The after-shock effects of high-performers turnover in hotel industry: a multi-level study

Abstract

Purpose High-performing employees are a hotel’s most important asset: they care for what they do, go beyond and beyond the scope of duty and continually strive to do better. The purpose of this multi-level study is to look into the influence of high-talent turnover on organizational reputation via social capital and trust deficits. Furthermore, the current research explores the influence of human capital investment (HCI) on the mediating effects of trust deficit and social capital in the association between high talent turnover rate and organizational reputation using human resource theory and social capital theory. Design/methodology/approach The authors examined the hypotheses using multi-source and multi-times data of 805 respondents (including senior human resources officers and employees) from 85 hotels. Findings The present study revealed interesting findings that the HCI failed to buffer the interfering role of trust deficit in the negative association between high-performing personnel turnover rate and organizational reputation. Practical implications High-performing personnel turnover and underlying mechanisms play a significant role in eroding a hotel’s reputation in the hotel industry. Hotel management should focus on reducing high-performing talent turnover and underlying mechanisms to maintain and improve the hotel’s reputation. Originality/value This study provides better understating into the process by exploring that high-performer turnover can damage an organization’s reputation, which has been overlooked by academics who researched the hotel industry.