The paper reports findings on the mediating effect of employee engagement on the relationship between organizational inducements (financial rewards and career development support) and industry loyalty among employees in the hospitality industry. A two-step approach namely; (1) Confirmatory Factor Analysis (CFA) to generate a measurement model; and (2) Structural Equation Modeling (SEM) to test the hypotheses, confirmed fully mediated relationships. A proposed model is robust enough to cause a 22.6% variance in industry loyalty. The study provides a theoretical explanation for the enhancement of industry loyalty with engagement as a major driver and, presents its policy and managerial implications.

Research Paper