The influence of wedding banquet labor outsourcing on customers and internal employees in terms of happiness and satisfaction - A case study on the Yixing Hotel

Hosting weddings, graduation dinners, teacher appreciation banquets, family banquets and other activities at hotels are very popular in mainland China, the income of banquets and weddings has been considered as a major revenue generator for the hotels. With the high demand for weddings, Yixing Hotel opened three new banquet halls in 2018 and started to use outsourcing employees to assist in serving wedding banquets. This study collected the history data of hotel internal employee surveys and wedding customer surveys to identify the impact of wedding banquet labor outsourcing on customers and internal employees in terms of happiness and satisfaction. The primary data was conducted monthly from October 2018 to March 2021 through SINOTRUST, a consulting company. From February to April of 2020 were not considered in the analysis because these three months had no wedding banquet due to the COVID-19 pandemic. Therefore, a total amount of 26 cases were sorted out in the sample. To test the hypotheses, this study used the classic linear regression model and empirical model and conducted the factor analysis and the regression analysis. The results of this study identified that outsourcing activities affected the happiness and satisfaction of wedding banquet customers; the outsourcing activity has a negative effect on internal employees’ happiness and job satisfaction through three dimensions - colleague relationships, job security, and reasonableness of work assignments. Through the case study, the managerial implications and theoretical implications are provided to Yixing and similar-type hotels regarding the aforementioned dimensions.