Understanding psychological wellbeing in the hospitality industry: The role of perceived organizational support and compassionate leadership to improve job satisfaction among frontline employees

Abstract

This study investigates the influence of perceived organizational support and compassionate leadership on psychological well-being, and how psychological well-being subsequently impacts job satisfaction among frontline hotel employees in Malang, East Java, Indonesia.  Grounded in Affective Event Theory, this quantitative study collected data from 114 frontline employees working in 3-, 4-, and 5-star hotels in Malang, East Java, Indonesia. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to analyze the data and test the hypothesized relationships. The results show that compassionate leadership has a significant positive effect on both psychological well-being and job satisfaction. Psychological well-being also mediates the relationship between compassionate leadership and job satisfaction. In contrast, perceived organizational support does not have a significant direct or indirect effect on psychological well-being or job satisfaction. The findings underscore the critical role of emotionally intelligent leadership over formal organizational support in enhancing employee psychological well-being and satisfaction, particularly in the hospitality sector, where emotional labor is prevalent. This study provides insights for hotel managers and HR practitioners by emphasizing the importance of developing compassionate leadership practices to foster a supportive work environment, improve employee well-being, and enhance job satisfaction among frontline service workers.