Impact of COVID Human Resource Retrenchment on Commitment to Talent

Author Bios (50 Words for each Author)

Lenna V. Shulga, Ph.D. is an Assistant Professor at the University of Hawaii at Manoa, Travel Industry Management School. Her research interests include organizational behavior, employee engagement, marketing, and consumer behavior in the service industry.

James A. Busser, Ph.D. is a Professor at the William F. Harrah College of Hospitality at the University of Nevada, Las Vegas. His research interests include hospitality/tourism marketing, service delivery/management, and human resource management.

Abstract (150 Words)

The purpose of this study is to examine the role of cost and asset human resource retrenchment strategies, enacted as a result of the COVID-19 related crisis, on employee perceptions of organizational commitment to talent. The study investigates how HR retrenchment affects commitment to talent, followed by impacts on employee psychological contract fulfillment and commitment to organization. The differences between perceptions of hospitality and non-hospitality employees are examined based on organizations located within a travel destination, considerably impacted by the COVID-19 global pandemic travel restrictions. PLS-SEM and PLS-MGA were used to analyze the data. The study results revealed partial negative impact of HR cost retrenchment in benefits reduction on employee perceptions of organizational commitment, and positive impact of HR asset retrenchment when companies implemented voluntary sabbaticals and virtual work. Results also indicate significant differences in employee perceptions of HR retrenchment strategies among hospitality and non-hospitality employees. Study implications are discussed.

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Impact of COVID Human Resource Retrenchment on Commitment to Talent

The purpose of this study is to examine the role of cost and asset human resource retrenchment strategies, enacted as a result of the COVID-19 related crisis, on employee perceptions of organizational commitment to talent. The study investigates how HR retrenchment affects commitment to talent, followed by impacts on employee psychological contract fulfillment and commitment to organization. The differences between perceptions of hospitality and non-hospitality employees are examined based on organizations located within a travel destination, considerably impacted by the COVID-19 global pandemic travel restrictions. PLS-SEM and PLS-MGA were used to analyze the data. The study results revealed partial negative impact of HR cost retrenchment in benefits reduction on employee perceptions of organizational commitment, and positive impact of HR asset retrenchment when companies implemented voluntary sabbaticals and virtual work. Results also indicate significant differences in employee perceptions of HR retrenchment strategies among hospitality and non-hospitality employees. Study implications are discussed.