Employee Satisfaction, Talent Management Practices and Sustainable Competitive Advantage in the Northern Cyprus Hotel Industry

Abstract

In this study, we have examined talent management practices’ impact on achieving sustainable competitive advantage in five-star hotels located in the TRNC (Turkish Republic of Northern Cyprus) as well as the mediating effect of employee satisfaction. After the questionnaire was tested for validity and reliability, we used bootstrapping, Mplus and SPSS to conduct an analysis using data from 368 employees from 14 five-star hotels located in North Cyprus. The study’s hypotheses were verified through SEM (structural equation modelling). Our results revealed that talent development practices had no effect on the hotels’ SCA, whereas talent practices (identify, engage, manage performance and retain) had a significant and beneficial influence on the hotels’ SCA. Although in most hotels, talent management practices are the responsibility of the human resource management. The measured constructs specifically were employee responses. The findings of this study provide benefits for numerous stakeholders, including hotel and hospitality service industries and the government. Results can be used as a guideline for building more appealing workplaces for employees and to inform the management on how to encourage employees to be committed to a sustainable service in the hotel business. To acquire a better grasp of the organisational limits of talent management policies, it is crucial to further examine the perspectives of employers who may include hotel owners or top managers. Furthermore, future research may expand the sample and include three- and four-star hotels as well.