Impact of Employee Retention Policy on Hotel Performance: A Case Study of Holiday Inn

This research report analyses the impact of employee retention policy on the performance level of a hotel, with a focus on Holiday Inn. It includes a critical literature review, research methodology, analysis and findings, and recommendations for effective strategies and policies for employee retention.

Research Report
Abstract
The current study is based on the topic of Impact of employee retention policy on the
performance level of a hotel for which an investigation is conducted on Holiday Inn. The main
purpose and focus of current study is on analysing the phenomena of employee retention along

with its impact on the overall performance and success level of a hotel. Further, within current
study, use of both primary as well as secondary sources of data has been made where collection
of primary information has been made with the help of questionnaire. Further, current study also
provides effective analysis and presentation of quantitative facts along with valid
recommendation about the effective strategy and policy of employee retention that supports
higher productivity and performance level.
Table of Contents
Abstract............................................................................................................................................1
Chapter 1: Introduction....................................................................................................................1
Research Topic: Impact of employee retention policy on the performance level of a hotel. A
project on Holiday Inn............................................................................................................1
Research background..............................................................................................................1
Aims and Objectives...............................................................................................................1
Research rationale and scope..................................................................................................2
Research questions.................................................................................................................2
Chapter 2: Critical Literature Review..............................................................................................2
To evaluate about the phenomena of employee retention together with its need and
importance within hospitality industry...................................................................................3
To study about the impact of employee retention policy on the overall performance and
success level of the Holiday inn.............................................................................................3
To determine some more effective strategy and policy of employee retention that supports
higher productivity and performance level of a hotel through improved holding of talented
employees...............................................................................................................................4
Chapter 3: Research Methodology...................................................................................................5
Chapter 4: Analysis and Findings....................................................................................................9
Chapter 5: A Critical Appraisal, Recommendations & Suggestions for Further Work.................15
Critical appraisal...................................................................................................................15
Recommendation and suggestions for further work.............................................................16
Chapter 6: Conclusions..................................................................................................................17
Own Performance Reflection on the Research Process.................................................................17

REFERENCES..............................................................................................................................18

Chapter 1: Introduction
Research Topic: Impact of employee retention policy on the performance level of a hotel. A
project on Holiday Inn
Research background
The concept of the employee retention is associated with the ability of the organisation to
prevent employee turnover and retain its talented candidates for a longer period of time. It has
been seen that employee’s retention forms out a vital part of every organisation as the success
and productivity of a firm is directly based on the quantum and quality of its employees
(Parmenter and Barnes, 2021). The organisation selected for current report is Holiday Inn which
is a renowned American hospitality organisation having a chain of many hotels across the world
and is based in Atlanta having its headquarters in Denham, Buckinghamshire. Holiday inn is
facing a continuous issue of lack of efficient motivation in employees and with the outbreak of
covid-19 pandemic a rising issue of high employee turnover is being faced in Hospitality
industry. Therefore, current study is lead out to review and analysis about the effective employee
retention policy along with its impact on performance level of a hotel.
Aims and Objectives
Research aim
The aim of the current study is, “To analysis about the phenomena of employee retention
together with review about its impact on the overall performance level of a hotel. A research
project on Holiday Inn.
Research Objective
 To evaluate about the phenomena of employee retention together with its need and
importance within hospitality industry.
 To study about the impact of employee retention policy on the overall performance and
success level of the Holiday inn.
 To determine some more effective strategy and policy of employee retention that
supports higher productivity and performance level of a hotel through improved holding
of talented employees.
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Research rationale and scope
The selection of the topic of current research is rationale and suitable as a rising issue of
high employee turnover is being seen within the hospitality industry. Thus, emphasising and
focusing on the employee retention policy is vital and significant as it supports higher presence
of talented and skilled employees within a firm. Further, retention of employees also supports
higher productivity and employee performance by the way of leading higher motivation and
enthusiasm in emolyess along with reducing the cost of recruitment of new employees. Thus,
current study is having a wide scope as it supports analysis of employee retention policy along
with effective strategy and policy of employee retention that supports higher productivity and
performance level of a hotel through improved holding of talented employees is vital. Along
with this, undertaking current study is also significant from the personal view point of researcher
as meet academic scope and educational qualification along with leading improvement in skill
and competency level.
Research questions
 What is meant by the phenomena of employee retention together with its need and
importance within hospitality industry?
 How the employee retention policy tends to impact on the overall performance and
success level of the Holiday inn?
 Which can be some more effective strategy and policy of employee retention that
supports higher productivity and performance level of a hotel through improved holding
of talented employees?
Chapter 2: Critical Literature Review
Literature review is defined as writing process of summarizing, synthesizing and critiquing the
literature sources that has been identified by researcher in order to accomplish research goals. In
addition to this, it has been evaluated that literature review can be effectively undertaken as
background or content for a primary research project. Furthermore, it has been underlined that
this research also help researcher to fulfil objectives in a well define and effective manner:
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To evaluate about the phenomena of employee retention together with its need and importance
within hospitality industry.
As per the view point of Alal and Florah, 2021 employee retention is mainly a organisational
goal that helps and organisation to retain talented and skilled employees for longer period of
time. In this company significantly engages in the operations of reducing employee turnover and
foster positive workplace culture. Furthermore, it has been underlined that employees retention
plays important role for an organisation in terms of enhancing overall profitability and
productivity in effective basis. In addition to this, it has been evaluated that it is essential for an
organisation to effectively appraise employees in a well define and effective manner and offer
them attractive competitive pay as well as benefits in order to maximise overall strength of
workforce. Furthermore, it has been underlined that employee retention plays important role for
organisations those who are operating their roles and responsibilities in hospitality industrial
sector. In this industry employee are directly associated with employees in terms of offering
them services and facilities. In this, it is essential for organisation to make sure that employees
are highly satisfied, as it has been evaluated that satisfied employees offer more efficient services
to customers, with helps consumers to be highly satisfied (Ashraf and Siddiqui, 2020). Thus,
according to the above mentioned analysis it has been identified that employee retention plays
important role in hospitality industry, as by retaining highly talented, skilled and experienced
employees for longer period of time, this will help companies in this sector to provide
satisfaction to customers, invest less in providing training and operate roles and responsibilities
with higher efficiency.
To study about the impact of employee retention policy on the overall performance and success
level of the Holiday inn.
As per the view point of Bharadwaj and Yameen, 2020 employee retention is define as a process
in which organisations undertake use of various strategies as well as practices to retain talented
and skilled employees for longer period of time. In addition to this it has been underlined that it
is important for organisations to understand the concept of employee retention and implement
different types of strategies as well as policies of retaining employees for longer period of time.
Furthermore, it has been underlined that employee retention is having significantly positive
impact upon overall performance and success of Holiday inn. Mentioned below there are some
certain impacts being discussed:
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Morale improvement: Employee retention impact Holiday Inn in terms of increase in employee
morale. In addition to this, it has been evaluated that experienced and old employees mostly tend
to take more workloads as well as responsibilities. This will impact Holiday Inn in terms of
higher motivation in workforce.
Recruitment and training efficiency: It has been evaluated that in order to replace an employee
organisation tend to invest more cost in terms of providing training and more (Braxton, 2021). In
this by effectively focusing upon employee retention Holiday Inn can measure significant and
dramatic decrease in recruiting cost. Furthermore, it has been underlined that by emphasising
upon employee retention organisation can save training cost.
Thus, as per the analysis it has been underlined that with the help of undertaking use of employee
retention policy organisation can save many cost and can accomplish organisational goals and
objectives with highly skilled and talented workforce. This will positively impact upon higher
competitiveness of hotel in hospitality industry.
To determine some more effective strategy and policy of employee retention that supports higher
productivity and performance level of a hotel through improved holding of talented
employees.
As per the viewpoint of Chakravarti and Chakraborty, 2020 there are some effective strategies
and policy of employee retention that will effectively support higher performance and
productivity level of Hotel, which will help them to improve holding of talented employees. In
this organisation can undertake different types of strategies such as:
Feedback
With the help of providing more positive feedback to employees on the performance is
organisational leaders and managers can stimulate performance level of employees. This will not
only help in enhancing employee motivation level but also facilitate company to retain talented
employees for longer period of time.
Healthy work-life balance
With the help of enhancing healthy work-life balance organisation leaders and manager can
assure that employees is valuable for company growth and success (Saliba, 2021). This will not
only able to help in enhancing employees sense of belongingness towards organisation but also
motivate them to retain the organisation for long time period. It also help employees to
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strengthen their performance level and enhance their productivity which helped organisation to a
sure more competitive edge in market.
Trust:
It is essential to foster respect and trust in organisational workplace structure, as employee want
to perform in a workplace which trust them and foster respect in a well defined and effective
manner (Chepkemoi, 2021). In this with the help of fostering trust and respect Hotel leaders and
managers can stimulate employees performance and productivity and simultaneously basis.
Thus according to the above mentioned analysis it has been identified with the help of
undertaking advantage of these effective strategies and policy for employee retention, leaders
and managers can effectively improve the ability to hold talented employees for longer period of
time. It also help organisation to maximize employees motivation level and enhance overall
performance and productivity.
Chapter 3: Research Methodology
This sections forms a vital part of every research work which provide vital information about the
selection and choice of research method from a set of various approaches and method of research
to conduct an investigation and research work in a more viable and effective manner (Parmenter
and Barnes, 2021). With respect to current investigation, research onion model has been used to
ensure proper selection of and choice of a research method along with proper justification for
there use.
Figure 1: Research Onion, 2020.
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Research Philosophy: Positivism, interpretivism, Pragmatism and Realism are various forms of
research philosophy in order to conduct present research investigator will undertake advantage
of positivism research philosophy. Primary aim behind taking this method is that it help
researcher to analyse objective nature of investigation. In addition to this is also help in
supporting scientific as well as practical manner of fulfilling research objectives and goals.
Research approach- Inductive and deductive two forms of research philosophy in order to
conduct present research investigation investigator undertake advantage of positivism research
philosophy. Primary reason behind taking advantage of this method is that it assist researcher to
investigate objective of research (Dogonyaro, 2021). Furthermore, it has been underlined that it
also helps in supporting scientific as well as a practical matter of fulfilling research goals.
Research strategy- Research strategy provide a framework which assist in undertaking research
investigation in an effective manner. Experimental survey and observation are different forms of
research strategy. In order to conduct investigation researcher undertake use of survey in order to
effectively analyse data and information with an aim to draw conclusion is a valid manner.
Choices of method- Quantitative and qualitative are two type of research services method. Both
of these methods helps in undertaking in research investigation in appropriate manner (PS and
Aithal, 2021). In order to conduct present research researcher take use of quantitative research
method. This method assist in evaluating collecting and analysing data and information in a
statistical manner. By taking use of quantitative research investigator aim towards duly
presenting research in a systematic way with the assistance of table and chart.
Data collection and analysis- Primary and secondary or two type of data collection method out
of which to conduct present investigation research will undertake use of both the form of data
collection method in order to have evident form of information and data to accomplish present
goals (Mani, 2020). In terms with primary research investigator will undertake advantage of
questionnaire to acquire first hand and authentic set of data. While on the other hand in terms
with secondary source investigator will take advantage of literature review to analyse
information in a systematic manner.
Sampling- It is defined as a process in which researcher undertake use of small sample size out
of the whole population. Probabilistic and non probabilistic are two types of sampling method
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(Kryscynski, D., 2021). In order to undertake present research investigation researcher take use
of random sampling method in which selection of 50 respondents has been undertaken who are
from employees of Holiday Inn. The primary reason behind undertaking employees as a
respondent is that in this research are mainly aimed towards undertaking research in effective
manner. By offering participate equal chances. Furthermore, it has been identified that in this
research undertake use of questionnaire to conduct research investigation.
Use of following questionnaire has been made for collection of primary data:
Questionnaire
Q1) Do you having any understanding and awareness about the topic and concept of
employee retention within a firm?
a) Yes
b) No
c) Neutral implication
Q2) Are your agreed with the fact that the issue of high employee turnover and lack of
motivation is rising within hospitality industry?
a) Agreed
b) Strongly agreed
c) Disagreed
d) Strongly disagreed
e) Neither agreed nor disagreed
Q3) Is implication and adoption of the employee retention policy are facilitating an
effective way for Holiday inn to overcome the issue of high employee turnover?
a) Yes
b) No
c) Lack of understanding
Q4) What are the key benefits and advantages of having effective employee retention policy
within a hospitality organisation?
a) Reduction in cost of recruitment and training
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b) Improved morale of employees
c) Positive organisational culture
d) Better customer experience
e) Reduction in workplace conflicts
Q5) As per your view point, what overall impact of the employee retention policy is being
seen on the success and productivity level of the Holiday Inn?
a) Negative impact
b) Positive impact
c) No impact
Q6) Which can be the possible challenges and issues faced by Holiday inn during the
implication and execution of the employee retention policy at its workplace?
a) Lack of effective communication and leadership
b) Higher cost of retention policy
c) Complex desires of employees
d) Lack of effective motivation and engagement
Q7) As per your understanding level, which can be the most effective and vital employee
retention policy and strategy that can be adopted by Holiday Inn to ensure improved
holding of talented employees?
a) Performance based rewards and incentives
b) Ample employee recognition
c) Focusing on employee training and development
d) Participative leadership
Q8) Any other recommendation for Holiday Inn to have improved employee retention and
higher performance level?
Sampling- Selection of 50 participants has been made from the employees of Holiday Inn with
the help of random sampling method for current study.
Ethics:
In order to conduct a result investigation it is essential to emphasize upon ethical consideration
how to fulfill research objective in ethical manner in terms of present research investigator will
8

emphasize upon undertaking all the ethical consideration to fulfill research aims and objectives
while maintaining privacy and authenticity by collecting data and undertaking use of BERA code
of ethics of ethics. This method helps in complying with data protection act which helps
investigator to maintain authenticity of research. Furthermore, it has been underlined in this
researcher will also tale use of prior approval from participants.
Chapter 4: Analysis and Findings
Theme 1: Understanding and awareness about the topic and concept of employee retention
within a firm
Q1) Do you having any understanding and awareness about the topic
and concept of employee retention within a firm?
Frequency
a) Yes 47
b) No 1
c) Neutral implication 2
Interpretation
As per the above stated bar chart, it has been find out that the form a total of the 50
participants, 47 were having understanding and awareness about the topic and concept of
employee retention within a firm while 1 participant was unaware about this along with the
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remaining two participants who tend to have a neutral implication on the topic and concept of
employee retention.
Theme 2: Issue of high employee turnover and lack of motivation is rising within hospitality
industry
Q2) Are your agreed with the fact that the issue of high employee
turnover and lack of motivation is rising within hospitality industry?
Frequency
a) Agreed 25
b) Strongly agreed 15
c) Disagreed 2
d) Strongly disagreed 4
e) Neither agreed nor disagreed 4
Interpretation
With respect to the findings of current study, it has been evaluated that the 25 participants
were tend to be agreed with the fact that the issue of high employee turnover and lack of
motivation is rising within hospitality industry while 15 respondents were strongly agreed on the
presented statement. Beside this, it has been also seen and find out that the 2 participants were
having a view point of disagreed on the fact that the issue of high employee turnover and lack of
motivation is rising within hospitality industry while 4 participants are strongly disagreed along
with the remaining 4 who tend to opt for neither agreed nor disagreed.
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Theme 3: Implication and adoption of the employee retention policy are facilitating an
effective way for Holiday inn to overcome the issue of high employee turnover
Q3) Is implication and adoption of the employee retention policy are
facilitating an effective way for Holiday inn to overcome the issue of
high employee turnover?
Frequency
a) Yes 35
b) No 8
c) Lack of understanding 7
Interpretation
On the basis of above pie chart, it has been analysed and find out that 35 participants
were in favour of yes for the fact that implication and adoption of the employee retention policy
are facilitating an effective way for Holiday inn to overcome the issue of high employee turnover
while only 8 participants opted for no option. Along with this, the remaining 7 participants tend
to have lack of understanding on the statement of implication and adoption of the employee
retention policy are facilitating an effective way for Holiday inn to overcome the issue of high
employee turnover.
Theme 4: Key benefits and advantages of having effective employee retention policy within
a hospitality organisation
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Q4) What are the key benefits and advantages of having effective
employee retention policy within a hospitality organisation?
Frequency
a) Reduction in cost of recruitment and training 8
b) Improved morale of employees 10
c) Positive organisational culture 12
d) Better customer experience 7
e) Reduction in workplace conflicts 13
Interpretation
During the course of current study, it has been analysed and find out that there are
various benefits and advantages of having effective employee retention policy within a
hospitality organisation such as Reduction in cost of recruitment and training which is supported
by 8 participants while the 10 were in favour of improved morale of employees. Along with this,
it has been seen and find out that the positive organisational culture is also a key benefits and
advantages of having effective employee retention policy within a hospitality organisation as per
the opinion of 12 participants whereas 7 favoured for better customer experience while the
remaining 13 respondents tend to opt for the reduction in workplace conflicts.
Theme 5: Overall impact of the employee retention policy is being seen on the success and
productivity level of the Holiday Inn
Q5) As per your view point, what overall impact of the employee Frequency
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retention policy is being seen on the success and productivity level of
the Holiday Inn?
a) Negative impact 4
b) Positive impact 45
c) No impact 1
Interpretation
on the key finding and observation of current study comprises of the fact that only 4
participants believes that overall a negative impact of the employee retention policy is being seen
on the success and productivity level of the Holiday Inn while 45 participants were in favour of
the positive impact of the employee retention policy. Beside this, only 1 participant was also
there who believes for no impact of the employee retention policy is being seen on the success
and productivity level of the Holiday Inn.
Theme 6: The possible challenges and issues faced by Holiday inn during the implication
and execution of the employee retention policy at its workplace
Q6) Which can be the possible challenges and issues faced by
Holiday inn during the implication and execution of the employee
retention policy at its workplace?
Frequency
a) Lack of effective communication and leadership 15
13

b) Higher cost of retention policy 12
c) Complex desires of employees 11
d) Lack of effective motivation and engagement 12
Interpretation
The above diagram is reflecting that lack of effective communication and leadership is a
possible challenge and issue faced by Holiday inn during the implication and execution of the
employee retention policy at its workplace as per the view point of 15 participants whereas 12
respondents has supported for higher cost of retention policy. Along with this, 11 participants
were also having a thinking that complex desired of employees is also a possible challenge and
issue faced by Holiday inn during the implication and execution of the employee retention policy
at its workplace while the other remaining 12 respondents tend to opt for lack of effective
motivation and engagement.
Theme 7: The most effective and vital employee retention policy and strategy that can be
adopted by Holiday Inn to ensure improved holding of talented employees
Q7) As per your understanding level, which can be the most effective
and vital employee retention policy and strategy that can be adopted
by Holiday Inn to ensure improved holding of talented employees?
Frequency
a) Performance based rewards and incentives 12
b) Ample employee recognition 11
14

c) Focusing on employee training and development 16
d) Participative leadership 11
Interpretation
As per the above shown pie chart it has been interpreted that 12 participants were having
a view point that performance based rewards and incentives forms out a vital and most effective
employee retention policy and strategy that can be adopted by Holiday Inn to ensure improved
holding of talented employees whereas 11 participants tend to opt for ample employee
recognition. Further, it has been also analysed and seen that 16 participants were having a
thinking that Focusing on employee training and development supports most effective and vital
employee retention policy and strategy that can be adopted by Holiday Inn to ensure improved
holding of talented employees whereas 11 were tend to be in favour of participative leadership.
Chapter 5: A Critical Appraisal, Recommendations & Suggestions for
Further Work
Critical appraisal
on the basis of current study, a critical appraisal can be made that the current study is
effective and vital in meeting the set objective as it supported and facilitated better underdoing
about the concept of employee retention policy along with its impact on performance of a hotel.
It has been find out and discussed that the concept of employee retention is associated with
15

ensuring long term presence of skilled and talented employees within a firm for a longer time
period. Further, it has been also analysed that the issue of high employee turnover and lack of
motivation is rising within hospitality industry thus, adoption and implication of the employee
retention policy are facilitating an effective way to overcome the issue of high employee
turnover (Bharadwaj and Yameen, 2020). Along with this, an effective critical appraisal about
the key benefits and advantages of having effective employee retention policy within a
hospitality organisation has been also made which comprises of Reduction in cost of recruitment
and training, Improved morale of employees, Positive organisational culture, Better customer
experience and Reduction in workplace conflicts. Along with this, to support a critical appraisal
about the concept of employee retention an analysis and discussion about the challenges faced
during the implication and execution of the employee retention policy at its workplace has been
also provided by current study which includes Lack of effective communication and leadership,
Higher cost of retention policy, Complex desires of employees and Lack of effective motivation
and engagement (Kim, Milliman and Lucas, 2020).
Recommendation and suggestions for further work
On the basis of current study, it has been seen and analysed that the many challenges are
faced by the Holiday inn in implicating and adopting the employee retention comprises of lack of
effective communication and leadership also with ineffective motivation and engagement.
Making use of regular rewards and incentives has been recommended and suggested for Holiday
in as it meets the monetary needs of employees and ensures higher commitment and loyalty level
therefore leads to improved retention of the employees. Further, providing regular training and
development has been also recommended as it supports higher development and professional
growth of employees which motivates them to have higher retention in the hotel (Kryscynski,
2021). Along with this, adoption and implication of the participative leadership style has been
also recommended for Holiday inn as it facilitates higher involvement of the employees and
build their value and importance level which supports higher retention of employees. Further,
based on the findings of current study, a future suggestion for conducting further work on the
topic of employee motivation has been also made as it supports and leads to improved
organisational performance.
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Chapter 6: Conclusions
On the basis of current study, a conclusion can be made that adoption of the employee
retention policy are facilitating an effective way for a hotel to overcome the issue of high
employee turnover. Further, a summarisation about the key benefits and advantages of having
effective employee retention policy within a hospitality organisation has been also made which
includes and comprises of Reduction in cost of recruitment and training, Improved morale of
employees, Positive organisational culture, Better customer experience and Reduction in
workplace conflicts. Along with this, it has been also conduced that overall a positive impact of
employee retention is being seen on the success and productivity level of a hotel which
comprises of Performance based rewards and incentives, Ample employee recognition, employee
training and development and Participative leadership as main employee retention policy.
Own Performance Reflection on the Research Process
Present research investigation is conducted on the aim to analysis about the phenomena of
employee retention together with review about its impact on the overall performance level of a
hotel. To effectively fulfil objectives of this research adequate research methodologies is being
undertaken. In this use of positivism research philosophy, primary and secondary data collection
method, random sampling methods etc is being undertaken. In order to conduct this research
different types of challenges and experiences has been duly experienced be me. I have faced
challenges in collecting data, However with the help of my strong communication, I have
accomplished this in effective manner. In addition to this, it has been evaluated by me that, this
research enhanced my skills and capabilities to conduct research in effective manner.
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