DISSERTATION high turnover in the hospitality industry

Running head: DISSERTATION
DISSERTATION
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