Reducing Employee Turnover in Hospitality
Reducing Employee Turnover in Hospitality
Introduction
High level of employee turnover continues to be the most serious challenge in the hospitality industry (Hinkin & Tracey, 2000; Wasmuth & Davis, 1983). The hospitality industry has an exceptionally high turnover rate compared to other industries. * Definition of employee turnover
Price (1977) defined employee turnover as “the ratio of the number of organization members who have left during the period being considered divided by the average number of people in that organization during the period.” Meanwhile, Woods and Schmidgall (1995) focused on the entire process in the organization during a period. They prefer to employee turnover as “each time a position is vacated, either voluntarily or involuntarily, a new employee must be hired and trained. This replacement cycle is known as turnover.” * Purpose of study
The purpose of this study is to reduce the high employee turnover in hospitality industry focusing on causes and influences of employee turnover and retention strategies adopted to keep low turnover rate. The following research objectives guide this study. 1. To determine the causes for employee turnover 2. To state the positive and negatives influences of employee turnover 3. To examine the retention strategies used to keep employee turnover low
The Causes of Employee Turnover
In order to take the necessary steps for recruiting and retaining well-qualified personnel, the first thing the company should do is to determine what the common causes of employee turnover are. According to an article, causes of turnover can be divided into three key categories (Cotton and Tuttle, 1986). The first and most common one is called work-related factors. These factors have direct and strong effects on turnover which include pay, job performance, role clarity, task repetitiveness, job satisfaction, and organizational commitment (Cotton and Tuttle, 1986). Within the work-related
Introduction
High level of employee turnover continues to be the most serious challenge in the hospitality industry (Hinkin & Tracey, 2000; Wasmuth & Davis, 1983). The hospitality industry has an exceptionally high turnover rate compared to other industries. * Definition of employee turnover
Price (1977) defined employee turnover as “the ratio of the number of organization members who have left during the period being considered divided by the average number of people in that organization during the period.” Meanwhile, Woods and Schmidgall (1995) focused on the entire process in the organization during a period. They prefer to employee turnover as “each time a position is vacated, either voluntarily or involuntarily, a new employee must be hired and trained. This replacement cycle is known as turnover.” * Purpose of study
The purpose of this study is to reduce the high employee turnover in hospitality industry focusing on causes and influences of employee turnover and retention strategies adopted to keep low turnover rate. The following research objectives guide this study. 1. To determine the causes for employee turnover 2. To state the positive and negatives influences of employee turnover 3. To examine the retention strategies used to keep employee turnover low
The Causes of Employee Turnover
In order to take the necessary steps for recruiting and retaining well-qualified personnel, the first thing the company should do is to determine what the common causes of employee turnover are. According to an article, causes of turnover can be divided into three key categories (Cotton and Tuttle, 1986). The first and most common one is called work-related factors. These factors have direct and strong effects on turnover which include pay, job performance, role clarity, task repetitiveness, job satisfaction, and organizational commitment (Cotton and Tuttle, 1986). Within the work-related