High Employee Turnover in Woolshed Pub: Causes and Solutions

1.0 Introduction and Research Problem
In the world, the tourism and hotel sectors have greatly contributed in job creation. It is estimated
that millions of people are either direct or indirect beneficiary of the hospitality industry. The
industry has various segments that range from clubs, hotels, camp sites, cottages, bars and pubs
just to name a few. Today the hotel sector is facing a challenge of high staff turnover which
presents an ugly state of affairs for all the practitioners in the industry in particular employers
and employees. Staff turnover is a popular challenge affecting hospitality sector. Since the
hospitality sector relies much on human labor, high staff turnover is a problem that cannot be
overlooked.
Woolshed Pub in Docklands is a waterfront restaurant and bar which offers a beautiful view. The
pub offers beverages including both alcoholic and non-alcoholic drinks as well as the modern
Australian cuisine for the guests to enjoy. Woolshed Pub is stationed at Esplanade, Docklands,
Victoria 3008. It’s providing employment opportunities to approximately 50 employees working
either on full-time basis or casual workers. The employees work in various segments of the Pub;
hot kitchen, human resource department bar, engineering, restaurant, human resource, sales and
marketing.
This research paper seeks to provide solution on the challenge of increasing employee’s turnover
in Woolshed Pub which is one of the main problems it’s facing. Among other problems it faces
are increasing competition from new entrants at the harbor, rising operation expenses on
electricity and insurance covers. Moreover, this research study focusses on the challenge of
increasing number of employees leaving Woolshed Pub. The study explores and resolve the
rising levels employees quitting Woolshed Pub.
High employee turnover problem is leads to the company incurring both direct and indirect cost
which eventually results to loss revenue by the woolshed Pub. Therefore, it is quite important to
address the problem before it gets out of hand. The best way to address to issue is by
understanding first of all the root cause of the soaring numbers of employees leaving the
company. For instance, in Woolshed 3 head chefs and many more employees have left over the
period of one year leading to loss of income and equally pinched by costs in bid to find
replacements. If high staff turnover is not strategically managed in a hospitality entity, it has
great consequences which may lead to loss of revenue.

Objectives of the Research:
 To find-out the root causes of high employee turnover
 To identify the effects of increasing employee turnover on staff performance
 To come-up with best mechanisms to manage staff turnover in Woolshed Pub.
In woolshed pub high staff turnover has not been well looked into and therefore this research
comes to offer the solutions that will see to it that the performing employees are retained for the
well-being of the pub.
2.0Literature Review:
Staff turnover in the hospitality industry has broadly been discussed by several scholars. High
employee turnover has greatly been attributed to increased levels of competition and changes in
the technology sector thus making it one of the greatest huddles in hospitality sector. This
phenomenon is not new issue as it happens in any other sectors and the economy at large.
Meanwhile, employee turnover is a common issue in hospitality due to labor intensive nature of
the industry. As a result of hospitality industry relying much on human labor, the need for
various human labor arises like skilled, semi-skilled and unskilled personnel’s who are stationed
in various sections as either casual or permanent. The fact that hotel sector depends immensely
on human labor, the challenge of increasing staff changes is still a nightmare. The problem of
employee turnover has affected the hospitality industry ever since and still remains a major
problem today. Hence, becoming barrier in achieving highest productivity levels and efficiency
in business (Kim2012).
But still remained an essential hurdle all over the world for the human resource team to handle it
and contain the matter. From one perspective, it has been difficult to attract suitable labor in
hospitality industry while on the other perspective there exist a substantial loss on resources in
hiring and equipping new staff (Davidson, Timo & Wang 2010). According to Pearlman &
Schaffer (2013) the costs divided into categories which are direct and indirect costs. Example of
direct costs are employing and training while indirect costs bared are a drop in quality of service
and overworking staff. Therefore, it’s evident that increasing workers turnover is problem in the
hotel sector creating a hindrance towards attracting suitably motivated, qualified and trained
labor while retaining productive staff in a rapid growing hospitality industry.

Previous studies undertaken by scholars in the hospitality sector point at several factors that
contribute to high levels of staff turnover in the industry. Below are some of the scholarly views.
 Payment is a main element influencing high employee turnover. When employees are
dissatisfied about their pay which may result to turnover, they are therefore, attracted by
higher wages and great employment benefits from other establishments. Remunerative
goodies like monthly income, daily stipends and economic incentives are likely to be the
most influencing factors towards employee’s turnover in a company. Favorable and good
salary is probably a great motivating factor for staff to work in a company for an
extended duration. Money contributes significantly on staff to facilitate their well-being.
They therefore, use the monetary rewards to satisfy the daily wants or needs. A good
salary influences the staff decision on whether to stay longer or quit the organization.
Whereby, low pay enhances the employee to opt leaving the current organization in
search of another that offers more competitive pay and incentives.
 Blomme, Rheede & Tromp (2010) focusses on factors that may lead to staff quitting from
organization through analyzing the how flexible the work station is, difference that arise
at home as result of the work undertaken and how a company carries out its duties. There
is need for socialized and healthy relationship at work with staff personal life. In order to
eliminate stress, fatigue and boredom at work it important to introduce flexible working
hours where employees shall have more time with friends and relatives. This will
minimize family conflicts enabling the employee ascertain and maintain conducive
balance while at work with the personal life.
 Kim (2012) notifies that staff characteristics and psychological elements inclusive to
recent working experiences relates directly with employee turnover. The workplace norm
and tradition as well as employee character influences greatly on how he/she will survive
the stay at the workplace. The employee’s traits and attitude may hinder their stay at
work if they are not favorable. Recent working experiences of the staff may differ from
their present thus leading to changing of staff in a business entity.
 According to Gustafson (2002) the main reasons for workers lay off are; poor
management , ineffectual communication, poor co-worker’s relation, absence of work

recognition, employee-management conflicts and lack of room for career development In
order to sustain and retain the employees there is need for effective passage of
information in the
Organization to avoid wrangles which are brought by gaps in communication. The
managers should motivate the employees while giving recognition and credit where it
deserves. The management should create opportunity for growth to the hardworking staff.
Through this, employees shall be satisfied at work place and perform effectively.
 Brazzel (2003) establishes that workplace diversity is a main element in workplace-
conflict resulting to employee turnover. He further illustrates that, employees may
encounter injustices among themselves as a result of their sexism, racism or heterosexist.
These injustices will lead to discrimination making an employee dissatisfied hence
influencing high employee turnover. For instance, in today modern world where multi-
culture and diversity is an order of the day, it becomes difficult for employees to cope
with it in the organizations thus leading to high employee’s turnover.
Stated above components are essential and contributes significantly towards the quitting and
absorption rate of staff in a given company. The stated components have to be ascertained with
great significance in an organization. Therefore, it is evident that employee’s turnover
phenomenon is a complex challenge relating with various attributes of workers in an entity.
Research Questions
 What are the root causes of the soaring levels of staff turnover in Woolshed Pub?
 What are the best mechanisms that can be employed by Woolshed to control staff
turnover?
Important Notions.
Motivation Factors According to Herzberg (1974)