Organizational HR practices and employee retention in hotels: the moderating role of co-worker influence and market turbulence

Purpose This paper investigates the influence of organizational HR practices (compensation, career development and perceived organizational support) on employee motivation and retention in the hotel industry. Additionally, this study examines the moderating effect of co-worker influence and market turbulence on employee motivation and retention among hoteliers. Design/methodology/approach This study employed a cross-sectional quantitative design. Data from 386 respondents were collected via a validated survey instrument using a five-point Likert scale. Partial Least Squares Structural Equation Modeling (PLS-SEM) was applied to test the measurement and structural models. Findings Path analysis revealed that compensation significantly affected employee motivation and retention, while career development and perceived organizational support showed no significant direct influence. Moderation analysis indicated that co-worker influence is an insignificant moderator. However, market turbulence significantly moderated the relationship between perceived organizational support and employee motivation and retention, suggesting that the role of perceived organizational support becomes more critical in times of external uncertainty. Research limitations/implications The study challenges the dominance of compensation by demonstrating the conditional importance of perceived organizational support during instability. The influence of co-workers is insignificant, and it also questions existing assumptions. These findings encourage scholars to revisit conventional OB frameworks and adopt more context-sensitive models in hospitality HR research. Practical implications Hotel managers are urged to align career development programs with employee needs to sustain motivation. By identifying employees vulnerable to instability and providing targeted support, managers can improve retention, workforce resilience and ultimately guest satisfaction in an increasingly volatile hospitality environment. Originality/value This study focuses on the unexplored moderating roles of co-worker influence and market turbulence, specifically within the under-research context of star-rated hotels in Indonesia.