The paper main purpose of this paper is analyzes the issue of turnover culture, causes of turnover, negative effects of turnover, and offers suggestions for curtailing the rate of turnover in the industry. The problem of this article is that employee turnover continues to plague the leisure, tourism and hospitality industry as keeping and retaining employees become a huge issue. A common estimate is that employee turnover costs 1. 5 times the departing employee’s income. Unemployment rate rose from 7. 6 to 8. 1%, the Bureau of Labor Statistics of the U. S.
Department of Labor reported in the month of March, 2009. High turnover can be harmful to a company’s productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers. The hypothesis insist that if employee turnover has “both direct and indirect costs. ” Direct cost relate to the leaving costs, replacement costs and transitions costs, while indirect costs relate to the loss of production, reduced performance levels, unnecessary overtime and low morale, than that means that these factors negatively effecting the hotel in a whole.
The research design for this study was mainly a examination of hotel employees that has left an five star hotel. Iverson & Deery (1997) report a study which examined the influence of turnover culture on an employee’s decision to stay or leave. This study was conducted by testing a causal model of employee intent to leave using a sample of 246 employees from 6 five-star accommodation hotels in Australia.
As expected, the results indicated that turnover culture was the most important determinant of intent to leave, followed by the variables of job search behavior, job opportunity, organizational commitment, union loyalty, job satisfaction, career development, reutilization, promotional opportunity, role conflict and negative affectivity. The conclusions drawn and recommendation are made warranted based on the results because Research has indicated that when employees consistently fail to accomplish organizational targets, this might be a hint that training is needed.
Availability of instruction programs coupled with development opportunities will keep employees motivated. A highly motivated employee is a happy employee and a happy employee is a productive employee. In general I think this study is a very important and interesting because if the high turnover rate is negatively affecting the hotel industry, and I never knew that turnover was one of the highest in the hotel industry.