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To cite this article: Chun-Fang Chiang , Ki-Joon Back PhD & Deborah D. Canter PhD,
RD, LD (2005) The Impact of Employee Training on Job Satisfaction and Intention to
Stay in the Hotel Industry, Journal of Human Resources in Hospitality & Tourism, 4:2,
99-118, DOI: 10.1300/J171v04n02_06
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The Impact
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of Employee Training
on Job Satisfaction
and Intention to Stay
in the Hotel Industry
Chun-Fang Chiang
Ki-Joon Back
Deborah D. Canter
ABSTRACT. Training has been found to link with improving job satisfac-
tion and employee intention to stay. The purposes of this research were to
investigate the expectations and perceptions of training quality between ho-
tel managers and employees, and to suggest implications for improving
training quality and increasing training satisfaction, job satisfaction, and in-
tention to stay among employees in the hotel industry. The conceptual
model of this study was developed based on SERVQUAL and the Service-
Profit Chain model. T-test showed that employees perceived low training
quality, which suggested employees were not satisfied with training quality
and that training quality needed improvement. Results of regression analy-
sis showed that training was positively related to training satisfaction and
job satisfaction. Job satisfaction led positively to intention to stay. The indi-
rect effect of training quality on intention to stay was mediated by job satis-
faction. This study suggests more understanding of the importance of
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training quality and its consequences, and to pay more attention to em-
ployee training. [Article copies available for a fee from The Haworth Document
Delivery Service: 1-800-HAWORTH. E-mail address: <docdelivery@haworthpress.
com> Website: <http://www.HaworthPress.com> 2005 by The Haworth Press,
Inc. All rights reserved.]
INTRODUCTION
BACKGROUND INFORMATION
Training has been linked to improve self-esteem, reduce turnover, better prod-
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uct and service consistency, higher guest satisfaction, reduce business costs, the
use of new technology, greater ability to meet the needs of a target market, im-
prove attitude, more teamwork, greater job satisfaction, and greater organizational
commitment (Wesley & Skip, 1999). A training plan includes determination of
the training site, trainer, training objectives (what is to be learned), instructional
methods, training tools and an evaluation strategy (Tanke, 1990). Training strate-
gies used to improve training include using written job descriptions, employing
skilled trainers, using training manuals and videos as support tools, combining
hands-on training in addition to traditional classroom training and providing em-
ployee feedback through evaluations.
A review of generic business and hospitality articles on training and other re-
sources reveals that experts perceive a strong correlation between training and
many other factors including increased employee job satisfaction and the length
of employment (Conrade & Woods, 1994; Marvin, 1994; Wesley & Skip, 1999).
Training can be viewed as the service provided by the hotel for its internal cus-
tomerstheir employees (Lovelock, 1989). The Service-Profit chain, developed
by Heskett, Jones, Loveman, Sasser and Schlesinger (1994), calibrates the impact
of employee satisfaction, loyalty, and productivity on the value of products and
services delivered. Managers thus can build customer satisfaction and loyalty, and
assess the corresponding impact on profitability and growth. The Service-Profit
chain shows relationships between profitability, customer loyalty, and employee
satisfaction, loyalty, and productivity. Profit and growth are stimulated primarily
by customer loyalty. Loyalty is a direct result of customer satisfaction. Satisfac-
tion is largely influenced by the value of services provided to customers. Value is
created by satisfied, loyal, and productive employees. Employee satisfaction, in
turn, results primarily from high-quality support services and policies that enable
employees to deliver results to customers. The Service-Profit chain points out that
high employee retention is found to be linked closely to high employee satisfac-
tion. Internal quality of a working environment contributes most to employee sat-
isfaction. Training is an important component of internal quality service (Burke,
1995; Hallowell et al., 1994). The positive relationship among training, job satis-
faction and intention to stay has been established (Conrade & Woods, 1994;
Heskett et al., 1994; Wesley & Skip, 1999).
This study focused on employees perception of training quality in the hotel
industry. Perceived service quality is believed to be an elusive and abstract con-
struct. Parasuraman, Zeithaml, & Berry (1988) defined perceived quality of a
construct as the gap or difference between perceptions and expectations. Per-
ceptions are defined as judgments of the service organizations performance.
102 JOURNAL OF HUMAN RESOURCES IN HOSPITALITY & TOURISM
METHODOLOGY
Research Model
A research model, Figure 2, was developed to examine the first three links
(internal service quality, employee satisfaction and employee retention) in the
Service-Profit chain. In particular, this study focused on measuring training
quality, adopted from the SERVQUAL concept, and investigated the relation-
ship between training, job satisfaction and intention to stay.
Hypotheses
Perception
Management
of Employee
Perceptions
Expectations
Gap 1 H1 Gap 3 H3
H8
H9
Questionnaire Development
The researcher developed two different three-part questionnaires, one for man-
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agers and one for employees. Part I of the manager survey sought information on
the managers perceptions of employee training expectations, while part II elic-
ited responses relating to the managers perceptions of the quality of employee
training. Part III of the manager survey asked demographic questions including
gender, age, ethnic background, education, department, and employment history.
In the employees questionnaire, Part I asked for responses related to employee
expectations about training. Part II sought reactions to the quality of training the
employees received at the current property. A three-item general training satisfac-
tion, a three-item general job satisfaction scale and a four-item intention to stay
scale were used to assess the respondents training satisfaction, job satisfaction,
and their intention to stay at their current job. Part III was demographic questions.
Questionnaires were adapted from the SERVQUAL instrument (Parasuraman
et al., 1988). In this study, fifteen statements were adapted from the SERVQUAL
to measure training quality specifically for the hotel industry. Each of the five di-
mensions (tangibles, reliability, responsiveness, assurance, and empathy) had 3
statements to assess expectations and perceptions of training quality. Tangibles
assessed physical equipment, materials of training which hotel use, and profes-
sionalism of the trainers. Reliability investigated whether the hotel performs the
training dependably and accurately. Responsiveness assessed if the trainers have
a willingness to help employees and if hotels provide prompt training. Assur-
ance related to the knowledge and courtesy of the trainers and their ability to in-
spire trust and confidence. Empathy examined whether the hotel and trainers
care about employees and meet employees needs. Job satisfaction and intention
to stay items were adapted from other research questionnaires assessing job satis-
faction, organizational commitment and intention to stay (Berg, 1991; Susskind,
Borchgrevink, Kacmar, & Brymer, 2000). The question format in part I and II was
a seven-point Likert Scale ranging from 1 = strongly disagree to 7 = strongly agree.
The questionnaire for employees was developed in both English and Spanish.
The questionnaire was translated to Spanish due to the large Hispanic populations
in the hotel industry. The translation was performed by back-translation process.
Back-translation, which compares the original English with the back-translated
English, is a method which can access the quality of translation. The procedures
of back-translation used for this study are as follows. A person translated the origi-
nal English questionnaire into Spanish. A second person, who had not seen the
original English version, translated the questionnaire back to English. Two other
people reviewed these two English versions (original and back-translated version)
to see if the original content of the question was retained. The Spanish version was
then modified and corrected.
106 JOURNAL OF HUMAN RESOURCES IN HOSPITALITY & TOURISM
Data Analysis
RESEARCH FINDINGS
Data Collection
Response Rate
A total of 483 surveys were sent out to 4 participating hotels. Out of a total of
483 surveys, 215 surveys were returned for a response rate of 44.15%. Of the
215 surveys returned, 204 were usable (94.88%) resulting response rate of
42.24%. Eleven surveys were not included with the final analysis because those
respondents did not complete key questions. Considering the difficulty in gain-
Chiang, Back, and Canter 107
ing the hotel participation, and the challenges of survey distribution and collec-
tion, the response rate of 42.24% was considered within acceptable ranges.
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Gap Analysis
In Gap 1, independent samples test was used. Results showed that manage-
ments perceptions of employee expectations of training quality were not sig-
nificantly different from employees expectations of training quality (t(201) =
.73, P value > .05). Thus, Hypothesis 1 was not supported.
In Gap 2, a paired samples test was performed. Employees expectations of
training quality and their actual perceptions differed significantly. Employ-
ees perceptions of training quality were significantly lower than employees
expectations (t(128) = 4.87, P value < .05). Thus, Hypothesis 2 was accepted.
In Gap 3, an independent samples test was used. Results indicated that man-
agement perceptions of the quality of training was not significantly different
from employee perceptions of training quality (t(175) = 1.31, P value > .05).
Thus, Hypothesis 3 was not supported.
These findings suggested that managers know employees expectations on
training, and managers and employees have similar perceptions of the training
performed in their hotels. However, employees perceptions of training were
significantly lower than that of their expectations. This revealed that training
quality does not reach employees expectations, and training does not satisfy
employees needs. Managers and supervisors must recognize this, and under-
stand that training still has much room for improvement.
Reliability
(.88), responsiveness (.87), assurance (.93), and empathy (.88). The alpha val-
ues for training (TQ), training satisfaction (TS), job satisfaction (JS) and inten-
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tion to stay (IS) were .96, .91, .90, .85, respectively. All data coefficients for
the data exceed the minimum standard for reliability of 0.7 recommended by
Nunally (1978) for basic research. Thus, the results indicate that these multi-
ple reasons are highly reliable for measuring each construct (see Table 2).
Confirmatory factor analysis was used to test the five-factor structure. The
results of the confirmatory analysis showed that five factors were not con-
firmed since some items did not load on the factors as expected. In addition,
the results of goodness of fit statistics suggest this five-factor construct is not
appropriate. Chi-square value for the measurement model was 238.36 (df =
80, P = 0.000). Then other indicesincluding Goodness-of-fit index (GFI),
Adjusted goodness-of-fit index (AGFI), Normed fit index (NFI), Comparative
fit index (CFI), and Root mean square error of approximation (RMSEA), indi-
cated GFI = .92; AGFI = .72; NFI = .89; CFI = .92; RMSEA = .12did not fall
within the recommended levels. Therefore, the five-factor construct was not
proved. An exploratory factor analysis was then performed to determine the
appropriate number of factors. The number of factors was determined using a
scree plot and percentage of variance explained. Only one eigenvalue was
greater than 1 and accounted for 67.52% of total variability. The scree plot
demonstrated that the first factor was much larger than subsequent factors in
eigenvalues. Attributes with a factoring loading of .50 or higher were selected,
which indicated that each attribute has a significant correlation with each fac-
tor. Factor loadings of the 15 items to the one factor ranged from .65 to .9 2.
TABLE 2. Reliability
Item
Tangible .84
Reliability .88
Responsibility .87
Assurance .93
Empathy .88
Training Quality (TQ) .96
Training Satisfaction (TS) .91
Job Satisfaction (JS) .90
Intention to Stay (IS) .85
110 JOURNAL OF HUMAN RESOURCES IN HOSPITALITY & TOURISM
One of the objectives of this study was to examine the relationships among
training, job satisfaction and intention to stay. The procedures for regression
analyses were as follows: (1) regressing the mediators on the independent
variables; (2) regressing the dependent variables on the independent variables
and (3) regressing the dependent variables on both the independent variables
and mediators (Baron & Kenny, 1986). If the independent variable shows sig-
nificance on the mediator, the mediator shows significance on the dependent
variable, but the independent variable is not significant on the dependent vari-
able, it is suggested that the independent variable has indirect effect on the de-
pendent variable. Table 3 presents the results of the hypothesized relationships.
First, training quality was found to exert a significant positive impact on train-
ing satisfaction (standardized regression coefficients .81, P = .000). Training
satisfaction was found to affect job satisfaction significantly (standardized re-
gression coefficients .65, P = .000). Job satisfaction was a significant predictor
of intention to stay (standardized regression coefficients .82, P = .000). Sec-
ond, the relationships among training quality, training satisfaction and job sat-
isfaction was examined. The effects of training quality and training satisfaction
were also found to affect job satisfaction significantly (standardized regres-
sion coefficient of training quality to job satisfaction was .36, P = .001; stan-
dardized regression coefficient of training satisfaction to job satisfaction was
.37, P = .001). Note that training satisfaction was not a mediator between train-
ing quality and job satisfaction, for training quality was significant when job
satisfaction was regressed on both training quality and training satisfaction.
Third, the relationships-training satisfaction, job satisfaction and intention to
stay was examined, which explained 68% of the variance in intention to stay.
Training satisfaction affected job satisfaction significantly, and job satisfac-
tion influenced intention to stay significantly. When intention to stay was re-
gressed on both training satisfaction and job satisfaction, job satisfaction showed
significance but training satisfaction was not significant. This suggests that job
satisfaction is a mediator between training satisfaction and intention to stay.
Last, regressions of training quality, training satisfaction, job satisfaction and
intention to stay are shown. Training quality and training satisfaction affected
job satisfaction significantly. Training quality influenced intention to stay sig-
nificantly, but training satisfaction did not. However, training quality and train-
ing satisfaction became insignificant when regressed together with job
satisfaction. Only job satisfaction showed significance on intention to stay.
Standardized regression coefficients of training quality to intention to stay was
.08, (P = .90); standardized regression coefficients of training satisfaction to in-
Chiang, Back, and Canter 111
DISCUSSIONS
Gap Analysis
The first objective of this study was to identify the existence of gaps be-
tween expectations and perceptions of training quality. Only the gap between
employee expectations and perceptions of the training quality had significant
differences. Neither the gap between management perceptions of employee
expectations and employee expectations of training quality, nor the gap be-
tween employee perceptions and management perceptions regarding training
quality differed significantly. Results showed that management anticipated
employees expectations, and management was aware of their actual training
performance. However, management over-estimated employees expectations
and hotels actual training performance.
Parasuraman, Zeithaml, and Berry (1985) suggested service quality percep-
tions result from a comparison of consumer expectations with actual service
performance. This shows the importance of expectation. Expectation explains
how employees judge training quality. Employees also expect quality train-
ing. Knowing what employees expectations are can guide hotel management
in knowing what employees want and how to perform training. Some approaches
for management to understand employees expectations are: does management
focus on training quality? Is there insufficient communication between man-
agement and employees and too many layers between front-line personnel and
top managements? Does management pay more attention to training new em-
ployees, but ignore experienced employees who also need more training? If
the difference of perception and expectation is negative, this does not really
Chiang, Back, and Canter 113
mean satisfaction is present. For instance, only the difference of item EMP22:
schedules training conveniently for employees was negative. In fact, item
EMP 22 was ranked the second lowest of employee perceptions. Therefore,
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The second objective of this study was to explore the underlying dimen-
sions of training quality, and to stimulate hotel managers to focus on training
quality and its antecedents and consequences. Reliability analysis (Cronbachs
alpha) was performed to test the reliability and internal consistency of each
114 JOURNAL OF HUMAN RESOURCES IN HOSPITALITY & TOURISM
Item M SD
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factor. The results showed that the alpha coefficients for the five factors were
high, ranging from .84 to .93, which indicated good internal consistency among
items within each dimension. Factor analysis was then employed to verify the
dimensionality of the overall scale, yielding one-factor construct. This study
initially assumed that the factor analysis would confirm the five dimensions,
but this did not prove to be the case. Because of high correlation among the
items and the dimensions of service quality, respondents might rate similarly
on items in different dimensions resulting in lack of discriminant validity. In
terms of the relative importance of the five dimensions in predicting overall
training quality, heavy loading existed among three attributes: assurance, re-
sponsiveness and reliability. These three attributes seemed to be the most im-
portant components in measuring training quality. In short, one-factor construct
was the most satisfactory result from examining factor analysis.
All hypotheses except hypotheses 8 and 9, that training quality directly in-
fluences intention to stay, were accepted. Training quality was positively asso-
ciated with training satisfaction, training satisfaction influenced job satisfaction,
and job satisfaction was significant determinant of intention to stay. Training
quality is a direct antecedent of job satisfaction. However, the direct effect of
training quality on intention to stay was not supported in this study. Training
Chiang, Back, and Canter 115
Item M SD Sig.
Item 4-19 Hotel provides training at the time they promise it will be offered. .78 1.58 .000
Item 5-20 Training is supported by the managers. .74 1.84 .000
Item 11-26 Trainers communicate clearly with employees about training procedures. .65 1.64 .000
Item 6-21 Trainers evaluate employee performance fairly. .61 1.56 .000
Item 12-27 Trainers are knowledgeable. .58 1.59 .000
Item 10-25 Hotel provides adequate training for employees to do their jobs. .58 1.41 .000
Item 2-17 Hotel uses up-to-date training tools and materials. .51 1.43 .000
Item 7-22 Hotel provides training as soon as employees hired. .50 1.79 .002
Item 1-16 Training materials are visually appealing. .46 1.66 .002
Item 3-18 Trainers are neat and professional. .45 1.72 .004
Item 8-23 Trainers are willing to help employees. .41 1.68 .003
Item 13-28 Trainers understand employees needs during training program. .26 1.43 .002
Item 15-30 Trainers care about employee as a person. .23 1.63 .085
Item 9-24 Trainers respond promptly to employees request. .23 1.52 .093
Item 14-29 Schedules training conveniently for employees. .20 2.10 .275
quality influenced intention to stay only through job satisfaction. This result is
consistent with the links of the service-profit chain, in which training (internal
service quality) encourages employee retention through increasing employee
satisfaction. Furthermore, the results supported many studies findings which
concluded that overall satisfaction appears to be a mediator between service
quality and behavioral intention (Taylor & Baker, 1994; Woodside et al.,
1989). Service quality is an antecedent of satisfaction. Satisfaction has a sig-
nificant effect on intentions, while service quality has less effect on intentions
than does satisfaction (Cronin & Taylor, 1992). Therefore, only an indirect ef-
fect of training on intention to stay was mediated by job satisfaction.
Even though training quality only influenced intention to stay indirectly
through job satisfaction, indirect effects should not be ignored. Training qual-
ity was the most important component predicting training satisfaction and job
satisfaction. Training quality enhances training satisfaction and intention to
stay; improving quality of training drives job satisfaction, which in turn, con-
tributes employees intention to stay working in the hotel. In addition, Baker
and Crompton (2000) suggested that perceived quality should be the more
useful measure since quality is under managements control. It is true that it is
easier to manage quality than to manage satisfaction. As a result, training qual-
ity is still important in managing employees intention to stay.
116 JOURNAL OF HUMAN RESOURCES IN HOSPITALITY & TOURISM
The purposes of this research were to investigate the expectations and percep-
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tions of training quality between hotel managers and employees, and to suggest im-
plications for improving training quality and increasing training satisfaction, job
satisfaction, and intention to stay in the hotel industry. The instrument was based on
the SERVQUAL instrument. Data analysis included t-test measuring training qual-
ity, factor analysis confirming the underlying structures, and regression analysis ex-
amining the relationships among training, job satisfaction and intention to stay.
The first objective of this study was to identify the existence of gaps between
expectations and perceptions of training quality. Only the gap between employee
expectations and perceptions of the training quality showed a significant differ-
ence. Neither the gap between management perceptions of employee expecta-
tions and employee expectations of training quality nor the gap between
employee perceptions and management perceptions regarding training quality ex-
isted. The significant gap existing between employee expectations and percep-
tions indicated that employees were not satisfied with training quality. Since
management was able to anticipate employees expectations, and also had similar
perceptions of actual training performance, then the process of training quality
may provide some of the underlying causes behind the gap. These causes may in-
clude inadequate training, lack of support by management, or lack of communica-
tion between management and employees.
The second objective was to develop an applicable instrument to measure
training quality and to examine the dimensionality of training quality. The assess-
ment instrument would help hotel managers know how to improve training qual-
ity by identifying dimensions of training quality. The study did not successfully
confirm the theoretical dimensionality of training quality; one-factor structure
was conducted, which indicated that overall training quality should be considered.
The nature of the unidimensionality of training quality can be further studied. The
instrument demonstrated high reliability among construct scales. Hotels can use
this instrument to evaluate training performance in the hotels.
The desired outcome of this study was to encourage hotel managers to give
training a higher priority. Training quality is a direct antecedent of training
satisfaction and job satisfaction. Job satisfaction is a significant determinant of
intention to stay. Training quality only influences intention to stay through job
satisfaction. The significant indirect effects indicated that training quality and
job satisfaction should be managed to raise employee training perceptions and
intention to stay. The results supported findings of several studies that quality
influences intention through satisfaction. Perceived quality should be the
more useful measure since quality is under managements control (Baker &
Chiang, Back, and Canter 117
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