While scholars know a great deal about the operational challenges faced by customer-contact employees in the hospitality industry, there is much to be learned about the factors associated with the work context that influences employee motivation, performance, and retention. In this study, the authors examined the nature and impact of perceptions about an organization’s customer service climate on ratings of self-efficacy, customer service job performance, and intentions to leave among employees in customer-contact positions. Results demonstrated that employees’ perceptions about the climate for service quality were significantly related to motivation, supervisor ratings of service job performance, and self-rated intentions to leave. The results offer insights regarding the role of service climate perceptions and the means for effectively managing customer-contact staff and generating higher levels of retention.