Chapter(1) - Introduction

Employee retention refers to an organization’s capacity to maintain a stable workforce by

minimizing staff turnover. In many industries—particularly in hospitality—retaining employees
remains a persistent challenge. Globally, turnover rates in the hotel sector are exceptionally high,
often ranging from 70% to 80%, significantly above the average for other sectors (Bureau of
Labor Statistics, 2020, as cited in Roosted, 2025). Such instability results in increased
recruitment and training costs, lost productivity, and difficulty maintaining consistent service
quality. In customer-facing environments like hotels, frequent departures disrupt operations and
make it harder to meet guest expectations (Roosted, 2025). As a result, enhancing employee
retention has become a strategic priority for sustaining performance, reducing operational costs,
and improving service delivery (Nickerson, 2025).

Myanmar’s hospitality sector reflects this global challenge. The industry faces a shortage
of skilled labor, rising competition, and macroeconomic instability, all of which intensify the
difficulty of retaining talent (Hnin Nwe Oo, 2024). Contributing factors include better job
opportunities abroad, increasing local hotel openings, and broader political and economic
volatility (William & Fernando, 2025). Under such conditions, understanding what influences
employees to stay or leave is critical for hotel managers aiming to maintain workforce stability
and operational continuity.A widely used theoretical lens for studying employee retention is
Herzberg’s Two-Factor Theory of motivation (Herzberg, 1959). This framework divides
workplace factors into two categories: motivators (intrinsic factors such as achievement,
recognition, responsibility, and career advancement) and hygiene factors (extrinsic conditions
like salary, supervision, job security, and working environment)

Motivators lead to job satisfaction and long-term engagement when present, while
hygiene factors prevent dissatisfaction but do not create motivation on their own. In other words,
employees may not feel highly satisfied if only hygiene factors are met, but they are likely to feel
dissatisfied if those basic needs are absent (Herzberg, 1959; Shinde, 2025). This theory remains a
valuable tool for diagnosing staff retention issues, as it emphasizes that both intrinsic and
extrinsic elements must be addressed to create a stable workforce (Nickerson, 2025).These
theoretical insights are highly relevant to Sedona Hotel Yangon. As one of Myanmar’s most
prominent five-star hotels, Sedona Hotel plays a significant role in the country’s luxury
hospitality sector, catering to both international and local guests. Its operations require high
service standards and strong staff–guest relationships, making employee retention essential to
delivering exceptional service and preserving institutional knowledge.

Sedona Hotel employs 182 permanent staff across multiple departments, including front
office, housekeeping, food and beverage, and administration. This diverse workforce provides an
ideal environment to examine how hygiene and motivation factors affect employee retention in a
real-world hospitality setting. In a competitive and service-driven environment like Sedona, high
turnover in key roles can directly impact guest satisfaction and brand reputation. Therefore, this
study focuses on assessing how hygiene factors (e.g., salary, supervision, job security, and
working environment) and motivator factors (e.g., achievement, recognition, responsibility, and
career advancement) influence employees’ decisions to stay—making it both timely and relevant
for the Myanmar hotel sector.

1.1 Rationale of the Study

Employee retention is not merely about reducing turnover rates; it has far-reaching
implications for cost management, organizational performance, and competitive advantage. From
a practical standpoint, high turnover in hotels results in substantial recruitment and training costs,
operational disruption, and loss of experienced talent (Shinde, 2025). Retaining skilled
employees allows the hotel to offer consistent service, retain critical knowledge, and build strong
employee–customer relationships. Therefore, identifying which factors most affect employees’
intentions to stay enables hotel management to implement targeted improvements in workplace
policies and practices.Yangon’s hospitality sector has expanded over the past decade, increasing
demand for qualified workers. However, this growth has been accompanied by fierce
competition for talent and the challenges of economic instability.

As Myanmar’s labor market remains uncertain, understanding employees’ motivation to

stay becomes increasingly crucial for organizational survival (William & Fernando, 2025).
Despite Herzberg’s theory being extensively studied in other regions and sectors, there is a
limited number of empirical studies applying this framework within Myanmar’s private hotel
industry. Most local studies have focused on the public sector or general job satisfaction (Zaw
Min Thant & Chang, 2021), leaving a gap in the literature.This study addresses that gap by
applying Herzberg’s theory in the context of Sedona Hotel Yangon. Motivator factors such as
recognition, responsibility, and career growth are particularly significant in service-oriented
businesses, where staff behavior directly impacts customer experience. When these intrinsic
needs are fulfilled, employees are more likely to feel a sense of belonging and commitment.
Conversely, if hygiene factors such as working conditions or job security are lacking,
dissatisfaction may drive even loyal staff to leave.

As suggested by Herzberg (1959) and later supported by Shinde (2025), both sets of
factors must be examined together for a full understanding of retention dynamics.By focusing on
a single organization in depth, this study allows for a nuanced analysis of how hygiene and
motivator factors interact within the same organizational culture. It also enables an evaluation of
whether Herzberg’s original conclusions apply in the Myanmar context or whether local
conditions shift the balance of influence. For example, if hygiene factors such as pay and job
security are found to be more influential in retention, this may indicate that employees in
Myanmar prioritize economic stability before seeking intrinsic fulfillment—offering a new
insight into how Herzberg’s theory functions in emerging economies.

1.2 Research Questions of the Study

Based on the above background and rationale, the study is guided by the following key
research questions:

1.​ How do hygiene factors influence employee retention at Sedona Hotel Yangon?
2.​ How do motivator factors influence employee retention at Sedona Hotel Yangon?
3.​ Which category of factors (hygiene or motivators) has a greater influence on employee
retention at Sedona Hotel Yangon?

1.3 Objectives of the Study

The objectives of this study are formulated in line with the research questions, specifying
what the research intends to accomplish. The primary goal is to investigate the influence of
hygiene and motivator factors on employee retention at Sedona Hotel Yangon, within the
conceptual framework of Herzberg’s Two-Factor Theory.
The specific objectives are:

●​ To identify and assess the impact of hygiene factors on employee retention at Sedona
Hotel.
●​ To evaluate the impact of motivator factors on employee retention at Sedona Hotel.
●​ To compare the relative influence of hygiene factors versus motivator factors on the
retention of employees at Sedona Hotel.

1.4 Method of the Study

This study will employ a quantitative, descriptive, and correlational research design to
investigate the relationship between hygiene factors, motivator factors, and employee retention at
Sedona Hotel Yangon. The research will be grounded in Herzberg’s Two-Factor Theory and will
aim to test whether these two categories of factors significantly influence employees’ intention to
stay.The target population will consist of all 182 permanent employees working in various
departments of the hotel, including front office, housekeeping, food and beverage, and
administration. A census method will be used, meaning that all eligible employees will be invited
to participate in order to ensure full representation and eliminate sampling bias.

Data will be collected using a structured, closed-ended questionnaire divided into three
main sections: (1) hygiene factors, (2) motivator factors, and (3) employee retention. Each item
will be measured using a five-point Likert scale, ranging from “strongly disagree” to “strongly
agree.” Demographic questions will also be included to facilitate subgroup analysis.The
collected data will be analyzed using descriptive statistics (mean, frequency, standard deviation)
to summarize the responses and inferential statistics such as Pearson correlation and multiple
regression analysis to examine the strength and direction of the relationships between
variables.Ethical standards will be strictly upheld—participation will be voluntary, and
anonymity and confidentiality will be ensured. The results of this study will aim to identify
which specific hygiene and motivator factors most strongly predict employee retention at Sedona
Hotel, offering both theoretical contributions and actionable recommendations for human
resource management.

1.5 Scope and Limitations of the Study

This study will be limited to examining the influence of hygiene factors and motivator
factors on employee retention at Sedona Hotel Yangon, using Herzberg’s Two-Factor Theory as
the guiding framework. It will focus solely on 182 permanent employees across various
departments such as front office, housekeeping, food and beverage, and administration. The
study will adopt a quantitative approach using a structured, closed-ended questionnaire to gather
data on employees’ perceptions of hygiene factors (e.g., salary, supervision, job security,
working conditions) and motivator factors (e.g., recognition, achievement, career growth), as
well as their intention to stay with the organization.The research will be cross-sectional in nature,
measuring employee responses at a single point in time. Although this study is expected to offer
valuable insights into employee retention, it will have several limitations.

First, since it will focus on a single hotel in Yangon, the findings may not be
generalizable to other hotels or industries in Myanmar. Second, despite using a census method,
there may be a possibility of non-response bias if some employees choose not to participate or
fail to respond truthfully. Third, the study will rely on self-reported data, which could be
influenced by social desirability bias or fear of judgment, even though confidentiality will be
guaranteed. Fourth, the cross-sectional research design will limit the ability to observe long-term
trends or establish causality between variables. Lastly, the study will only consider factors within
Herzberg’s framework, excluding other potential influences such as organizational culture,
leadership style, or external labor market dynamics that could also affect employee retention

1.8 Organization of the Study

This study is organized into five chapters to systematically explore the influence of
hygiene and motivator factors on employee retention at Sedona Hotel Yangon.Chapter (1)
provides the foundation for the study, including the background, rationale, research problem,
research questions, objectives, significance, scope, limitations, and definition of key terms. It
outlines the motivation for conducting the study and its relevance to Myanmar’s hotel
industry.Chapter (2) presents a comprehensive review of theoretical and empirical literature
related to employee motivation, retention, and Herzberg’s Two-Factor Theory. It includes both
international and local studies conducted between 2020 and 2025, helping to identify research
gaps and define the conceptual framework of the study.

Chapter (3) describes the research design, approach, population, sampling method, data
collection tools, and analysis techniques. It explains the rationale for choosing a quantitative
correlational design, the use of census sampling (182 permanent staff), and the application of a
structured questionnaire.Chapter (4) presents the results of the data collected through descriptive
and inferential statistics. It discusses how hygiene and motivator factors influence employee
retention and highlights which factors have the most significant effect.Chapter (5) summarizes
the main findings, draws conclusions, and offers practical recommendations for hotel managers
and HR practitioners. It also suggests directions for future research in the context of Myanmar’s
hospitality sector.
 Chapter(2)-Literature Review

2.1 Theoretical Background of the study

In this study, Two-Factor theory is grounded to investigate the relationship between the
hygiene and motivator factors and employee retention at the selected 4 -star hotel.Herzberg’s
Two-Factor Theory, also referred to as the Motivation–Hygiene Theory, was first introduced in
1959 by Frederick Herzberg, Bernard Mausner, and Barbara Snyderman after their landmark
study on job attitudes among 200 engineers and accountants in Pittsburgh, USA (Herzberg et al.,
1959). The researchers used the critical incident technique, asking participants to recall specific
events when they felt exceptionally satisfied or dissatisfied with their work. The analysis
revealed a striking pattern—factors that generated satisfaction were different from those that
caused dissatisfaction (Yusoff et al., 2016).

This discovery challenged the prevailing one-dimensional view of job satisfaction, which
assumed that the same variables influenced both satisfaction and dissatisfaction in opposite
directions (Shinde, 2025). Herzberg concluded that job satisfaction is largely driven by
motivators—factors intrinsic to the nature of the work itself—while dissatisfaction is influenced
by hygiene factors, which are extrinsic to the job and relate to the surrounding work environment
(Nickerson, 2025).Over the decades, Herzberg’s model has been tested and adapted across
multiple industries—including healthcare, education, manufacturing, information technology,
and hospitality—proving its flexibility and cross-sector relevance (William & Fernando, 2025).
Recent hospitality studies continue to find that a combination of strong hygiene conditions and
compelling motivator opportunities is essential to attract, retain, and engage skilled service staff
(Hnin Nwe Oo, 2024).Hygiene factors refer to the external or environmental aspects of a job that
prevent dissatisfaction but do not necessarily create lasting satisfaction when improved (Shinde,
2025).

According to Herzberg's theory, the various elements of a job can be categorized into
two independent sets of factors.Hygiene Factors: These are the extrinsic or contextual elements
of a job. Their presence is necessary to maintain a minimum level of satisfaction, but they do not
actively motivate employees. If these factors are absent or deficient, they lead to job
dissatisfaction. Herzberg considered these factors to be part of the job environment, analogous to
the hygiene required to prevent disease. Key hygiene factors include:Salary and Company
Policies: Fair compensation and clear, equitable policies are crucial to prevent feelings of being
undervalued or mistreated.Supervision: A manager's style, their willingness to delegate, and their
relationship with employees are vital for a healthy work environment.Job Security: The stability
of employment provides a sense of certainty and reduces anxiety, preventing employees from
constantly seeking other opportunities. Working Conditions: The physical environment,
including safety, comfort, and the quality of tools and resources, impacts an employee’s daily
experience.Motivator Factors: These are the intrinsic or psychological elements related to the job
content itself. Herzberg argued that these are the true drivers of job satisfaction and can actively
motivate an individual to achieve higher performance. These factors are connected to the human
need for psychological growth. The presence of motivators leads to job satisfaction, while their
absence leads to no satisfaction. Key motivator factors include-Achievement: The sense of
accomplishment and pride that comes from successfully completing a challenging
task.Recognition: Receiving positive feedback and acknowledgement from supervisors and peers
for one's contributions. Responsibility: Having control over one's work, being accountable for
outcomes, and being trusted with important tasks.Career Advancement: Opportunities for
promotion, learning, and personal growth that signal a future with the organization.When these
motivator factors are strong, employees are more likely to remain with the organization, deliver
high-quality service, and show discretionary effort beyond their job descriptions (Nickerson,
2025).Herzberg’s Two-Factor Model highlights that job satisfaction and dissatisfaction are not
opposite ends of a single continuum, but are instead separate and independent dimensions
influenced by different variables (Yusoff et al., 2016). This distinction challenges earlier theories
of job attitudes that viewed satisfaction and dissatisfaction as directly correlated he model
proposes:Removing dissatisfaction by improving hygiene conditions—such as pay, working
conditions, and supervision—does not automatically create job satisfaction. Employees may
simply reach a “neutral” state where they are not unhappy, but they are not particularly motivated
either.Creating satisfaction through motivator factors—such as recognition, achievement, and
personal growth—does not necessarily eliminate dissatisfaction if hygiene factors remain poor.
An employee might love their role and opportunities for advancement but still feel dissatisfied if
their pay is inadequate or the working environment is unsafe.This dual-structure approach is
particularly significant in hospitality management, where operational stability (preventing
dissatisfaction) and service excellence (creating satisfaction) are both essential for long-term
success (Hnin Nwe Oo, 2024)n the context of this study’s conceptual framework, hygiene factors
form the baseline requirements for retaining staff, ensuring that employees have no urgent
reasons to leave. Motivator factors then serve as the drivers of sustained engagement,
encouraging employees to invest discretionary effort, deliver exceptional service, and develop
long-term loyalty (Nickerson, 2025).

Relationship Between Motivation, Hygiene, Performance, and Turnover

In the hotel industry, hygiene factors and motivators interact to influence both employee
performance and turnover rates (Shinde, 2025). The presence or absence of these factors shapes
not only whether employees stay, but also how they perform while they remain.Adequate
hygiene factors—including competitive pay, job security, fair scheduling, and supportive
supervision—help stabilize the workforce by reducing dissatisfaction, absenteeism, and turnover
intentions (Aye Thida & Myint Myat, 2023). This stability is critical in luxury hotels like Sedona
Yangon, where guest satisfaction depends on consistent service delivery and experienced staff
who understand operational standards (Roosted, 2025).Motivator factors, on the other hand,
enhance intrinsic motivation, encouraging employees to go beyond the minimum requirements of
their role (Nan Myat Mon, 2021). Motivated employees may take initiative to improve guest
experiences, develop innovative service approaches, or mentor junior colleagues, all of which
contribute to higher service quality and stronger brand reputation.When motivators are absent,
employees might still perform adequately if hygiene needs are met, but their engagement levels
are lower, and they remain vulnerable to external job offers that promise personal growth or
recognition (William & Fernando, 2025).Empirical evidence from Myanmar’s hotel sector shows
that employees may tolerate some dissatisfaction—such as modest pay or limited facilities—if
they have strong motivators like career advancement or meaningful recognition (Hnin Nwe Oo,
2024). However, prolonged neglect of hygiene factors almost always leads to eventual turnover,
regardless of how strong the motivators are. Conversely, when both hygiene and motivator
factors are strong, employees demonstrate higher productivity, greater service initiative, and
stronger organizational loyalty (Aye Thida & Myint Myat, 2023).For management, this means
retention strategies must balance the two sets of factors. Focusing solely on motivators without
ensuring adequate hygiene support risks high attrition, while relying only on hygiene
improvements without meaningful motivators may result in a stable but disengaged workforce.
In the high-demand, guest-centric environment of luxury hospitality, such balance is key to
maintaining both operational stability and service excellence.

Criticisms and Limitations

While Herzberg’s theory is widely respected, several limitations have been noted. Critics point
out that the original methodology—the critical incident technique—may produce biased results
because participants tend to attribute satisfaction to internal factors and dissatisfaction to external
factors (House & Wigdor, 1967; Yusoff et al., 2016). Additionally, the strict division between
hygiene and motivator factors may not always hold; certain variables, such as interpersonal
relationships, can act as both depending on context (Zaw Min Thant & Chang, 2021).Another
limitation is the theory’s general underestimation of cultural and economic influences. In
developed economies, motivators like career growth may dominate retention decisions, while in
developing economies such as Myanmar, basic hygiene factors like pay and job stability often
carry greater weight due to economic uncertainty (William & Fernando, 2025).

Relevance in Modern Hospitality Contexts

In the modern hotel industry, employee retention is more than an HR function—it is a strategic
priority that directly influences service quality, guest satisfaction, brand image, and overall
operational efficiency (Hnin Nwe Oo, 2024). A hotel’s ability to deliver consistent, high-quality
service depends heavily on the stability and engagement of its workforce, especially in
customer-facing roles such as front desk, housekeeping, and food and beverage service
(Nickerson, 2025). High employee turnover not only increases recruitment and training costs but
also disrupts the service culture, reducing guests’ likelihood of returning.

Herzberg’s framework has become one of the most frequently applied motivational models in
hospitality research, as it offers a clear, dual-factor lens for diagnosing and addressing turnover
issues (Shinde, 2025). Recent studies support its core premise—that preventing dissatisfaction
through strong hygiene factors and fostering satisfaction through motivators are separate but
equally necessary retention strategies (Nickerson, 2025). For example, research on Southeast
Asian hotels revealed that poor hygiene conditions, including inadequate pay, outdated facilities,
and long working hours, were the most frequently cited reasons for resignation, while
recognition and career development opportunities were the strongest motivators for employees
who stayed (Shinde, 2025).

In Myanmar’s luxury hospitality market, this dual-factor approach is particularly relevant.

Skilled hotel employees can be difficult to replace due to the country’s limited talent pool and
ongoing migration of experienced workers to higher-paying markets abroad (William &
Fernando, 2025). In such contexts, ensuring both competitive hygiene conditions and compelling
motivator opportunities is critical to building a stable, high-performing workforce capable of
meeting international service standards (Hnin Nwe Oo, 2024).
2.3 Employee Retention

Employee retention refers to the set of organizational practices, policies, and cultural elements
aimed at maintaining a stable, committed, and productive workforce over time (Ghosh et al.,
2019). In the hospitality sector, where service delivery depends heavily on human interaction,
retention takes on heightened importance because employees represent the brand’s identity and
directly shape the guest experience (Bhatnagar, 2016). High retention rates promote service
consistency, strengthen customer relationships, and enhance operational performance by
leveraging employees’ accumulated skills and institutional knowledge (Roosted, 2025).In luxury
hotels such as Sedona Hotel Yangon, the importance of retention is magnified. Every interaction
between staff and guests—from check-in to concierge services—affects the hotel’s reputation.
Experienced employees possess not only technical skills but also an intuitive understanding of
guest preferences and service nuances, making their retention a competitive advantage
(Nickerson, 2025).Turnover in the hospitality industry imposes both direct and indirect costs.
Direct costs include expenses for advertising vacancies, recruiting candidates, conducting
interviews, onboarding, and providing initial training (William & Fernando, 2025). Indirect costs
are often more significant and include lost productivity during vacancy periods, lower service
quality due to inexperienced replacements, decreased team morale, and potential declines in
guest satisfaction (Bhatnagar, 2016).Studies have estimated that replacing a skilled hospitality
employee can cost 30% to 150% of their annual salary, depending on role complexity and the
length of the training period required to achieve optimal performance (Roosted, 2025). For
luxury hotels, where high service standards are non-negotiable, the operational and reputational
risks of turnover are even greater (Nickerson, 2025).

Global Trends in Hospitality Retention

Globally, the hospitality sector experiences turnover rates that are among the highest of any
industry, often exceeding 70% annually (Roosted, 2025). Contributing factors include long and
irregular work hours, physically demanding tasks, relatively low wages, and high levels of
seasonal or temporary employment (Nickerson, 2025). Furthermore, the lack of clearly defined
career paths in many hotels leads skilled employees to seek opportunities elsewhere, even when
other conditions are favorable (Shinde, 2025).To combat this, international hotel chains
increasingly invest in structured retention initiatives such as leadership development programs,
cross-departmental training, employee wellness initiatives, and enhanced recognition systems
(Yusoff et al., 2016). These strategies address both hygiene and motivator factors, aligning with
Herzberg’s dual-factor recommendations.

Myanmar’s Hotel Industry Context

Myanmar’s hospitality sector saw rapid growth after the economic reforms of the early 2010s,
which encouraged foreign investment and tourism development (William & Fernando, 2025).
This expansion increased competition for skilled labor, with international hotel brands offering
attractive packages that often drew talent away from local operators. However, in recent years,
political instability, currency depreciation, and migration of skilled workers abroad have placed
additional strain on the labor market (Hnin Nwe Oo, 2024).Hotels like Sedona must now adopt
targeted retention strategies that combine competitive salaries, safe working conditions, and
supportive management (hygiene factors) with career development opportunities, recognition
systems, and empowerment initiatives (motivator factors) to retain experienced staff (Aye Thida
& Myint Myat, 2023).

2.4 Hygiene Factors and Employee Retention

Hygiene factors are the foundational aspects of the work environment that determine whether
employees feel comfortable and secure in their roles. According to Herzberg’s Two-Factor
Theory, these factors do not necessarily create long-term satisfaction, but their absence leads to
dissatisfaction and eventual turnover (Shinde, 2025). In the hospitality industry, the importance
of hygiene factors is amplified because employees often work in physically demanding,
high-pressure, and guest-facing roles (Nickerson, 2025). Poor working conditions, unstable
employment contracts, or perceived unfairness can quickly push skilled staff to seek alternative
opportunities, especially in competitive labor markets like Myanmar (Hnin Nwe Oo,
2024).Unlike motivator factors, which operate on a deeper psychological level, hygiene factors
address the basic employment conditions that must be met to prevent dissatisfaction. They form
the baseline for retention strategies, meaning that if these are not adequately addressed, the
impact of any motivational initiatives will be significantly weakened (William & Fernando,
2025).

2.4.1 Salary and Compensation

Salary and compensation are among the most visible hygiene factors, directly influencing an
employee’s decision to remain in an organization. Fair and competitive pay is not only a
financial necessity but also a symbol of organizational appreciation for employees’ contributions
(Aye Thida & Myint Myat, 2023). In the hospitality sector, where many roles require long hours
and intense physical effort, compensation plays a decisive role in shaping retention outcomes
(Shinde, 2025).In Myanmar’s hotel industry, the wage gap between internationally managed
hotels and domestically owned hotels has been a consistent retention challenge. Multinational
chains often offer salaries that are 20–40% higher than local competitors, along with additional
benefits such as insurance, meals, and transportation allowances (Hnin Nwe Oo, 2024). As a
result, skilled employees—particularly in areas such as front office, food and beverage, and
housekeeping—are more likely to move to better-paying employers, even if they are otherwise
satisfied with their current roles (William & Fernando, 2025).International research also supports
the link between pay and turnover, especially in emerging economies where basic financial
stability is a priority for workers (Nickerson, 2025). While salary alone may not ensure
long-term loyalty, inadequate pay almost always results in higher turnover intentions (Saeed et
al., 2013).

2.4.2 Supervision and Management Style

The relationship between employees and their immediate supervisors has a profound effect on
job satisfaction and retention (Nyein Chan, 2020). In hospitality, supervisors are not only
operational managers but also mentors and role models who shape service culture (Nickerson,
2025). Effective supervisors communicate expectations clearly, provide constructive feedback,
recognize employee contributions, and address problems promptly (Zaw Min Thant & Chang,
2021).Conversely, poor management styles—characterized by favoritism, lack of transparency,
micromanagement, or neglect of employee concerns—can erode trust and increase turnover
intentions (Shinde, 2025). In Myanmar’s luxury hotels, supportive leadership is particularly
important because service standards are high and employees often face demanding guest
expectations. A management style that balances accountability with empathy can foster loyalty
and reduce employee stress (Hnin Nwe Oo, 2024).

2.4.3 Job Security

Job security refers to employees’ confidence in the stability and continuity of their employment
(Min Hein, 2023). It is a critical retention factor, particularly in industries and economies that are
vulnerable to market fluctuations, political instability, or seasonal demand (William & Fernando,
2025).Since 2021, Myanmar’s political and economic uncertainties have heightened employees’
concerns about job stability (Hnin Nwe Oo, 2024). For many hotel workers, especially those
supporting families, the assurance of continued employment outweighs even moderate pay
increases elsewhere. Organizations that communicate transparently about their business stability
and demonstrate commitment to retaining staff can strengthen loyalty, even during challenging
times (Nickerson, 2025).

2.4.4 Working Environment

The working environment encompasses the physical, social, and psychological conditions under
which employees perform their duties (Khin Sandar Aung, 2022). In the hospitality sector, this
includes factors such as cleanliness, safety, adequate lighting and ventilation, ergonomic
workstation design, availability of tools and supplies, and a supportive team culture (Nickerson,
2025).

Poor working conditions can lead to physical strain, injuries, mental stress, and absenteeism—all
of which contribute to turnover (Shinde, 2025). For example, inadequate safety measures in
kitchens, outdated housekeeping equipment, or overcrowded staff facilities can quickly
undermine morale. Conversely, well-maintained facilities, safe work procedures, and a
collaborative work atmosphere promote productivity, employee well-being, and retention (Aye
Thida & Myint Myat, 2023).
2.5 Motivator Factors and Employee Retention

Motivator factors are intrinsic elements of work that directly enhance job satisfaction,
commitment, and discretionary effort (Shinde, 2025). While hygiene factors keep employees
from leaving in the short term, motivators inspire them to stay for the long term by creating a
sense of personal fulfillment and professional growth (Nickerson, 2025).

In hospitality, where emotional engagement is vital to service excellence, motivator factors can
make the difference between employees who simply complete tasks and those who actively
enhance the guest experience (Hnin Nwe Oo, 2024).

2.5.1 Achievement

Achievement satisfies the intrinsic need for accomplishment, mastery, and progress (Nan Myat
Mon, 2021). In hotels, employees often experience achievement when they meet service targets,
resolve guest issues creatively, or receive positive customer feedback (Hnin Yu Lwin, 2020).
Celebrating these achievements—whether through awards, public acknowledgment, or
opportunities for greater responsibility—reinforces employees’ sense of purpose and loyalty
(Shinde, 2025).

2.5.2 Recognition

Recognition involves the timely acknowledgment of an employee’s efforts, contributions, and

successes (Nan Myat Mon, 2021). In Myanmar’s hotel sector, recognition has been shown to
significantly improve retention, even in cases where competitors offer higher salaries (Aye Chan
Moe, 2020). Recognition can be formal (e.g., employee of the month awards) or informal (e.g.,
verbal praise from a supervisor). When consistently applied, it creates a positive feedback loop
that strengthens emotional commitment to the organization (Nickerson, 2025).

2.5.3 Responsibility

Responsibility refers to the degree of autonomy and trust an organization places in its employees
(Pyae Phyo, 2021). In hotels, this might include decision-making authority in guest service
situations, leading small project teams, or managing high-value client accounts (Hnin Nwe Oo,
2024). Providing meaningful responsibility not only develops employees’ skills but also fosters a
sense of ownership and pride in their work, making them less likely to leave (Shinde, 2025).

2.5.4 Career Advancement

Career advancement is one of the most powerful motivators for retaining skilled hospitality
employees (Thida Tun, 2023). This can take the form of promotions, cross-training, international
transfer opportunities, or access to professional certification programs (Nickerson, 2025).

In Myanmar, the lack of structured career pathways in some hotels has been directly linked to
higher turnover rates (William & Fernando, 2025). Employees who perceive a clear future within
the organization are more likely to remain, even if external job offers appear financially
attractive.

Review on Previous Studies

Previous Studies (1): Job Satisfaction among Civil Servants in Myanmar Using Herzberg’s
Two-Factor Theory – Zaw Min Thant & Chang (2021)

This study examined the determinants of job satisfaction among 226 civil servants employed at
the Ministry of Border Affairs in Myanmar, applying Herzberg’s Two-Factor Theory as the
analytical framework. Data were collected through a structured survey, and results revealed that
both hygiene factors—including supervision quality, work environment, and interpersonal
relationships—and motivator factors—such as recognition and achievement—played significant
roles in shaping employee attitudes. Interestingly, the study found that certain factors, notably
interpersonal relationships and recognition, influenced both satisfaction and dissatisfaction,
suggesting some overlap between the two categories in practice. While the research was
conducted in the public sector, its findings validate the applicability of Herzberg’s theory to
Myanmar’s workforce and provide evidence that the model can be adapted across different
organizational contexts.

Previous Studies (2): Motivation and Retention of Hotel Employees in Myanmar – Hnin Nwe Oo
(2024)
This quantitative study explored how 103 hotel employees from Yangon, Bagan, and Popa
evaluated hygiene and motivator factors in relation to their job satisfaction and retention. Using
structured questionnaires, the research found notable role-based differences in factor
prioritization. Frontline staff placed the greatest emphasis on supervision quality and
management style, while back-office employees valued coworker relationships and job security.
The study concluded that retention strategies in hotels should be tailored to specific job
categories rather than adopting a uniform approach. This research is particularly relevant to the
hospitality industry as it demonstrates the direct applicability of Herzberg’s theory in Myanmar’s
hotel sector, offering practical insights for differentiated human resource management.

Previous Studies (3): The Relationship between Job Satisfaction and Employee Retention in
Manufacturing – Win Thandar Htun (2022)

Focusing on 120 mid-level managers in Myanmar’s sugar manufacturing industry, this study
investigated the relationship between job satisfaction and retention using Herzberg’s theoretical
framework. The findings confirmed that compensation (a hygiene factor) and promotion
opportunities (a motivator factor) had statistically significant effects on employees’ intention to
remain with their employer. Although the research was conducted in a non-service,
production-based industry, it reinforces the cross-sector relevance of Herzberg’s model. The
results highlight that both extrinsic and intrinsic workplace factors must be balanced to achieve
strong retention outcomes, even in industries where service quality is not the primary
performance measure.

Previous Studies (4): The Role of Workplace Culture in Employee Retention – William &
Fernando (2025)

This mixed-method study examined 89 staff members from a private education institution in
Yangon to identify why employees resigned despite receiving competitive salaries and attractive
benefits. The findings revealed that motivator-related factors—including a lack of recognition,
weak team cohesion, and limited career advancement—were primary causes of turnover. This
research underlines a critical insight from Herzberg’s theory: even when hygiene factors are
adequately met, the absence of motivators can still result in dissatisfaction and eventual
resignation. The authors stress the importance of building an organizational culture that
prioritizes recognition, personal growth, and team engagement in order to retain talent.

Previous Studies (5): Factors Influencing Turnover in Yangon’s Three-Star Hotels – Aye Thida &
Myint Myat (2023)

Surveying 135 employees from multiple three-star hotels in Yangon, this study examined the key
factors driving turnover intention. Results showed that long working hours and low
salaries—both hygiene factors—significantly increased dissatisfaction, while promotion
opportunities and meaningful work—motivator factors—were associated with higher retention
rates. The study strongly supports Herzberg’s theoretical proposition that both categories of
factors need to be addressed concurrently to minimize turnover. Additionally, the authors
recommend that even budget and mid-range hotels in Myanmar should invest in career
development initiatives alongside improving work conditions.

Previous Studies (6): Motivational Practices and Employee Loyalty in Hospitality SMEs – Phyo
Wai Yan (2020)

This quantitative study investigated 110 employees working in small and medium-sized hotels
and tourism businesses in Yangon, focusing on how motivational practices influence loyalty. The
results indicated that intrinsic motivators such as recognition, responsibility, and challenging
work tasks were significant contributors to employee loyalty, whereas poor working conditions
and unclear organizational policies (hygiene factors) increased dissatisfaction. The study
concluded that SMEs in the hospitality sector must pursue a dual strategy that enhances both
motivational and hygiene elements to achieve long-term retention, even when resources for
salary increases are limited.

In conclusion,across all six studies, there is consistent evidence supporting Herzberg’s

Two-Factor Theory as a valid framework for understanding employee satisfaction and retention
in Myanmar. Research across the public sector, manufacturing, education, and hospitality
confirms that both hygiene factors (e.g., salary, job security, supervision, working conditions)
and motivator factors (e.g., recognition, achievement, career advancement) significantly
influence retention outcomes.

The hospitality-specific studies (Hnin Nwe Oo, 2024; Aye Thida & Myint Myat, 2023; Phyo Wai
Yan, 2020) emphasize the need for role-specific and sector-specific retention strategies,
reflecting the high interpersonal demands and service quality expectations of the industry. The
non-hospitality studies reinforce the broader applicability of Herzberg’s model and highlight that
the balance between extrinsic and intrinsic factors is universally important.

A notable insight from these findings is that addressing only one category of factors is
insufficient. High pay and good working conditions may stabilize employees temporarily, but
without recognition, growth opportunities, and meaningful work, long-term retention is unlikely.
Conversely, a highly motivating role cannot compensate for persistently poor hygiene conditions.
These conclusions directly inform the present study’s focus on Sedona Hotel Yangon, where both
operational stability and service excellence are essential to sustained success.

Research Gap

While Herzberg’s Two-Factor Theory has been widely applied in employee satisfaction and
retention studies globally, research in Myanmar’s hospitality sector remains relatively limited,
especially in the luxury hotel segment. Existing Myanmar-based studies (Hnin Nwe Oo, 2024;
Aye Thida & Myint Myat, 2023; Phyo Wai Yan, 2020) have primarily focused on three-star
hotels, small and medium-sized enterprises, or general service industries. Although these studies
confirm the importance of both hygiene and motivator factors in influencing employee attitudes,
they often do not address the unique challenges of five-star hotels, where service quality
expectations are higher, job roles are more specialized, and staff skill requirements are more
demanding.Furthermore, most prior research has examined these factors in isolation rather than
exploring their combined and comparative influence on employee retention. For example, some
studies emphasize compensation and working conditions without fully integrating motivator
elements such as career advancement and recognition into the analysis (Win Thandar Htun,
2022), while others focus heavily on intrinsic motivators without adequately accounting for
baseline hygiene needs (William & Fernando, 2025).This leaves an important gap in
understanding how hygiene and motivator factors interact in high-end hospitality settings in
Myanmar. Given Sedona Hotel Yangon’s status as a luxury property with a workforce of 182
employees, it provides an ideal context to explore how both factor categories contribute to
retention. Addressing this gap will help develop evidence-based HR strategies that balance
operational stability with employee engagement, which is critical in a competitive and
high-turnover industry.

Conceptual Framework of the Study

This study is grounded in Herzberg’s Two-Factor Theory of Motivation, a foundational model in

organizational psychology that differentiates between hygiene factors and motivator factors
(Herzberg, 1959).Hygiene factors are extrinsic elements of the work environment—such as
salary, supervision quality, job security, working conditions, and company policies—that must be
maintained to prevent dissatisfaction. While their presence may not guarantee high levels of
motivation, their absence can lead to dissatisfaction, reduced morale, and increased turnover
(Shinde, 2025).Motivator factors are intrinsic aspects of the job—such as recognition,
achievement, responsibility, career advancement, and meaningful work—that stimulate positive
job satisfaction, enhance engagement, and foster loyalty (Nan Myat Mon, 2021).Herzberg’s
theory asserts that both categories influence workplace behavior in different but complementary
ways. Optimal retention is achieved when hygiene factors eliminate dissatisfaction and motivator
factors create satisfaction and commitment.In this study, hygiene factors and motivator factors
are treated as independent variables, while employee retention is the dependent variable. The
selection of Herzberg’s theory is justified by its proven relevance in Myanmar’s hospitality and
service industries (Hnin Nwe Oo, 2024; Phyo Wai Yan, 2020; Win Thandar Htun, 2022), where
empirical evidence shows that employees are more likely to remain when both baseline work
conditions and intrinsic motivators are addressed.Given that Sedona Hotel Yangon operates in a
high-turnover environment, this framework provides a valuable lens to determine which specific
factors—whether extrinsic hygiene elements or intrinsic motivators—are most influential in
retaining staff.The proposed conceptual model assumes that:Strong hygiene factors reduce
dissatisfaction and create a stable employment environment.Strong motivator factors enhance
satisfaction, engagement, and long-term loyalty.The combination of both has the greatest impact
on retention, compared to focusing on only one category.This dual-pathway model enables
comparative analysis to determine the relative weight of each factor type in the context of a
luxury hotel. It also reflects the theoretical proposition that sustainable retention requires both the
removal of dissatisfaction (through hygiene factors) and the creation of satisfaction (through
motivator factors).
Source:Adapted from Hnin Nwe Oo(2024),Phyo Wai Yan(2020),Win Thandar Htun
(2022) Figure:Conceptual Framework of the Study

Herzberg’s theory asserts that both categories influence workplace behavior differently but are
equally essential for creating a stable and motivated workforce.In this study, hygiene factors and
motivator factors are defined as independent variables, while employee retention is the
dependent variable. The choice of Herzberg’s theory is supported by previous empirical studies
conducted in Myanmar’s hospitality and service industries (Hnin Nwe Oo, 2024; Phyo Wai Yan,
2020; Win Thandar Htun, 2022), which confirmed the relevance of both extrinsic and intrinsic
factors in influencing employee satisfaction and loyalty.Given that Sedona Hotel Yangon
operates in a high-turnover industry, Herzberg’s dual-factor framework offers a valuable lens to
explore which specific factors contribute most to employee retention in this setting. The
conceptual model proposed in this study illustrates the parallel and combined influence of
hygiene and motivator factors on employee retention. The model does not assume that one
category of factors is always more important than the other; rather, it allows for a comparative
analysis to determine which set of factors exerts greater influence on staff retention at Sedona
Hotel Yangon.