Exploring the Interplay Between Job Satisfaction and Employee Retention in Romania’s Hospitality Sector: A Comprehensive Analysis

Ioana C. Patrichi (), Tudor M. Edu, Camelia M. Gheorghe, Stefania C. Antonovici and Catrinel R. Dridea
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Ioana C. Patrichi: Department of Commerce, Economic Integration and Business Administration, Faculty of Tourism and Hospitality Management, Romanian-American University, 012101 Bucharest, Romania
Tudor M. Edu: Management-Marketing Department, Faculty of Management-Marketing, Romanian-American University, 012101 Bucharest, Romania
Camelia M. Gheorghe: Department of Commerce, Economic Integration and Business Administration, Faculty of Tourism and Hospitality Management, Romanian-American University, 012101 Bucharest, Romania
Stefania C. Antonovici: Management-Marketing Department, Faculty of Management-Marketing, Romanian-American University, 012101 Bucharest, Romania
Catrinel R. Dridea: Department of Commerce, Economic Integration and Business Administration, Faculty of Tourism and Hospitality Management, Romanian-American University, 012101 Bucharest, Romania

Sustainability, 2025, vol. 17, issue 20, 1-19

Abstract: This study investigates the complex interplay between internal communication, psychological well-being, and job satisfaction, as well as their influence on employee retention and job performance in Romania’s post-pandemic hospitality sector. In this study, data were collected from 350 employees across hotels, restaurants, and resorts. A Covariance-Based Structural Equation Modeling (CB-SEM) approach was employed for the analysis. Findings suggest that both internal communication and psychological well-being are significant positive predictors of job satisfaction. In turn, job satisfaction is a powerful driver of both employee retention and job performance. A key finding is that job satisfaction fully mediates the relationship between psychological well-being and job performance, with no direct effect observed between the latter two constructs. These results underscore that fostering an employee-centric environment is crucial for achieving social sustainability, directly supporting global Sustainable Development Goals (SDG 8: Decent Work and Economic Growth and SDG 3: Good Health and Well-being). Theoretical and practical implications, as well as limitations and future research directions, are discussed.

Keywords: job satisfaction; job performance; employee retention; SHRM; social sustainability; sustainable hospitality (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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