Reducing Employee Turnover in Hospitality

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Reducing Employee Turnover in Hospitality Introduction High level of employee turnover continues to be the most serious challenge in the hospitality industry (Hinkin & Tracey, 2000; Wasmuth & Davis, 1983). The hospitality industry has an exceptionally high turnover rate compared to other industries. * Definition of employee turnover Price (1977) defined employee turnover as “the ratio of the number of organization members who have left during the period being considered divided by the average number of people in that organization during the period.” Meanwhile, Woods and Schmidgall (1995) focused on the entire process in the organization during a period. They prefer to employee turnover as “each time a position is vacated,…show more content…
Besides, there are negative impacts on customer service and satisfaction (Jang, B. S. J., 2008). In other words, high turnover is more likely to provide poor customer service and can ultimately lead to customer dissatisfaction. Anecdotal evidence illustrates that in a company experiencing 150% turnover, customers are continually being served by new employees (Wood & Macaulay, 1989). Strategies of Reducing Employee Turnover Imagine--you have been working late to finish an important project when your project manager walks into your office and tells you she has been offered a better job. This is the same person you handpicked, trained, and recently gave a pay raise. As she turns to depart she says, “There are others thinking about leaving too.” What went wrong? How are you going to finish this project? Who will be next to leave? The dread is starting to sink in (Smith, 2007). As Employers, they face enormous challenges when they consider the increasing difficulty of finding skilled people, a more demanding younger workforce, and a growing population of older workers heading toward retirement. Money and benefits are important, but studies show most employees leave for other reasons. Obviously, a certain degree of turnover is unavoidable, but with a small amount of effort organizations can make a major difference. For a company to develop a retention strategy, employers must
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