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[Research Contribution] Why Are Talented Employees Leaving 5-Star Hotels in Vietnam? The Answer May Surprise You

27 December, 2025

Keywords: Talent retention, organizational climate, innovation, mindfulness, hospitality industry, Vietnam, knowledge sharing

Talent retention is not just a “hot topic” in human resources; it is a silent challenge, especially in high-paced service industries like hospitality and tourism. In Vietnam, with its booming tourism sector and the proliferation of 5-star hotels in Ho Chi Minh City, Hanoi, and Da Nang, the demand for high-quality personnel has never been stronger. Yet, many managers admit: recruiting is easy, but retaining is hard. The pressure of long shifts, emotionally demanding work, and tight deadlines can lead even the best employees to burnout. Traditionally, solutions have revolved around increasing salaries, providing training, or offering promotions. However, a study by a team of scholars from Vietnam, Taiwan, and the Czech Republic offers a different perspective: the key lies not in what companies “give” employees, but in the very environment where they work.

This research reveals a powerful “mediating factor”—the organizational climate—that can bridge the gap between the knowledge an employee possesses and their long-term commitment to the company.

An Open Environment for Knowledge Sharing, So Why Do They Still Leave?

Businesses have long viewed knowledge sharing as a way to build collective strength—from clear procedural documents to valuable word-of-mouth experience. The theory suggests that the more development opportunities an employee has, the more confident and proficient they become, and the longer they stay. But reality tells a different story. In luxury hotels, where pressure is both high and emotionally taxing, turnover rates remain significant. This study has found the “missing piece”: knowledge only yields value when it is cultivated in the right environment. Conversely, if the environment is unsupportive, knowledge sharing can become a burden. The “work environment” is the feeling you get when you walk into the company each morning—is it safe or anxious, inspiring or exhausting?

The study focuses on two prominent types of climates:

An innovative climate – where employees dare to try new things and be creative without fear of punishment.
A mindful climate – which prioritizes mental well-being, presence, empathy, and mutual respect.

The climate is like the soil; knowledge is the seed. Good soil allows the seed to sprout and take root; in poor soil, even the best seed will wither. The study surveyed 300 employees in high-end hotels in Ho Chi Minh City, Hanoi, and Da Nang—from front desk and restaurant staff to housekeeping and administration—all of whom had worked for at least six months to fully experience the corporate culture.

The results revealed an interesting chain of effects:

Knowledge Sharing → Improved Climate: Both explicit knowledge (documents, procedures, guidelines) and tacit knowledge (experience, professional tips, real-life stories) positively impact employees’ perception of their work environment. Those who frequently share ideas or experiences tend to feel they are working in a creative and mutually supportive climate.
A Good Climate → Employee Retention: Both an innovative climate (daring to try, daring to create) and a mindful climate (emotional safety, respect, understanding) significantly increase the likelihood that employees will stay long-term. Crucially, the climate acts as a full mediator between knowledge and commitment. In other words, knowledge is only effective when “filtered through” a positive work environment.
A mindful climate also fosters an innovative climate, suggesting that when employees feel emotionally safe, they are more willing to take creative risks.

The key takeaway: Knowledge doesn’t automatically retain talent—the organizational climate is the decisive factor.

The Surprise: Procedures Can Also “Soothe” Emotions

Many perceive procedural documents like Standard Operating Procedures (SOPs) and checklists as dry and rigid. But when designed to be clear, easy to apply, and “user-centric,” they can be powerful stress relievers. In the high-pressure hotel environment, ambiguity is one of the biggest sources of stress. When employees are unsure how to handle a guest complaint or when the shift handover process is chaotic, they can easily become anxious, distracted, and quickly burn out. Tools that may seem mundane, like a clear SOP or a detailed shift-handover checklist, can act as a psychological “shield,” helping employees feel secure, reducing pressure, and allowing them to focus fully on serving guests.

From these research findings, managers can consider the following approaches to build a work environment that is both effective and engaging:

Adopt an employee-centric perspective: When designing policies or procedures, consider how they will affect the emotions of the people implementing them.
Combine innovation with mindfulness: An emotionally safe environment encourages creativity, and a creative culture is more sustainable when nurtured by happiness and understanding.
Encourage peer-to-peer sharing: Beyond hard skills, create spaces for employees to tell their professional stories, share soft skills, and lessons learned from real-world experience.
Integrate mindfulness into the daily work rhythm: From a few minutes of deep breathing and emotional check-ins to a sincere “thank you” at the end of a shift—these small actions accumulate into significant change.
Practice genuine listening: Use regular surveys or anonymous feedback channels to understand employees’ concerns and co-create solutions with them.

An environment designed in this way not only helps reduce stress but also transforms daily work into a meaningful experience, one that is powerful enough to retain the best employees.

Although this study focused on the luxury hotel sector, its message extends far beyond the tourism industry. Healthcare, education, social services, retail—any field that places people and emotions at its core—is directly impacted by the work environment. A positive work environment is like oxygen: you don’t see it, but without it, everything collapses. An environment that fosters respect, creativity, and emotional safety can turn ordinary jobs into careers that people are proud of and fully committed to. Ultimately, talent retention is not just an HR task; it is the responsibility of the entire leadership system—built from every conversation, every decision, and every moment of genuine care.

Read the full article: Why Are Talented Employees Leaving 5-Star Hotels in Vietnam? The Answer May Surprise You HERE.

Authors: Pham Van Kien, Le Phuong Giao Linh – University of Economics Ho Chi Minh City and associates

This article is part of the series spreading research and applied knowledge from UEH with the message “Research Contribution For All.” UEH cordially invites readers to look forward to the next UEH Research Insights newsletter.

News, photos: Authors, UEH Department of Communications and Partnerships

Chân Trang (1)