LINKING INTERNAL MARKETING AND EMPLOYEE ENGAGEMENT IN THE HOSPITALITY INDUSTRY

The prosperity of the hospitality industry, as a part of the service industry, strongly depends on the customers' satisfaction. Employees deal directly with customers on an everyday basis. Therefore, the human capital of an organisation has a key role in delivering high-quality customer service. In order to improve the quality of services, internal marketing was introduced as a marketing strategy where employees are approached as internal customers. It represents a concept for managing the human capital of a company by focusing on the processes of recruitment, retention, motivation, training and internal communication, thus affecting the work dedication and devotion of employees. High employee engagement - the level of commitment of employees in fulfilling their job requirements and delivering quality customer service - will pave the way for company success. The purpose of this paper is to explore the relationship between internal marketing and employee engagement in the hospitality industry. The study aims to analyse and determine the influence internal marketing practices have on the level of employee engagement. Based on an extensive literature review, a conceptual research model was created to explore the relationship between motivation and retention, as a multidimensional internal marketing concept, and employee engagement, observed as cognitive engagement. The data were collected using questionnaires among hotel employees in the Croatian hotel industry. The paper offers managerial implications for hotel managers on developing employee engagement and, consequently, improving service quality. It will expand the current knowledge on internal marketing practices and its influence on employee engagement in the hospitality industry. To enhance future employee engagement it is recommended that hotel management should place more emphasis on internal marketing practices and programs thereby enhancing the quality of the employees' work. This will consequently improve service quality. Also, limitations and ideas for further research are offered.