Invigorating the hospitality industry: What is the impact of psychological contract and psychological capital on employee commitment?

Abstract

Orientation: The coronavirus disease 2019 (COVID-19) pandemic has impacted all industries on a global scale. Specifically, the hospitality industry, being one of the largest industries in the world, has been affected by the decline in all forms of travel and tourism because of lockdown regulations instituted by governments.

Research purpose: In recovering from the devastating impact of COVID-19, it is imperative that the hospitality industry retains committed employees to revitalise and rebuild the industry.

Motivation for the study: The study reports on the impact of psychological contract and psychological capital on employee commitment within accommodation establishments.

Research design, approach and method: The study followed a quantitative research approach and a survey as data collection method. A structured questionnaire was administered to nine graded accommodation establishments in the two main economic hubs of the Free State province, namely Bloemfontein and Clarens. Data were analysed by partial least squares structural equation modelling (PLS-SEM).

Main findings: The results revealed that psychological contract has a statistically significant relationship with employee commitment. There was also a statistically significant relationship recorded between optimism and employee commitment, but no statistically significant relationships between hope, self-efficacy, resilience and employee commitment.

Practical/managerial implications: Rational contracts have the highest predictive power towards employee commitment. This emphasises the importance of developing and maintaining constructive relationships in accommodation establishments.

Contribution/value-add: The study was conducted during COVID-19, and thus, provides insight into the impact of psychological contract and psychological capital on employee commitment during the time of crisis and disruption.