Green Human Resource Management and Employee Retention in the Hotel Industry of UAE: The Mediating Effect of Green Innovation

Abstract

The concept of Green Human Resource Management (GHRM) is regarded as a major turning point in managing human capital among firms. Sustainable practices, ecofriendly initiatives, and adequate management of employees (i.e., recruitment, training, performance, rewards, and involvement) are fundamental aspects of GHRM, which enable improvements in the performance of firms and enhanced competitiveness among their rivals. In this regard, the current study takes a quantitative approach towards analyzing GHRM practices and their effects on employee retention among hotels in the UAE. Furthermore, the indirect effect of green innovation is analyzed as a potential mediating variable that can better explain the GHRM–employee retention relationship. A total of 207 employees from five 5-star hotels were selected as participants to provide information regarding the factors under examination in this research. The collected data were analyzed using Smart-PLS v.3 and a partial least squares–structural equation modeling technique, which is a fitting technique for causal models. The perspective of employees on the outcome of GHRM initiatives and their willingness to remain in their firms can greatly contribute to the current understanding of GHRM and its effectiveness on employee retention in the context of the hotel industry of the UAE, and thus, aid practitioners and scholars alike.

1. Introduction

Green Human Resource Management (GHRM) is a fundamental and crucial improvement in the context of managing human assets, which focuses on sustainability and long-term outcomes and aspects including the three pillars (Triple Bottom Line—TBL) [1], namely, economic, social, and environmental aspects of sustainable development [2,3]. Studies have shown positive outcomes in various sectors through implementation of GHRM in organizational settings, and its embeddedness in the strategic plans and actions of the firm (e.g., [4,5,6]). The current research examines GHRM in the tourism and hospitality sector, emphasizing that GHRM can have positive impacts on employee retention [7]. Such impacts are of particular importance, as there is a high level of turnover, and thus a low retention rate, among hotel employees in the tourism industry. This has been supported in the literature by both earlier studies (e.g., [8]) and more recent ones [9]. Numerous positive results can be achieved through GHRM, including enhanced performance, improved employee and personnel behavior, better image and reputation among stakeholders, and a more effective workplace. In this study, we argue that GHRM can have a visible and tangible effect on employee retention in the hotel (hospitality) sector of the UAE, a tourist hub in the region of the Middle East and Northern Africa (MENA) [10]. Therefore, the current research focuses on the relationship between GHRM and employee retention (ER), as maintaining employees in this industry is a challenging task for managers.

In the service industry (i.e., hotels), having employees who thrive in their jobs requires a strategic, delicate, and innovative organizational environment, which GHRM can provide [3,5]. As the tourism industry is a major contributor to greenhouse gas emissions [11], taking new initiatives to improve the business can ensure growth in the market [11], economic stability [12], and employee retention [5]. It is also important to note that green innovation can play a major role in determining how the organization improves the workplace, its processes, and strategies for employees. The current research particularly aims to understand both direct and indirect effects of GHRM and green innovation (GI) on employee retention. Through the exhibition of green behaviors and initiatives, employees can drive the organization (i.e., hotel) towards success and competitive advantages due to the innovative, modern, resilient, and social nature of GHRM in the strategy of the firm.

This research aims to investigate the relationship between GHRM and ER from the perspective of employees, recognizing them as the heart of the organization [12], and as the individuals who directly engage with GHRM practices and policies of their organizations (i.e., hotels in this case). Furthermore, the current study examines the indirect (mediating) effect of GI on the aforementioned linkage between GHRM and ER. Green innovation incorporates strategies as well as actions and/or functions of an organization [9]. This translates into goods and/or services developed in the company and the processes alongside procedures that function as a unit. It is also important to note that GI entails ecofriendly and sustainable measures, which are aligned with the core context of GHRM [13]. In the current research, and with regards to the hotel sector, these can be the provision of services to customers and hotel processes (e.g., procurement, staff management, market, etc.). In this respect, enabling GI for employees can manifest in better services to customers, innovative ideas in performing tasks, and autonomy in terms of conducting their jobs [13].

The notion of green initiatives has gained more vitality in recent years due to the need for maintaining resources for future generations. This has shifted firms to push for sustainable practices and policies in their strategic decisions. Notably, in the tourism and, particularly, the hotel sector, managing the staff members as crucial touchpoints can obtain desirable results for the organization, such as increased customer satisfaction, improved job performance, enhanced image and reputation, and economic sustainability [12]. GHRM plays a key role in delivering and implementing set strategies for the employees so that the organization is strengthened internally and sustainably [4,14].

In light of the above, this study aims to investigate the relationship between GHRM and employee retention in the hotel industry of the UAE (specifically, Dubai). The mediating effect of GI on the aforementioned linkage is further examined to better understand the indirect influences that can aid the management of hotels in retaining their workforce. Accordingly, a theoretical framework based on Social Exchange Theory (SET) [15] and the Ability–Motivation–Opportunity (AMO) model [16] is employed in the current research, which provides a premise that supports our assumptions and hypotheses. Based on the noted gaps in the extant literature on the subject, it can be observed that (A) GHRM requires further investigation to better understand its implications in business settings [9]; (B) employee retention is a critical subject in the hotel industry, which calls for investigations and analyses to aid the managers in the field [17]; and (C) the Middle East receives considerably less attention from academia, which is a shortcoming compared to other regions (e.g., North America and Western Europe) [18,19].

These gaps are considered major drivers of this research. With the UAE, particularly Dubai, being major tourism destinations in the MENA region [20,21], the current research aims to contribute to the current understanding of GHRM and its effects on retention of employees in a sector that suffers from high turnover [22]. Additionally, analyzing the mediating effect of GI can further provide empirical evidence that organizational setting, leadership, and strategic development of the firm should be aligned to create a fostering atmosphere for employees. The aim of the study is to provide empirical evidence from the hotel industry in Dubai, UAE, to contribute to the current understanding of GHRM and its implications in this sector. Arguably, for an industry that suffers from high turnover [21], this can yield extremely desirable outcomes, such as improved performance, better customer service, innovativeness in the workplace, employee satisfaction, and socio-economic advantages for the company as a unit [11].

The following sections of this research include the theoretical framework and hypothesis development, where the context and assumptions are clearly defined using the existing knowledge in the literature. This is followed by an illustration of the research model and detailed information regarding the sampling procedure, measurements, and ethical means during the data collection process. Statistical analyses and results are presented, followed by a discussion of the findings. Lastly, conclusions as well as theoretical and practical implications are highlighted, and limitations of the research alongside derived recommendations are addressed.

2. Theoretical Framework and Hypotheses

Based on the specific context, aims, and objectives of the study, theories and the most recent/most relevant findings in the extant literature were gathered to aid the current study in developing its foundation and framework, upon which the current hypotheses are shaped. In this respect, two theories were found to be highly relevant to the context of the current research and its premises, namely, the Social Exchange Theory (SET) and the Ability–Motivation–Opportunity (AMO) model, which together provide the necessary theoretical premise for the current context. In this respect, SET [15] encompasses situations where employees are encouraged to reciprocate to the organization due to the various benefits that they have received (i.e., job and personal progress via GHRM policies). In all stages of GHRM, from recruitment to training and development, performance management, incentive and reward systems, and involvement that have a green core, wellbeing, and professional and personal development of employees are addressed, which further aligns with social values [5]. Through provision of an environment that enables, empowers, and cares for individuals, GHRM can be a great tool for retaining employees, especially for hotels, as it can directly translate into customer satisfaction [22]. This is due to the positive environmental, social, and economic benefits that are made possible through implementing GHRM and focusing on establishing an atmosphere where staff are provided with benefits to be encouraged to show loyalty and retention as a means for reciprocation [5,23,24]. Based on the premises of SET, it can be stated that GHRM is effective in promoting retention, as it reduces intentions of turnover [5,25].

In addition to SET, the AMO model [16] also encompasses different aspects that support the context and arguments of the current research. This theory entails the personnel management concept from various angles, namely, policies and regulations for work, benchmarking and modern initiatives, and green and eco-friendly practices in all departments (companywide). These are embedded in the recruitment process, staff training, performance management, reward designation, and involvement, and contribute to the efforts of the organization regarding retaining employees and enhancing processes and atmosphere of work [26]. Furthermore, leadership and its role, the culture and environment of the firm, teams, and departments (workflow), eco-friendliness of processes and tasks, employee involvement and engagement, and professional development are incorporated in this model. Importantly, these aspects fall under GHRM practices as well as GI, which are the basis for the current research. Notably, psychological and physical wellbeing of employees is addressed under the AMO theory [9], which further aligns with the context of the current research with regards to employee retention. Green initiatives, policies, and practices in the service industry (i.e., hotels) are significant gateways for enhancing the workplace, which in turn yields improved performance and retention of the employees [27,28,29]. AMO and SET provide a foundational premise for the current arguments that incorporate human capital management (i.e., GHRM), and workplace atmosphere (i.e., GI) via creation of core values (i.e., sustainable/green) [9,30].

2.1. GHRM and Employee Retention

GHRM as a mechanism increases the willingness of the employees towards taking green initiatives and showing green behavior. Following the policies of GHRM in an organization, employees will advocate the goals and vision of the company as it manifests in personal, social, economic, and environmental values [31]. When organizations (i.e., hotels) implement green strategies and initiatives, gaining advantages in the market will become more feasible. In the service industry, staff often engage with customers. This implies the essentiality of having employees that thrive in their work and behavior to ensure profitability through re-patronage or recommendation to visit (word-of-mouth) [32,33]. In this sense, GHRM is designed to have positive outcomes that are aligned with sustainability (i.e., economic, social, and environmental impacts), which can encourage employees to remain in the firm and carry its green initiatives [34]. The organizational atmosphere and workplace environment ought to be in a manner that promotes retention. This can be achieved through GHRM aspects, encompassing green recruitment, training, performance (appraisal), rewards, and involvement. Combined with GI, which entails strategies and actions/processes of the organization in a sustainable and eco-friendly context, GHRM can be an effective tool for hotel managers to retain their employees. It is well-known that retaining employees that have been trained and developed is a key determinant of organizational success [35] and competitiveness [36,37], particularly in the tourism industry [17,35,38]. Employee retention can be described as the sum of all activities and endeavors of the organization toward keep their talented and/or developed/skilled staff in the firm for a long period of time [39]. In this study, it is argued that each component of GHRM (i.e., selection and recruitment, training, performance, rewards, and involvement) negates the turnover intention among employees, and thus, enhances employee retention of the organization.

While there are studies showcasing the positive influence of GHRM on green initiatives of employees (e.g., [38]), the literature suggests additional research focusing on its generalizability in various contexts [39,40]. With the employees as the key players in the context of the current study [41,42], GHRM possesses the potential to direct the staff towards better performance through higher degrees of engagement with the organization and its goals. Due to the green nature of GHRM policies, employees are further encouraged to take green actions, amplifying the green objectives of the organization [39]. The values created by the firm increase the willingness of its staff towards positive behaviors (e.g., green actions and retention) [24,43,44]. Referring to the premises of SET, GHRM fosters an environment in which individuals are provided with various means for better performing their tasks in an organization that provides support, growth, and a sense of belonging. Therefore, the sense of reciprocation grows stronger, which in turn translates to longer retention and lower turnover intentions [5,12]. GHRM enables the staff to contribute to social, economic, and environmental aspects of their own lives as well as the prospect of their organization. This further links to the premises of AMO theory and the fact that it covers the activities and practices undertaken in the human resources department. GHRM provides abilities (green ideas and innovative tools for tasks, and involvement), motivation (performance and rewards), and opportunities (career development), which are in line with the core concept of GHRM and the endeavor to retain employees for longer periods [9]. Skills and knowledge of the staff are enhanced through GHRM practices, which positively influence their green initiatives, overall performance, and their loyalty towards the firm, which is contextualized as employee retention in the current research [31,45].

The prowess of human capital in the organization can be greatly enhanced through policies and initiatives of GHRM, as they ensure that employees have sufficient and adequate tools, knowledge, and equipment alongside support from mangers, rewards and incentives, and career growth paths [9]. Under this concept, individuals are motivated to share ideas and engage in innovative behavior to perform their tasks [42,46]. AMO and SET, as theoretical premises, direct and encourage the staff towards green values that match with their social, economic, and environmental values, furthering their willingness to remain in the company. In the recruitment stage, GHRM policies can act as points of attraction for acquiring fit and talented personnel [21]; in terms of training, GHRM provides an array of career development activities, benefiting employees’ personal and professional domains of life [9,47]. Performance of the staff is managed through feedback, adequate support, and tailored practices that improve the skills of individuals while motivating them towards better performance [9,30]. Monetary incentives, holidays, bonuses, and other reward systems are established to retain employees and increase their satisfaction with the organization and their jobs [22,48,49], and involvement incorporates encouraging staff to share ideas, have their voices heard, and be included in communications, decisions, and changes that the managers tend to implement [50,51,52]. The current study, therefore, posits the following hypothesis (illustrated in Figure 1):

H1. 

GHRM has a positive and direct influence on employee retention in the hotel industry of Dubai.

2.2. Mediating Role of Green Innovation

GI can be characterized as green and eco-friendly actions, processes and/or functions, and strategies of the firm [50]. When organizations endeavor to have green processes aligned with green strategies, it is more likely that staff members will engage in eco-friendly behaviors for conducting their tasks. In an organizational setting, GI envelops strategies and processes/actions with an emphasis on ecological impacts. This is manifested via the behavior of employees and their green behaviors that can be observed during their jobs (actions) and surrounding the processes and core values of their work (strategies) [9,51,53]. In Figure 1, the proposed model of the current study illustrates the role of GI in the current context. in this respect, SET explains that employees are more likely to remain with their organization when GI is applied, as it pertains to their values and goals, and grants them more autonomy and innovativeness [39]. GI establishes an environment where social exchange occurs in the work environment across all departments and aspects of the job, which strengthens the experience of individuals [54]. The strategic aspect of GI ensures that values are created within the firm (internally), which contribute to the link between the individual and their organization, further increasing the possibility of retention through a sense of reciprocity. While this requires the firm and its management (i.e., human resources) to commit to green strategies and improvement of the workplace for employees, the benefits have been reported in the extant literature regarding the positive emotional experiences through GI that lead to increased willingness to remain with organization (e.g., [39,50,51]). With the support of the premises of SET, the influence of GI on employee retention (ER in the current analysis) is addressed in this research.

In addition to what was mentioned, AMO contributes to the context of SET and its application in the current research regarding GI. In this respect, AMO provides the necessary premise to examine the linkage between GHRM and employee retention as it incorporates actions, policies, and systems used in the human resources department as well as at the managerial level of the firm regarding employee practices (i.e., recruitment, training and development, performance appraisal, rewards, and involvement) [52,55,56]. Each aspect of AMO links to the support of GHRM and its impact on employee outcomes (i.e., retention). Accordingly, the selection and recruitment of new employees as well as implementation of career paths through training essentially address abilities. Similarly, rewarding systems (e.g., bonuses) are the manifestation of motivational aspect. Lastly, the provision of support, encouragement, and involvement of employees addresses the opportunity aspect of AMO [55]. In the current research, it is expected that premises of AMO enable GHRM practices to explain the positive employee outcomes, particularly employee retention. As strategic planning and the processes of the organization become aligned with green values and initiatives, the role of GHRM becomes more vivid due to its impact in terms of implementing employee-centric policies and practices. This is due to the notion that GHRM establishes an environment where employees can grow, be heard, and are encouraged to be innovative, which significantly enhances their experiences with the firm, leading to a desire to remain with the organization [56,57]. Under the framework of AMO theory, the link between GHRM and GI is examined in this research.

GI in the current contextualization incorporates all activities undertaken in the hotel that are directed towards green and sustainable goals. This can include green purchasing and using green suppliers, efficient usage of energy and materials, waste management, and reduction in energy consumption (i.e., water and electricity) [58,59]. GI is also regarded as a determinant of organizational competitiveness in the tourism industry, especially when it is combined with modern sustainable strategies (i.e., GHRM) [11,13]. Strategic aspects of GI aid hotels and their HR managers to develop resilient systems via the innovativeness of their employees, which translates into enhanced organizational performance under the TBL (economic, social, and environmental) context. The core values that are created via such strategies become tools of competitive advantage in a market with high rivalry (i.e., hotels in Dubai) [12]. Moreover, GHRM, combined with the green strategies and processes of the firm, creates a workplace where staff can thrive through learning, improvement, motivation, support, and values addressing their social, economic, and environmental futures [50,58,59]. GI and GHRM in the hotel setting foster acquisition of workforce and other elements (e.g., supplies), actions to train and/or improve the processes and the workforce (e.g., awareness, workshops, etc.), and actions aimed towards enhancement of current processes as well as retaining the employees (e.g., rewards, promotions, and the like) [3,25,60]. These reports show that there is a linkage among GHRM, GI, and ER. According to the aforementioned arguments, the following hypothesis is shaped:

H2. 

GI has a mediation effect on the linkage between GHRM and employee retention in the hotel industry of Dubai.

3. Methodology and Design

3.1. Sampling

Based on the hypotheses, theoretical setting, and the aims of the research, a quantitative approach using questionnaires was deemed appropriate to collect data from hotel employees currently occupied in the industry in the UEA. To determine the adequate sample size, G*power was used [61] (statistical power = 0.85; effect size = 0.01; α = 0.01; with Min R2 = 0.10). This setting showed that a total of 179 samples was required, which was also compared to recommendations made by experts in the statistics domain, i.e., [62]. This led to a slight increase to 201 samples to maintain the previously noted criteria. The data were collected between September and October 2023 using both purposive and convenience sampling techniques. While the former technique was used to pinpoint hotels in which GHRM and GI have been set in their strategies (if not implemented), the latter enabled us to collect data based on availability and the willingness of employees during the time of data collection. We used our personal networks and local knowledge to establish the necessary links with managers of over ten hotels, of which one was used for pilot testing, and five were identified as having a good fit in the current context. Permission was obtained, and the decision-makers of each hotel were informed of the purpose of the study. The aforementioned pilot test was conducted with 25 employees of a hotel that was not included for the final dataset (no items were removed during the pilot test). A total of 230 surveys were distributed in person, combined with explanations regarding the research and/or questions. With a total of 207 qualified surveys (8 withdrawn and 15 incomplete—90% response rate), the statistical criteria were satisfied. All participant were allowed to withdraw from the survey at any stage, while their availability and willingness was highly considered. No sensitive information (e.g., sexual orientation, religious beliefs, and income) was included in the survey, and anonymity was guaranteed to participants.

3.2. Measurements

The self-administered questionnaire used in this research was designed based on the most recent and/or most relevant sources in the extant literature while considering the reliability, validity, and commonality of the scales among scholars addressing similar contexts. GHRM was assessed through its dimensions, namely, recruitment, training, performance, rewards, and involvement. The items were selected from the work of [55], with a total of ten questions addressing each dimension (two for each). Green innovation, including its dimensions (strategies, and actions), was derived from the work of [44], with a total of four questions reflecting the variable. Lastly, employee retention was measured using five questions, which were derived from the work of [63]. Furthermore, age, gender, and work experience were included in the survey as demographic variables that are controlled in the current analysis (i.e., control variables) due to their effect on the dependent variable [53,64] of the proposed model (see Figure 1). A 5-item Likert scale was used for all questions, with answers ranging from 1 = totally disagree to 5 = totally agree (see Appendix A). We took a number of aspects of common method bias (CMB) into consideration (i.e., ethical considerations noted previously, anonymity, and confidentiality) to increase willingness to participate while reducing response errors [65].

3.3. Respondents’ Profile

A total of 207 surveys qualified for the final analysis. The dataset comprised 54% female and 46% male respondents. The average age was 35 (standard deviation [SD] = 4.6), and the average work experience was 3.7 years (SD = 4.8). These demographic variables were further analyzed as control variables with regards to their relationship with the dependent variable of the proposed model (see Table 3).

4. Analysis and Results

Based on the context, approach, and framework of the study, partial least squares–structural equation modeling (PLS–SEM) was deployed as the analytical technique via Smart-PLS software version 3. Notably, the current model fits the criteria for this particular analytical technique (i.e., relatively small sample size, no concern for normal distribution, set statistical power, and inclusion of a latent variable) [62,66].

4.1. Measurement Model Assessment

The measurement model is analyzed in

Table 1. Measurement model assessment.

Construct	Dimensions	Indicator	Outer Loadings	α	Rho A	CR	AVE	VIF	Weights	t-Stat.	CV
GHRM α = 0.811 CV = 0.707	Green recruitment	GR1	0.701	0.801	0.810	0.802	0.626	1.952	0.421	2.288 **	0.719
		GR2	0.731						0.403	2.189 **
	Training	TR1	0.850	0.782	0.801	0.716	0.741	1.744	0.340	2.246 *	0.734
		TR2	0.822						0.371	3.902 **
	Performance	PC1	0.764	0.777	0.734	0.708	0.728	2.321	0.521	3.324 **	0.725
		PC2	0.803						0.409	2.325 *
	Reward	RD1	0.887	0.797	0.722	0.713	0.716	2.356	0.357	2.337 **	0.739
		RD2	0.809						0.339	2.072 *
	Involvement	INV1	0.837	0.776	0.771	0.752	0.701	1.837	0.392	3.291 *	0.730
		INV2	0.846						0.397	3.214 *
Employee Retention		ER1	0.871	0.809	0.890	0.887	0.616	-
		ER2	0.832
		ER3	0.821
		ER4	0.811
		ER5	0.849
Green Innovation α = 0.791 CV = 0.729	Strategies	ST1	0.755	0.777	0.848	0.794	0.649	1.871	0.421	2.266 *	0.730
		ST2	0.779						0.416	2.275 *
	Actions	AC3	0.767	0.809	0.813	0.863	0.723	1.903	0.402	2.194 *	0.742
		AC4	0.784						0.409	2.459 *

* 0.05, ** 0.01.

, where the results show a satisfactory level of internal consistency (i.e., Rho A, α, and composite reliability) as the ratio values fall in the range of 0.7 to 0.9 [67,68,69]. Moreover, average variance extracted (AVE) shows acceptable values (>0.5), implying satisfactory convergent validity [62], which is similar to the values of outer loading (>0.708) [62]. Lastly, the variance inflation factor (VIF) was used to test for multicollinearity, in which the values did not surpass the threshold of 3.3 [70], implying lack of concern regarding CMB.

Studies have shown positive outcomes in various sectors and businesses through implementation of GHRM in their organizational setting and its embeddedness in the strategic plans and actions of the firm (e.g., [38,41]). Notably, as the current research examines GHRM in the tourism and hospitality sector, it is observed that GHRM can have positive impacts on employee retention [17,36]. This is of particular importance, as there is a high level of turnover in this sector. The results pertaining to the hypotheses of the research are further presented in Table 3.

The heterotrait–monotrait (HTMT) ratio is used to assess discriminant validity to provide a comprehensive assessment of the measurement model. As can be observed in

Table 2. Heterotrait–monotrait (HTMT) ratio values.

	GHRM	GR	TR	PC	RD	INV	ER	ST
GR	0.721
TR	0.467	0.579
PC	0.723	0.610	0.767
RD	0.603	0.735	0.698	0.746
INV	0.734	0.478	0.648	0.716	0.837
ER	0.728	0.741	0.737	0.718	0.702	0.821
ST	0.665	0.635	0.722	0.649	0.719	0.748	0.744
AC	0.657	0.624	0.734	0.754	0.734	0.669	0.722	0.780

GHRM: Green Human Resource Management; GR = green recruitment; TR = training; PC = performance; RD = rewards; INV = involvement; ER = employee retention; ST = green innovation (strategies); AC = green innovation (actions).

, the values are within the suggested ration (<0.85) [71].

4.2. Structural Model Assessment

Table 3. Hypotheses testing.

Effects	Relations	β	t-Statistics	Ƒ2	Decision
Direct
H1	GHRM → ER	0.321	4.134 ***	0.144	Supported
Mediation
H2	GHRM → GI → ER	0.134	2.624 **	0.071	Supported
Control Variables	Age → ER	0.121	2.119 *
	Gender → ER	0.123	2.281 **
	Experience → ER	0.118	2.177 *
R2ER = 0.44/Q2ER = 0.24 R2GI = 0.49/Q2GI = 0.27 SRMR: 0.027; NFI: 0.923

* 0.05, ** 0.01, *** 0.001.

presents the results of structural model assessment and hypothesis testing as the second stage of PLS–SEM analysis. As can be observed, the direct relationship between GHRM and ER is supported (β = 0.321), indicating that implementation of GHRM in the hotel sector can yield positive outcomes in terms of employee retention. Similarly, the second hypothesis of the study is supported by the current results (β = 0.134), showing that there is a mediation effect (partial) posed on the GHRM-ER relationship by GI.

The structural model and hypotheses of the research are examined in Table 3, with results showing a good model fit based on a normal fit index (NFI) of 0.923 and a standardized root mean square residual (SRMR) of 0.027 [72]; multicollinearity was found to be of no concern (see Table 1) [62,66], and both predictive power (R-squared) and predictive relevance (Q-squared) have values that are within the acceptable thresholds [73].

As Table 3 shows, the first hypothesis of the study, which addresses the direct influence of GHRM on employee retention, is supported. Considering the theoretical premise of the research, utilizing SET and AMO theories, and the context of hotels in Dubai, employees have shown that green recruitment, training, management of performance, rewards, and involvement are key determinants of positive employee experience and emotional outcomes (i.e., sense of belonging and reciprocity towards the firm). This is in line with the existing literature [5,22,24,25], while contributing to the current understanding of the subject in terms of employees’ perspective towards GHRM practices in a setting that has reportedly high turnover rates [5,7]. These results are also in line with the notion of sustainable development and its TBL pertaining to social, economic, and environmental aspects [50,51].

The second hypothesis of the study is also supported according to Table 3, which suggests that GI carries a mediation effect on the relationship that persists between GHRM and ER in the tourism and hotel context. This implies that strategic and functional or procedural green initiatives can greatly improve the workplace for employees, which in turn enhances their experience in their job, leading to a higher degree of willingness to remain with the firm. While similar reports have been found in the literature [13,60], the current results further improve the applicability of GI in the service sector, particularly in the Middle East region, as it can foster a greater rate of competitiveness. Furthermore, the empirical nature of the current findings suggests that the call of the experts regarding this notion has been addressed (e.g., [11,20,21]), while new pathways for further analysis have been indicated (see recommendations). GI encourages employees to take green actions and show innovative behaviors that can improve their work and potentially the processes of the organization. As the workplace fosters valuable elements that benefit the employees, the premises of both SET and AMO are triggered, where emphasis on employee-centric initiatives in the green domain will yield desirable results in the behavior and performance of the staff [31,49,74].

The current findings highlight the vitality of having green strategies implemented in the hotel industry so that functions are directed towards creation of core values (i.e., social, economic, and environmental) for the firm and its employees. This can be boosted via GHRM practices that are designed to empower the employees while optimizing the workplace for innovative and positive behaviors. When this is combined with GI actions of the firm, such as green initiatives to reduce environmental impacts, corporate social responsibility activities, and long-term economic planning, it can not only improve the internal image of the firm (i.e., for employees—retention) [3,5] but can also contribute to the corporate image and its competitive edge in the market [75,76]. Lastly, as the firm is more capable of maintaining its workforce (who become more skilled and competent with time), the long-term benefits of the previously noted strategies and policies will manifest as enhanced reputation [77], customer loyalty [3,11], and profitability for the hotel, rendering it a highly effective vision for the organization as a unit.

5. Conclusions

As noted in the previous section, the current results, while being in consensus with the existing body of knowledge regarding GHRM and GI and their positive influences in organizational setting, contribute to our current understanding of the hotel industry. The mediating role of GI is supported, which implies a better explanation for the relationship that exists between GHRM and ER. For an industry that suffers from low retention rates (e.g., in hotels), it is highly essential that adequate strategies are implemented to tackle this issue. Retaining employees can have long-term benefits for the company as a whole, further showcasing the importance of efforts in this regard. Particularly, the Middle East receives considerably less attention compared to Western counterparts, which the current study addresses by its contributions to the existing literature. In this respect, the UAE, and Dubai in particular, as a major global tourist destination is an area where innovation and progress is encouraged for all businesses. The current results show that hotels can improve their existing systems to enhance the workplace for their employees, which can directly affect the satisfaction and loyalty of the employees (through GI leading to enhanced ER along with the practices of GHRM embedded in the firm). As employees in this sector engage with customers, it is essential that hotels and their HR departments implement strategies that are directed towards retaining employees while providing them with the necessary means to improve and excel in their roles. GI as a strategic and fundamental tool can ensure that hotels are equipped with adequate managerial dedication and support towards sustainable goals, green mechanisms, engagement, and involvement of the staff in the workplace as well as green initiatives that address the TBL. The context of this research and the current findings highlight influential elements in terms of determining long-lasting employees, which can be highly beneficial for hotels and other organizations alike. This is due to the fact that for employees to reach a certain performance level, it takes time, physical and mental resources, and initiatives such as training and internships, which are all costly (i.e., resource-intensive) for the firm. Hence, hotel managers in the Middle East can have a better perspective of the importance of GHRM and GI in their respective hotels. This contextual framework with the included theories is also a significant aspect of this research, further highlighting its contributions. Accordingly, this research addresses the noted gap in the literature that called for empirical evidence (quantitative data), extended geography (Middle East), organizational approach (employees’ perspective), and industrial setting (service industry—hotels), fulfilling its aims to contribute to the existing literature.

5.1. Theoretical Implications

According to the current findings, AMO theory explains the relationship between GHRM and positive employee behavioral outcomes (i.e., retention). This is the result of green policies and practices of GHRM in all stages of work, namely, recruitment, training, managing performance, incentive, and reward systems, and involving employees in the decisions, all designed to increase expertise, improve experience, and create pathways for progress [16,25]. In the same context, GI ensures that innovative actions and green strategies are embedded in the heart of the organization’s visions, which expand to its processes, functions, services, and other features (e.g., personnel management approaches) [9,53]. Employees (whether front or back) are able to show innovativeness and new approaches to solve problems in their tasks, which increases the efficiency in the performance of the firm. The green workplace and innovation-embracing environment in the hotel sector can greatly influence the employees’ intention to remain in the firm as they can vividly perceive the opportunities that the firm provides alongside its motivational and supportive atmosphere that aids in career development [41,78].

With regards to SET, a similar influence can be observed from GHRM and its combined practices, with the notion of GI as the strategic approach of the organization (i.e., hotel). This states that the work environment and the culture/atmosphere of the organization is highly influential on the experiences of employees regarding social exchanges [22]. This further translates into a higher likelihood of a sense of reciprocity towards the firm, as the employees are provided with various benefits directed towards personal growth (e.g., awareness), professional improvement (e.g., workshops and training programs), economic stability (e.g., promotions, incentives, and bonuses), burnout and work-life balance [78], and social and environmental benefits (e.g., societal activities engaging with the local community and implementing strategies to reduce ecological impacts) [5,79]. In such an environment, employees are more likely to engage in behaviors that are positive towards the organization as reciprocation due to the array of values that empower their lives and their societies.

5.2. Practical Implications

The current results show that hotel managers can benefit greatly from implementation of GHRM in their human capital management systems. Notably, those hotels where GHRM is established can always improve their existing practices by following scholarly findings and using modern tools (e.g., data-driven and technology tools for improving HR systems). Using green selection policies, HR mangers can employ individuals who have the potential to become advocates of the company’s green objectives. Green training can provide the staff with the expertise needed to show innovation and perform better in their tasks, while having a valuable asset delivered to them by the firm, which can improve their personal and professional futures. Bonuses, holidays, and other incentives (non-financial) can motivate the staff to engage in behaviors that are desired by the firm and its policies. Engaging the employees in the decisions, changes, and new initiatives can enhance their sense of involvement, which will steer them towards reciprocity and better performance. Additionally, considering GI, decision-makers in hotels in Dubai, and by extension in neighboring countries, can purchase materials from greener vendors, implement modern technologies to reduce energy consumption, equip the hotel with new water and electricity management tools, and hold social and environmental standards to high levels. This will foster an environment in which employees feel obligated to act as advocates of the firm in terms of having social, economic, and environmental impacts on their surroundings. Social activities such as green seminars or awareness initiatives can benefit both the company and its employees, as well as the society in which they serve.

6. Limitations and Future Research

The current study faced a limitation regarding the amount of available secondary data in the literature for the Middle East and, particularly, for Dubai’s hotel industry. While encouraging us to conduct this research, this lack of data calls for additional studies to further examine the region and neighboring countries to contribute to the literature, while aiding the practitioners in the hotel and tourism sector. In addition, the current research is limited regarding the proposed model as a comprehensive model, which is linked to the previous limitation. In this sense, scholars interested in this context can examine the effects of other variables (e.g., culture, leadership, economy of the location, and sociodemographic variables). The cross-sectional nature of the data in this research lowers its generalizability, which future studies can bypass by conducting longitudinal research that analyzes the performance, turnover rate, and/or innovativeness of the firm in different time periods. Future studies can also overcome the representativeness limitation of the current study by expanding the sample size (while taking note of the required analytical techniques). Similarly, interviews with employees may provide a deeper understanding of their feelings, experiences, and perspectives towards GHRM and GI in the hotel sector and how it relates to their sense of retention. Comparative results can be obtained by examining the hotel sectors of Oman, Qatar, and even other cities in the UAE (e.g., Sharjah) to provide a comprehensive overview on the status quo of GHRM in this industry throughout the region.