Employee retention and unfair labour practices: perspective from Malaysian hotel industry

The purpose of this research is to investigate whether union membership will moderate the relationship between leader-member-exchange (LMX), psychological contract fulfilment and employee retention and also the impact of human resource management practices. A quantitative study with structural equation modelling is used on data for this research which obtained through a survey of 258 frontlines hotel industry employees. It shows that frontlines hotel industry employees are more concerned with career development, rewards and incentives, and performance appraisal as the main objective for remaining in the organisation. Trade union membership moderated the relationship between psychological contract fulfilment and employee retention and also moderate the LMX and psychological contract fulfilment relationship. The level of retention and psychological contract fulfilment among unionised workers is higher than the non-unionised workers. The findings of this research provide new directions for future research and also enlightened the hotels' management, Malaysian Association of Hotel and the government.