Layoffs Policies in Egyptian Tourism Sector: The Relation between Economic Benefit and Employees’ Loyalty

M. Anter, M. Adel Atia

Abstract


Tourism is one of the largest sectors uses employees in Egyptian economy. In international agencies and hotels chains there are stable rules and policies in layoffs to gain great benefits for both tourism sector and employees. Some managers decide to layoff randomly to cut or reduce costs, but on the other hand, this procedure affects the employees’ loyalty.

This study aims to show the relationship between random layoffs and employees’ loyalty in Egyptian tourism sector. So, the major hypothesis of this study supposes that there is a negative relationship which has statistically significance between layoffs and employees’ loyalty in Egyptian tourism sector.

This study is applied to agencies and hotels of Luxor, Minia, Cairo, Hurghada and Sharm El-Sheikh. The sample was consisted of two groups: the first consists of 110 samples of agencies and hotel employees and the second consists of 36 samples of managers of agencies and hotels. The sample was selected randomly from agencies and hotels. The researchers designed two tools for the sample: a scale to measure employees’ loyalty and a questionnaire for agencies and hotels managers to identify layoffs and their reasons. The collected data was analyzed statistically using SPSS V. 19.

-         The results of the current study indicated that there is a negative relationship which is statistically significant between layoffs and employees’ loyalty. In addition, there is a negative relationship which has statistically significance between economic benefit and layoffs.


Keywords


Layoffs Policies, Economic Benefits, Cut Cost, Loyalty, Egyptian Tourism Sector, SPSS

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