Well-being and career change intention: COVID-19’s impact on unemployed and furloughed hospitality workers

Abstract

Purpose This study aims to examine the psychological distress experienced by unemployed and furloughed hospitality workers during the COVID-19 crisis and further investigate how this distress affects their career change intentions. Design/methodology/approach Derived from a sample of 607 unemployed and furloughed hospitality workers during the COVID-19 pandemic, the data for this research are analyzed using structural equation modeling. Findings This study reveals that unemployed and furloughed hospitality workers are financially strained, depressed, socially isolated and panic-stricken due to the pandemic’s effects. These effects lead to impaired well-being and an increased intention to leave the hospitality industry. Female and younger employees are impacted to a greater extent, while furloughed workers received fewer impacts compared to their laid-off compatriots. Research limitations/implications This study suggests that lockdown restrictions need to be implemented more deliberately, and the psychological well-being of the hospitality workforce deserves more immediate and continuing attention. It advises that hospitality businesses consider furloughs over layoffs when workforce reduction measures are necessary to combat the financial crisis. Originality/value This study adds to the current literature by examining the impact of the COVID-19 pandemic from the employee perspective. New insights are offered on the psychological toll of workforce reduction strategies during the financial fallout and how these distressing experiences affect career change intention.

Good work in the COVID-19 recovery: priorities and changes for the future

“…For example, the vast majority (75%) of residential care workers reported not being able to socially distance, along with 67% of health care employees – COVID-19 related mortality was highest for social and health care workers (Office for National Statistics 2020b, 2021). Respondents working in certain sectors may have been more likely to reconsider their employment priorities or explore potential employment changes as a result of their experiences during the pandemic (as discussed for those that were furloughed within the hospitality industry and healthcare workers (Chen and Chen 2021; AL-Abrrow et al 2021). Our findings do not capture such changes.…”

“…Work sectors that were over-represented within the furloughed population are likely to see shifts within their labour market. Retraining creates opportunities for entering new sectors, and evidence from the US suggests that the financial strain and pandemic-induced panic y experienced by furloughed individuals within the hospitality industry during the pandemic predicted their intention to leave the hospitality industry altogether (Chen and Chen 2021). These individuals are likely to be seeking greater security and autonomy, as is reflected by the fact that furloughed individuals were four times more likely to consider securing permanent contracts, and nearly five times more likely to consider becoming self-employed/freelance.…”

Do social corporate responsibility initiatives help to promote circular economic activity and quality of work life for employees?

“…The hospitality industry has a high rate of suicide and alcoholism, representing a darker side of its reputation in terms of QWL (Varga et al, 2021). Chen and Chen (2021), argue that it is of utmost importance for the hospitality industry to assess and focus efforts towards improving QWL for the work force if it is to succeed in attracting and retaining talent. Paying attention to the well-being of hospitality employees is a significant priority as a service industry that is reliant on human interaction (Varga et al, 2021;Gordon et al, 2018).…”

“…Paying attention to the well-being of hospitality employees is a significant priority as a service industry that is reliant on human interaction (Varga et al, 2021;Gordon et al, 2018). Additionally, the recent global pandemic caused financial strain for hospitality businesses globally which led to furloughs and layoffs, prompting hospitality employees to consider careers in other industries (Chen and Chen, 2021). As a consequence, hospitality businesses need to re-evaluate the QWL of their employees.…”

“…, 2018). Additionally, the recent global pandemic caused financial strain for hospitality businesses globally which led to furloughs and layoffs, prompting hospitality employees to consider careers in other industries (Chen and Chen, 2021). As a consequence, hospitality businesses need to re-evaluate the QWL of their employees.…”