DISSERTATION high turnover in the hospitality industry

In this dissertation we will discuss about hospitality and below are the summaries point:- Hospitality industry faces high employee turnover Negative themes and stressful work environment are common Issues such as unstable work timing, low wages, and low working status contribute to high employee turnover High employee turnover impacts service quality, financial stability, and overall image of the firm Labor turnover is calculated using separation rates, which can be voluntary or involuntary Consequences of high employee turnover include increased recruitment and training costs, reduced employee productivity and sales, and increased financial burden on the firm The paper aims to identify the main factors leading to higher employee turnover in the hospitality industry in Hong Kong The industry benefits from employee mobility in the long run, but in the short run, costs increase Hotels should measure turnover rates regularly and implement policies to retain employees, such as providing job security and adequate training The dissertation aims to analyze the factors influencing employee turnover and suggest ways to reduce labor mobility in the industry.

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Name of the Student
Name of the University
Author Note

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Executive Summary
The given dissertation is based on finding the reasons why high turnover in the hospitality
industry of the Hong Kong. The study has made use of both qualitative as well as quantitative
data to carry out the examination of the same. The first chapter of the paper is the Introduction
chapter which lays down the background of the study and sets the format of the paper. This is
followed by the Review of Literature which examines the various reasons why the employees
tend to leave the firm in search for a better opportunity. The third chapter is based on the
Research Methodology which seeks to identify the research framework which has been adopted
for the research. The analysis of the data has clearly shown that employee turnover highly affects
the operation of the organization. It has shown that low coordination rate, image of the business,
satisfaction level of customers, occupancy rate, motivation level, performance level, uniformity
of service, profit margin and productivity rate are key issues faced by the organizations. The
Pearson’s correlation between the variables shows that there is moderately positive relationship
between the variables and the all variables are significant as the value of two tailed significance
is less than 0.05. This means that if employee turnover affects all these factors simultaneously.
Thus, it can be concluded from the research that employee turnover affects the overall operations
of the organizations. The research has provided suitable recommendations based on the issues
identified. In future, research could be conducted in diverse macro environment to check the
reliability of the research.

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Table of Contents
Chapter 1: Introduction....................................................................................................................5
1.1 Overview................................................................................................................................5
1.2 Problem statement.................................................................................................................6
1.3 The hospitality industry of Hong Kong.................................................................................7
1.4 Research aim..........................................................................................................................7
1.5 Research objectives...............................................................................................................8
1.6 Research questions.................................................................................................................8
1.7 Research Rationale................................................................................................................8
1.8 Structure of the paper.............................................................................................................9
Chapter 2: Literature Review.........................................................................................................10
2.1 Introduction: Employee turnover.............................................................................................10
2.2 Factors affecting employee turnover.......................................................................................11
2.2.1 Employee Satisfaction.........................................................................................................11
2.2.2 Training and development....................................................................................................13
2.2.3 Organizational citizenship behavior.....................................................................................14
2.2.4 Positive and negative career related features........................................................................15
2.2.5 External personal events, external professional events and internal work events on
employee turnover.........................................................................................................................16
2.2.6 Rude experience and attitude toward customers influencing employee turnover................17

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2.2.7 Organizational commitment and career satisfaction.............................................................18
2.3 Impact of employee turnover on the hospitality industry........................................................19
2.4. Conceptual Framework...........................................................................................................20
Chapter 3: Research Methodology................................................................................................21
3.1 Research philosophy............................................................................................................21
3.2 Research Approach..............................................................................................................22
3.3 Research design...................................................................................................................23
3.4 Data collection.....................................................................................................................25
3.5 Research methods................................................................................................................26
3.6 Sampling and Questionnaire design....................................................................................26
3.7 Ethical considerations..........................................................................................................27
3.8 Research Limitations...........................................................................................................28
Chapter 4: Findings and Analysis..................................................................................................30
4.1 Quantitative questionnaire.......................................................................................................30
4.1.1 Reliability Analysis..............................................................................................................30
4.1.2 Demographic questions........................................................................................................32
4.1.3 Questions on Employee turnover and its impact on hospitality...........................................37
4.1.4 Descriptive Statistics............................................................................................................48
4.1.5 Correlation............................................................................................................................49
4.2 Qualitative Questionnaire........................................................................................................54

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Chapter 5: Conclusion...................................................................................................................57
5.1 Conclusion...............................................................................................................................57
5.2 Recommendations....................................................................................................................59
5.3 Future scope of the research....................................................................................................61
5.4 Research limitation..................................................................................................................61

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Chapter 1: Introduction
1.1 Overview
The hospitality industry is greatly characterized by the high employee turnover. According to
Han, Bonn and Cho (2016), the employee turnover can be defined as the surrogate indicator of
the actual employee turnover which takes place in a firm. The hotel industry is largely facing the
issue related to the employee turnover and the changing face of employee relationships.
According to Reina et al. (2018), a series of negative themes and stressful work environment can
be a common part of the industry. Hence, it can be understood that it is due to this reason that,
the organizations are finding it difficult to manage the different needs of the employees as they
are faced by various issues like unstable work timing, low wages, low working status and high
employee turnover. Although the concept of high turnover tends to impact the overall
performance of all the industries, however, the case is more serious when the service quality is in
consideration. Reina et al. (2018) believes that it is important to take into consideration the
employee attitudes as well as emotions into consideration as it impacts the positive attitude as
well as the emotion of the employees and hence, causes them to leave the organization.
Additionally, the higher employee turnover has a great role to play in maintaining the financial
stability of the firms as well and help in maintaining the overall image of the firm as well. Hence,
where the image and financial position have a greater role to play in the hospitality industry, the
problem of employee turnover has more consequences.
Various evidences in relation to the size of the company and the evidences have been found
which state that, there needs to exist different measures to assess the problem in various different
organizations. In general, the labor turnover is calculated by making use of separation rates
inclusive of layoffs, exits as well as emissions. Many authors like Han, Bonn and Cho (2016)

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have stated that the employee turnover has many forms namely the functional or the
dysfunctional form as well as the involuntary and voluntary forms. However, whatever the case
might be, the financial consequences of the labor flow in every industry can be understood to be
similar in nature. For this reason, the paper is aimed at finding out the consequences of the high
employee turnover rate on the organizational operations. Various problems like the increased
recruitment and training costs of the new employees, reduction in the employee productivity and
sales along with the increased financial burdens on the employees have been identified.
Additionally, the primary aim of the paper can be stated to be figuring out the main factors which
lead to a higher employee turnover rate at the hospitality industry in Hong Kong.
1.2 Problem statement
The problem statement of the given dissertation can be stated to be that the rapid growth of
the industry which is being characterized by the higher employee turnover rate and its impact can
be felt throughout the organization where the rate of turnover is comparatively higher than the
other industries as present. Although, there does exist certain formulas which can easily measure
the labor mobility, it becomes comparatively difficult for the hotel staff to manage the different
members as the employees keep shifting from one position to another and hence, have a lower
expectation related to jo security. However, there do exist certain positive effects of this
mobility, like the freshness and the new style of operations along with new ideas.
With this, although the firm benefits in the long run, in the short run, the costs of the firm
increase and it is better for the hotel to ensure that they are able to retain their employees in the
long run so as to see to it that, they are able to successfully monitor the different factors which
exist and influence the employee turnover rate. The different companies need to see to it that
they are able to measure the turnover rate of the firm on a regular basis and implement certain

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policies, so as to keep the workforce at a conversion level and maintain its affordability. As the
consequences of the high labor losses are quite high, all the hotels need to come up ways in
which the level of labor mobility can be reduced. These measures can be providing job security
to the staff, providing them with adequate training, coming up with programs with high level
employment goals and others. For this reason, through this dissertation the different factors
influencing the employee turnover rate will be understood and an analysis into the same will be
made.
1.3 The hospitality industry of Hong Kong
The hospitality industry of Hong Kong has been experiencing a great growth with a strong
occupancy rate and hence, with respect to this, it is expected that the hotels are experiencing a
strong average room rates growth. The arrivals to Hong Kong have grown at a fast rate and with
respect to this, this trend is expected to grow. As the number of additional to the hospitality
industry have been comparatively very low, the demand for every hotel has grown considerably.
At present there exists approximately 80000 hotel guest rooms which experience constant
customer intake and hence, the employee pressure in the industry has increased considerably
(Han, Bonn and Cho 2016).
1.4 Research aim
The primary aim of the given research is to investigate into the primary factors relating to the
higher employee turnover rate of the hospitality industry situated in Hong Kong. As discussed
earlier, the hospitality industry has been faced by a large number of issues related to employee
turnover and hence, discussion of this, will assist in figuring out and overcoming the problem.
1) Approach the literature review related to the research
2) Access the respondent to the research
3) Develop a strategy and design for data collection and analysis

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4) To process the ethical issues of the research
1.5 Research objectives
The main research objectives of the paper can be stated to be as follows:
 To find out the factors of employee turnover in the Industry
 To understand how these problems have been affecting the industry.
 Analyzing the different factors related to the turnover
 To recommend certain ways in which the problem can be overcome.
Certain secondary objectives of the research can be stated to be as follows:
 Approach the literature review related to the research
 Access the respondent to the research
 Develop a strategy and design for data collection and analysis
 To process the ethical issues of the research
1.6 Research questions
The different research questions which have been identified for the purpose of the study
can be stated to be as follows:
I. What impact has training and development on employee retention in hospitality industry?
II. Which factors influence employee satisfaction? (such as wages and working hours)
III. What is the perception of employees of their work place?
1.7 Research Rationale
The primary reason why this research question is being carried out can be largely contributed
to the fact that the hospitality industry as present in Hong Kong has been faced by a large

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number of problems related to the high working hours, unstable work environment, additional
demands and other related aspects. Hence, it is important to figure out the different factors which
influence the employment aspects of these individuals in order to gain an insight into the overall
working of the hospitality industry as present (Han, Bonn and Cho 2016). The paper will be
carrying out an in depth research for various topics as present like Organization factors, career
satisfaction, job satisfaction and related factors like organizational environment which will go a
long way in ensuring that, various measures to improve the overall scenario can be provided to
the organizations in the hospitality industry situated in the Hong Kong. Lastly, the different
measures of labor turnover can also be largely understood using this system.
1.8 Structure of the paper
The paper will follow a structured format whereby the first chapter will be an Introduction
chapter which will lay down the background of the research and set out the different research
objectives as well as the questions which will be forming the overall background of the research.
This was followed by a brief overview of the overall hospitality industry in Hong Kong and the
different problems which were being faced by the overall industry scenario. Lastly, the research
rationale and problem statement will be presented. The second chapter of the dissertation will lay
down the Review of Literature chapter which will conduct a deep research into the domain of
hospitality industry, employee turnover, and organization environment and related about rate
measures. The third chapter is based on the Research Methodology of the paper which will
describe the research approach, design and overall research methods which will be adopted for
the purpose of the achievement of objectives. The fourth chapter will be based on the findings
and analysis which will explore the different analysis and present it in the form of the findings.

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The last chapter will be based on the Conclusion and Recommendation chapter which will
analyze the overall study from an overall perspective.

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Chapter 2: Literature Review
2.1 Introduction: Employee turnover
The employee turnover can be rightfully defined as the percentage of workers who tend
to leave an organization and get replaced by new employees. The employee turnover can be
understood to be a measure of calculation which will help the different firms to understand the
reason why the employees are leaving the firms and how can this ratio be improved upon on
their overall basis. According to Knies et al. (2015), there exists different types of turnovers and
hence, it is very often considered to be important for the different organizations to understand the
primary reason behind the employee turnover. The first type of employee turnover is the
involuntary employee turnover, where the employee termination can be largely contributed to the
poor job performance of the organization, the violation of the workplace policies, the
absenteeism which tends to exist in the workplace. This also comes under the category of
termination, firing as well as discharge. The particular type of turnover is understood to be
involuntary in nature because it does not depend on the employee decision to leave the particular
organization. Another type of employee turnover can be understood to be the voluntary
termination. In this kind of a voluntary employee turnover which takes place, the employees tend
to leave the firm on their own due to different decision making aspects like the acceptance with
another company, relocation to a new area of dealing or other personal commitments (Humburg
and Van der Velden 2015). In this, the employee provides a resignation before leaving the firm
and generally serves the notice period as well. Another kind of employee turnover which exists
is the desirable and the undesirable turnover. In this type of a turnover it can be largely
understood that, these turnovers take place, when the performance of the employees is very poor
in nature and hence, if they leave the firm, it can be considered that it brings a good outcome for

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the firm. Moreover, in the same way if a good performer leaves the organization, then it may be
considered to be rather negative for the organization and they may lose out on a good employee.
2.2 Factors affecting employee turnover
The employee turnover cannot be stated to an independent factor and instead can be
understood to be greatly related to and influenced by the presence of various factors as present in
the employee turnover industry. The employee turnover industry is very high in the hospitality
industry. According to Hitka and Balážová (2015), this indicates that the employee turnover as
present in the industry is relatively affected by the human resource department and that the
human resource department is not being able to carry out its job roles effectively. The millennial
generation forms the largest workforce in the hospitality industry and are very often faced by
conflicts with the thinking of the senior management who belong to the previous generation.
There tends to exist a generational gap within the different members of the firm and for this
reason, the younger generation and the new staff as present can find it adequately difficult to
adapt to the new working environment. This adaptability has a key role to play in the overall
success of the firm and with respect to this, it needs to be understood that, if the firm wants to
maintain its turnover rate it would be required to ensure that it is being able to maintain the
adaptability level of the employees and make them feel comfortable at the workplace (Reiche et
al. 2016). Hence, the given section will be discussing the different factors which are affecting the
overall employee turnover rate and tend to determine the different trends which exist in the
hospitality industry.
2.2.1 Employee Satisfaction
The employee satisfaction can be rightfully defined as the level of enjoyment or the sense
of achievement which an employee experiences in the organization. All the employers in a firm

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need to ensure that they are able to successfully provide working environment to the different
employees which provides them with a sense of satisfaction and allows them to prosper in their
career. Reiche et al. (2018) states that the tourism industry has been growing considerably well
and with respect to this, the number of employees as present in the industry have also been
growing. Although this number is growing and the number of people joining the industry is quite
high, the industry is faced by high employee turnover as well. According to Quinlan et al.
(2019), a study which was conducted to examine the emotion and job satisfaction of the
employees in the hospitality industry, found that the employees generally have a positive attitude
when they serve customers. The study sent out 150 questionnaires to the different employees in
the business hotel chain and with respect to this, when the employers undertake a considerable
effort to create a suitable working environment for the employees, the level of satisfaction tends
to increase and the employees begin to feel a sense of belonging as well as considerate loyalty to
the hotel. Hence, this positive attitude of the employees decreases, the rate of employee turnover
in the hotel industry and assists in demonstrating a positive Organizational citizenship behavior.
Many measures in the workforce indicate whether an employee is satisfied in the workplace or
not and recommend ways which can be adopted by the firm to cultivate a positive workplace
environment which shall assist the employees. The different factors which contribute to the
employee satisfaction in the organization can be stated to be the treatment of the employees with
adequate respect, providing the employees with adequate attention, empowering the different
employees and offering above average and offering them with employee perks which will go a
long way in assisting the firm to achieve long term success (Oldham, Hackman and Pearce
1976). The primary point of understanding whether the employees are satisfied with the

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workplace or not can be largely understood with the manner in which they perform their tasks
and tend to abide by their overall responsibilities.
2.2.2 Training and development
Muogbo (2013) states that training and development can be stated to be a crucial part of
the organization and all the employees who are present in the workplace or recruited for the first
time will be required to be provided with adequate training so as to ensure that these employees
are successfully able to perform their tasks well. Once the different employees feel that they will
be successfully able to complete their tasks on time and are able to perform their best, then they
intend to remain within the firm for a longer time frame because they start enjoying their work.
Hence, it becomes increasingly crucial for all the employees present in the organization to come
up with adequate means to provide adequate training to the employees. This training might cover
different aspects of training like the on the job training which covers the aspects related to
dealing with the customers, completing their requirements and to fulfill all the objectives which
the firm has set out for itself. Moreover, as agreed by Mello (2015), the training can also be
provided to the different employees related to the domain of the overall communication,
personality development and other related skills so as to ensure that the different employees are
successfully able to attain the right kind of confidence which is important while dealing with the
customers and to perform all the job responsibilities accurately. A study was conducted by Faisal
Ahammad et al. (2015), which was done under the aim to investigate into a number of customer
verbal attacks due to lack of poor performance and how it had an impact on the overall employee
turnover rate. The study made use of the deductive logic which was assisted by the development
of the hypothesis and the analysis framework was also undertaken in the particular study.

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The different questionnaires and the surveys were made use of to collect the data from
the different call centers and around 1100 Chinese staff had been interviewed. This data was then
analyzed through SPSS and HLM linear models. The results reflected that, the customer verbal
attacks were a major reason why the employee turnover rate was quite high in the firm. Hence,
the results of the study presented a conclusion that the different service oriented countries as
present will be required to undertake considerable employee turnover intentions in order to
ensure that the customer behavior can be improved in a firm and that additional support can be
undertaken to reduce the employee turnover rate adequately.
2.2.3 Organizational citizenship behavior
In the context of the different organizations, the organizational citizenship behavior can
be rightfully defined as the person`s voluntary commitment within the scope of a firm towards
the contractual tasks of the organization (Faisal Ahammad et al. 2015). The organizational
citizenship behavior has been a domain of study since a long period of time and since the last
few years, the studies in the given domain have increased considerably and it has been identified
that the Organizational behavior is greatly linked to organizational effectiveness and that the
different types of behaviors which are generally portrayed by an employee result in crucial
consequences at the workplace. The behavior of the employees often stated a crucial determinant
of the overall vibe which is generally give out by the employees and in the hospitality segment, it
also has an impact on the overall service which is provided to the different customers as present.
When the behavior of the different employees shall be positive in nature, then they will
successfully be able to serve the different customers well and will be able to ensure that they are
able to attain the overall goals of the firm as well. According to Chelladurai and Kerwin (2017),
the concept of OCB can be stated to be based on discretionary behavior which means that it does

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not fit the job description aspect and is a result of the overall personal choice of the different
employees. Secondly, it does not form a part of the job requirement and the employees as present
in a firm are not required to perform the job in a particular manner and has to ensure that they are
able to make considerable choices as to the way in which they want to perform the job. Lastly, an
important aspect which is required to be noted that is that the Organizational citizenship behavior
tends to contribute towards the overall organizational effectiveness. According to Brewster and
Hegewisch (2017), various authors have also criticized the definition of OCB and stated that, it
becomes very difficult to identify and analyze the definition of the OCB and the different
definitions, do not fit the criteria which would be suitable for an organization.
As per the understanding of Dobre (2013), the employee turnover intentions are greatly
influenced by the choices, training as well as the wages which are generally offered to the
employees. The human resource practiced in the front line of the hotels often violated the
relationship which is formed and tended to overshadow the overall employee turnover intentions.
Additionally, the data which was collected from the 294 front line staff comprised of front desk,
beverage and food staff. The study made use of the regression analysis in order to test the overall
hypothesized relationships and the results reflected that, it is critical to implement the effective
human resources measures in order to ensure that the psychological contract violations are not
caused to the employees which will assist the firm in prospering the overall human resource
relationships with the firm.
2.2.4 Positive and negative career related features
The different career related aspects of the firm form a critical part of the organization and
an employee`s personal aspect. According to Chelladurai and Kerwin (2017), a high employee
rate is a constant challenge for the hospitality industry, and it has to be understood by them that a

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major reason for the particular problem being faced by them can be largely contributed to the
positive as well as negative career related features. This means that, there are some aspects of the
job which may have an impact on the overall willingness of the firm to perform the particular job
in place. A study which investigated into the overall career domain of the employees reflected
that, the different employees often tend to leave the firm with respect to the fact that, the career
of these employees comprise of various positive as well as negative career related features like
the unprofessional environment, low pay rate, low scope of promotion and related features. A
recent study was conducted by Brewster and Hegewisch (2017), reflected on the nature why the
different employees tend to leave an organization and why do they continue with the firm. The
discussions as well as the implications undertaken by them state that, the different investors, line
management, human resource practitioners and other individuals are a crucial part of the firm.
Moreover, these findings also reflect on that these implications may be useful for the hotel
educators, professionals as well as experts. Hence, all the factors as present in a firm need to be
such that they have a positive influence on the members of the organization. Moreover, certain
measures are required to be adopted by the firm to ensure that, they are successfully able to
reduce the turnover and improve upon the turnover intentions of the employees of the hotels and
help them in adjusting with the hospitality industry.
2.2.5 External personal events, external professional events and internal work events on
employee turnover
An employee is a social entity and it cannot be considered that they will be only
influenced by the internal factors of the work environment. The employee is believed to have a
life outside the workplace as well and for this purpose, it becomes considerably crucial to
understand that the particular employee may be forced to leave the firm in lieu of the external

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personal events which take place, the external professional events as well as other personal work
related aspects. When the employee plans to join another job, even then they may choose to
leave the organization in question (Dobre 2013). Additionally, they may also consider ensuring
that they are successfully able to go in for a better career opportunity which will suit their needs
and assist them in gaining long term success.
Dobre (2013) conducted a study which was related to the investigation of the key life
events in the overall employee aspect of the different employees in an organization and through
this, they were able to understand the impact of this aspect on the overall component attachment
and the impact on the turnover rate of the organization. Through the study, an attempt was made
to understand the impact of the key elements like the external personal events, external
professional events and internal events on the employee turnover of the firm. The study aimed to
undertake a study of approximately, 290 servers based in an American chain restaurant and
through the study an insight was gained that the positive as well as the negative personal events
which take place in the life of an individual tend to have a deep impact on the turnover of the
employees in the hospitality industry and also correlates to the overall turnover rate. Through the
research, it was also understood that, the positive internal work related aspects as well as the
compositional attachments are negatively related to the turnover and hence, tend to promote
retention from the side of the employees as they are encouraged to perform well and remain
within the realm of the firm. Moreover, the study was an indicator which highlighted that in
order to gain long term experience, and understand the major impacts on the employee turnover,
the phenomenon of life events and related constituents need to be understood well.

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2.2.6 Rude experience and attitude toward customers influencing employee turnover
Another crucial factor which tends to have an impact on the overall tenure of the
employee within the scope of the firm can be largely contributed to the rude experience and
attitude towards the customers. This means that, when the employees portray a rude behavior
towards the customers, they are generally asked to leave the firm which may then increase the
overall turnover rate of the firm. In addition to this, it has to be understood that in the hospitality
sector, the customer treatment forms a crucial part of the organization and in order to ensure long
term success with the overall aspect, the employees will be required to treat the different
organizational members with adequate respect which will help them to perform adequately and
remain within the realm of the firm. The study conducted in the paper by Collings, Wood and
Szamosi (2018), stated that the different employees had provided detailed information in regard
to the rude experience which was portrayed by the different employees towards the different
customers and were also provided with adequate information on the job burnout and the exit
intentions. The data analysis made use of Hierarchical linear modeling. The results assisted in
understanding that the customer disrespect was being correlated with the job burnout of the
restaurant front line and in order to ensure long term success, the different members of the
organization would be required to ensure that they respect their customers and treat them well.
It had been investigated that there is a strong impact of the organizational support and
supervisor support on the relationship between the customer infidelity and the job burnout which
exists. Hence, it needs to be the adequate duty of the organization to ensure that they are
successfully able to support the different employees well so as to ensure that they remain
motivated and treat the different customers with respect in order to remain within the realm of
the firm and improve the overall turnover rate of the organization as well. Hence, as mentioned

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by Chelladurai and Kerwin (2017), the different restaurant managers will be required to ensure
that they are successfully able to administer the overall employee management strategies.
2.2.7 Organizational commitment and career satisfaction
According to…., the factors relating to the organizational commitment and the career
satisfaction, also tend to have a strong impact on the employee retention within the scope of the
firm. This is because, if an employee is not entirely satisfied with the overall career then they not
be able to continue with the job and ensure that they are able to successfully prosper in their
career. Brewster and Hegewisch (2017) state that in a study which explored the relationship
between the aspects like organizational commitment, supervisory support and professional
satisfaction and the intuition to ether continue with the firm or leave the firm stated that, the
supervisory support which is generally offered to the different employees has a positive impact
on the career satisfaction and the overall commitment of the employees. In addition to this,
although it was found that the organizational commitments do not have an impact on career
satisfaction, the higher level organizations have promised to reduce the overall turnover
intentions. In addition to this, the organizations have promised to regulate the relationship which
tends to exist between the supervisory support and the exit intention (Brewster, Chung and
Sparrow 2016). These results of the specific study undertaken went a long way in assisting the
firm to select effective staff training and come up with various development methods so as to be
successfully able to understand the overall impact of supervisory support.
2.3 Impact of employee turnover on the hospitality industry
Hence, from the given analysis and as argued by the Marchington et al. (2016), it can be
reflected that the impact of employee turnover on the hospitality industry can turn out to be huge.
This is being stated because in order to ensure that the customers are served well and become a

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loyal customer of the firm, the organization would be required to provide them with a service
which is flawless. This can only come if experienced employees work in the organization who
have an adequate idea about the standard of service which is to be provided to the different
employees. In addition to this, it can also be considered very crucial for them to understand that
if there are regular layoffs and exit of the employees, then the customer may not be able to build
long term relationships with the hotels and hence, the overall performance of the hospitality may
suffer considerably (Mankin 2009). For this reason, the impact of employee turnover on the
hospitality industry can be understood to be rather negative in nature.
2.4. Conceptual Framework
The choice of the methodologies which will be made will be based on the mixed
methods. The qualitative as well as quantitative methods will be made use of for the particular
study. Additionally, the blending and the integration of these two methods can either be done in a
philosophical manner or by making use of theoretical framework and analysis method. Through
these aspects, the impact of the different organizational factors affecting employee turnover in
the hospitality industry can be understood.

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Chapter 3: Research Methodology
The given chapter will be based on the Research Methodology which will lay down the
different techniques as well as approaches which will be used to carry out the procedure of the
research (Lewis 2015) In order to ensure that the study conducted is authentic and conclusive in
nature, the systematized research methodology is required to be used which will go a long way in
assisting the researcher to achieve the overall research objectives. The collection of the data and
interviews will be based on the research framework which tends to serve as a useful guidance to
carry out the particular research procedure.
3.1 Research philosophy
Han, Bonn and Cho (2016), have defined the Research Philosophy as a procedure which
helps in understanding the process which is required to be adopted in order to acquire the data
about the research and to understand the manner in which the particular data which is collected
will be analyzed and how the research procedure shall be carried out. Zimmerman et al. (2018)
states that there commonly exists various types of research philosophy like positivism,
pragmatism, interpretivist and the realism philosophy.
The research philosophy which will be followed in the particular research paper will be
the pragmatism approach. This particular data collection methods of the pragmatism will
comprise of the mixed as well as multiple design methods which comprise of quantitative as well
qualitative methods. The pragmatism research philosophy tends to reconcile objectivism along
with subjectivism along with the integration values and facts. With this, the research will also
combine together the rigorous as well as accurate knowledge which gathers different and
contextualized experiences. The pragmatism philosophy comprises of theories, ideas and

23DISSERTATION
assumptions along with research results that are generally not present in abstract forms but
rather, their role can be presumed to be as action tools and as thoughts. The reality comprises of
an integral part of the organization and with respect to this, it can be considered crucial to
understand that a practical solutions to the different problems can be understood effectively.
Moreover, in this philosophy, the research`s value is to drive the process of reflection which can
be generally triggered by suspicion and the inappropriate feeling. However, when the problem is
resolved, the belief pragmatists are recreated. This practice is very useful and helps in gaining
interesting outcomes as it goes a long way in assisting the different researchers to select a set of
research strategies and methods as which will help in fixing the research themes. The research
paradigm shall reflect the necessary fields of the diversified research epistemology by making
use of value theory as well as phenomenology.
3.2 Research Approach
The Research Approach can be stated to be the set of procedures which are generally
adopted by the organization in order to ensure that they are successfully able to detail the method
which they will be adopting for the purpose of the interpretation of the data. The research
approach can hence be stated to be the nature of the research problem which has been chosen for
the analysis. There are various types of Research approach which are present in order to carry
out the process of research in a comprehensive manner and these methods can be stated to be as
follows:
1. Deductive research approach
2. Inductive research approach
3. Abductive research approach

24DISSERTATION
However, for the purpose of the study the Deductive Research Approach will be made
use of. In the deductive research approach there will exist a set of hypothesis for which the
dissertation needs to be confirmed or rejected. In the deductive approach, the relationship
between the different variables are tested. The deductive approach will go a long way in
assisting the researcher to reach the overall conclusion regarding the research objectives.
Moreover, the deductive approach can be stated to be based on generalization, and in this
approach, the data collection can be used to assess the different propositions as well the testing
of the assumptions becomes easier as compared to the different assumptions and the underlying
theories (Walliman 2017). The paper will be adopting the deductive research method whereby
the data will be interpreted accordingly. Any research which has been aimed at the quantitative
approach, can use this method and thereby the conclusions will be arrived cat accordingly. This
research approach will assist in gaining a knowledge of the different factors influencing
employee turnover at the organizations in the hospitality industry.
3.3 Research design
The research design is a powerful measure which can be used to understand the design of
the research and helps the researcher to identify the investigation procedure which is required to
be adopted in a structured manner. The research design will assist the researcher to choose a
method of data analysis which can be adopted for the study and help in the identification of the
different procedures which can be easily used to understand the research objectives to be
achieved.

25DISSERTATION
Figure 4: Research Design
(Source: Created by Author)
There exists three types of Research Designs which can be stated to be the Explanatory,
Descriptive research design and the exploratory research design. The first type of research design
is the explanatory research design. In this kind of a research design, the analysis and
interpretation of the data is generally based on the quantitative studies which is generally
conducted with respect to a particular sample population. This also assists in ensuring that the
needs of the research are authentic in nature (Walliman 2017). The exploratory design is
different from this and although the research is carried out in a quantitative manner, the
qualitative manner is also used and helps in examination of the data from a sample population.
The last kind of research design used is the descriptive design which can be used to conduct the
research from a multidimensional perspective relating to the issue which is being examined for
the purpose of the particular study. For the purpose of the particular study the explanatory
research design will be adopted. The explanatory research design study, usually acts as a useful
method of research which helps in presenting open ended questions and assists in understanding
R e s e a r c h d e s ig n
Explanatory
Exploratory
Descriptive

26DISSERTATION
the insights from the particular topic. The different questions which will be asked during the
process will begin with `what` or `how``.
3.4 Data collection
According to Taylor, Bogdan and DeVault (2015), the data collection procedure can be
rightfully defined as a process through which the related data for the study is collected and the
analysis is based on. The data collection can be carried out through various procedures but the
ones which will be used in the given study will be related to the semi structured in-depth
interviews and questionnaires. Along with the data which will be collected, the literature review
will be exercised and supported by expert opinion (Smith 2015). The secondary data also has a
key role to play in determining the overall success of the study and hence, with respect to this,
the method of secondary data will be will be supporting the background information which will
be used by the researcher and will also be used to comprehend it with the outcome of the
interview. For the purpose of the study, the primary data will be collected in two different ways.
These ways are mediums of interview which will be collected for five people who are involved
in the hospitality industry. Secondly, various questionnaires will be used in order to ensure that,
the information can then be gained from 30 more individuals who will be selected on a random
basis. Both the interviews and the questionnaires will be largely used in order to collect the data.
The given method will assist in ensuring that the data collected from the different sources are
authentic in nature along with being reliable.
The particular survey will be designed in a manner such that, it can be used to gain
knowledge about the attitudes, beliefs as well as the behaviors of the different respondents so as
to ensure that, the culture of the firm along with the factors influencing their behavior can be
easily determined (Silverman 2016). The survey will be framed according to the qualitative

27DISSERTATION
manner with open questions which will help in getting detailed insights about the product and the
related responses. The survey will begin in a normal manner whereby the respondents will be
asked about the general demographics and later on asked related questions on the topic. The
second type of data collection method will be the questionnaire and interview method, where the
eminent industry experts and the related personalities will be asked questions related to the
domain of turnover and working conditions so as to ensure that the data collection turns out to be
authentic in nature (Vaioleti 2016).
3.5 Research methods
The research strategy plans to make use of questionnaires and interviews in order to
determine the data which is to be collected by the researchers. The researcher is making use of
the two broader perspectives which comprise of the major sources and the secondary sources.
These sources are greatly concerned with the collection of the data flows from the perspective of
the employee (Roberts 2013). The responses based on the interview will be granted based on the
list questionnaire and the secondary sources comprise of websites, periodicals, books,
newspapers as well as articles.
3.6 Sampling and Questionnaire design
Sampling generally refers to the size of the samples being used for the purpose of the
study. It can be largely understood that, for the particular study, the snowball sampling of the
non-probability sampling will be made use of (Ritchie et al. 2013). The research participants
which will be chosen for the purpose of the study will be from the hospitality industry in Hong
Kong. This will assist in gaining access to the sufficient people belonging to the particular
segment. The researcher will be asking them questions relating to the requirements of the study

28DISSERTATION
and then follow up on the new people. This method shall then be repeated until the researcher
has been able to reach out to adequate participants.
The design of the questionnaire will be based on simple open ended questions whereby
the respondents will be filling the drafted answer of the researcher and the researcher will keep a
record of the same. The researcher will form a rough list of questionnaires so as to avoid any
kind of a confusion which might take place (Novikov and Novikov 2013) .The researchers have
planned to use the questionnaires in order to collect the quantitative data. This questionnaire will
be used for the different people who will be working in the hospitality industry. Five
questionnaires will be distributed among the respondents and they will be received on a complete
basis. The response rate will be around 50% and this can be understood to be sufficient in order
to carry out the overall analysis. The people / sample will belong to the hospitality industry in
Hong Kong and these participants will be around 4 females and 1 male. The rough age group
will be 20-24 years old. It is hoped that, approximately the workers will be young workers and
generally work in long hours and work for low paying jobs. An insight into the working
environment will assist in understanding the different factors relating to staff turnover and the
suggestions as provided by the employees will also assist in understanding the overall strategy
which is required to be adopted by the different industries in order to gain a view of the ways to
improve the overall scenario (Panneerselvam 2014). The cross sectional study will be used to
study the specific phenomena as the project is time critical. For this purpose, it has been decided
that the cross sectional study will be made use of in the research.
3.7 Ethical considerations
The primary ethical considerations which is required to be taken care of in this particular
research relates to the participants which cannot be harmed in any way. Additionally, the

29DISSERTATION
researcher will be required to ensure that they maintain the overall dignity of the participants and
are exposed to priority. According to Mackey and Gass (2015), it becomes critical to attain the
overall consent of the participants and maintain their privacy. Moreover, all the responses which
shall be attained from the participants need to be kept confidential so as to secure the
employment of the participant. Moreover, the different participants also need to be provided with
the freedom to withdraw from the study at any stage which they feel is not suitable for them.
Moreover, it needs to be understood that the informed consent forms a crucial part of the study
and in order to maintain the overall authenticity of the study, the participants need to be allowed
with adequate freedom and privacy and they should not be exposed to any negative outcomes
(Neuman 2013). It is also to be noted that any offensive, discriminatory or unacceptable
language cannot be made use of while preparing the particular questionnaire and focus
interviews. This has been stated because the privacy and the anonymity of the respondents has to
be given the utmost importance.
3.8 Research Limitations
Although the research needs to be prepared in a comprehensive manner, it will be faced
by certain limitations as well as shortcomings. The first difficulty which will be faced by the firm
can be stated to be the research difficulties. It might turn out to be quite difficult for the
researcher to come up with the secondary sources of information (McCusker and Gunaydin
2015). This is being state because, the researcher may find different resources which may not be
related to the topic or the domain. However, they were very outdated in nature. Secondly, the
population of the interviewee is very small in number with only 5 participants and 30
respondents which needs to be modified adequately to ensure that, the majority of the people
who are working in the hospitality industry and their views can be captured. The last limitation

30DISSERTATION
relates to the limitation related to the time management which means that the researcher needs to
have a well-organized research plan and time table to make the paper comprehensive in nature.
Research Time Line:
August
2018
Septembe
r
2018
October
2018
November
2018
December
2018
January
2019
Arrange
related
materials
Formulate the
questionnaire
s
Interview and
questionnaire
s
Collate the
data
Data
collection
Data analysis
Final version

31DISSERTATION
Chapter 4: Findings and Analysis
This chapter would critically evaluate the data collected from 30 respondents working in
the hospitality industry in Hong Kong. This study has used a mixed method research design so
qualitative analysis has also been conducted by using interviews as the instrument. It consists of
4 female respondents and 1 male respondent that has shed light on their perspective on the
impacts of turnover rate on the hospitality industry and operations of hotels.
4.1 Quantitative questionnaire
4.1.1 Reliability Analysis
Reliability analysis is the method of analysing the internal consistency of the items
chosen in the research. The reliability testing has ensured that the test has not deviated from the
original results and is measuring the different impacts of turnover on the hospitality industry.
Cronbach’s Alpha is used to measure the scale reliability of the questions especially for the
questions using Likert Scale. The value of the Cronbach’s alpha needs to be more than 0.7 to be
acceptable for being accepted. The value of Alpha is unacceptable if it is less than 0.5 and in this
current study, the value of alpha is .956 which depicts excellent internal consistency among the
data collected. The item statistics table highlights the mean of the values in each of the questions
and the standard deviation. On the other hand, item total statistics has been used to check the
value of alpha when one of the variables is deleted from the research. In this given research, it
can be seen that there is a decrease in the value of the Cronbach’s alpha when one of the items is
deleted. This also signifies that all the questions are relevant and contribute to the research.

32DISSERTATION
Reliability Statistics
Cronbach's
Alpha N of Items
.956 8
Item Statistics
Mean Std. Deviation N
@5.Howfardoyouagreethatemployeeturnovercauseslowcoordin 2.06 1.124 31
@6.Howfardoyouagreethatemployeeturnoveraffectstheimage 2.13 1.176 31
@7.Howfardoyouagreethatemployeeturnoverreducesthesatisf 2.16 1.214 31
@8.Howfardoyouagreethatemployeeturnoverreducestheoccup
a
2.55 1.150 31
@9.Howfardoyouagreethatemployeeturnoverreducesthemotiva 2.29 1.101 31
@10.Howfardoyouagreethatemployeeturnoverreducestheperfo 2.35 1.226 31
@11.Howfardoyouagreethatemployeeturnoverreducestheunifo 2.42 1.311 31
@12.Howfardoyouagreethatemployeeturnoverreducestheprodu 2.39 1.407 31
Item-Total Statistics
Scale
Mean if
Item
Deleted
Scale
Variance if
Item
Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if
Item
Deleted
@5.Howfardoyouagreethatemployeeturnovercauseslowcoordin 16.29 56.813 .860 .949
@6.Howfardoyouagreethatemployeeturnoveraffectstheimage 16.23 56.314 .847 .950

33DISSERTATION
@7.Howfardoyouagreethatemployeeturnoverreducesthesatisf 16.19 56.095 .829 .951
@8.Howfardoyouagreethatemployeeturnoverreducestheoccup
a
15.81 56.495 .857 .949
@9.Howfardoyouagreethatemployeeturnoverreducesthemotiva 16.06 56.596 .895 .947
@10.Howfardoyouagreethatemployeeturnoverreducestheperfo 16.00 55.933 .829 .951
@11.Howfardoyouagreethatemployeeturnoverreducestheunifo 15.94 55.396 .796 .953
@12.Howfardoyouagreethatemployeeturnoverreducestheprodu 15.97 54.032 .804 .953
4.1.2 Demographic questions
@1.YourGender
Frequency Percent Valid Percent Cumulative Percent
Valid Female 17 54.8 54.8 54.8
Male 12 38.7 38.7 93.5
Prefer not to say 2 6.5 6.5 100.0
Total 31 100.0 100.0

34DISSERTATION
This question aims to examine the gender of the respondent taking part of the research.
This variable is essential as it could act as a control variable for examining the different types of
responses in the research. The majority of the respondents in the research are female and consists
of 17 participants and there are 12 male participants in the research. On the other hand, there are
2 participants who preferred to keep their gender undisclosed. There may be difference in
opinion of the impact based on the gender of the participants.
@2.YourAge
Frequency Percent Valid Percent Cumulative Percent
Valid 21-30 13 41.9 41.9 41.9
31-40 7 22.6 22.6 64.5
41-50 3 9.7 9.7 74.2
51 and above 3 9.7 9.7 83.9
Below 20 5 16.1 16.1 100.0

35DISSERTATION
Total 31 100.0 100.0
This question identifies the age of the participants in the research as people of different
generations may have diverse perspective towards a particular problem. The majority of the
respondents are between the age group of 21-30 and consists of 41.9% of the respondents. These
respondents are closely followed by the employees between the age group of 31-40 and include
22.6% of the participants. There are 5 respondents who are below the age group of 20 and there
are 3 respondents above the age group of 51 which accounts to 16.1% and 9.7% respectively.
On the contrary, 9.7% of the respondents are between the age group of 41-50. This shows that
majority of the respondents are below the age group of 30.
@3.TypeofHotelyourworkin
Frequency Percent Valid Percent Cumulative Percent

36DISSERTATION
Valid 3 star 6 19.4 19.4 19.4
5 star 11 35.5 35.5 54.8
7 star 8 25.8 25.8 80.6
others 6 19.4 19.4 100.0
Total 31 100.0 100.0
The question aims to examine the type of hotel each of the participants work in and the
findings of the research show that 35.5% of the respondents work for a 5 star hotel, 25.8% of the
respondents work for a 7 star restaurant, 19.4% work for 3 star restaurant and 19.4% work for
other business hotels. The diversity in the work environment of the different types of hotels has
facilitated in understanding the issues faced by the different types of hotels due to turnover
issues.
@4.WhatisyourJobRole

37DISSERTATION
Frequency Percent Valid Percent
Cumulative
Percent
Valid Assistant Human resource
Manager
6 19.4 19.4 19.4
General Manager 7 22.6 22.6 41.9
Housekeeping 2 6.5 6.5 48.4
Housekeeping Supervisor 3 9.7 9.7 58.1
Human Resource Manager 6 19.4 19.4 77.4
Room Attendant 7 22.6 22.6 100.0
Total 31 100.0 100.0
The questions aim to examine the job role of the participants in their respective hotels.
The findings show that 22.6% of the respondent are room attendants, 22.6% are general
managers, 19.4% are assistant managers, 19.4% are human resource managers, 9.7% are

38DISSERTATION
housekeeping supervisors and 6.5% works in housekeeping services. This shows that there are
variety of respondents in the research and they would be able to depict the issues at different
levels of the organizational processes due to increase in turnover rates with their respective
business entities.
4.1.3 Questions on Employee turnover and its impact on hospitality
@5.Howfardoyouagreethatemployeeturnovercauseslowcoordin
Frequency Percent Valid Percent Cumulative Percent
Valid 1 12 38.7 38.7 38.7
2 10 32.3 32.3 71.0
3 5 16.1 16.1 87.1
4 3 9.7 9.7 96.8
5 1 3.2 3.2 100.0
Total 31 100.0 100.0

39DISSERTATION
This question highlights the fact that whether employee turnover causes low coordination
rate among the employees. The findings show that 12 respondents have strongly agreed to the
research question and 10 respondents have agreed to the research question. On the other hand, 3
and 1 respondents have disagreed and strongly disagreed to the research questions. There are 5
respondents that are neutral to the research question. As per the findings, it can be said that there
is significant decrease in coordination among staffs due to employee turnover. It takes time for
new employees to cope up with the new work environment as every organization has their own
set of business model and processes. This reduces the coordination between the staffs as they are
not aware of each other’s capabilities, weakness and strengths.
@6.Howfardoyouagreethatemployeeturnoveraffectstheimage
Frequency Percent Valid Percent Cumulative Percent
Valid 1 12 38.7 38.7 38.7

40DISSERTATION
2 9 29.0 29.0 67.7
3 5 16.1 16.1 83.9
4 4 12.9 12.9 96.8
5 1 3.2 3.2 100.0
Total 31 100.0 100.0
This question highlights the fact that whether employee turnover affects the image of the
business entity in the market. The findings show that 12 respondents have strongly agreed to the
research question and 9 respondents have agreed to the research question. On the other hand, 4
and 1 respondents have disagreed and strongly disagreed to the research questions. There are 5
respondents that are neutral to the research question. This means that employees leaving the

41DISSERTATION
organization due to various reason portrays that there are issues in the human resource policies
and employees are not provided with the feasible work environment. Employees may leave
organization and spread negative comments about the organization. This definitely results in
negative brand image in the market and is difficult to hire new recruits that would be eager to
work with the company.
@7.Howfardoyouagreethatemployeeturnoverreducesthesatisf
Frequency Percent Valid Percent Cumulative Percent
Valid 1 12 38.7 38.7 38.7
2 9 29.0 29.0 67.7
3 4 12.9 12.9 80.6
4 5 16.1 16.1 96.8
5 1 3.2 3.2 100.0
Total 31 100.0 100.0

42DISSERTATION
This question highlights the fact that whether employee turnover reduces the satisfaction
level of the consumers or not. The findings show that 12 respondents have strongly agreed to the
research question and 10 respondents have agreed to the research question. On the other hand, 5
and 1 respondents have disagreed and strongly disagreed to the research questions. There are 4
respondents that are neutral to the research question. This means customer satisfaction is highly
affected by turnover rate as new employees take time to understand the work they do and their
level of professionalism is less compared to the experienced employees. Moreover, the
experienced employees have knowledge regarding their field of work which facilitates in
reproducing the tangible and intangible products they are offering to the employees. Service
industry requires experienced employees and employees learn many skills where working on
their job which takes time for the new employees to adapt. The consumers compare their
previous experiences to the current experience and deviation in service quality results in decrease
in customer satisfaction of the employees.

43DISSERTATION
@8.Howfardoyouagreethatemployeeturnoverreducestheoccupa
Frequency Percent Valid Percent Cumulative Percent
Valid 1 5 16.1 16.1 16.1
2 14 45.2 45.2 61.3
3 3 9.7 9.7 71.0
4 8 25.8 25.8 96.8
5 1 3.2 3.2 100.0
Total 31 100.0 100.0
This question highlights the fact that whether employee turnover reduces the occupancy
rate of the hotel or not. The findings show that 5 respondents have strongly agreed to the
research question and 14 respondents have agreed to the research question. On the other hand, 8

44DISSERTATION
and 1 respondents have disagreed and strongly disagreed to the research questions. There are 3
respondents that are neutral to the research question. The results from the previous questions
have clearly shown that employee turnover highly affects the satisfaction level of the consumers
so reduction in customer satisfaction means that repeat purchase and revisits to the restaurant
would be reduced. Similarly, decrease in consumer satisfaction would affect their ratings on
online websites and consumers take online reviews as one of the crucial components of choosing
their hotels.
@9.Howfardoyouagreethatemployeeturnoverreducesthemotiva
Frequency Percent Valid Percent Cumulative Percent
Valid 1 8 25.8 25.8 25.8
2 12 38.7 38.7 64.5
3 6 19.4 19.4 83.9
4 4 12.9 12.9 96.8
5 1 3.2 3.2 100.0
Total 31 100.0 100.0

45DISSERTATION
This question highlights the fact that whether employee turnover reduces motivation level
of the employees or not. The findings show that 8 respondents have strongly agreed to the
research question and 12 respondents have agreed to the research question. On the other hand, 4
and 1 respondents have disagreed and strongly disagreed to the research questions. There are 6
respondents that are neutral to the research question. Employees leaving organizations for
various reasons results in creation of negative atmosphere within the employees. Staffs are aware
of the organizational issues they face while working with each other so if one employee is facing
some issue and the managers are not taking measures to solve those issues, it affects other
employees. Employees leave organization due to different issues they face and if too many
employees are leaving for similar issues, it creates a sense of negativity among other employees.
@10.Howfardoyouagreethatemployeeturnoverreducestheperfo

46DISSERTATION
Frequency Percent Valid Percent Cumulative Percent
Valid 1 9 29.0 29.0 29.0
2 11 35.5 35.5 64.5
3 3 9.7 9.7 74.2
4 7 22.6 22.6 96.8
5 1 3.2 3.2 100.0
Total 31 100.0 100.0
This question highlights the fact that whether employee turnover reduces the performance
level of the employees. The findings show that 9 respondents have strongly agreed to the
research question and 11 respondents have agreed to the research question. On the other hand, 7
and 1 respondents have disagreed and strongly disagreed to the research questions. There are 3

47DISSERTATION
respondents that are neutral to the research question. The previous question already showed the
employees are demotivated by high turnover rate within organizations. As per motivational
theories, it can be stated that employee motivation is one of the key aspects of improving the
productivity of the employees and the survey has shown similar results. Employees may think
about switching to a different job when there is increase in turnover rates in an organization.
@11.Howfardoyouagreethatemployeeturnoverreducestheunifo
Frequency Percent Valid Percent Cumulative Percent
Valid 1 9 29.0 29.0 29.0
2 11 35.5 35.5 64.5
3 2 6.5 6.5 71.0
4 7 22.6 22.6 93.5
5 2 6.5 6.5 100.0
Total 31 100.0 100.0

48DISSERTATION
This question highlights the fact that whether employee turnover reduces the uniformity
in service. The findings show that 9 respondents have strongly agreed to the research question
and 11 respondents have agreed to the research question. On the other hand, 7 and 2 respondents
have disagreed and strongly disagreed to the research questions. There are 2 respondents that are
neutral to the research question. The previous questions have shown that increase in employee
turnover rate reduces the coordination rate among the employees and lack of coordination among
employees reduces the uniformity in service. Service industry requires reproducibility of similar
service every time as consumers compare their past and present experiences. Therefore,
ununiformed services will not go unnoticed among the consumers. Thus, it can be said that
service uniformity is high affected by the increase in turnover within organizations.
@12.Howfardoyouagreethatemployeeturnoverreducestheprodu
Frequency Percent Valid Percent Cumulative Percent

49DISSERTATION
Valid 1 11 35.5 35.5 35.5
2 9 29.0 29.0 64.5
3 2 6.5 6.5 71.0
4 6 19.4 19.4 90.3
5 3 9.7 9.7 100.0
Total 31 100.0 100.0
This question highlights the fact that whether employee turnover reduces the productivity
rate and profit margin of the hotels. The findings show that 11 respondents have strongly agreed
to the research question and 9 respondents have agreed to the research question. On the other
hand, 6 and 3 respondents have disagreed and strongly disagreed to the research questions. There
are 2 respondents that are neutral to the research question. The results from the previous

50DISSERTATION
questions have clearly shown that there increase in turnover rate clearly affects customer
satisfaction, service uniformity and motivation level of the employees. These factors are critical
for increase in productivity of the employees and organizational productivity. Moreover, increase
in turnover rate increase the human resource cost of the organization and this results in the
decrease in overall profit margin. The company incurs loss as the organizations spends their
resources to employee and train a new employee and they leave which results re recruiting of
individuals which effects the profit margin.
4.1.4 Descriptive Statistics
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation Variance
@5.Howfardoyouagreethate
mployeeturnovercauseslowc
oordin
31 1 5 2.06 1.124 1.262
@6.Howfardoyouagreethate
mployeeturnoveraffectstheim
age
31 1 5 2.13 1.176 1.383
@7.Howfardoyouagreethate
mployeeturnoverreducesthes
atisf
31 1 5 2.16 1.214 1.473
@8.Howfardoyouagreethate
mployeeturnoverreducestheo
ccupa
31 1 5 2.55 1.150 1.323
@9.Howfardoyouagreethate
mployeeturnoverreducesthe
motiva
31 1 5 2.29 1.101 1.213
@10.Howfardoyouagreethat
employeeturnoverreducesthe
perfo
31 1 5 2.35 1.226 1.503

51DISSERTATION
@11.Howfardoyouagreethat
employeeturnoverreducesthe
unifo
31 1 5 2.42 1.311 1.718
@12.Howfardoyouagreethat
employeeturnoverreducesthe
produ
31 1 5 2.39 1.407 1.978
Valid N (listwise) 31
The above table shows the descriptive statistics of the questions taken on Likert scale.
The value in all the instances ranges between 2 to 2.3 which means that majority of the
respondents are more inclined towards strongly agree on the linear scale. This means that
positive reviews have been received on the questions in majority of the instances. This clearly
indicate that employee turnover has clearly affects the overall operation of any hotel and affects
the diverse aspect of the operation.
4.1.5 Correlation
Correlations
@5.Howfardoyo
uagreethatemplo
yeeturnovercaus
eslowcoordin
@6.Howfardoyo
uagreethatemplo
yeeturnoveraffec
tstheimage
@7.Howfardoyo
uagreethatemplo
yeeturnoverredu
cesthesatisf
@5.Howfardoyouagreethate
mployeeturnovercauseslowc
oordin
Pearson Correlation 1 .725** .799**
Sig. (2-tailed) .000 .000
N 31 31 31
@6.Howfardoyouagreethate
mployeeturnoveraffectstheim
age
Pearson Correlation .725** 1 .662**
Sig. (2-tailed) .000 .000

52DISSERTATION
N 31 31 31
@7.Howfardoyouagreethate
mployeeturnoverreducesthes
atisf
Pearson Correlation .799** .662** 1
Sig. (2-tailed) .000 .000
N 31 31 31
@8.Howfardoyouagreethate
mployeeturnoverreducestheo
ccupa
Pearson Correlation .746** .759** .770**
Sig. (2-tailed) .000 .000 .000
N 31 31 31
@9.Howfardoyouagreethate
mployeeturnoverreducesthe
motiva
Pearson Correlation .846** .717** .812**
Sig. (2-tailed) .000 .000 .000
N 31 31 31
@10.Howfardoyouagreethat
employeeturnoverreducesthe
perfo
Pearson Correlation .733** .846** .632**
Sig. (2-tailed) .000 .000 .000
N 31 31 31
@11.Howfardoyouagreethat
employeeturnoverreducesthe
unifo
Pearson Correlation .705** .656** .773**
Sig. (2-tailed) .000 .000 .000
N 31 31 31
@12.Howfardoyouagreethat
employeeturnoverreducesthe
produ
Pearson Correlation .743** .835** .685**
Sig. (2-tailed) .000 .000 .000
N 31 31 31
The above table shows the correlation between the eight questions on the Likert scale
with first three questions on the Likert Scale. The Pearson’s correlation between the variables
shows that there is moderately positive relationship between the variables and the all variables
are significant as the value of two tailed significance is less than 0.05. This means that if
employee turnover affects all these factors simultaneously.

53DISSERTATION
Correlations
@8.Howfardoyou
agreethatemploy
eeturnoverreduce
stheoccupa
@9.Howfardoyou
agreethatemploy
eeturnoverreduce
sthemotiva
@10.Howfardoyo
uagreethatemplo
yeeturnoverreduc
estheperfo
@5.Howfardoyouagreethatem
ployeeturnovercauseslowcoor
din
Pearson Correlation .746** .846** .733**
Sig. (2-tailed) .000 .000 .000
N 31 31 31
@6.Howfardoyouagreethatem
ployeeturnoveraffectstheimage
Pearson Correlation .759** .717** .846**
Sig. (2-tailed) .000 .000 .000
N 31 31 31
@7.Howfardoyouagreethatem
ployeeturnoverreducesthesatis
f
Pearson Correlation .770** .812** .632**
Sig. (2-tailed) .000 .000 .000
N 31 31 31
@8.Howfardoyouagreethatem
ployeeturnoverreducestheoccu
pa
Pearson Correlation 1 .765** .874**
Sig. (2-tailed) .000 .000
N 31 31 31
@9.Howfardoyouagreethatem
ployeeturnoverreducesthemoti
va
Pearson Correlation .765** 1 .736**
Sig. (2-tailed) .000 .000
N 31 31 31
@10.Howfardoyouagreethate
mployeeturnoverreducesthepe
rfo
Pearson Correlation .874** .736** 1
Sig. (2-tailed) .000 .000
N 31 31 31
@11.Howfardoyouagreethate
mployeeturnoverreducestheun
Pearson Correlation .705** .883** .610**
Sig. (2-tailed) .000 .000 .000

54DISSERTATION
ifo N 31 31 31
@12.Howfardoyouagreethate
mployeeturnoverreducesthepr
odu
Pearson Correlation .668** .721** .710**
Sig. (2-tailed) .000 .000 .000
N 31 31 31
The above table shows the correlation between the eight questions on the Likert scale
with next three questions on the Likert Scale. The Pearson’s correlation between the variables
shows that there is moderately positive relationship between the variables and the all variables
are significant as the value of two tailed significance is less than 0.05. This means that if
employee turnover affects all these factors simultaneously.
Correlations
@11.Howfardoyouag
reethatemployeeturn
overreducestheunifo
@12.Howfardoyouag
reethatemployeeturn
overreducestheprodu
@5.Howfardoyouagreethatemployeet
urnovercauseslowcoordin
Pearson Correlation .705** .743**
Sig. (2-tailed) .000 .000
N 31 31
@6.Howfardoyouagreethatemployeet
urnoveraffectstheimage
Pearson Correlation .656** .835**
Sig. (2-tailed) .000 .000
N 31 31
@7.Howfardoyouagreethatemployeet
urnoverreducesthesatisf
Pearson Correlation .773** .685**
Sig. (2-tailed) .000 .000
N 31 31
@8.Howfardoyouagreethatemployeet
urnoverreducestheoccupa
Pearson Correlation .705** .668**
Sig. (2-tailed) .000 .000

55DISSERTATION
N 31 31
@9.Howfardoyouagreethatemployeet
urnoverreducesthemotiva
Pearson Correlation .883** .721**
Sig. (2-tailed) .000 .000
N 31 31
@10.Howfardoyouagreethatemploye
eturnoverreducestheperfo
Pearson Correlation .610** .710**
Sig. (2-tailed) .000 .000
N 31 31
@11.Howfardoyouagreethatemploye
eturnoverreducestheunifo
Pearson Correlation 1 .632**
Sig. (2-tailed) .000
N 31 31
@12.Howfardoyouagreethatemploye
eturnoverreducestheprodu
Pearson Correlation .632** 1
Sig. (2-tailed) .000
N 31 31
The above table shows the correlation between the eight questions on the Likert scale
with next two questions on the Likert Scale. The Pearson’s correlation between the variables
shows that there is moderately positive relationship between the variables and the all variables
are significant as the value of two tailed significance is less than 0.05. This means that if
employee turnover affects all these factors simultaneously.
4.2 Qualitative Questionnaire
Questions Comment Codes
1. Does your organization
experience issues with
employee turnover?
Explain
“Yes, our organization
faces issues with employee
turnover. Our operation gets
hampered due to staffs
leaving the organization. I
Operation gets hampered,
shortage of staffs, new staffs
take time to understand their
job role

56DISSERTATION
also feel that I should switch
for better opportunities in
other hotels or may be try
out for a different industry.”
“Yes, staffs leave from our
organizations all the time.
We have difficulty dealing
with guests due to the
shortage of staffs.”
“High employee turnover is
a common issue in hotel
industry and my
organization is no different.
We face issues in effectively
handling all the
responsibilities as new staffs
take time to understand their
job role.”
“Yes, staffs leave from our
organizations all the time.
We have difficulty dealing
with guests due to the
shortage of staffs.”
2. What are the adverse
impact of employee
turnover in your
organization?
“There are many adverse
effects of employee turnover
such as inconsistency in
service, lack of motivation,
decrease in customer
satisfaction and reduces in
occupancy rate.”
“The adverse effect can be
increase in human resource
cost and decrease in
productivity.”
“Reputation of the
organization gets affected
highly due to high turnover
and employees spread
negativity while leaving.”
“There are many adverse
effects of employee turnover
such as inconsistency in
service, lack of motivation,
decrease in customer
satisfaction and reduces in
occupancy rate.”
inconsistency in service,
lack of motivation, decrease
in customer satisfaction and
reduces in occupancy rate,
human resource cost and
decrease in productivity

57DISSERTATION
3. How do you deal with
turnover issues in your
organization?
“We have developed
different performance
management programs
which aims to improve the
skill level of the employees
and motivate them. On the
other hand, we have
incentives, rewards,
recognition and other perks
to keep the employees
motivated.”
“There is nothing much
being done for the
employees as new part time
and casual employees are
available at lesser cost.”
“Our organization makes
sure to keep employees
motivated in terms of
rewards and benefits.
However, in terms of stress
level and work life balance,
we lack in strategies to
reduce the mental stress of
the employees.”
“We have developed
different performance
management programs
which aims to improve the
skill level of the employees
and motivate them. On the
other hand, we have
incentives, rewards,
recognition and other perks
to keep the employees
motivated.”
performance management
programs, new part time and
casual employees are
available at lesser cost, lack
in strategies to reduce the
mental stress of the
employees
The findings of the qualitative analysis have developed similar findings to that of the
quantitative analysis. The results have clearly shown that increase in employee turnover in
negatively affects the overall operation of the organization. It has shown that low coordination
rate, image of the business, satisfaction level of customers, occupancy rate, motivation level,

58DISSERTATION
performance level, uniformity of service, profit margin and productivity rate are key issues faced
by the organizations. The data from the qualitative analysis have validated these facts and clearly
highlighted the issues faced by the business entities in the hospitality industry.

59DISSERTATION
Chapter 5: Conclusion
5.1 Conclusion
This chapter has linked the data findings and analysis of the research with the literature to
provide relevant conclusion in the research. Employee turnover is a major issue in hospitality
industry and literature has already depicted the various issues faced by different companies in
past researches. The hospitality industry of Hong Kong has been experiencing a great growth
with a strong occupancy rate and hence, with respect to this, it is expected that the hotels are
experiencing a strong average room rates growth. This means that organizations have to be even
more careful about their employee turnover so that there is increase in growth and productivity.
Hotels may experience failure in high growth market due to the high competition and service
standards in the industry.
Objective 1: To find out the factors of employee turnover in the Industry
The findings of the research have shown that growth opportunities, performance
appraisal, salary, benefit, selection and training are the few factors of employee turnover.
Moreover, stress level and work life balance are also key factors of high turnover in the industry.
These factors are critical for motivating employees and employee motivation is the key to
employee retention. Employee lose motivation more often due to lack of growth opportunities
and inadequate compensation package. Employees in other sector are provided better
compensation and this is the reason that employees switch from hospitality sector to other
sectors. On the other hand, the increase in causal and part time employees have made it easier to
replace existing employees which has made majority of the management in different
organizations reluctant. However, as per the growth of the hospitality sector in Honk Kong, it is

60DISSERTATION
essential to manage the turnover rate by implementing effective human resource management
strategies.
Objective 2 and 3: To understand and analyze how these problems have been affecting the
industry.
The analysis of the data has clearly shown that employee turnover highly affects the
operation of the organization. It has shown that low coordination rate, image of the business,
satisfaction level of customers, occupancy rate, motivation level, performance level, uniformity
of service, profit margin and productivity rate are key issues faced by the organizations. It takes
time for new employees to cope up with the new work environment as every organization has
their own set of business model and processes. This reduces the coordination between the staffs
as they are not aware of each other’s capabilities, weakness and strengths. Employees leaving the
organization due to various reason portrays that there are issues in the human resource policies
and employees are not provided with the feasible work environment. Employees may leave
organization and spread negative comments about the organization. This definitely results in
negative brand image in the market and is difficult to hire new recruits that would be eager to
work with the company.
As stated by one of the respondents, “There are many adverse effects of employee
turnover such as inconsistency in service, lack of motivation, decrease in customer satisfaction
and reduces in occupancy rate.”. This shows that inconsistency in the service is a major issue due
to turnover rate where staffs fail to deliver similar kind of services at all time due to the shortage
of staffs in the hotel. All the above-mentioned factors are all linked with each other as

61DISSERTATION
inconsistency is services results consumer dissatisfaction which affects the occupancy rate of the
hotels. The reduction in occupancy rate of the hotels will reduce the profit margin and
organization performance. This clearly shows that if one of the factors is affected by turnover
rate then other factors get affected. The Pearson’s correlation between the variables shows that
there is moderately positive relationship between the variables and the all variables are
significant as the value of two tailed significance is less than 0.05. This means that if employee
turnover affects all these factors simultaneously. This shows that employee retention is key for
sustainable competitive advantage and in hospitality industry in Honk Kong, it would provide
competitive edge to companies having better human resource policies.
5.2 Recommendations
Objective 4: To recommend certain ways in which the problem can be overcome
The ways in which employee turnover in hotel industry can be reduced are as follows:
 The first strategy is to hire the right personnel for the job. The majority of the hotels are
filling their staff requirements with part time and casual employees. Companies require
trained and skilled employees that add value to the organization. Moreover, hiring people
that are willing to grow in this industry should be hired as many moves to a different
sector for better opportunities. Personnel that are committed, team-oriented and
empathetic to consumer service should be hired as they fit to the customer satisfaction of
the employees.
 Employees require positive feedback at regular intervals to maintain the quality of service
that is expected by the consumers. Consistency is service and high standards are key

62DISSERTATION
elements of successful hotel business and supervisors should make sure that positive
feedback is given to the employees to improve their performance and motivate them.
 The organization should develop effective growth strategies to provide new opportunities
which would let grow at professional level. This would consist of training and skill
development programs so that employees feel that organization is committed to growth.
Moreover, this keeps employees away from stagnation and provides new challenges.
 The organization promote work-life balance for the employees as hospitality industry is
demanding in nature and it requires their employees to work extended hours and irregular
shifts. This may affect their personal life and they may not have enough time to spend
leisure hours with their family. The management should develop policies to provide
opportunities to balance their personal and professional life so that employees feel that
their organization care for them.
 The market in Honk Kong is highly competitive and organizations should provide
compensation and benefits are competitive in nature. This means that the organization
should provide wages that meet industry standards and offering higher pages facilitates in
maintaining employee retention. It can reduce the heavy cost of replacing an existing
employee.
 The organization should develop two-way communication so that employees can
provided feedback regarding the policies and processes. This also helps employees to
provide their ideas to the management which may bee innovative and provide
competitive edge to the organization.
 The employees should be included in the decision-making process. This increases the
transparency level of operation of the organizations and provides importance to the

63DISSERTATION
employees. This increases their sense of belonging and would definitely motivate them to
perform to their fullest potential.
5.3 Future scope of the research
This research has aimed to examine the impact of employee turnover on the hospitality
industry in Hong Kong. However, this topic relative broad as there are many companies in Hong
Kong in the hospitality industry. Future researches can further narrow down the topic to conduct
quantitative analysis based on a particular organization. This would facilitate in understanding
the issues faced by a particular organization. On the other hand, further studies in different
countries may provide different results.
5.4 Research limitation
The major limitation of the research is that the whole industry in Hong Kong has been
taken into account. This is the reason that the findings are generalised and does not provide
results particular to a business entity. The research also focuses on only hospitality industry in
Hong Kong and results may vary in other countries. Therefore, the study needs to be conducted
in different environments to check its reliability in the modern hospitality industry.

64DISSERTATION
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