Psychological contract and turnover intention in luxury hotels

Human resources are critical assets in the hotel industry, and retaining employees is crucial for the sustainable development of hotels. To reduce employee turnover, the study aims to explore the role of psychological contract and emotional labor on turnover intention. Data from an online survey of 743 employees of luxury hotels in China were analyzed using structural equation modeling (SEM). The results show that employer relational psychological contracts (p < 0.001), employee relational psychological contracts (p < 0.001), and employer transactional psychological contracts (p < 0.01) have an impact on turnover intentions. The study also finds that employee transactional psychological contracts (p > 0.05) do not affect turnover intentions. Furthermore, employee-employer relational psychological contracts (p < 0.01) significantly influence emotional labor, whereas employer transactional psychological contracts (p > 0.05) do not. Emotional labor (p < 0.01) significantly affects turnover intentions. The connection between psychological contracts and turnover intentions is also mediated by emotional labor. These results imply that luxury hotels should prioritize employees’ emotional well-being, create a harmonious work environment, and enhance employee loyalty. This paper provides valuable insights that may reduce turnover and foster sustainable development within the hospitality sector.