Journal of Human Resources in Hospitality & Tourism

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The Impact of Training and Development on

Employee Job Satisfaction, Loyalty, and Intent to
Stay in the Lodging Industry

Wanda M. Costen & John Salazar

To cite this article: Wanda M. Costen & John Salazar (2011) The Impact of Training and
Development on Employee Job Satisfaction, Loyalty, and Intent to Stay in the Lodging
Industry, Journal of Human Resources in Hospitality & Tourism, 10:3, 273-284, DOI:
10.1080/15332845.2011.555734

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Published online: 10 Jun 2011.

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Journal of Human Resources in Hospitality & Tourism, 10:273–284, 2011
Copyright © Taylor & Francis Group, LLC
ISSN: 1533-2845 print / 1533-2853 online
DOI: 10.1080/15332845.2011.555734

The Impact of Training and Development on

Employee Job Satisfaction, Loyalty, and Intent
to Stay in the Lodging Industry

WANDA M. COSTEN
Department of Retail, Hospitality, and Tourism Management, University of Tennessee,
Knoxville, Tennessee, USA

JOHN SALAZAR
Department of Hospitality Management, University of South Carolina, Beaufort, Bluffton,
South Carolina, USA

There is a tremendous amount of literature that explores the rela-

tionship between employee job satisfaction and intent to stay. Sim-
ilarly, recent research in the area of human resources has focused
on the impact of human resources practices on various organiza-
tional outcomes. In this article the authors explore the relationships
between training and development, and employee job satisfaction,
loyalty, and intent to stay in four lodging properties in the United
States. Results indicate that employees who perceive they have the
opportunity to develop new skills are more satisfied with their jobs,
more loyal, and more likely to stay with the organization.

KEYWORDS Training, employee development, employee job satis-

faction, loyalty, intent to stay

INTRODUCTION

Frontline employees are essential to the success of every lodging organiza-

tion. These employees are responsible for service delivery, and ultimately
determine the quality of service the customer receives. It is important to
understand what influences frontline employees’ job satisfaction because
there is evidence that satisfied employees deliver better customer service
(Rust, Stewart, Miller, & Pielack, 1996). In the service industry, customer

Address correspondence to Wanda M. Costen, PhD, Assistant Professor, Department of

Retail, Hospitality, and Tourism Management, University of Tennessee, University of Ten-
nessee, 1215 W. Cumberland Ave, Knoxville, TN 37996-1911. E-mail: wcosten@utk.edu

273
274 W. M. Costen and J. Salazar

satisfaction has the potential to impact organizational profitability (Baydoun,

Rose, & Emperado, 2001) through repeat business or positive word-of-mouth
advertising and increased revenue.
Another reason it is necessary to understand what influences employee
job satisfaction is that research has linked employee job satisfaction to orga-
nizational commitment, and both are indicators of an employee’s intent to
leave an organization (Costen, Salazar, & Antun, 2006; Ghiselli, LaLopa, &
Bai, 2001; Antolik, 1993; Bartel, 1981; Mobley, 1977). The lodging industry
struggles with retaining its workforce, and has an average turnover rate of
over 65% a year (Myers, 2005). One study (Kacmar, Andrews, Van Rooy,
Steilberg, & Cerrone, 2006) found that as hourly turnover increased, so did
customer wait times, which impacts customer satisfaction.
Human resources (HR) is one of the functions whose practices can
help shape employee behavior and experiences within the organization,
and influence the organization’s culture (Cabrera & Bonache, 1999). HR cre-
ates policies and procedures that “enable employees to deliver results to
customers”, which ultimately influences customer service quality (Heskett,
Jones, Loveman, Sasser, & Schlesinger, 1994, p. 119). HR’s training and de-
velopment programs in particular have a direct influence on employee skills
impacting both their competency levels and their productivity, which could
impact employee job satisfaction.
The purpose of the authors in this study was to investigate to what
degree training and development influence employee satisfaction. Specifi-
cally, the researchers sought to explore the relationships between training
and development, and employee satisfaction with their jobs and the lodg-
ing property. Additionally, due to the high turnover rate in lodging, the
researchers examined the relationships between training and development,
and employee loyalty and intent to stay. This study was conducted in four
lodging properties located the southeastern United States. This article con-
tributes to the existing literature by investigating to what degree two key
components of HR influence employee retention in the lodging segment of
the hospitality industry.

LITERATURE REVIEW
Job Satisfaction
There is an immense amount of literature on employee job satisfaction, and
as a result, there are several definitions. Locke (1969) first defined employee
job satisfaction as the pleasurable emotional state resulting from the evalu-
ation of one’s job. Other researchers conceptualized job satisfaction as an
individual’s response to his work conditions (Camp, 1994), and to what de-
gree an employee feels positively or negatively about different facets of her
job (Currivan, 2000; Schermerhorn, 1996). In general, job satisfaction is an
 Training & Development in Lodging 275

employee’s overall attitude toward his job (Robbins and Coutler, 1996). If
an employee is happy in her job, she is less likely to leave, which reduces
turnover (Lambert, Hogan, & Barton, 2001). One of the key determinants of
employee job satisfaction is loyalty (Borzaga & Tortia, 2006).

Loyalty
Employee loyalty also reduces turnover (Borzaga & Tortia, 2006). Loyalty
describes an employee’s faithfulness to an organization, but may not trans-
late into an emotional attachment to the organization (Niehoff, Moremann,
Blakely, & Fuller, 2001). Loyalty is about demonstrating pride in an organi-
zation and being willing to defend the organization against criticism. Loyalty
also includes not complaining about the organization (Niehoff, et al., 2001).
According to Eskildsen & Nussler (2000), employee loyalty measures to what
degree an employee takes personal responsibility for their work, and how
likely they are to look for another job. This latter component is also a mea-
sure of an employee’s organizational commitment.

Organizational Commitment
Organizational commitment is related to how an employee feels about the or-
ganization as a whole. It has been conceptualized as the emotional (Rhoades,
Eisenberger & Armeli, 2001) and psychological (Ensher, Grant–Vallone, &
Donaldson, 2001) bond between the employee and the organization.
Organizational commitment is also the degree to which an employee
identifies with the organization, and the desire to, or likelihood of, staying
with the organization (Camp, 1994). This includes sharing and supporting
corporate goals (Rogg, Schmidt, Shull, & Schmitt, 2001) and values, as well as
a willingness to work on behalf of the organization (Taormina, 1999). When
an employee is committed to an organization, she personally identifies with
the organization, and wants to see the organization succeed (Wright, Gardner
& Moynihan, 2003). Additionally, organizational commitment’s influence on
an employee’s likelihood of staying with the organization reduces turnover.

Training and Opportunities to Develop New Skills

Training is one of HR’s most visible responsibilities. The opportunity to
develop new skills measures the employee’s assessment of the organiza-
tion’s training program. Training involves providing employees with the ba-
sic knowledge and skills they need to perform their duties to the company’s
standards. Feelings of competence, which can result from participating in
training programs, increases job satisfaction (Hartline & Ferrell, 1996). Train-
ing also appears to be related to an employee’s satisfaction with her super-
visor (Taormina, 1999). According to Taormina’s (1999) findings, the quality
276 W. M. Costen and J. Salazar

of an organization’s training programs influences the employee’s satisfaction

with his supervisor. Even more importantly, training was a significant predic-
tor of work satisfaction, and the most influential predictor of both affective
and continuance commitment (Taormina). Organizations that provide qual-
ity training enhance the employee’s emotional attachment to the organiza-
tion, which ultimately translates to a desire to remain with the organization
(Taormina). Furthermore, organizations that invest more in training have a
significantly higher level of organizational performance as measured by the
quality of the product or service offered, new product development, ability
to attract and retain essential employees, and customer satisfaction (Harel
& Tzafrir, 1999). Thus, the researchers developed the following hypotheses
to explore the relationships between training and employee job satisfaction,
company satisfaction, loyalty, and intent to stay:
H1: The opportunity to develop new skills will influence overall employee
job satisfaction.
H2: The opportunity to develop new skills will influence an employee’s
overall satisfaction with the company.
H3: The opportunity to develop new skills will influence an employee’s
loyalty to the company.
H4: The opportunity to develop new skills will influence employee intent to
stay.

Employee Development and Opportunities for Advancement

Employee development is the process of providing experiential learning and
growth opportunities to employees. Opportunities for advancement was one
of the key determinants of employee work satisfaction in Taormina’s (1999)
study, and employees who felt they had good opportunities for advancement
demonstrated stronger emotional ties to their organizations. Developmental
opportunities have also been found to be related to an employee’s perceived
organizational support (Wayne, Shore, & Liden, 1997), which is strongly re-
lated to organizational commitment and trust (Whitener, 2001), and overall
job satisfaction (Eisenberger, Cummings, Armeli, & Lynch, 1997). The fol-
lowing hypotheses were developed to explore the relationships between
opportunities for advancement and employee job satisfaction, company sat-
isfaction, loyalty, and intent to stay:
H5: Opportunities for advancement will influence overall employee job sat-
isfaction.
H6: Opportunities for advancement will influence an employee’s overall
satisfaction with the company.
H7: Opportunities for advancement will influence an employee’s company
loyalty.
H8: Opportunities for advancement will influence employee intent to stay.
 Training & Development in Lodging 277

METHODOLOGY
Sample
This study was conducted within a lodging corporation that owned and op-
erated four full-service, upscale and luxury hotels and resorts located in the
southeastern United States. Six hundred forty-one (n = 641) employees par-
ticipated in the survey, and all data were collected using a self-administered
questionnaire designed specifically for the organization. Each property’s hu-
man resources department distributed and collected the surveys over a three
day period. Hotel and resort managers encouraged all employees to partic-
ipate, and the survey satisfied the annual employee satisfaction assessment
requirement for the franchise operators. The survey was administered to 850
employees, and 641 completed the survey for a response rate of 75%.

Measures
To accommodate the client’s desire to use this instrument to fulfill the orga-
nization’s annual employee assessment, separate items were developed to
measure the employees’ satisfaction with specific human resource practices:
(1) opportunity for advancement and (2) opportunity to develop new skills
and talents. The items utilized a five-point Likert-type scale to measure the
respondent’s evaluation of each HR practice (1 = very poor, 2 = poor, 3 =
average, 4 = good, and 5 = very good).
A total of six items were used to measure the satisfaction, loyalty, and
commitment variables. One item measured employee overall job satisfaction
(Overall, how satisfied are you with your current job at this property?), and
one item measured the employee’s overall satisfaction with the company
(Overall, how would you rate this company as a place to work compared to
other companies you know about or have worked for?). The job satisfaction
item utilized a five-point Likert-type scale to measure the respondent’s level
of satisfaction with their job (1 = very dissatisfied and 5 = very satisfied),
while the company satisfaction item used a five-point scale indicating the
employees’ overall rating of the company (1 = one of the worst and 5 = one
of the best).
Two items were averaged to measure employee loyalty to the company
(I am proud to work for this company, and I would recommend this company
to family and friends as one of the best places to work). Two items were also
averaged to measure employee intent to stay (I would stay with this company
even if offered the same job with slightly higher pay at another company and
It is likely for me to work for this company as long as this company wants me).
The loyalty and intent items utilized a five-point Likert-type scale to measure
the respondent’s level of agreement with the items (1 = strongly disagree
and 5 = strongly agree).
278 W. M. Costen and J. Salazar

RESULTS

The employees who participated in the study represented all levels within the
organization including hourly, supervisors, executive committee members,
and division level managers. Approximately 67% (n = 428) of the total
sample were full and part-time employees, while 9.2% (n = 59) were full
and part-time supervisors. Almost 14% (n = 88) were managers and 3% (n =
19) were considered executives or members of the organization’s leadership
team. Over 45% (n = 290) had been employed less than one year and
approximately 55% (n = 351) were employed more than 1 year. Table 1
depicts the sample demographics.
As indicated in Table 2, this study’s respondents rated their opportunities
for advancement, the opportunities to develop new skills, and their overall
satisfaction with the company a little higher than average (3 = average and
4 = good). In terms of job satisfaction, the respondents were neither satisfied
nor dissatisfied (4 = satisfied). The respondents neither agreed nor disagreed
with statements indicating their degree of loyalty to the company, or how
likely they were to stay with the company (4 = agree).
In order to explore the relationship between opportunity to develop
new skills, opportunities for advancement, job and company satisfaction,
loyalty, and commitment, four step-wise multiple regression analyses were
conducted using job and company satisfaction, loyalty, and commitment as

TABLE 1 Employee Characteristics

N %

Job type
Part and full time employees 428 66.8
Part and full time supervisors 59 9.2
Managers 88 13.7
Executives/leadership team 19 3
No answer 47 7.3
Length of employment
Less than 3 months 81 12.6
3–6 months 130 20.3
6 months–1 year 79 12.3
1 year–3 years 165 25.7
3 years–5 years 65 10.1
More than 5 years 99 15.4
No answer 22 3.4
Ethnicity
Caucasian 340 53
African-American 226 35.3
Other 16 2.5
No answer 59 9.2
Gender
Male 246 38.4
Female 349 54.4
No answer 46 7.2
 Training & Development in Lodging 279

TABLE 2 Variable Mean Scores

Variable N Mean SD

Opportunity for advancement in this property 641 3.36 1.14

Your opportunity to develop new skills and talents 641 3.49 1.11
Overall satisfaction with job Overall, how satisfied are you with 641 3.86 0.95
your current job at this property?
Overall satisfaction with company Overall, how would you rate this 640 3.65 0.97
company as a place to work compared to other companies you
know about or have worked for?
Employee loyalty 641 3.84 0.94
Employee intent to stay 641 3.61 1.04

dependent variables. Employee perceived satisfaction with opportunity to

develop new skills and opportunity for advancement were entered in the
regression as independent or exogenous variables.
The first regression analysis explored whether the opportunity to de-
velop new skills and the opportunity for advancement influenced employee
job satisfaction (H1 and H5 respectively). The results (depicted in Table 3)
indicate support for both H1 and H5. The opportunity to develop new skills
has a positive and significant effect on employee job satisfaction. The oppor-
tunity for advancement also has a positive and significant effect on employee
job satisfaction. Combined, the variables explained almost 30% of the job sat-
isfaction variance; however, the opportunity to develop new skills explained
most of the variance in job satisfaction.
The next analysis explored the impact of the opportunity to develop
new skills and the opportunity for advancement on company satisfaction
(H2 and H6 respectively). These results are depicted in Table 4. Both H2
and H6 are supported. The opportunity to develop new skills has a positive
and significant effect on company satisfaction. Similarly, the opportunity for
advancement has a positive and significant effect on company satisfaction.
Together, the variables explained almost 34% of the variance in company
satisfaction, but opportunity to develop new skills accounted for most of the
variance in company satisfaction.
Table 5 presents the results of the regression analysis to determine the
impact of the opportunity to develop new skills and the opportunity for
advancement on employee loyalty (H3 and H7 respectively). These results

TABLE 3 Stepwise Multiple Regression Analysis for Job Satisfaction

Variable R2 B SE Beta T Sig

Constant 2.122 .110 19.354 .000

Opportunity to develop new skills .266 .296 .039 .345 7.622 .000
Opportunity for advancement .034 .210 .038 .251 5.550 .001

Note: Total R2 = .300; Dependent variable = job satisfaction.

280 W. M. Costen and J. Salazar

TABLE 4 Stepwise Multiple Regression Analysis for Company Satisfaction

Variable R2 B SE Beta T Sig

Constant 1.779 .109 16.282 .000

Opportunity to develop new skills .297 .319 .039 .364 8.262 .000
Opportunity for advancement .038 .227 .038 .266 6.031 .000

Note: Total R2 = .335; Dependent variable = company satisfaction.

indicate that both the opportunity to develop new skills and the opportunity
for advancement have positive and significant effects on employee loyalty.
Over 44% of the variance in loyalty was explained by both variables, but the
opportunity to develop new skills alone explained 38% of the variance in
employee loyalty.
Finally, Table 6 presents the results for the regression analysis of the
opportunity to develop new skills and the opportunity for advancement on
intent to stay (H4 and H8 respectively). The results show support for H4
and H8. Both the opportunity to develop new skills and the opportunity for
advancement have positive and significant effects on intent to stay. Over 36%
of the variance in intent to stay was explained by this model. As in the other
analyses, opportunity to develop new skills explained most of the variance.

DISCUSSION

The results confirmed by the researchers in this study reveal that the op-
portunity to develop new skills and the opportunity for advancement are
important determinants of employee company and job satisfaction, as well
as employee loyalty, and intent to stay. In this study, the researchers confirm
that the opportunity to develop new skills explained almost 27% of the vari-
ance in employee job satisfaction. It appears that the opportunity to engage
in company training has a positive influence on an employee’s job satisfac-
tion. It is possible that training opportunities provide employees with the
necessary skills, knowledge, and abilities they need to perform their jobs to
the company’s standard, which subsequently enhances the employees’ con-
fidence in their abilities and satisfaction with their jobs. As discussed earlier,
satisfied employees tend to deliver quality customer service, which ultimately
influences customer satisfaction and overall organizational profit. Therefore,

TABLE 5 Stepwise Multiple Regression Analysis for Loyalty

Variable R2 B SE Beta T Sig

Constant 1.764 .096 18.343 .000

Opportunity to develop new skills .385 .335 .034 .397 9.846 .000
Opportunity for advancement .058 .269 .033 .328 8.120 .000

Note: Total R2 = .443; Dependent variable = loyalty.

 Training & Development in Lodging 281

TABLE 6 Stepwise Multiple Regression Analysis for Intent to Stay

Variable R2 B SE Beta T Sig

Constant 1.527 .114 13.416 .000

Opportunity to develop new skills .308 .312 .040 .334 7.739 .000
Opportunity for advancement .056 .296 .039 .325 7.528 .000

Note: Total R2 = .364; Dependent variable = intent to stay.

providing quality training programs could increase customer satisfaction and

organizational profit.
The results found by the researchers of this study also support the ear-
lier finding that training is the most influential predictor of both affective
and continuance commitment (Taormina, 1999). The opportunity to develop
new skills accounted for over 38% of the variance in employee loyalty. A
company’s training programs are an indicator of the organization’s willing-
ness to invest in the employee, and its level of commitment to the employee.
This organizational commitment could inspire employee loyalty.
The opportunity to develop new skills explained 30% of the employees’
intent to stay. This finding suggests that an organization’s training programs
have the potential to increase the likelihood an employee will stay with
an organization, thereby reducing involuntary turnover. Since the lodging
industry has an average turnover rate exceeding 65%, it is imperative that
lodging organizations understand what can reduce this rate. Creating and
implementing training programs may be a method for reducing the industry’s
turnover rate.
Opportunity for advancement is a measure of the developmental oppor-
tunities available for employees to grow in the organization. In this study,
opportunity for advancement alone did not explain a significant amount of
the variance in job and company satisfaction, employee loyalty, and intent
to stay. The results indicate; however, that the opportunity for advancement
does significantly influence an employee’s job and company satisfaction, loy-
alty, and intent to stay. Today many hospitality companies are focusing on
promoting from within; therefore, ensuring there are quality developmental
opportunities for employees is a key component of that strategy. This study’s
results suggest that providing employees opportunities to advance within the
organization can increase loyalty and reduce involuntary turnover.

CONCLUSION

The purpose of this study was to explore the degree to which training and
development opportunities influenced employee job and company satisfac-
tion, as well as loyalty and intent to stay. The results reveal that both the
opportunity to develop new skills and the opportunity for advancement
282 W. M. Costen and J. Salazar

significantly influence an employee’s job and company satisfaction. Perhaps

even more importantly, these two HR practices were significant predictors
of an employee’s loyalty and intent to stay with the organization.
The opportunity to develop new skills accounted for between 27% and
39% of each dependent variable. These findings are important because they
suggest that one way lodging organizations can increase employee loyalty
and reduce involuntary turnover is to invest in and develop quality train-
ing programs. Since training and development are often areas that are cut
or receive reduced funding during financially difficult times, these findings
should encourage leaders in lodging organizations to find other methods for
reducing organizational costs.
These results suggest that employees consider the opportunity to de-
velop new skills an important factor that influences not only their satisfaction
with their current job, but also their satisfaction with the company. Being
provided this opportunity also positively influences their loyalty to the com-
pany and their intent to remain with their organization. In order to leverage
these findings, lodging executives and managers should partner with human
resources to promote the various training opportunities that are available in
the company. Even more importantly, lodging managers should ensure that
all employees receive formalized training that help them learn the essential
components of their jobs, and the company standards associated with suc-
cessfully performing their jobs. Given that the participants in this study seem
to want to learn new skills, lodging organizations should offer cross-training
opportunities that expand an employee’s knowledge and abilities. Cross-
training not only improves the productivity of the organization, but can also
help the employee gain important experience and abilities, which can help
further the employee’s career. Finally, lodging managers should partner with
human resources to identify job enlargement opportunities for employees
who demonstrate a desire and ability to assume additional responsibilities.
Despite the support for the hypotheses in this study, there are limitations
to this research. First, this study was conducted at lodging properties in the
southeastern United States. The authors recommend that the study be con-
ducted across various industry sectors and regions. Second, an instrument
that the client approved as the annual evaluation of employee satisfaction
with the organization was utilized for this research. Future research should
incorporate direct measures of training and employee developmental oppor-
tunities. It might also be helpful to discern what types of training programs
and opportunities most influence employee job and company satisfaction,
as well as loyalty and intent to stay.

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