The hotel industry in the UK remains with the highest level of staff turnover. The hotels are badly affected by the highest level of staff turnover. It puts a negative impact on the business performance. The staff turnover is generally high in the hotel sector. It is due to the short-term nature of employment such as students wanting to work for short term period even at low pay. In the case of the Imperial Hotel, the turnover of staff is high particularly in the frontline staff. The interviews were conducted with leaving staff which helped to identify various issues such as poor work culture in the hotel, aggressive management style, lack of proper training, poor pay scale, less opportunity for promotions and more. The high level of staff turnover puts an impact on the staffing budgets. The cost of staff runs around 35% of sales which is high for the hotel. The need for hiring new staff has increased training costs which have put a negative impact on the quality of service provided to guests. It is causing a reduction in the number of regular guests and making bookings in other hotels.
The high staff turnover causes dissatisfaction among employees caused by poor relationships with managers, poor working conditions and lack of training opportunities. As a consultant, Peter Farnsworth analyzed the problem of high staff turnover to reduce the negative impact on the business performance of the Imperial hotel. The impact on the quality due to the comprising quality puts an impact on it’s long-term sustainability.
The hotel industry comprises both service and production feature. The formation and execution of services from the hotel to the staff can be realised through staff only. The industry is signified by people so it is considered a labor-intensive industry. The Imperial hotel is facing the problem of high staff turnover along with the problem of staff leaving. The turnover in the hotel industry is considered to be excessively high. It turnover averages 200% to 300% per year. The danger contributes to the highest staff turnover are discrimination in the workplace, shortage of skills, recruitment and selection, job satisfaction and more. These factors contribute to the high level of staff turnover in the hotel industry (Akgunduz & Sanli, 2017). According to Peter, the previous manager has a role in such a condition as democratic approaches can be used at the time of consulting staff. Such an approach helps in selecting staff through the efficient recruitment step including HRM, training, development, and benefit. The industry can achieve success only if it takes the necessary steps to reduce the issues. The higher staff turnover comprises recruitment and additional costs, and loyal consumers moving to other hotels. There are some challenges which are faced being a part of groups such as poor guest satisfaction, destructive work culture, ineffective leadership and management, the poor working of front house staff and the poor control procedures. There are some practices which can be adopted by the other hotels (Zopiatis, Constanti & Theocharous, 2014).
The hotel industry in the UK has the highest staff turnover along with the leavers hitting 41%. Various hotels are badly affected due to the high level of staff turnover. According to Lu, Lu, Gursoy & Neale, 2016, there are four reasons that have put a negative impact on the business performance of Imperial hotels such as change of profession, promotions outside the company, pay scale and lack of career development (Lu, Lu, Gursoy & Neale, 2016). The employee dissatisfaction is caused in the hotels due to the several factors such as poor relationships with managers and lack of career development. The turnover of staff is high in the Imperial hotel for the frontline staff. The major challenge faced by the human resource is a shortage of skills in the job. The hotel industry has suffered from the constant recruitment difficulties. It caused immense pressure on the HR executives to attract staff in the organization to gain a sustainable competitive advantage such as. The factors create pressure on the managers are lack of communication skills and potential abilities to apply for the job in the same industry (Mahal, 2018). There is a collective culture which shares value among all the members of the hotel. As per this culture, the staff is encouraged to do what is best for the hotel. There is traditional work culture in the Imperial and highest staff at front office which is actually more than required and do not contributes to the productivity and are sometimes rude to the guests (Wong & Li, 2015). These issues reflect a negative work culture.
The high staff turnover and the leaving staff is the troubling issue for the Imperial hotel. It is the association of people into and out of employment within a business. The reasons for leaving an organization can be categorized into a controllable and unavoidable turnover. The staff is leaving Imperial due to the poor work culture, distant working hours, lack of appropriate and consistent training and fewer opportunities for promotion (Yavas, Karatepe & Babakus, 2018). The young and talented staff also leave the organization as other hotels offer better pay and the working conditions. The factors are also identified which have an impact on the high staff turnover such as recruitment and selection procedure, refinement at the workplace, organizational culture, training and development, management styles and job satisfaction (Markova, Anna, Williams & Shaw, 2016). There has been always concern about high staff turnover and it’s associated costs.
The high staff turnover puts stress on the staffing budget and costs around 35% of sales of the hotel. Such percentage is high for Imperial. The process of employing new staff has augmented the training costs as a result; it puts a negative impact on the quality of service. There is an evolving cycle which is connected to the higher level of staff turnover which consequently affects the whole organization (Guilding, Lamminmaki & McManus, 2014). There is decreased job satisfaction due to lack of commitment and intention to leave the hotel. It represents attendance problems, poor work performance, and work stress.
The high staff turnover comprises the standard of quality service which results in losing loyal customers and long-term sustainability. If the established staff leave the hotel then it increases the workload on the remaining staff of the hotel. It is hard for an organization to expect the same level of service from the freshly appointed employees as they will be in the process of learning and the associated tasks and duties of the job. Moreover, if the staff leave on the consistent basis then it generates extra workload for the lasting staff. They become depressed and do not deliver their best performance. It also leads to the absenteeism and their health deteriorates (Rahimi & Gunlu, 2016).
The highest staff turnover also puts financial implication on the hotels. The cost linked with switching staff can be divided into rigid, soft and opportunity costs. The rigid costs are the costs spend on the newspaper advertisements, advertisement on recruitment agencies and more. The hard costs have a direct impact on the organization (Qiu, Haobin Ye, Hung & York, 2015). The soft costs are the costs spend on interviewing new recruits and exit interviews. These costs are not shown in the account statements of the company. The opportunity costs can be considered as neglected customers and market shares. It is immeasurable but can reduce the company’s profitability and competitive advantage. The five costs are categorized which contributes to total costs of interchanging an employee. These are pre-departure, staffing, selection, orientation and training and lost productivity (Williams & Owusu-Acheampong, 2016).
The management theories are general rules which guide managers in order to manage an organization. It effectively relates employees to the business goals. It motivates employees to perform up to the highest standard. The management systems have become more human-centered in the twentieth century (Tuczek, Castka & Wakolbinger, 2018). The human relations theory can be applied to solve the problem faced by the Imperial hotel which is the highest staff turnover. This theory emphasizes the capacities of individuals in order to act autonomously and creatively. It can help to the Imperial by gearing management towards bringing out the potential individuals they hire. The human relations theory emphasize the importance of bringing into line the need of workers with the needs of the company and implementing policies aiming at the mutual benefits of both. The productivity is the main focus of this theory and proves the prominence of people for productivity. The human relations management theory enables people to be a part of the supportive team which assists development and growth (Dahlgaard-Park, Reyes & Chen, 2018). This theory can be helpful to the company by employing the potential staff and leaving apart the staff which is not capable of performing the tasks. The company can save itself from the burden of the highest staff turnover as it helps to bring out the staff that does not create any productivity. The capable staff will make all the efforts to be part of a compassionate team which simplifies development and growth. This theory encourages to be participative and motivates to be more productive (Thompson, 2017).
There are two factors such as changes in the payment and working conditions which influences the employees and their work productivity and makes them shift to other organization. The human relations theory identifies a number of issues such as poor perception of work culture by employing a proper and regular training (Sen, 2017). It can help out to engage the staff in Imperial who are likely to leave by improving pay levels, by providing an opportunity for promotions, low cost of traveling, improved working conditions and benefits. This theory also reduces the burden of high staff turnover by bringing out the employees who do not increase any productivity. It helps in reducing induction training costs and the staff who puts a negative impression on the eminence of the service offered to the guests. Such staff decreases work performance and increases work pressure on the potential staff. Application of such theory is going to increase the attention of workers by the increased motivation and productivity. The motivation theory also has a role in the human relations theory as it undertakes 5 basic needs such as physiological, safety, love, esteem and self-actualization to ensure needs of employees are met (Kotera, Adhikari & Van Gordon, 2018). The employees are going to contribute more towards Imperial if they feel responsible and valued. If the employees are treated with value and respect than the individual efficiency and quality is going to support the team of Imperial. The employees can be engaged in the organization by rewarding them at the workplace and seek for efficiency through the leadership, motivation, and communication.
For the effective management of the problem, certain suggestions are given by the Peter Farnsworth given below:
The suggestions provided by the Peter can definitely improve the problem such as retention of employees in the organization due to poor work culture. The high staff turnover can be resolved by the implementation of hard practices as suggested by the Peter.
The disadvantage of the suggestions given by Peter can cost more to the Imperial as the standard pay scale reduces the profits of the organization. The higher packages and reward policies cost more to the hotel.
Conclusion:
The highest staff turnover and the leaving staff is the problem which is confronted by the Imperial Hotel. It is generally due to the temporary nature of employment. It is mainly high in the frontline staff. The issue of high staff turnover identifies issues such as antisocial working hours, lack of suitable and regular training and poor pay levels. It also puts pressure on the budget with staff costs. The human relations theory of management is used to solve the problems of the Imperial hotel in the short and long run. It could help Imperial by employing the potential staff and leaving apart the staff which is not capable of performing the tasks. The hotel can save itself from the burden of the highest staff turnover as it helps to bring out the staff that does not create any productivity. The capable staff will make all the efforts to be part of a compassionate team which assists development and growth. The suggestions made by the Peter can help to sustain employees for a long time by providing incentives and promotions. It can help to reduce the leaving staff from 80% within 1 year.
References:
Akgunduz, Y. and Sanli, S.C., 2017. The effect of employee advocacy and perceived organizational support on job embeddedness and turnover intention in hotels. Journal of Hospitality and Tourism Management, 31, pp.118-125.
Dahlgaard-Park, S.M., Reyes, L. and Chen, C.K., 2018. The evolution and convergence of total quality management and management theories. Total Quality Management & Business Excellence, pp.1-21.
Guilding, C., Lamminmaki, D. and McManus, L., 2014. Staff turnover costs: In search of accountability. International Journal of Hospitality Management, 36, pp.231-243.
Kotera, Y., Adhikari, P. and Van Gordon, W., 2018. Motivation Types and Mental Health of UK Hospitality Workers. International journal of mental health and addiction, 16(3), pp.751-763.
Lu, L., Lu, A.C.C., Gursoy, D. and Neale, N.R., 2016. Work engagement, job satisfaction, and turnover intentions: A comparison between supervisors and line-level employees. International Journal of Contemporary Hospitality Management, 28(4), pp.737-761.
Mahal, P.K., 2018. Organizational Factors Affecting Job Outcomes: An Empirical Study of Hotel Industry. Journal of Applied Management-Jidnyasa, 10(1), pp.21-37.
Markova, E., Anna, P., Williams, A.M. and Shaw, G., 2016. Migrant workers in small London hotels: Employment, recruitment and distribution. European Urban and Regional Studies, 23(3), pp.406-421.
Qiu, H., Haobin Ye, B., Hung, K. and York, Q.Y., 2015. Exploring antecedents of employee turnover Intention–evidence of China’s hotel industry. Journal of China Tourism Research, 11(1), pp.53-66.
Rahimi, R. and Gunlu, E., 2016. Implementing customer relationship management (CRM) in hotel industry from organizational culture perspective: case of a chain hotel in the UK. International Journal of Contemporary Hospitality Management, 28(1), pp.89-112.
Sen, A., 2017. Elements of a theory of human rights. In Justice and the Capabilities Approach (pp. 221-262). Routledge.
Thompson, J.D., 2017. Organizations in action: Social science bases of administrative theory. Routledge.
Tuczek, F., Castka, P. and Wakolbinger, T., 2018. A review of management theories in the context of quality, environmental and social responsibility voluntary standards. Journal of Cleaner Production, 176, pp.399-416.
Williams, A. and Owusu-Acheampong, E., 2016. Human resource management practices and their effect on employee turnover in the hotel industry in Cape Coast, Ghana. Global Journal of Human Resource Management, 4(4), pp.35-45.
Wong, S.C.K. and Li, J.S., 2015. Will hotel employees’ perception of unethical managerial behavior affect their job satisfaction? A study of Chinese hotel employees in China. International Journal of Contemporary Hospitality Management, 27(5), pp.853-877.
Yavas, U., Karatepe, O.M. and Babakus, E., 2018. Does positive affectivity moderate the effect of burnout on job outcomes? An empirical investigation among hotel employees. Journal of Human Resources in Hospitality & Tourism, pp.1-15.
Zopiatis, A., Constanti, P. and Theocharous, A.L., 2014. Job involvement, commitment, satisfaction and turnover: Evidence from hotel employees in Cyprus. Tourism Management, 41, pp.129-140.
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