Internal labour markets in the UK hotel industry

Abstract

This paper reports a study of how internal labour markets, operating in UK hotels that are part of a multi-national hotel chain, impact on a range of organisational outcomes. The study examines the effects of three main dimensions of internal labour markets: job security, training, and opportunities for advancement; on the key organisational outcomes of job satisfaction, organisational commitment, and intention to leave, together with employee attitudes to work environment, co-workers, supervisor, guests, leadership, communication and organisational goal achievement. A range of human resource management actions in the operation of the hotel's internal labour market is discussed. The paper concludes that the operation of an internal labour market, underpinned by effective human resource policies and actions, is associated with high levels of work commitment and job satisfaction together with reduced intention to leave. Internal labour markets are also significantly associated with other employee attitudes, particularly in relation to the work environment, achieving organisational goals and communication.