High Staff Turnover Rate in Hospitality Industry Essay.

High Staff Turnover Rate in Hospitality Industry Essay.


Presents. cordial reception industry is the largest industry around the universe. However. the cordial reception industry is now confronting on a large embarrassment which is the high staff turnover rate. It is a terrible job to the operation of all hotels. First of all. let’s us foremost happen out what is staff turnover rate.High Staff Turnover Rate in Hospitality Industry Essay.


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“Employee Turnover is the Percentage of a company’s employees who leave during a specified period. Although it is most frequently expressed at one-year turnover rate. the computation can be done for shorter or longer periods. ” ( F. John Reh. No date. ) Simply talking it is the rate the company loss their staff. Which is “the figure of employees who leave the company within a period of time” divided by “the mean figure of employees in the company within the same period of time” .High Staff Turnover Rate in Hospitality Industry Essay.


And it is know that there are both good side and bad side of the staff turnover rate. The research worker is traveling to look through the state of affairs go on in hotel industry and happen out what is the consequence that the high staff turnover rate brings to the hotel industry.High Staff Turnover Rate in Hospitality Industry Essay.

In this paper. we are traveling to happen out the ground of high staff turnover rate within hotel industry and besides the solution of this job.

Background Information

Staff Turnover
Is staff turnover rate must be a bad thing to the company? In face no. Within a stable and appropriate of staff turnover rate. it can better the public presentation of the organisation.

First. it can convey in new thought to the organisation. New staff ever will convey some fresh thought. which makes the organisation enable to hold an advanced environment. It is good for making new thoughts and solutions. Besides. it remains the fight of the organisation. Internal turnover allows bing staff move to a suited place that he/she may make a better occupation. And besides. external turnover will allow the bing staff have “sense of crisis” . that their occupation may replace by other campaigners. in order to actuate them to make their occupation better.High Staff Turnover Rate in Hospitality Industry Essay.

A coin has two sides. so as staff turnover. It besides brings a batch of problem to the organisation.

First. it is clip devouring. If a house ever has a high staff turnover rate. which means that this house must pass a batch of clip on enrolling new staffs. Time is ever an of import winning factor in the concern universe. No house will willing to pass a batch of times on happening the suited staffs once more and once more. Alternatively they can utilize that clip to travel a better preparation of staff or do a better work force program. ‘Lowering staff turnover is besides critical in cut downing recruitment bureau costs and the incommodiousness of get downing the hiring procedure. ’ ( Startup World Staff. 19 January 2014 )

Second. the disbursal will be high. If the staff turnover is the external 1. which means that the original staff leave the organisation and therefore the employer need to replace the staff by engaging person from outside the organisation. During the procedure. the organisation will hold expense on recruiting ( advertizement. agent fee. etc. ) and besides preparation. ‘Experts estimate it costs upwards of twice an employee’s wage to happen and develop a replacing. And churn can damage morale among staying employees. ’ ( Three Rivers Press. 2009 )

Third. it may impact the stableness of the operation and development of the organisation. Particularly for the high turnover rates of skilled professionals can present as a hazard to the concern organisation. due to the human capital ( such as accomplishments. preparation. and cognition ) lost.High Staff Turnover Rate in Hospitality Industry Essay.

Fourth. impact the service quality. New staff ever needs a period of clip to acquire familiar with the working environment and occupation. During their version period. the quality of services of occupation public presentation may be affected.

Fifth. the clients resulted chance. The organisation may loss portion of their regular client because of the staff turnover. Some staff may convey their regular client to the new working organisation when they change their occupation.

Current state of affairs

“Worldwide researches have suggested that employee turnover is among the highest in the cordial reception industry. Surveies have shown that the mean turnover degree among non-management hotel employees in the US is about 50 % .
and about 25 % for direction staff. Estimates of mean one-year employee turnover scope from around 60 to 300 per centum. harmonizing to research conducted by the American Hotel and Motel Association. ” ( CHA International 2009 )

Harmonizing to CompData Surveys 2011 BenchmarkPro study. overall employee turnover declined from 18. 7 per centum in 2008 to 14. 4 per centum in 2011. chiefly because the bulk of employees remain with their current employers ( CompData Surveys. 2011 )

For more information. the research done by Nobscot Corporation in 2006 shows that average turnover rates in the United States varied between around 15 per centum yearly for lasting goods fabricating employees to every bit high as 56 per centum for the eating house and cordial reception industry. ( David Ingram. )

All these informations show that the normal staff turnover rate in other industry is about 15 % . This contradistinction shows that the staff turnover rate of the cordial reception is truly high.

The ground of high staff turnover rate in cordial reception industry By analysis the grounds that makes the high staff turnover rate in cordial reception industry. The high staff turnover rate shows that the staffs in cordial reception industry are non so willing to remain in their organisation. What makes this state of affairs go on? It can be divided to 3 types of factors. which are single factors. endeavor factors and industry factors.High Staff Turnover Rate in Hospitality Industry Essay.

Individual factors
First of all. single factors:

Unstable and long working hours
Working in cordial reception industry ever requires employees work for long period of clip. And working overtime is besides ever go on. Employees with personality that more concern on household life and freedom will happen out that they are no longer willing to work in cordial reception industry. as it takes excessively much of their clip and even impact their life. And even for employee that without these sort of personalities. the unstable and long on the job clip will besides gnaw their enthusiasm to work. When employees are tired with the occupation. they will make up one’s mind to discontinue it and go forth the industry to alter another occupation.

Low payment
Money has ever been an of import factors concerned by employees. In cordial reception industry. the pay of front line staffs is normally low or non high. This state of affairs is more serious in China. Front line staffs may happen that the pay degree is excessively low and therefore they become really pay degree sensitive. They will be willing to alter their occupation from one house to another merely because the salary payment in the other house is a small spot higher than what they got in the original house. Beside this. employees in cordial reception will happen out that that the pay degree in other industry such as instruction industry. transporting industry ( etc. ) is higher than cordial reception industry. To gain more money. they will alter their occupation.High Staff Turnover Rate in Hospitality Industry Essay.

Can non reflect dignity
Finding the self-value through your occupation is one of the ground that why people work. It is because the day-to-day in most of the cordial reception industry is simple. drilling and ever the same every twenty-four hours. For illustration. for the nutrient and drink attender. his/her day-to-day occupation is taking order. cleansing tabular arraies. turn uping serviettes. Employees find that they can non reflect their dignity through their occupation. Particularly in cordial reception industry. they hired many immature people. For immature staff. they are more concern about is the things they do is meaningful or non. If they find out that the occupation they do can non supply them a opportunity to reflect their ain personality and self- worth. they may instead to alter a different occupation.

Humdrum occupation content
As we talk above. the day-to-day occupation and work in cordial reception can be really deadening and repetition. A batch of staff can non digest such a deadening life. Particularly for the Y coevals. ( Now. most of the employees are come from coevals Y ) They looking for flexible on the job clip. different occupation undertaking with different challenge. Humdrum occupation content stop many people from acquiring in the cordial reception industry. Relationship with supervisor

This is non merely go oning in cordial reception industry. but besides in other different industries. But it is the truth that a bad/not good relationship between employees and supervisors will impact the employees’ determination about if they will still work in this company or non. If the relation between the employees and supervisor is non good. they will hold bad temper during working. This type of negative emotion encourages them to discontinue the occupation.High Staff Turnover Rate in Hospitality Industry Essay.