The Impact of Occupational Stress on Employee's Turnover Intention in the Luxury Hotel Segment

Abstract

High turnover is one of the distinguishing features of the hotel industry and one of its remaining greatest challenges. This study sought to identify the reasons for the high level of turnover intention and examined one in particular—occupational stress. First, this study conducted a principal component factor analysis with varimax rotation to extract occupational stress factors. The principal component factor analysis divided the 23 occupational stress items into six factors: problems related to the home, problems related to task and pay, conflict with job responsibility, unfair treatment, shortage of support, and organizational culture. Next, this study used the regression analysis to ascertain the effect of occupational stresses on turnover intention and to identify the occupational stresses that have a more significant effect on hotel employee's turnover intention. Results indicated that occupational stress factors predict hotel employee's turnover intention. In particular, among the six occupational stresses, unfair treatment contributed most significantly to turnover intention. Hotel managers who familiarize themselves with these study findings will be in a better position to understand the important role of occupational stress in employee turnover.