What Factors Contribute to the High Employee Turnover Rate in the Budget Hotels in China

3575 Words Jan 19th, 2011 15 Pages
Introduction
Due to the year of 2008, we have had two thousand eight hundred and five budget hotels in China. When we are surprised in the expending speed of budget hotels in China, they recruit too many employees without considering the high labor cost and management issue, which finally lead to a high employee turnover rate in the budget hotel industry. In the year of 2009, the average employee turnover rate in budget hotels even increased to 34.5%. So these budget hotels with high employee turnover are having an even more difficult time filling their open positions with qualified candidates who will not just leave or be fired in the future.
As a result, they should not simply find out ways to improve their management, but also find out
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Although they have enough rooms, they would still suffer a slide in service quality without good managers. (Jiang Hongming, 2006) By the way, this kind of transfer would increase manager’s average salary, and as a result, the budget hotel industry would spend a large labor cost on the same person.
In addition, with the rapid expending of the budget hotels, we had to shorter the managers’ training period, such as we used three or five months instead of one or two years. Hu Jianwei, the marketing director of Green-Tree-Inn Hotel said that this phenomenon looked like the general dead in the war, so the soldiers would be the leaders, and finally, this “Help the Young Shoots Grow” method would bring potential HR problems. (Guo Shanshan, 2008)

The Impacts from High Employee Turnover Rate
The high employee turnover rate in budget hotel industry would bring so many impacts. Although the reasonable turnover rate would optimize the structure of budget hotel and bring new blood, the higher employee turnover rate would lead to several negative impacts, such as increase the cost of training and operating, bring potential threat to the budget hotel, and create obstacles of management system.
Optimize the Structure of Budget Hotel and Bring New Blood
The reasonable employee turnover rate can optimize the structure of budget hotels, because of selecting the most appropriate employees based on the positions. (Jiang Wenhua, 2009) And at the same time,
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