Job Burnout and Employee Performance in Hospitality Industry: The Role of Social Capital

The hospitality industry is known for its labor-intensive and intense interpersonal interaction characteristics. The high rate of burnout in the hospitality industry has been escalating and become a crucial issue for the management. The burnout can lead to the decline of the employee performance. The previous studies suggested that the happy and cooperative employees tend to deliver a better performance. Since cooperative is one form of the social capital manifestation, this study aims to analyze the role of the social capital in reducing burnout and improving employee performance. The data collection was conducted by distributing questionnaires to all non-daily worker employees at the first-line and middle-line level employees in three budget hotels under the similar chained
hotel group in Surabaya. The data were processed using the partial least square analysis technique. The result revealed that the social capital has a
significant negative influence on job burnout, but a significant positive influence on employee performance. The result also proves that job burnout has a significant negative influence on employee performance.