Two popular approaches in retaining millennials are by providing good work-life balance and work engagement

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The Impact of Work-Life Balance and Work Engagement towards Employee Retention (Millennials in The Hospitality Industry): A Case Study of Atria Hotel

By

Lorraine Frederica

11503016

BACHELOR’S DEGREE in

BUSINESS ADMINISTRATION – HOTEL AND TOURISM MANEGEMENT concentration

Business Administration and Communication

SWISS GERMAN UNIVERSITY The Prominence Tower

Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia

July 2019

Revision after Thesis Defense on 11 July 2019

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THE IMPACT OF WORK-LIFE BALANCE AND WORK ENGAGEMENT TOWARDS EMPLOYEE RETENTION

(MILLENNIALS IN THE HOSPITALITY INDUSTRY) Page 2 of 111

Statement by the Author

I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

Lorraine Frederica

_____________________________________ ________________

Student Date

Approved by:

Munawaroh, S.E., M.M.

_____________________________________ ________________

Thesis Advisor Date

Dr. Nila Krisnawati Hidayat, S.E., M.M.

_____________________________________ ________________

Dean Date

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(MILLENNIALS IN THE HOSPITALITY INDUSTRY) Page 3 of 111 Abstract

The Impact of Work-Life Balance and Work Engagement Towards Employee Retention (Millennials in The Hospitality Industry): A Case Study of Atria Hotel

By

Lorraine Frederica

Munawaroh, S.E., M.M., Advisor Swiss German University

Retaining employee has become an issue for many years, ensuring the loyalty of valuable and insightful employees is understandably important for companies to uphold. The new millennial generation with their own natures is raising and becoming the next, if not current main human resource for companies. Thus, with this companies are evolving their strategies to keep up with the current situation as well. Two popular approaches in retaining millennials are by providing good work-life balance and work engagement. There are many previous studies regarding this subject, but still limited when it comes to Indonesia.

This research aims to find out how much work-life balance and work engagement affect employee retention in Indonesia by using empirical method. The sample comprises of 153 millennial employees with questionnaire to collect the data then using Statistical Package for Social Sciences (SPSS) system for pre-test and Partial Least Squares Structural Equation Modeling (PLS SEM) for post-test. This research discover positive relationship between work-life balance and employee retention, as well as between work engagement and employee retention based on the data collected and analyzed using SmartPLS3.0.

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(MILLENNIALS IN THE HOSPITALITY INDUSTRY) Page 5 of 111 Dedication

I dedicate this research for the future of the hospitality industry, for Swiss German University, and for my parents. I sincerely hope this research is able to help improve future research regarding similar topics.

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(MILLENNIALS IN THE HOSPITALITY INDUSTRY) Page 6 of 111 Acknowledgement

First of all, I would like to express my deepest gratitude to God for giving me the strength, health, and guidance. Without His blessings, this research would not happen as it is.

Second, I am sincerely thankful for my parents, and my friends, who support me and encourage me throughout the process. Thank you for all of your recommendations, help, critics, pray, and love. Without their help, I would be unable to finish this research.

Next, to my advisor Miss Munawaroh, who patiently teach and guide me. No matter how many disturbance I may cause her, she still shows compassion and warmth, giving me endless support and teach many valuable lessons despite her incredibly busy schedule. I genuinely hope she is able to finish her doctorate degree as soon as possible, as she truly deserves it. Also to Miss Jane from English department who helped correcting my grammars and gave many recommendations for the vocabularies.

To all hotel and tourism management faculty’s lecturers, from semester one to semester eight, I give my respect and acknowledgement. Their lessons has given me the necessary knowledge and experience to finish my study.

Last but not least, I appreciate the opportunities given by Swiss German University throughout my eight semester journey here. To be able to have unforgettable experiences, exceptional education, and insightful skills.

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(MILLENNIALS IN THE HOSPITALITY INDUSTRY) Page 7 of 111 Table of Content

Statement by the Author 2

Abstract 3

Copyright 4

Dedication 5

Acknowledgement 6

Table of Content 7

Table of Figures 11

List of Tables 12

1. Chapter I – Introduction 13

4.1.Background 19

4.2.Research Problem 19

4.3.Research Question 19

4.4.Research Objective 19

4.5.Scope and Limitation 19

4.6.Significance of Study 19

2. Chapter II – Literature Review 20

2.1.Framework of Thinking 20

2.2.Definition 21

2.3.1. Work-Life Balance 22

2.3.2.1. Dimensions of Work-Life Balance 23

2.3.1.1.1. Flexible Work Hour 23

2.3.1.1.2. Job Burnout 24

2.3.2. Work Engagement 25

2.3.2.1. Dimensions of Work Engagement 25

2.3.2.1.1. Vigour 26

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2.3.3. Employee Retention 27

2.3.4. Millennial 28

2.3.5. Hospitality Industry 30

2.3.6. Hotel Business 31

2.3.Previous Study 32

2.4.Study Differences 40

2.5.Hypothesis 40

3. Chapter III – Research Methodology 42

3.1.Type of Study 42

3.2.Unit Analysis 42

3.3.Population and Sampling 43

3.3.1. Population Target 43

3.3.2. Sampling Method 43

3.4.Type of Data and Collection Method 44

3.5.Questionnaire Structure 45

3.6.Research Model 45

3.7.Variable Operationalization 46

3.8.Data Analysis Technique 49

3.6.1. Descriptive Data Analysis 49

3.6.2. Inferential Data Analysis 49

3.6.3. Validity Test 49

3.6.4. Reliability Test 50

3.6.5. Pre/Post Test 51

3.6.5.1. Pre-Test 51

3.6.5.2. Post-Test 51

3.6.6. Structural Equation Modeling (SEM) 52

3.6.5.1. Path Diagram 53

3.6.5.2. PLS SEM Model Evaluation 54

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3.6.5.4. P Value 55

4. Chapter IV – Results and Discussion 56

4.1. Company Profile 56

4.2. Profile of Respondent 58

4.3. Descriptive Statistic 58

4.3.1. Work-Life Balance 59

4.3.2. Work Engagement 60

4.3.3. Employee Retention 61

4.4. Instruments 61

4.4.1. Validity and Reliability Test (Pre-Test) 62

4.4.1.1. Work-Life Balance (Pre-Test) 62

4.4.1.2. Work Engagement (Pre-Test) 63

4.4.1.3. Employee Retention (Pre-Test) 64

4.4.2. Outer Model Post-Test 65

4.4.3. Inner Model Post-Test 67

4.4.3.1. Collinnearity Test 67

4.4.3.2. Hypothesis Test 67

4.5. Hypothesis Test Result 70

4.6. Hypothesis Test Discussion 70

5. Chapter V – Conclusion and Recommendation 72

5.1. Conclusion 72

5.1.1. First Hypothesis is Accepted 72

5.1.2. Second Hypothesis is Accepted 73

5.1.3. Employee Retention and Research Model 73

5.2. Recommendation 73

5.2.1. Recommendation for Management 74

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Glossary 78

References 79

Appendix A – Transcript 89

Appendix B – Timeframe 92

Appendix C – Raw Data Excel Pre Test 93

Appendix D – Raw Data Excel Post Test 95

Appendix E – Questionnaire 101

Appendix F – R Table 104

Appendix G – Timeframe of Study 110

Curriculum Vitae 111