Open Access Journal of Economic Research

The Correlation Between Customer Satisfaction and Employee Engagement in the Hospitality Industry

Abstract

Sonia Tamrakar and Shalini Tamrakar

Employee engagement is widely recognized as a key factor influencing organizational performance in service-oriented industries, particularly in hospitality where employees directly interact with customers. The attitudes, motivation, and involvement of employees significantly shape customer experiences and satisfaction. While previous studies have examined service quality and customer satisfaction extensively, limited research has explored the direct relationship between employee engagement and customer satisfaction in hospitality contexts. This study investigates this relationship and examines the mediating role of service quality. Using a quantitative approach, survey data were collected from hospitality employees and customers. Structural Equation Modeling (SEM) was applied for analysis. The results indicate that employee engagement positively influences service quality and customer satisfaction, with service quality partially mediating this relationship, highlighting its importance for improving hospitality service performance.

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