Impacts of Employee Turnover on Service Quality in Food and Beverage Industry

This report discusses the impacts of employee turnover on service quality in the food and beverage industry. It includes a literature review, identification of the problem, independent and dependent variables, interrelationship between them, and conclusions.

RUNNING HEAD: LITERATURE REVIEW 1
Topic: Impacts of employee turnover on service quality in food and beverage service
department.
Subject – Business research for hospitality
Report type- QUALITATIVE RESEARCH REPORT

Impact of employee turnover on Food and Beverage Industry 2
Contents
FIRST PART (A).......................................................................................................................2
Literature review........................................................................................................................2
Introduction................................................................................................................................2
Identification of a problem.........................................................................................................3
Independent Variable.................................................................................................................4
Theory X and Theory Y.............................................................................................................5
Theory X....................................................................................................................................6
Theory Y....................................................................................................................................6
Dependent Variable....................................................................................................................7
Interrelationship between dependent and independent variable................................................7
Conclusions................................................................................................................................8
References..................................................................................................................................9

Impact of employee turnover on Food and Beverage Industry 3
FIRST PART (A)
Introduction
The incidence of high employee turnover is a subject of great concern. There have been
numerous researches that are focused on understanding the main cause of turnover and
further are related to formulation of the strategy. The study is important enough to understand
the deficiency and allow in managing the efforts in order to gain competency(Nadiri &
Tanova,2010, pp 35). The purpose here is to gain competency and allowing better retention
policies. These strategies are important enough for maintaining a balance and attaining a
greater level of employee satisfaction. The purpose of this report is to identify the issue
related to management of human resource. The aim is to assess the Impacts of employee
turnover on service quality in food and beverage service department. The hospitality industry
is facing a high employee turnover around the world. The changing demographic factors are
therefore causing a change in the human resource practice. For the purpose it is important to
understand the reason behind high turnover. It is crucial for an organization to recruit a right
person at a right place. A high employee turnover is creating a problem for the industry hence
disrupting the growth. This is one of the factors that are creating a hindrance in attaining a
high employee satisfaction. The employee turnover is rising sharply hence creating hindrance
in growth and development of the industry. Recruiting the right people and training them
correctly is the need of the hour.The service industry specially requires a well and effective
process in order to motivate the employees. The self-motivated employees therefore work
more efficiently and give high yield. In order to attain success, it is necessary for the service
industry to manage the competency and attaining high employee effectiveness. The food and
beverage industry is undergoing a high turnover issue. Virtually the food and beverage
industry can retain highly talented employees but the only difficulty is related to retention.
The high turnover is one of the major reasons behind the failure of little organization. The
purpose is to train the staff and to provide with effective solution. Labour turnover is one of
the serious issues that require addressing the upcoming problems. It is necessary for
managing the issues and sustainably incurring better plan in good faith. The food and
beverage industry is therefore affecting the business in order to attain specific role. The
overall purpose here is to gain competency while addressing the issue. The article looks onto
the effects caused by the employee turnover in the particular industry(Tracey & Hinkin,2008,
pp 9). Employer turnover is a widespread issue in the food and beverage business around the

Impact of employee turnover on Food and Beverage Industry 4
world. It aims goes about as a substitute for genuine employee turnover. A standout amongst
the most difficult issues confronted by the food and beverage industry today is to deal with
the changing work relationship. Being in client benefit business, this industry underwrites
vigorously on its HR to accomplish its upper hand. The industry is a high client benefit
arranged business where cooperation amongst employees and clients decide the upper hands
and achievement of the business. The business is an organization that regularly encounter
worker turnover caused by issue that happened at the organization, inner issues it additionally
causes a high rate of worker turnover(Boxall & Purcell,2011, pp 78).
Identification of a problem
The purpose is to identify the impact of employee turnover on the food and beverage
industry. It further describes the role of management and the business organization to manage
the issue. The hospitality industry has come across serious issues in the recent time. Under
such a scenario, it is important to derive an effective human resource policy
1.0 Literature review:
Turnover goal is a propensity or aim of the representative to leave his place of employment.
The expectation is the demeanor or the likelihood of an employee to leave the association or
willful turn over caused an upgrades. Father depicted the employee want to move can be
early manifestations of turnover in an organization. Turnover can likewise be characterized as
the development of work out of the association. Turnover can be an abdication, exchange out
authoritative units and end or passing of an individual from the association. The turnover can
happen intentionally or not willful(Cascio, 201, pp 88). Willfully turnover is the employee’s
choice to leave the association caused by how fascinating the work that is as of now
accessible and the accessibility of other business options. Then again, automatic turnover
portrays a business' choice by ending the working relationship and are untamed for the
workers who encounters it. In an organization, worker turnover can happen whenever with
differed reasons. Organizations should realize that worker turnover is a major issue if the
number keeps on expanding(Jackson,Schuler & Werner, 2009, pp33). Employee Turnover
Factors in Food and beverage industry has to diminish the turnover worker at neighborliness
industry, the enrollment who prescribed is through sources as referrals, contracting
minorities, the elderly, female and impaired employees. Sourcing process is the way toward
getting the hopefuls who suit with the requirements of association(Armstrong & Taylor,
2014, pp 36).

Impact of employee turnover on Food and Beverage Industry 5
The enrollment starts when an association distinguishes the position left by a worker,
recognized a work and a demand from his senior. After distinguished, the association will
make an appropriate strategy to get the new representative(Dowling, 2008).
Independent Variable
Employee Turnover is an independent variable. The model is given by Griffeth and Hom
which describes the reason behind the employee turnover. It describes the reason that has
caused the turnover. It describes the purpose and process that directly affect the employee
turnover. For the reason it is a well-established fact that describes the turnover process. The
turnover can take place either voluntarily or involuntarily. The turnover rate in the
accommodation part bested 70 percent for the second back to back year, yet at the same time
stayed underneath pre-retreat levels, as per the NRA's Central Financial specialist Bruce
Grind. His Financial expert's Scratch pad discourse and investigation shows up frequently on
Restaurant.org and Eatery TrendMapper. A considerable lot of the accessible openings for
work in the eatery business are made by the common beat in the workforce(Brewster &
Hegewisch, 2017, pp 52). Actually, this industry turnover has a tendency to be higher than
general private division turnover for various reasons. To begin with, the business is the
economy's biggest boss, as 33% of every working youngster in the U.S. is involved in the
industry, as indicated by information from the Department of Work Insights. A considerable
lot of these 1.6 million adolescent eatery specialists are landing their first position
Figure 1Adapted from: Griffeth, R. and Hom, P. (2001) Retaining Valued Employees Thousand

Impact of employee turnover on Food and Beverage Industry 6
involvement, and will go ahead to begin a profession with an alternate boss, either inside or
outside the eatery business. Second, the business utilizes a high extent of understudies, who
normally don't chip away at an entire year plan. Twenty-seven percent of eating and drinking
place representatives are enlisted in school, versus only 11 percent of the aggregate U.S.
utilized work drive, as per the U.S. Registration Agency's 2015 (ACS).
The eatery business likewise supports occasional staffing levels at different focuses
consistently, which adds to the typical repeating turnover numbers. For instance, the eatery
business is one of the economy's biggest makers of occasional occupations amid the midyear
months, including in excess of 500,000 employments amid a normal summer season. By and
large, 31 percent of the eating and drinking place workforce are part-year representatives,
contrasted with 18 percent of the aggregate U.S. workforce, as per the ACS. Entire year
workers additionally add to the business' nearly higher turnover rate, as upward portability in
the eatery business regularly happens when representatives move starting with one eatery
then onto the next. More than some other industry in the economy, the presence of various
eateries in almost every group gives representatives extra open doors for upward portability
and vocation development(Bratton & Gold, 2012, pp 23). In 2016, the turnover rate in the
cordiality area topped 70 percent for the second successive year, as per information from the
Agency of Work Insights' Employment opportunities and Work Turnover program. The
general turnover rate in the eateries and-accommodations* segment was 72.9 percent in 2016,
up marginally from a rate of 72.2 percent in 2015. It additionally spoke to the 6th back to
back yearly increment, in the wake of tumbling to a patterned low of 56.4 percent in 2010.
Theory X and Theory Y
The theory X and Y is propogated by Douglas Mc Gregor in 1960. The purpose is to focus on the
different mindset of the employee. This theory is primarily focused on understaning the mindset of
the employees. In the food and beverage industry it is of great importance to understand the
mindset of the employees.
Theory X
In this theory, administration expects that r employees are intrinsically lethargic and keep a
distance from work. In a food and beverage industry it is important to manage the challenges
in order to attain effective role. A differerent level of structure is required in order to contact
the traverse in order to manage the level in order to meet the requirements. The purpose is to
demonstrate the quality of work. The manager has to look after the organizational work and
furnish the best example in order to attain definite result. It is important enough for

Impact of employee turnover on Food and Beverage Industry 7
managing the challenges in order to pose positive results. This is evident from the point of
view of gaining positive
Theory Y
This theory assumes that the employee is self-motivated and he doesn’t require any outside
motivation. Due to this the food and beverage industry is where few of the employee. It is
therefore important to maintain a balance and allowing employees to make their own
decision. It is mostly necessary for attaining better role and responsibility while
accumulating result (Sparrow, Brewster & Chung, 2016, pp31).
Dependent Variable
Service quality is dependent variable. As indicated by financial specialists, the turnover rate
for representatives in the eatery division was 62.6% out of 2013, contrasted with a 42.2%
turnover rate in the general private segment. This higher-than-normal turnover rate could
influence your eatery's primary concern. At the point when that venture exits the entryway,
your main concern endures an immediate shot. There is a need to acknowledge
representative turnover as a customary cost of working together. Plan a long haul technique
now to decrease representative leave rates, and this will help in expanding eatery's budgetary
execution. Representatives leave occupations consistently, and the reasons are various. By its
temperament, eatery benefit is a high-push condition combined with generally brings down
pay rates; together these can prompt worker burnout. There are approaches to hold
representatives. Persistence in the contracting procedure is essential. Consider their
capabilities and aptitudes, as well as imagine how they'll function with current group. Be
cautious on the off chance that they change occupations regularly. This implies calling old
managers, not only the ones they list. Focus and offer idea to negative references. Amid the
meeting, get some information about their short and long haul objectives(Bakker & Leiter,
2010, pp33).
One of the best five reasons representatives leave their activity is for a superior paying
position elsewhere. Remain focused and keep the best ability by offering aggressive wages.
Significantly more remunerate your incredible representatives with a raise. Direct standard
execution audits and offer raises as of now. Indeed, even little sums can build your standards
for dependability. There will be diminishing in turnover rate by offering rewards. A Worker

Impact of employee turnover on Food and Beverage Industry 8
of the Month program is an incredible method to boost your representatives(Flamholtz,2012).
Consider including them simultaneously. In a group meeting, design the objectives and settle
on the motivating forces. Set up an association with nearby organizations and deal to
minimize expenses. Some innovative prizes include:
 Money related reward
 endorsements for an inn remain
 Gift voucher
Interrelationship between dependent and independent variable
Great preparing demonstrates your workers you think about them. Your representatives will
work harder for you on the off chance that they feel imperative. Give a predictable
introduction process and give your new contracts all the data they'll require. Give them an
opportunity to get comfortable with your eatery, your style of business and your necessities.
At the point when employees feel proficient about your eatery, they'll feel surer about their
new position. Give each new representative an expected set of responsibilities, instructional
booklet and handbook. The considerable individuals you've enlisted need to work for a very
much oversaw eatery. Be proficient in preparation(Bolman & Deal, 2017, pp 64) .
In conclusion, give on-going preparing to your workers. Furnish them with new abilities in
territories, for example, nourishment prep, client administration and promoting. Regardless of
the current picks up, the turnover rate stays beneath the authentic normal amid non-retreat
years. In 2007, preceding the monetary downturn, the turnover rate in the eateries and-
housing area was 80.7 percent. This was by and large keeping pace with turnover in the past
five years (2002-2006), when the yearly rate arrived at the midpoint of 80 percent. In
correlation, the normal turnover rate for all private area specialists remained at 46.1 percent
in 2016, up almost six rate focuses from the 2010 low yet at the same time underneath the
normal turnover rate of 50 percent amid the 2002 – 2006 periods. The Jars program breaks
turnover into three segments, with the aggregate of the parts speaking to the general turnover
rate. The stops rate in the eateries and-housing segment was 53.5 percent in 2016, while the
cutbacks and-releases rate was 16.7 percent. Different divisions, which incorporate
retirements, exchanges, passing’s, and partitions because of inability, contained 2.7 percent of
the segment's turnover rate in 2016. Most divisions of the economy saw their general
turnover rates decay amid the testing financial condition of 2008 - 2010, as individuals were
more averse to stop their occupations with less other work openings accessible. In any case,

Impact of employee turnover on Food and Beverage Industry 9
the quit rate ascended as of late, which shows that specialists are progressively certain about
the work showcase and will move to another activity(Schermerhorn, et al 2014, pp 30).
Conclusions
Employee turnover may disturb the organization's execution. The cordiality area is situated
to consumer loyalty, so the cordiality business ought to have qualified HR to give incredible
administration to client. The accomplishment of the accommodation business can be seen
from the consumer loyalty through the administration give by the lodging. Elevated amounts
of aim turnover has turned into a major issue for organizations, even a few organizations
encountering disappointment when he discovered that the enlistment procedure has secured
the staff at last ended up being purposeless in light of the fact that the staff who have been
enrolled and work at his organization has picked a vocation in another organization.
Employee turnover is extremely adverse to the organization. Impediments are isolated into
two: Coordinate Expenses and oblique Expenses. The immediate expenses related with the
loss of time and cash to enlist, procure furthermore, and prepare employees. The aberrant cost
is the decrease underway and administrations in light of the fact that the organization has not
discovered a swap for the employees to perform work that had beforehand been deserted by
the one who leave or contract new workers who don't have understanding and ought to be
given and prepare new workers regularly spend a great deal of cash, on the grounds that the
higher the turnover rate, the higher the use will happen.
References
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bakker, A. B., & Leiter, M. P. (Eds.). (2010). Work engagement: A handbook of essential
theory and research. Psychology press.
Bolman, L. G., & Deal, T. E. (2017). Reframing organizations: Artistry, choice, and
leadership. John Wiley & Sons.

Impact of employee turnover on Food and Beverage Industry 10
Boxall, P., & Purcell, J. (2011). Strategy and human resource management. Palgrave
Macmillan.
Bratton, J., & Gold, J. (2012). Human resource management: theory and practice. Palgrave
Macmillan.
Brewster, C., & Hegewisch, A. (Eds.). (2017). Policy and practice in European human
resource management: The Price Waterhouse Cranfield survey. Taylor & Francis.
Çalişkan, E. N. (2010). The impact of strategic human resource management on
organizational performance. Deniz Bilimleri ve Mühendisliği Dergisi, 6(2).
Cascio, W. (2018). Managing human resources. McGraw-Hill Education.
Dowling, P. (2008). International human resource management: Managing people in a
multinational context. Cengage Learning.
Flamholtz, E. G. (2012). Human resource accounting: Advances in concepts, methods and
applications. Springer Science & Business Media.
Harzing, A. W., & Pinnington, A. (Eds.). (2010). International human resource
management. Sage.
Jackson, S. E., Schuler, R. S., & Werner, S. (2009). Managing human resources (p. 358).
Mason, OH: South-Western Cengage Learning.
Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016). Human resource
management at work. Kogan Page Publishers.
Nadiri, H., & Tanova, C. (2010). An investigation of the role of justice in turnover
intentions, job satisfaction, and organizational citizenship behavior in hospitality
industry. International journal of hospitality management, 29(1), 33-41.
Schermerhorn, J., Davidson, P., Poole, D., Woods, P., Simon, A., & McBarron, E.
(2014). Management: Foundations and Applications (2nd Asia-Pacific Edition). John
Wiley & Sons.
Schuler, R. S., & Jackson, S. E. (2008). Strategic human resource management. John Wiley
& Sons.
Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management.
Routledge.
Tracey, J. B., & Hinkin, T. R. (2008). Contextual factors and cost profiles associated with
employee turnover. Cornell Hospitality Quarterly, 49(1), 12-27.

Impact of employee turnover on Food and Beverage Industry 11
Research Methodology
Impact of Employee Turnover on Food and Beverage Industry
Name:

Impact of employee turnover on Food and Beverage Industry 12
Contents
Introduction..........................................................................................................................3
Research Methods................................................................................................................3
Population............................................................................................................................3
Methodology........................................................................................................................4
Population (individual sample), Sampling technique, Population sample (characteristics) 4
Data Collection.....................................................................................................................4
Analysis................................................................................................................................5
Ethical considerations..........................................................................................................5
Limitations...........................................................................................................................5
Reference List......................................................................................................................5
Appendix..............................................................................................................................6

Impact of employee turnover on Food and Beverage Industry 13
Introduction
The point of the examination is to evaluate components of occupation fulfillment and
worker's choice to understand employee turnover in food and beverage industry. The
changing demographic factors are therefore causing a change in the human resource
practice(Aswathappa, 2013 pp 441). For the purpose it is important to understand the
reason behind high turnover. It is crucial for an organization to recruit a right person at a
right place. A high employee turnover is creating a problem for the industry hence
disrupting the growth(Jamali, et al 2015, pp 25). This is one of the factors that are
creating a hindrance in attaining a high employee satisfaction. The employee turnover is
rising sharply hence creating hindrance in growth and development of the industry.
Recruiting the right people and training them correctly is the need of the hour Brewster et
al 2016, pp 18).
Research Methods
In this research, the philosophy that utilized is paired strategic relapse techniques and
quantitative approach that will give a general view about the noteworthy factor that
decide employee turnover.
Population
The number of people in ABC restaurant is 75 employees. The questionnaire framed
will be used to analyze the reason behind the high employee turnover.
Workers of ABC Restaurant comprise of two sections:
1. Representative enlistment process directed by ABC Inn: 67 workers
2. Worker outsourcing: 8 representatives (security)
For security, ABC Restaurant did enrollment by utilizing office administrations
outsourcing) for the purpose only the 67 representatives will fill the questionnaire. The
survey will be disseminated to all representatives of ABC Restaurant. The reason for that
survey is to decide the critical elements of employee turnover at ABC Restaurant.

Impact of employee turnover on Food and Beverage Industry 14
For the reason the interview is isolated into two sections: Initial segment are the
things of socioeconomics the worker, for example, sexual orientation, age, instructive
foundation, work in any office, the working time frame, salary and goal to leave. The
second part comprises of six things of representative turnover factor in the food and
beverage business. The main factor is the enrollment, the second factor is the
determination, the third factor is the preparation, the fourth factor is vocation
development openings, the fifth factor is the execution examination, and the 6th factor is
the compensation and advantage. The reaction code is utilizing a four-direct scale toward
fill in the form. The poll will be filled by representatives of ABC Inn contained an
inquiries concerning the critical components that reason representative leave from ABC
Restaurant. The motivation behind this exploration is to decide the huge factor of
turnover representative at ABC Restaurant along these lines this examination utilizing the
information of worker who had an aim to leave from ABC restaurant.
Methodology
The unwavering quality of an arrangement of at least this examination utilized for this
legitimacy is tried utilizing KMO. In any case, for KMO and Bartlett's utilized to make
the credibility of the majority of the components are substantial, must could be a factor or
not, while the legitimacy of survey. At that point the aftereffects of the trial of Bartlett's
and KMO in this investigation are both critical, so it can continue to the development of a
factor Strategic relapse is one of the test gear to test the connection between the reactions
of the indicator factors. Variable reaction was generally a double yes or no, with worker
turnover(Marchington, et al 2016, pp 35). Since the examination was put on the survey,
the indicator factors and the shape is clear cut information.
Population (individual sample), Sampling technique, Population sample
(characteristics)
The number of people in ABC restaurant is 75 employees. The questionnaire framed
will be used to analyze the reason behind the high employee turnover. The questionnaire
prepared will be distributed among the people in order to interpret the result(Riley, 2014,
pp 66). The purpose is to understand the needs of the employee and finding out the reason
behind the employee turnover(Purce, 2014, pp 55).

Impact of employee turnover on Food and Beverage Industry 15
Data Collection
The data collected will be utilized in order to manage the information in an effective
way. The information will be used to ascertain the factors that are causing the
management of data collection and information(Kothari, 2004, pp 9). This is evident from
the point of gaining evident resources and performing effective roles and
responsibility(Taylor,Bogdan & DeVault, 2015, pp 34). The data collected will be used to
analyze the reason behind a high turnover.
Analysis
The purpose is to analyze the factors that are causing a high employee turnover.
Employee turnover is extremely adverse to the organization. Impediments are isolated
into two: Coordinate Expenses and oblique Expenses ( Kumar & Phrommathed, 2005, pp
70). The immediate expenses related with the loss of time and cash to enlist, procure
furthermore, and prepare employees.
Ethical considerations
The report will be based on considering the ethical factors. This is important from the
point of understanding the ethical factors like safeguarding the information of the people
and using the information efficiently. The information used will be properly referred
while using it(Stone & Deadrick,2015, pp 34.
Limitations
The information is based on 75 samples only. It is possible that the view might change
from one person to another.

Impact of employee turnover on Food and Beverage Industry 16
Reference List
Aswathappa, K. (2013). Human resource management: Text and cases. Tata McGraw-Hill
Education.
Brewster, C., Houldsworth, E., Sparrow, P., & Vernon, G. (2016). International human
resource management. Kogan Page Publishers.
Jamali, D. R., El Dirani, A. M., & Harwood, I. A. (2015). Exploring human resource
management roles in corporate social responsibility: the CSR‐HRM co‐creation
model. Business Ethics: A European Review, 24(2), 125-143.
Kothari, C. R. (2004). Research methodology: Methods and techniques. New Age
International.
Kumar, S., & Phrommathed, P. (2005). Research methodology(pp. 43-50). Springer US.
Marchington, M., Wilkinson, A., Donnelly, R., & Kynighou, A. (2016). Human resource
management at work. Kogan Page Publishers.
Purce, J. (2014). The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals), 67.
Riley, M. (2014). Human resource management in the hospitality and tourism industry.
Routledge.
Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management.
Routledge.
Stone, D. L., & Deadrick, D. L. (2015). Challenges and opportunities affecting the future of
human resource management. Human Resource Management Review,
Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research
methods: A guidebook and resource. John Wiley & Sons.

Impact of employee turnover on Food and Beverage Industry 17
Appendix
1. Gender
A. Male
B. Female
2. What is your age group?
A. 18-24
B. 25-34
C. 35-44
D. 45-55
E. Over 55
3. Are you satisfied with your job?
A. Extremely agreed
B. Agreed
C. Extremely disagreed
D. disagreed
E. Neutral
4. Do you feel boredom at work?
A. Extremely agreed
B. Agreed
C. Extremely disagreed
D. disagreed
E. Neutral
5. Is the job challenging for you?
A. Extremely agreed
B. Agreed
C. Extremely disagreed
D. disagreed
E. Neutral
6. Is the Workload manageable?
A. Extremely agreed
B. Agreed

Impact of employee turnover on Food and Beverage Industry 18
C. Extremely disagreed
D. disagreed
E. Neutral
7. Do you think there are ample of opportunity for career advancement Training and
development programs?
A. Yes
B. No
C. Choose not to reply
D. Others -------------------------------------
8. Are you satisfied with the Remuneration and Benefits given by the organization?
A. Extremely agreed
B. Agreed
C. Extremely disagreed
D. disagreed
E. Neutral
9. Are Wages paid on time?
A. Yes
B. No
C. Choose not to reply
D. Others -------------------------------------
10. Are you satisfied with the wages system?
A. Yes
B. No
C. Choose not to reply
D. Others -------------------------------------
11. Do you get Work life balance?
A. Yes
B. No
C. Choose not to reply
D. Others -------------------------------------
12. What did you like most about working with the Company?
A. Salary
B. Work Environment
C. Type of Work

Impact of employee turnover on Food and Beverage Industry 19
D. All of The above