Hospitality and tourism is among the fastest growing and developing industries across the globe. The needs and demand of the people are changing. The industry has been adapting to provide high level of satisfaction to the consumers. They have been focusing on their service model which includes integrated production and consumption, intangibility due to service and heterogeneity (Blomme, Van Rheede and Tromp, 2010). The main factor which leads to the growth of the company is human factor and service. Employees, workers and human resources play a crucial role in the success of the organisation. They are among the decisive factors which help in building the brand. The management needs the support of their staff members to achieve the objectives of the organisation. They have to ensure that their employees understand the goals and objectives of the company. It allows them to perform their tasks in an efficient manner (Robinson, Kralj, Solnet and Callan, 2014). But the main problem with the hospitality sector is their high employee turnover ratio.
Hospitality industry is entirely dependent on their labour as it is labour intensive. The high turnover ratio in the industry has made it difficult for the companies to accomplish their goals. Excessive employee turnover can be very costly and it directly affects the profitability. The management has to invest their funds in recruitment and training of the workforce (Tews, Stafford and Michel, 2014). Furthermore, it takes long time for the employees to gain expertise in their work. Apart from this, high turnover indicates that workers in hospitality industry have low morale and satisfaction. They are performing their work to their full capacity. There can be numerous reasons which have led to the increase of turnover ratio in the industry. It includes lack of training, long working hours, low pay, lack of participation, in effective leadership etc (Nadiri and Tanova, 2010). It is essential for the management to understand the needs and preferences of the employees. They have to be provided with all the facilities which allow them to perform their work in a better way. It has direct impacts on the service quality of the workers. The biggest issue which has been faced by the management is retention of workers (Iverson and Deery, 1997). They have not been able to develop strategies and policies to resolve this problem.
The main of this research is to determine the impact of employee turnover on organization’s objectives in hospitality industry. In order to achieve this objective, Hilton Hotel has been taken to understand the possible causes of the turnover and its impacts on the organization. Hilton Hotel is a global brand which has its operations in more than 570 locations. They provide high quality services and follow the standards laid down by the management. Hilton Sydney is a deluxe hotel which is located in Sydney, New South Wales, Australia. It has won many awards due to its excellent customer service and friendly staff members. But they have been facing problems due to their high employee turnover ratio. They have to provide training to the new members which affects their quality as well as efficiency. High employee turnover has affected their business and profitability. They have not been able to achieve their organizational objectives due to lack of support and contribution from the workers.
The present research will help in understanding the role of employees, possible reasons and outcomes of high turnover ratio on the company. It will allow the researcher to evaluate the factors which can reduce the turnover of the staff members. Literature review has been used in the study to gain deeper understanding in the subject matter. It will help in improving the relations between the management and the staff members. They will be able to provide them with all the necessary requirements which will enhance their satisfaction level. It will also allow the company to focus on their short and long term goals (Kusluvan, Ilhan, and Buyruk, 2010).
There have been numerous researches and many authors have provided important information regarding the employee turnover in hospitality sector. Their main focus has been on identification of possible causes and its impacts on the organisation. They have explored the impacts of employee turnover on the objectives of the company.
According to Bonn,and Forbringer, 1992, “Hospitality industry has been growing at a rapid pace but they have problems in retaining staff members” (Bonn,and Forbringer, 1992). The management has not been able to attract highly skilled and competent workforce in their organisation. Most of the people do not consider it an industry which can build their careers. Furthermore, it affects the business because they have no persistency in delivering the same level of services to the customers. On the contrary, Kusluvan, Ilhan, and Buyruk, 2010 believes that “Mild turnover opens up new opportunities for the other staff members” (Kusluvan, Ilhan, and Buyruk, 2010). It can be beneficial for the workers as they get a chance a get one step up in the organisational ladder. Furthermore, it allows young professionals to join the company. They bring new ideas, innovation and creativity in the workplace. But high turnover can be detrimental for the interest of the company. But in hospitality industry the staff turnover ratio is about 50- 80%. It means that every year 50% of the workers are replaced in a single organisation. As per Deery and Jago, 2015 “It is an alarming situation for the companies in hospitality sector” (Deery and Jago, 2015). They have the highest turnover as compared to other industries. Brown, Thomas and Bosselman, 2015 states that “Companies tend to underestimate the cost of their employee turnover rate” (Brown, Thomas and Bosselman, 2015). The main reason is that it is not budgeted or compared with any standards. Moreover, they do not any vouchers or statements which will help them to analyse the tenure cost of turnover. According to Dusek, Ruppel, Yurova and Clarke, 2014 “The employee turnover in a hospitality company is $13,000 approximately on an average” (Dusek, Ruppel, Yurova and Clarke, 2014). The employee turnover ratio is high in all the hotels across the globe. It has been estimated that it ranges from 55% to 200% in an annual basis. Apart from this, it ahs negative impacts on the growth and development of the companies. The loss can be direct or indirect but it severely affects the survival of the business in a region. The management finds it difficult to develop coordination and integration between new workers and existing staff members. They have to perform this activities numerous times. It does not allow the company to work on its full potential to gain expertise in their business. Moreover, the morale, productivity as well as the reputation of the company gets negative effects. Qiu, Haobin, Hung and York, 2015 states that “High turnover implies that employees are not satisfied with the working conditions or the management has unrealistic expectations from them” (Qiu, Haobin, Hung and York, 2015). It can also be due to poor screening or lack of training provided to the workers. Low turnover means that all the facilities are provided to the employees which make them happy and satisfied with their work.
As per Tews, Stafford and Michel, 2014 “Employee turnover means cessation of employment or membership” (Tews, Stafford and Michel, 2014). On the other hand, from the point of view of business it means loss of staff members. There can be many factors which affect the level of employee satisfaction. It can be from the employer or by employees himself. It includes salaries, workload, management issues, leadership, job performance, work culture, behaviour of other etc. Apart from this, a bad working environment increases the rate of employee dissatisfaction. Zopiatis, Constanti and Theocharous, 2014 states that “Even highly skilled professionals and professionals may find it difficult to work in bad working environment” (Zopiatis, Constanti and Theocharous, 2014). They will also resign form their work due to dissatisfaction.
It is beneficial for the organisation to understand the entire process of turnover. It will allow them to find out the problems and issues in their workplace. They can make changes in it to align it with the long term objectives of the organisation. As per Vasquez, 2014 “dissatisfaction in job forces a person to think about quitting the job” (Vasquez, 2014). It induces the behaviour for the search of new job. Afterwards, he quits the job which is known as voluntary turnover. Comparative test of employee turnover prediction model suggests that there is link between intentions and the turnover of the employees. Apart from this, there is also involuntary turnover. It includes firing, downsizing, compulsory retirement etc. Voluntary turnover involves moving across the boundaries of the company (Kim, 2014). The withdrawals include lateness and absenteeism. Involuntary turnover can be due to change in the organisation or due to any constraints in the institution. Similarly, it can be bifurcated into internal or external. Internal turnover means changing the job within the organisation. It involves leaving one position for the other one but in the same company. It can have positive or negative effects on the company. But it can be controlled by the HR manager of the organisation. It can be moderated to provide benefits to the company (AlBattat and Som, 2013). They have many methods and tools to control it such as succession planning, recruitment policy etc. According to Australian Statistics Bureau, the rate of people quitting job due to voluntary reasons have increased from the past. It is important for the companies to design methods to retain their workers. They have to review their policies and changes have to be made in it. It will allow them to get more close with their workers which will have long term benefits for them (Kusluvan, Ilhan, and Buyruk, 2010).
According to Lu and Gursoy, 2016 “Most of the companies believe that employee turnover can be reduced if all the issues related to the organisation are assessed” (Lu and Gursoy, 2016). They provide benefits and invectives to their workers to increase their morale. It includes flexibility, work family balance, appraisal, sick leaves, bonuses etc. But it has been seen that flexibility and wages are the main factors which leads to dissatisfaction in the workers. Hotel industry has long working hours which can also get extended during the peak season. Furthermore, the pay scale of the employees is not as per their satisfaction level. There are numerous hotels which are providing them better facilities and income structures. The availability of many options forces the employee to resort to resignation from the job. As per Jung and Yoon, 2014 “Companies should provide additional benefits to retain their workers” (Jung and Yoon, 2014). It will have positive impact on both replacement cost as well as the performance of the organisation. It is a cost for short term period which will have long term benefits for the company. Along with this, it is important for a company to carte a difference between turnover and the intention. Intention includes probability of staying or leaving. While turnover is quitting the job. Voluntary turnover and intentions are related to each other. For instance, many employees in the hotel are not given proper training and guidance to do their job. Their inefficiency and low productivity increases the level of frustration in them. They look for opportunities to leave the job. On the contrary,Robinson, Kralj, Solnet and Callan, 2014 believes that “Giving rewards to the workers is an effective method which makes them feel that they are appreciated for the good work” (Robinson, Kralj, Solnet and Callan, 2014). They will stay with the company for along period of time. It allows the business to perform to its full potential and they are able to achieve their objectives. They motivate workers and help them to reach to their best level.
As per Kim, Im and Hwang, 2015 “Induction crisis has been affecting the growth of the hospitality sector” (Kim, Im and Hwang, 2015). It occurs when a new member does not get involve with the existing members of the organisation. It can be due to the result of poor recruitment, lack of training or not allowing the members to build relations with others. It is essential for a company to allow its workers to build relations with other workers, supervisors and managers. This is an important aspect which leads to retaining of employees. Apart from this, there are ample of opportunities in the sector which gives options to the employees to switch. On the contrary, Bonn,and Forbringer, 1992 believes that “Employees remain in the job even though better options are available to them. It can be due long term relations, employment conditions and advancement opportunities” (Bonn,and Forbringer, 1992). Similarly, work life balance, non work influences and personal likes and dislikes affect his behaviour. According to Zopiatis, Constanti and Theocharous, 2014 “Training and development can be a useful method to retain the workers” (Zopiatis, Constanti and Theocharous, 2014). Organisations should do appraisals, draw career advancement graph and use development programs for their advantage. It will not only allow them to retain employees but they will be able to achieve their main goals. They can continue to provide improvements which will enhance their overall business performance.
Trust and expectation from the employer is yet another aspect which influences the intention of the workers. Hotels should take into consideration the health, safety and well being of their staff members (Vasquez, 2014). It builds trust which brings integration in the entire organisation. Moreover, career advancement and intentions of turnover are linked with each other.
|
Causes |
Consequences |
Impact |
|
Employer or organisation |
Not able to get along with the supervisor. |
Direct impact of the customer service and quality of work. |
|
Roles, responsibility and job characteristics |
Dissatisfaction due to lack of status, competencies, appraisal, career growth etc. |
Not able to achieve organisational goals |
|
Culture |
Workplace culture |
Ineffective HRM strategies can have affects on productivity and efficiency. |
|
Expectations from workers |
Poor screening, lack of integration and insufficient care. |
High cost of turnover which are not aligned with organisational goals |
|
Demographics |
Age, mobility, dependency, life stage and job mobility. |
Lack of commitment and loyalty |
|
Person |
Own likes and dislikes |
Low commitment |
Research Questions
Research And Student Learning
According to Poesen, Nachtergaele, Verstraeten and Valentin (2003), research can be defined as analyzing a problem carefully or performing detailed study of a particular issue through utilizing certain specific scientific methods. Research can be performed on a non scientific, IT, scientific or any other topic. For the purpose of doing a research, firstly we need to have an issue or a topic on which research can be performed. The research should have pertinent questions which can be answered. There are certain steps which need to be followed while doing a research like observation, background research, preparation of hypothesis and then conducting simple experiment.
Research is quite essential for students as it aids them in having detailed analysis about everything. Polster (2007) has however stated the following benefits of research to the students:
Learning Theories:
Story (2012) has defined learning theories as an organized set of the principles which explains thw way in which individuals retain, recall and acquire knowledge. By knowing and studying the various learning theories, a better learning can be provided to the students. Sincero (2017) had however added that principles of theories can be utilized as the guidelines which can help in selecting the instructional techniques, strategies and tools which promote learning.
According to Quinsey, Harris, Rice and Cormier (2003), following are the learning theories:
Constructivism is based on thought process behind behavior. This theory is based upon the idea which individuals process the information which they receive, and not just responding to the stimuli. The changes in the behavior are also observed as indicator.
Story (2012) has stated that Cognitive Information Processing is quite helpful while performing a research. It helps in various ways; some of them are as follows:
Research Methodology
Research methodology is a detailed and well defined aspect of research evaluation. It helps the researcher in analysing the strategies and techniques which could be adopted in order to enhance research outcomes in a structured and reliable manner. The current study aims at determining the impact of employee turnover on organization’s objectives in hospitality industry. In order to develop a detailed and well defined analysis of the same researcher adopted effective measures and techniques. The topic focuses on evaluating the human perspective while working in the hospitality industry. In order to develop a successful impact of the stated topic on student learning a structured research methodology will be applied (Hon, Chan and 2013). Interpretivism philosophy will has been undertaken for the topic as it focuses on analyzing the social perspective and issues for the researcher. This philosophy will help in developing a detailed and well defined analysis of employee perception in the work place while analyzing different issues and strategies used. The previous analysis reveals that the research topic is critical and has been widely discussed. In order to attain appropriate and reliable results for the analysis inductive research approach has been adopted. This will help in attaining a clear and effective picture of research evaluation. For this, research questions will be developed by the researcher which has created an effective understanding about the subject. The research type for the current study is descriptive which will help in developing a concrete base for the study. It will analyze the theories analyzed and will discuss the same to develop a clear and effective research conclusion. The study will adopt qualitative research technique for the evaluation. It will be significantly helpful in determining the research issue and develop an effective measure to resolve the same. In order to attain effective and significant result for the study, data collection plays a major role. The researcher will adopt effective means of data collection strategies to gain a well defined insight on the research issue and develop effective evaluation for the same. It will also help in minimizing research limitation related to biasness of the study.
There can be many methods which can be adopted by the companies to reduce their employee turnover. The demands and expectations of the workers should be included in the policies of the company. It should be reviewed at regular intervals so as to adapt to the changing needs of the staff members. The strategies which can be adopted by Hilton Hotel to reduce the problem of high turnover are:
This theory helps in identification of factors which are related to job satisfaction and dissatisfaction. Motivating factors include recognition, challenges, responsibility etc. On the other hand, hygiene factors consist of salary, fringe benefits, job security and status. The absence of these elements can lead to dissatisfaction among the employees (Qiu, Haobin, Hung and York, 2015). Along with this, there are extrinsic factors also which affects work such as policies of the company, supervisors and wages. Companies have to ensure that they provide these facilities which increase the satisfaction level of the workers. The HRM policies and practices such as orientation, employee relations, compensation etc, play an important role in developing the attitude and thinking of the workers. Feedback system, training and development programs and performance appraisals can be very useful in providing positive experience to the staff members (Zopiatis, Constanti and Theocharous, 2014). The vision for the business has to be created and it should be shared with the employees. Communication and interaction is essential at this pint of time. Supervisor and manager can play a crucial role in this aspect. They should not force the employees to follow the goals and objectives of the company. Instead, they should be motivated and encouraged so that they can understand and relate it to their own gaols and career objectives (Robinson, Kralj, Solnet and Callan, 2014). Organisations should evaluate their policies and the lessons learned should be documented. It will allow them assess their current settings and they can make changes accordingly. This stored information can be used to anticipate results and for developing better mechanism for employee relations and development. Benchmarking data can be collected and opportunities can be found to take learning initiatives. It will bring positive results for both employees as well as the organisation (Dusek, Ruppel, Yurova and Clarke, 2014). Companies have to make sure that they transfer the knowledge to the staff members because hotel industry has many employees who lack necessary training and skills to perform their job effectively. There is high competition in the hospitality industry which has made it difficult for them to understand and resolve all the queries of the workers. It is been a challenging situation because it is directly linked to the overall effectiveness of the organisation (Nadiri and Tanova, 2010).
It will allow the management to identify the core competencies and values which have psychological impacts on the work environment as well as the employees (AlBattat and Som, 2013). There are five main characteristic which includes feedback, autonomy, task importance, skills and identity. The psychological impacts related to it are high performance, motivation, satisfaction of job, absenteeism and turnover. The significance of task and identity can be useful in developing intrinsic motivation which can lead to satisfaction of job. Motivation will allow the workers to perform better and they will be able to provide high quality services to the customers (Zopiatis, Constanti and Theocharous, 2014). Manager should ensure that the employees use their skills and they should be given guidance so that they improve their work. Leadership and ineffective supervision has been a problem in the hotel industry. Employees should be given feedback about their performance. It will allow them to identify the potential areas of improvements and they will get more involved in the work. Furthermore, they should be involved in the decision making (Kim, Im and Hwang, 2015). They should be allowed to put forth their views and opinions. It will help them to build strong relations with the company. Hotel industry has many activities and the employees have to take decisions for the benefits of the consumers. Highly committed and loyal workers provide excellent services to the customers. They take decision which is in favor of the visitors. It has long term effects on the end users which increases their satisfaction level. It brings repeat business to the organization. Therefore, it is essential for the managers to create a atmosphere where the workers are given freedom to take decision and use innovative methods to perform their tasks (Tews, Stafford and Michel, 2014). It will develop a positive working environment which will enable the company to achieve their goals and long term objectives. As per….. Highly motivated staff members makes the customer more happy and satisfied. They should be rewarded for they excellent performance. It will motivate them and the others will get influence from it. Hotel industry has long working hours which can also get extended during the peak season. The pay scale of the employees is not as per their satisfaction level. Rewards and recognition can be very beneficial for them to retain them (Bonn,and Forbringer, 1992). The probability of changing job is also reduced with the help of this.
This theory should used by managers to understand the specific requirements of the employees. There are needs which develops over time and change due to life experience. It consists of power, affiliation and achievement. Achievement says that those people who are highly achievement oriented should be given challenging tasks in the organization (Zopiatis, Constanti and Theocharous, 2014). For them monetary benefits are not important but recognition and appreciation is. Affiliation oriented people should be given task which makes them feel above others and important. On the other hand, power oriented people should be given the opportunity to lead other and help in the management of people. It will motivate them and it will solve the problem of the organization which they have been facing due to ineffective leadership. It will help in reducing turnover of the employees.
The current study focuses on determining the impact of employee turnover on organization’s objectives in hospitality industry. Research methods which will adopted in order to attain the stated aim are discussed hence forth.
The time line for the present study has been clearly determined and discussed below. This will help the researcher in developing effective aspects for the evaluation.
Budget is one of the major constraints of research evaluation. It plays a significant role in the success of the study. The present study will be completed in the budget 3500 AUD. It will focus on all he staffing, resource and travelling need of the researcher. A well defined evaluation of the research results will be attained through this.
Effective staff will be needed to attain the research scope and results for the study. The researcher will hire 3 staff for completing the stated research in a stipulated budget and time. The fellow researchers will contribute in the following tasks for the study:
The above mentioned tasks will be efficiently distributed with the staff members. It will help in enhancing the speed and quality of the study thus attaining effective and well defined results for the evaluation.
Conclusion
Employees are an asset of a company and they decide its future. They have to be given all the facilities and resources so that they can perform their duties without any constraints. Similarly, their efforts should be appreciated which will boost their morale. They will become more dedicated and loyal towards the organization. Hospitality industry is entirely dependent on their workers and high turnover ratio in the industry has made it difficult for them to accomplish their goals (Bonn,and Forbringer, 1992). The management needs the support of their employees to ensure that the goals and objectives of the company are understood by them. It allows them to perform their tasks in a better manner. They have to be involved in the decision making process. Apart from this, the management should take their feedback and the policies should be changed as per it. Their demands and expectations should be included (Dusek, Ruppel, Yurova and Clarke, 2014). It should be reviewed at regular intervals to adapt to the changing needs of the workers. High turnover has affected the goals and objectives of Hilton hotel. They have not been able to provide excellent services to their customers. he main reason is that workers need time and experience to gain high level of competency and expertise in the work. But when they leave the job the training process has to be repeated to the new member. It not only increases the cost of the company but they are not able to maintain the same level of services (Deery and Jago, 2015). Lack of consistency and quality in the customer services affects the satisfaction level of the customers. They tend to move to other hotels which provide better level of services. They are many hotels in Australia which can provide similar products and services. It creates pressure on the management on Hilton Hotel which starts expecting more from their workers. Employees have to work for long hours so as to achieve the strategies of the company. They are not provided with facilities which they expect from the firm (Tews, Stafford and Michel, 2014). Apparently, the business is not able to achieve their objectives due to their low performance. It affects the reputation and brand image in the market. Business objectives are the measure of performance for a company. It is the ultimate goal which has to be achieved by the management. It will be better for Hilton group to focus on their goals and provide all the facilities to the workers.
The main causes of dissatisfaction and intention of the employees have to be assessed. They have to review their policies and changes have to be made in it to retain the workers. It will allow them to get more close with their workers which will have long term benefits for them (Blomme, Van Rheede and Tromp, 2010). Literature review has been used in the research to gain deeper understanding in improving the relations between the management and employees. All the necessary requirements which will enhance their satisfaction level have to be provided. It will enable the company to focus on their short and long term goals. They will be able to their targets and expectations from the business.
References
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