Employee Turnover In The Hospitality Industry

employee turnover 6 Employee Turnover in the Hospitality Industry Angelica Melendez Florida International University Employee Turnover

Among the prolific research areas in employment, the sector is staff turnover. Labor turnover can be defined as the rate at which employees leave their jobs and the replacements that a business or an organization does. (Nel et al., 2014) Interest has been put in the hospitality industry, especially the hotel industry. Human resource issues have been a concern in the hotel industry, which has brought about the significant attention that is being paid to turnover rates in hotels. This is because the quality of services provided in the sector is affected by the rate of staff turnover.

An increase in the rate of employee turnover in the hotel sector has been a significant problem that has impacted people’s attitudes towards jobs in the hotel sector. Most of the turnovers happening in the hotel industry are by new employees that are still in the new stages of employment. The impact of the turnovers on the remaining employees might lead to problems in an organizational commitment, which might then lead to the remaining employees also quitting their jobs. The organization, therefore, ends up having a high turnover rate. Turnover has been associated with factors such as employees being dissatisfied with their jobs or having poor relations with either their managers or supervisors, employees having a workload with poor pay, or being mistreated with the clients, among other issues.

The years 2014 to 2019 has been marked with a massive turnover rate in the hotel industry. A lot has been said and is being speculated on the cause of the increased turnover rate. This has caused substantial controversy and research upon the issue, as people try to find out what changes have occurred in the sector leading to the increased turnover rate of employees. Problem Statement/ Hypothesis A significant turnover rate of employees has been witnessed in the hospitality area, especially the hotel industry from the year 2014 to 2019. A lot of speculations have been made on the matter with some people presuming it is because of the nature of work the people do as well as how they are treated, among other things.

These speculations might be true or false; it is, therefore, important to research to gain more knowledge the nature of the problem. Therefore, some of the questions to be answered through this research are as follows; a. Changes that have happened in the hotel industry in the years 2014 to 2019. b. How the changes have impacted the staff members. c. Find out the cause of staff turnover. d. Assess the impact of staff turnover. e. Recommend changes that can lead to a reduction in the rate of staff turnover.

Globally, the industry of hospitality is undergoing a high rate of employee turnover. (Amah, 2009) The hospitality industry has been regarded to have a significant number of people hopping from one job to the other. (Kuria & Wandegi, 2012) In the hospitality sector, it has been observed globally that labor turnover has been a significant issue. The issue has led to failures in businesses, employees being uninspired, with the talented employees lacking appeal. (Rehman & Mubashar, 2017) (Holston-Okae, 2017) In areas such as South Africa, empirical researches have been done on areas of labor turnover. (Ezeuduji & Mbane, 2017) Most of the conducted researches show that the staff is leaving their organizations at a high unavoidable rate, and the organizations are finding difficulty in controlling the rate.

The researches contribute to the content of this paper because this paper looks at the researches that have been conducted on matters relating to turnover of employees and retention of staff in the hotel sector. High turnover has been associated with causative agents such as minimal growth opportunities, long working hours, employees having a huge workload with low compensation, among other issues. (Ezeuduji & Mbane, 2017) Mushi and Holston-Okae(2018) also seem to agree with the point by stating that job satisfaction, motivation, compensation, work environment, and engagement influence the rate of staff turnover. In 2014, research was conducted in Iran on human resource management practices on similar issues, and the results suggest that human resource practices such as nepotism lead to a high employee turnover rate. (Karatepe et al., 2014)

To achieve the objectives of the research paper, data will be collected from hotels that have and have not experienced high employee turnover rates. For the research, the study instrument has parameters that will ensure the data collected is what is required. The parameters will include questions about turnover in employees and other related information. The data will be collected from approximately one hundred staff serving the tables. The hotels will be selected by judgment sampling, and other information will be collected from the staff through random sampling. Also, there will be an informal discussion with managers and some of the staff of the hotels to get further insight into the study and thus bring out solutions for the problems that will be detected. The data will be analyzed and organized into either qualitative or quantitative with tables, pies, and graphs for detailed explanations.

Paper For Above instruction

Employee turnover in the hospitality industry has emerged as a critical challenge impacting organizational effectiveness and service quality. The period between 2014 and 2019 saw a marked increase in employee attrition rates within hotels worldwide, raising concerns about the underlying causes and broader implications for the industry. This paper aims to explore the factors contributing to high turnover, examine its effects, and propose strategies to mitigate this pervasive issue, based on existing literature and empirical research.

Introduction

Employee turnover refers to the rate at which employees leave their jobs and are replaced within an organization. It significantly affects organizational performance, customer satisfaction, and profitability (Nel et al., 2014). The hospitality sector, particularly hotels, experiences high turnover rates, which disrupt service delivery and incur substantial costs related to recruitment, training, and lost productivity (Dwesini, 2019). The period from 2014 to 2019 has witnessed an alarming escalation in this trend, prompting extensive scholarly attention and industry concern.

The hotel industry characteristically involves demanding work environments, long hours, and relatively low wages, which contribute to employee dissatisfaction and eventual turnover. These issues are compounded by factors such as poor management practices, lack of career advancement opportunities, and unfavorable working conditions (Kuria & Wandegi, 2012). The high turnover not only hampers operational stability but also adversely affects employee morale, leading to a vicious cycle of dissatisfaction and attrition.

Literature Review

Research globally underscores the prevalence of high staff turnover in the hospitality industry. Studies have shown that labor mobility is particularly pronounced among entry-level hotel staff, often due to limited growth prospects and job dissatisfaction (Amah, 2009; Rehman & Mubashar, 2017). In South Africa, empirical investigations reveal that organizations struggle with controlling turnover, which impacts service quality and operational efficiency (Ezeuduji & Mbane, 2017).

Key factors influencing turnover include job satisfaction, motivation, compensation, and work environment. Mushi and Holston-Okae (2018) highlight that poor work conditions and lack of recognition lead to higher employee exit rates. Furthermore, nepotism and favoritism in human resource practices exacerbate the problem, as observed by Karatepe et al. (2014). Notably, long working hours and excessive workloads with inadequate pay are recurrent themes in the literature (Ezeuduji & Mbane, 2017). These issues collectively diminish employee engagement and commitment.

Methodology

To understand the dynamics of employee turnover, this study proposes a mixed-methods approach involving quantitative surveys and qualitative interviews. Data will be collected from approximately 100 hotel staff members across both high-turnover and low-turnover hotels, selected through judgment and random sampling techniques. Questions will focus on reasons for leaving, job satisfaction levels, perceived management support, and working conditions.

Additional insights will be gathered via informal discussions with hotel managers to contextualize findings. The quantitative data will be analyzed through statistical techniques, including descriptive statistics, correlations, and regressions, while qualitative data will be thematically analyzed to identify recurring patterns and underlying causes.

This comprehensive approach aims to quantify the drivers of turnover, explore underlying perceptions, and develop targeted recommendations to enhance retention strategies in the hotel industry.

Discussion and Recommendations

The literature indicates that high employee turnover in hotels stems from multiple intertwined factors, including job dissatisfaction, low wages, poor working conditions, and lack of career development opportunities. Addressing these issues requires a multi-faceted strategy. Hotels should focus on improving working conditions, implementing fair human resource practices, and fostering a supportive organizational culture that recognizes employee contributions (Holston-Okae & Mushi, 2018).

Investing in employee training and development can enhance skills, motivation, and loyalty. Furthermore, establishing transparent career progression pathways helps reduce uncertainty and dissatisfaction. Managers should also prioritize open communication and employee engagement, creating a sense of belonging and organizational commitment.

In addition, reviewing compensation packages to ensure competitiveness and fairness can mitigate financial frustrations leading to turnover. Implementing recognition programs and creating a positive work environment can bolster morale and foster long-term employment relationships.

Conclusion

High employee turnover remains a pressing challenge within the hospitality industry, especially in hotels. Addressing the associated causes requires understanding the complex interplay of factors such as job satisfaction, compensation, work environment, and organizational practices. By adopting comprehensive retention strategies rooted in empirical evidence, hotels can improve staff stability, enhance service quality, and achieve sustainable operational success. Future research should focus on sector-specific interventions and longitudinal assessments to evaluate the effectiveness of implemented strategies.

References

• Amah, E. (2009). Managing high turnover in the hospitality industry. Journal of Hospitality Management, 10(2), 45-59.
• Dwesini, N. F. (2019). Causes and prevention of high employee turnover within the hospitality industry: A literature review. African Journal of Hospitality, Tourism and Leisure, 8(3), 1-15.
• Ezeuduji, I. O., & Mbane, T. L. (2017). Employee retention factors: The case of hotels in Cape Town, South Africa. Journal of Economics and Behavioural Studies, 9(1), 6–16.
• Holston-Okae, B. L., & Mushi, R. (2018). Employee turnover in the hospitality industry using Herzberg’s two-factor motivation-hygiene theory. International Journal of Academic Research in Business and Social Sciences, 8(1), 218–248.
• Karatape, O. M., Baradarani, S., Olya, H. G., IIkhanizadeh, S., & Raoofi, A. (2014). The effects of high-performance work practices on critical performance outcomes: Evidence from the hotel industry. European Journal of Tourism, Hospitality, and Recreation, 5(3), 49–67.
• Kuria, S., & Wandegi, P. (2012). Assessment of causes of labor turnover in three- and five-star-rated hotels in Kenya. International Journal of Business and Social Sciences, 3(15), 311–317.
• Nel, P., Werner, A., Botha, C., Du Plessis, A. Mey, M., Ngalo, O., Poisat, P., & Van Hoek, L. (2014). Human Resource Management. Oxford University Press.
• Rehman, N., & Mubashar, T. (2017). Job stress, Psychological Capital and Turnover Intentions in Employees of Hospitality Industry. Journal of Behavioural Sciences, 27(2), 59–79.
• Additional references to pertinent literature can also be incorporated based on specific research needs.