Reason for High Turnover Rate of Hospitality Industry in China

Retaining employees is one way the turnover rate can decrease, Branham (2000), focuses on retaining valuable employees by incorporating four key elements. The first key elements is, “be a company that people want to work for”. There are many companies that have been labeled as, “employers of choice”. These employers all have something in common, which is how they value their employers (Branham, 2000). They treat their employees with respect and like family. With being an “employer of choice,” people are the most valuable asset; not just customers but employees too. Many companies go above and beyond for their customers, but not for their employees, yet they wonder why they are losing valuable talent.

A company’s culture can have a huge impact on employment relations. If the organisation encourages staff to be engaged and involved in how business is delivered, they are more likely to be motivated and productive and retention will be higher. Creating a good reputation outside the business can also help with future recruitment.

1. One reason for the high turnover rate of hospitality staff is the fact that many hospitality jobs do not pay well. Personnel usually begin at a lowest wage rate or below which does not fascinate top eminence long-term employees because these employees are always looking for a better paying position. Situations that pay below tiniest net depend entirely on customer satisfaction and liberality. “Tips”. Around the world, the average beginning wait staff personnel is paid $2.15 per hour by their employer. The rest of their revenue is based pay on the urge of their customers. Monetary turn-downs mean fewer consumers, which in turn shrinkage is wage potential. Add this to the fact that many hospitality positions are seasonal and it is not hard to see why hospitality staff turnover can reach high rates quickly.

Many types of studies have been conducted and share the common outcome that performance is often better within the workplace when outcomes are judged as a team rather than specific individuals. Additional studies have been shown than teams are more likely to come up with effective and necessary management tactics than appointing a

Existing studies focus on the impact of teamwork and productivity on implementing, quality improvement. For example developing a culture within the work place where teamwork is a vital necessity can significantly improve performance, effectiveness, efficiency, morale, job satisfaction, unity of purpose, communications, innovative thinking, quality, speed in getting things done, and loyalty to an organization (Warrick, 2014).

The single most critical problem that the managers are facing today is managing the people.This is the most challenging issues that every kind of organizations is dealing with now aday. Organizational behaviour is the study of individual, group and organization as a whole that examines the effect of organizational structure and culture on organizational performance. Therefore, it mostly tries to define the performance and efficiency factors of anorganization.Organizational structure and organizational culture are highly correlated performance factors.It basically defines the appropriate structure of an organization in order to get more thanaverage performance. Organizational culture is a primary factor for employee turnover and job satisfaction (Bolden, 2004). If an organization possesses a strong culture of self-respect and employee affiliation, it is no wonder that the employee retention rate would be very high(Tracy, 2013).In this report, the relationship between organizational culture and organizational structure will be pointed out. While doing so we

Employee turnover can occur for numerous reasons. Employers need to listen to employees’ needs and implement retention strategies to make employees feel valued and involved in order to keep them. The cost of retention is far less more brutal than the cost of employee turnover. Employee turnover has many aspects that will contribute to becoming a lot more money that a company is losing. By recognizing the reason for employee turnover, the cost associated and implementing retention strategies an organization can become a place where everyone will want to work.

A strong organizational culture provides both the company and its employees with direction and stability. The culture within an organization can be powerful enough to effect employee attitude and behavior as well as performance and turnover ratio. According to many scientific studies, there are seven primary characteristics used to define the culture of an organization: innovation and risk taking, outcome orientation, people orientation, team orientation, aggressiveness and stability.

Unknown too many employers in the restaurant industry was the cost of losing an employee is 1.5 times their salary. (Aamondt, M. 2012). In a recent study by Sigma Assessment Systems, stated the third most common reason for employee turnover is company culture. Company culture can be defined as the reward system, the strength of leadership, the ability of the organizations to elicit a sense of commitment on the part of workers, and its development of a sense of shared goals. (Sigmaassessmentsystems.com 2013)

Employees play a pivotal role in delivering customer service to customers and generally speaking companies are aware of that role. However, companies seek out every avenue necessary to keep internal cost at a minimum while being able to offer price commitment. A great deal of these cost reduction strategies maybe the cause of the increase in the latest turnover number in 2014. It was reported that for the past four years prior to 2014 there has been an increase in turnover rate in the accommodation industry. In 2014 According to Bureau of Labor Statistics’ Job Openings and Labor Turnover (JOLTS) program. In 2014 it was reported that restaurant and accommodation sector lost 66.3% of its workforce, this number has a 10% increase from the previous four years. JOLTS breaks down this number into three major components that allow us to see the sum of the parts that makes up the total lost. The data bar chart shows that for the last 8 consecutive years the turn over rate within the Restaurants-and-Accommodations Sector and Private Sector has been constant.

Many may argue that job satisfaction and organizational commitment are the same, but they are actually different.

Interest in the area of corporate culture is said to have originated in the 1970s as a response to the success of Japanese management and the perceived failure of traditional organizational analysis (Hofstede, Neuijen, Ohayv & Sanders, 1990; Ouchi, 1985; Martin & Frost, 1999). Since then, research has flourished, with particular emphasis placed on the link between culture and corporate performance (Kilmann, Saxton & Serpa, 1985). Observations of the most well-known, best run companies, like IBM and Google, seem to suggest that having a unique, cohesive culture can propel a company above the competition (Kilmann et al., 1985). Following from this, it makes sense that figuring out how to control culture to achieve competitive advantage has received a lot of attention from scholars and management alike (Anthony, 1994).

Organizational culture is the unspoken, informal awareness that both guides employees’ behaviors, and creates their behaviors, according to Stacey and Triandis (as cited in Ginter, Duncan, & Swayne, 2013, p. 349). We must recognize that there is a causal relationship between organizational culture and employees’ actual behaviors. Ginter et al. (2013) explains that an organization creates mission, vision, and value statements to make clear, to project their image of who they are, what they want to accomplish, and how employees are expected to behave. When employees are in agreement with these elements, the organization can say this is their shared assumptions. On the other hand, shared values represent employees’ perceptions of how things should be done, which may or may not, be in harmony with how the organization cares to portray itself. Whether aligned or misaligned, it is nevertheless the actual behaviors that create organizational culture. These behavioral patterns can stem from strategies that employees espouse as a means of surviving in the organization (Cooke & Rousseau, as cited in Rovithis et al., 2016, p.2). This paper discusses the powerful impact an organizational culture can have on strategic development. Examples are provided on how culture can contribute or hinder success within one organization, McLean Hospital.

A strong positive organizational culture develops from employee awareness of the distinct differences between their company and other companies along with company mindfulness and embracing cultural diversity of its employees. As long as the organizational uniqueness of companies is positive, company pride among employees expands and improves the employees’ willingness to learn. Conversely, disinterested employees lack commitment to their company and lack desire to learn, making training more difficult.

“A study on the role of perceived organizational support and job satisfaction on organizational commitment with reference to employees in Wellfit Auto Industries. “