Retaining Generation Z employees in the hotel industry: a time-lag study

Abstract

Purpose Generation Z (Gen Z) is entering the hotel workforce and will soon become the dominant group. This has called for a better understanding of this workforce’s attitudes and perceptions towards working in the hotel industry. This study aims to examine the effect of organizational socialization on the retention of Chinese Gen Z employees, the mediating role of person–environment fit (P-E fit) and the moderating effect of career commitment. Design/methodology/approach Time-lagged data were collected from 426 Gen Z new employees from 20 upscale hotels at two different times (2 weeks and 12 weeks after the employees entered the hotel). Confirmatory factor analysis, structural equation modeling, bootstrapping analysis and moderated hierarchical regression analyses were used for data analysis. Findings Organizational socialization positively affects employee retention via person–environment fit. Moreover, career commitment positively moderates the relationship between person–environment fit and employee retention. Practical implications Hotels must view organizational socialization as a long-term investment in Gen Z talent management by offering effective training through diverse methods, creating a collaborative environment and helping them develop career plans to enhance their career commitment. Originality/value This study unpacks the four dimensions of organizational socialization and investigates their differential effects on Gen Z employees’ retention through P-E fit. The moderating role of career commitment is also examined. This study contributes to the growing body of hospitality human resources management research on this new generation of workforce in China.