whereas Study 2 used an experiment to test the proposed model. Both studies showed that employees who lost their job due to the pandemic felt more anger and fear than those still employed. However, mediation analyses revealed anger, but not fear, as the primary driver of industry turnover intentions. These results highlight a potentially problematic trend. Should skilled hospitality workers switch industries due to job loss amidst an industry-wide negative event, it may become difficult for hospitality businesses to find qualified employees once the industry recovers and rehiring begins.