Human Resource Management Practices Influencing Employee Retention: Job Satisfaction as Mediator in Tanzania’s Hotel Industry
Abstract
Employee retention remains a pressing concern in Tanzania’s tourism and hotel industry, particularly in the Northern circuit where destinations such as Mount Kilimanjaro attract global visitors. High turnover disrupts service quality, increases recruitment costs, and weakens organizational performance. Drawing on Social Exchange Theory, this study examines the influence of Training and Development, Compensation and Reward, Performance Appraisal, Health and Safety, and Supervisor Support on Employee Retention, with Job Satisfaction as a mediating variable. The theory suggests that when employees perceive supportive HR practices, they reciprocate with stronger commitment and intention to stay. A quantitative approach was adopted, and data were collected from 365 non-managerial hotel employees in Northern Tanzania. The relationships among constructs were tested using Partial Least Squares Structural Equation Modeling (PLS-SEM), which is appropriate for examining complex mediation models. The findings indicate that performance appraisal and supervisor support had significant positive influence on Job Satisfaction, which in turn positively predicts Employee Retention. Supervisor Support and fair Performance Appraisal had strong positive effects, especially on Retention and Job Satisfaction. Interestingly, Training & Development and Health & Safety did not show the strong effects we often assume. The study contributes context-specific evidence from a developing tourism economy and clarifies the mediating role of Job Satisfaction in the HRM–retention relationship. The findings offer practical insights for hotel managers seeking sustainable workforce strategies.
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References
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