The Relationship between Fair Labor Practices and Employee Retention on Employee Productivity in Lodging Facilities in Tacurong City

Abstract

The hospitality industry relies on effective human resource management to sustain service quality, employee satisfaction, and organizational performance. Fair labor practices and employee retention are recognized as key factors influencing employee productivity; however, their combined effects remain underexplored in small and medium-sized lodging facilities in provincial areas of the Philippines. This study determined the levels of fair labor practices, employee retention, and employee productivity and examined their relationships among employees of lodging facilities in Tacurong City. A quantitative descriptive-correlational design was employed involving 50 employees from 11 registered lodging facilities selected through total enumeration sampling. Data were gathered using validated questionnaires with high reliability (Cronbach's alpha = 0.88 for fair labor practices, 0.87 for employee retention, and 0.95 for employee productivity). Descriptive statistics, Pearson correlation, and multiple linear regression were used for data analysis. Results showed high levels of fair labor practices (M = 4.13), employee retention (M = 4.28), and employee productivity (M = 4.16). Fair labor practices (r = .63, p < .001) and employee retention (r = .702, p < .001) were both significantly and positively associated with employee productivity. Regression analysis revealed that the two variables jointly explained 53.9% of the variance in employee productivity (R² = .539), with employee retention emerging as the stronger predictor. The findings emphasize the importance of fostering equitable labor practices and implementing effective employee retention strategies to enhance workforce productivity and organizational performance in the hospitality industry.