EMPIRICAL ANALYSIS OF THE INFLUENCE OF EMPLOYEE RETENTION STRATEGIES ON CUSTOMER SATISFACTION WITHIN SELECTED HOTELS IN OSUN STATE, NIGERIA

Abstract

The hospitality industry, particularly the hotel sector, is a critical driver of economic growth and employment in Nigeria. Employee retention plays a vital role in ensuring service quality, which directly influences customer satisfaction. This study empirically analyzes the influence of employee retention strategies on customer satisfaction in selected hotels in Osun State, Nigeria. The research objectives include assessing the impact of employee retention strategies on customer satisfaction, examining the relationship between specific retention strategies (such as compensation, career development opportunities, and working conditions) and customer satisfaction, and identifying challenges faced by hotels in implementing effective retention strategies. A descriptive survey research design was adopted, with a sample size of 316 respondents drawn from employees and customers of selected hotels. Data were collected through structured questionnaires and analyzed using descriptive and inferential statistical methods, including multiple regression analysis. The findings reveal a significant positive relationship between employee retention strategies and customer satisfaction. Specifically, compensation (β = 0.42, p < 0.05) and career development opportunities (β = 0.36, p < 0.05) were the most influential factors, while poor working conditions emerged as a key challenge affecting employee retention. Additionally, the study found that improved job satisfaction among employees leads to higher customer satisfaction levels. The study recommended that hotel managers implement competitive compensation packages, create career advancement opportunities, and improve working conditions to enhance employee retention and, in turn, customer satisfaction. These measures will contribute to service excellence, customer loyalty, and business sustainability in Nigeria’s hospitality industry.