Impact of high employee turnover on guest satisfaction in Sydney-based hotels

Running head: RESEARCH PROPOSAL
Research Proposal
Impact of high employee turnover on guest satisfaction in the hospitality industry: Study on
Sydney-based hotels
Student’s name:
Name of the university:
Author’s note:

1RESEARCH PROPOSAL
Table of Contents
Background......................................................................................................................................2
Significance.....................................................................................................................................2
Scope................................................................................................................................................3
Problem statement and objectives...................................................................................................4
Literature review..............................................................................................................................5
The concept of high employee turnover and guest satisfaction in hospitality industry...............5
The theoretical framework of employee turnover and guest satisfaction....................................5
Reasons behind high employee turnover in hospitality industry.................................................6
Strategies to provide guest satisfaction in hospitality industry....................................................7
The relationship between employee turnover and guest satisfaction...........................................8
Reference List..................................................................................................................................9
Appendix........................................................................................................................................12

2RESEARCH PROPOSAL
Background
Employee engagement and employee retention issues in the workplace are brought up in
context of developing performance and improve the efficiency of the employees. Engaged
employees are always productive and high employee engagement always leads to the less
employee turnover. High employee retention reduces training expenses and onboarding and it
decreases the employment gap (McPhail et al. 2015). Each of the business organisations
provides emphasis on customer satisfaction as it provides the business with high revenue and
strong customer base. In a service industry like hospitality, the staffs' behaviour and skills bring
the guest satisfaction. Therefore, guest satisfaction is pivotal of organisations' success and it
plays a significant role in organisations' financial performance. The better the organisations serve
the guests, the better the organisations will perform in terms of the bottom line (Solnet et al.
2015). In the hospitality industry, the organisations want to bolster guest satisfaction and the
management wants to create the workplace to retain more customers; the management can
achieve guest satisfaction through engagement and satisfaction initiatives. Longstanding
employees can understand the needs of the guests within a hospitality sector and the new staffs
may not be motivated to serve the guests as they less effective and efficient. Moreover, domestic
and international tourists come in Sydney and they stay in hotels. However, this research is based
on focusing Sydney based hotels as the hotels in Sydney lose about half almost 50.45% of the
staffs every year (Kandampully et al. 2015). High employee turnover is prevalent in the
hospitality industry in Sydney and the average employee retention rate in Sydney based hotel is
just 15%.

3RESEARCH PROPOSAL
Significance
This research is significant for the hospitality managers of Sydney Australia as they
managers will get to know about the issues of high employee turnover. In Sydney, maximum
hospitality organisations are highly rated and the footfalls of the guests are high in this region.
The study will be significant for the employees of hospitality sector as the employees will know
about the reasons behind lower retention rate. This research will mainly collect the information
from the secondary sources and the researcher will accumulate the primary data as well taking
the information from the managers and staffs of Sydney hotels. Therefore, first-hand data will be
amalgamated with the secondary resources to provide the hotel's ideas about operation
management and strategies to retain maximum skilled and experienced employees so that the
guests can get the high level of satisfaction. In addition, in the research work of Lu and Gursoy
(2016), they specified about the low pay, to have better career opportunities and poor working
conditions are the major reasons behind the employees' leaving. This particular research will try
to gap from the existing literature to find out the reasons behind high employees' turnover and
strategies to provide guest satisfaction. In addition, this study will be significant for the future
researchers who would conduct further research on employee turnover in the hospitality industry.
There are many specific reasons for guest satisfaction like personalised service, food quality,
room service, the behaviour of the employees, atmosphere and service quality. This research will
be significant to find out the reasons for lower of guest satisfaction that comes from the poor
service quality of the employees.
Scope
The demographic scope of the research is to find out the reasons behind the low
employee retention who are working in the Sydney hotels. The employees who work in the