Exploring the Interplay Between Job Satisfaction and Employee Retention in Romania’s Hospitality Sector: A Comprehensive Analysis

This study investigates the complex interplay between internal communication, psychological well-being, and job satisfaction, as well as their influence on employee retention and job performance in Romania’s post-pandemic hospitality sector. In this study, data were collected from 350 employees across hotels, restaurants, and resorts. A Covariance-Based Structural Equation Modeling (CB-SEM) approach was employed for the analysis. Findings suggest that both internal communication and psychological well-being are significant positive predictors of job satisfaction. In turn, job satisfaction is a powerful driver of both employee retention and job performance. A key finding is that job satisfaction fully mediates the relationship between psychological well-being and job performance, with no direct effect observed between the latter two constructs. These results underscore that fostering an employee-centric environment is crucial for achieving social sustainability, directly supporting global Sustainable Development Goals (SDG 8: Decent Work and Economic Growth and SDG 3: Good Health and Well-being). Theoretical and practical implications, as well as limitations and future research directions, are discussed.