Examining the relationship between precarious employment and operational performance: a quantitative study in the hospitality industry

Abstract

Precarious employment (PE) is characterised by job insecurity, poor remuneration, and limited benefits and protections. While PE is generally considered to benefit flexibility and cost performance, occupational health and industrial relations literature highlights that PE may be detrimental to the working and personal lives of employees. Despite this, PE is a significant economic driver in both Ireland and the United Kingdom, and is widespread within the hospitality sector, posing potential challenges for both employee and firm performance. This research explores PE as a multidimensional construct in hospitality operations. Using human capital theory (HCT) and social exchange theory (SET), a model was developed to examine the effects of PE on service quality performance and operational performance (OP) (flexibility, cost and occupational health and safety (OHS)). Underpinned by a positivist philosophical stance, quantitative survey data were collected from hotel and accommodation providers throughout Ireland and the UK (n = 188). Hypotheses were tested using confirmatory factor analysis and moderated hierarchical regression. Results show that PE has a negative impact on flexibility, aspects of service quality, and on the well-being dimension of OHS. Contrary to previous studies, an upward, concave curvilinear relationship was found between PE and cost performance. Low levels of PE harm, while higher levels improve, cost performance. The moderation effects of organisational support and standardisation and control were tested on the relationships between PE and OP, with mixed results found. This research contributes to theory by exploring the relationships between PE and OP in hospitality operations through HCT and SET. Findings extend the current understanding of PE as a multidimensional construct and underscore the importance for managers to consider proper inductions, well-being initiatives, feedback, support, permanent positions where possible, and take an aggregated view of OP rather than focusing solely on cost.

Thesis embargoed until 31 October 2026

Date of Award	Oct 2024
Original language	English
Supervisor	Frank Wiengarten (Supervisor), Paul Humphreys (Supervisor) & Elaine Ramsey (Supervisor)