Reasons for Employee Turnover in Hotel Industry

This research report analyzes the causes and effects of high employee turnover in the hotel industry of Australia. It also provides recommendations to reduce the cases of employee turnover. The report aims to identify the exact reasons for the increasing employee turnover and trace the effect of employee turnover on the hotel industry of Australia. The report concludes that the aspect of employee turnover is dependent on many causes.

Running head: RESEARCH REPORT
Reasons for Employee Turnover in Hotel Industry
Name of the Student-
Name of the University-
Author note-

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Executive Summary
Aiming to generate a fair and comprehensive view about the aspect of employee turnover in the
hotel industry of Australia, this research report plunges into an in-depth analysis of the causes
that leads to the perpetration of the high employee turnover. This research report also delves into
a discussion of the effects of high employee turnover. This report also delves deeper into the
aspect of finding relevant solutions to the above-mentioned problem. The report recommends
that to reduce the cases of employee turnover, the hotel industry must trace the exact causes and
gauge the effects to adopt the solutions. The report concludes that the aspect of employee
turnover is dependent on many causes.

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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Literature Review............................................................................................................................5
Hotel Industry..............................................................................................................................5
Employee Turnover.....................................................................................................................6
Research Gap...............................................................................................................................7
Research Variables......................................................................................................................8
Methods Employed..........................................................................................................................8
Research Plan...............................................................................................................................8
Data Analysis.............................................................................................................................11
Findings.....................................................................................................................................11
Discussion..................................................................................................................................11
Conclusion.....................................................................................................................................13
Recommendations......................................................................................................................13
Limitations.................................................................................................................................13
Conclusion.................................................................................................................................13
Reference.......................................................................................................................................14

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Introduction
One of the most important departments of an organization is the human resource
department. They are vested with the responsibility of checking the rates of employee turnover.
Over the past few years, it has been seen that the employee turnover rates in the hotel industry
have been accentuating in a rapid pace (Park & Levy, 2014). This study aims to explore the
reasons for such happenings. In addition to this, this research report will project the manner in
which the research had arrived at the findings.
The term ‘employee turnover’ refers to the manner and the rate in which employees leave
the organizations and the number of employees who replace them. This also points towards the
rate of the employee attrition. Recent studies present that employee turnover rates depend on the
factors of the commitment exhibited by employees as well as the performance of the
organizations (Irefin, P., & Mechanic, 2014). It has to be accepted that properly computing the
percentage of employee turnover rates can reflect the reasons and help the organizations in
erasing the factors that lead to employees leaving the companies. In addition to this, it is
important for the Human Resource Department to comprehend the reasons for the rate of the
employee turnover that can assist in the smooth functioning of the organization.
Many cases of employee attrition and employee turnover severely affects the future
prospects of the organizations. This is a major problem now because the increase in the
employee turnover can disrupt the functioning and act as an impediment in generating the
required revenue. Repeated and continuous cases of employee turnover can shake the very
foundations of the hotel industry. The research problem that is identified is that though there are
innumerable causes of employee turnover, the prevalent researches does not try to delve deeper

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into the causes of employee turnover in the hotel industry. The topic that is chosen for the
research is the reasons for employee turnover in the hotel industry of Australia. This topic is
justified because it is important to know and analyze the reasons for the increase in employee
turnover. Studies have also projected that the aspect of employee retention can be checked when
the employees are quite satisfied with the work environment and the work that needs to be done
(Javed et al., 2014). Further, this topic is justified because it has been seen that the hotel industry
is facing major employee turnover (Su, 2014). It is high time to put a check on this factor to
enable the future sustenance. In addition to this, the research topic will also assist in enlisting the
reasons and the ways to resolve the issue.
The following research is based on the aim that it will strive to identify and trace the
exact reasons for the increasing employee turnover in the hotel industry in Australia. In addition
to this, the aims of the research will be substantiated by the concrete research objectives. The
research objectives are as follows:
 To identify the exact reasons for the cases of employee turnover in the hotel industry in
Australia.
 To trace the effect of employee turnover on the hotel industry of Australia.
 To devise concrete strategies that can help in checking the employee turnover rate in the
hotel industry of Australia.
RQ1. What are the reasons behind the employee turnover rates in the hotel industry of Australia?
RQ2. What are the effects of employee turnover in the hotel industry of Australia?
RQ3. What are the strategies that can assist in checking and prohibiting the rise in the employee
turnover rate in the hotel industry of Australia?

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Literature Review
Hotel Industry
Generally defined as the manner in which the employees leave the organizations for
better opportunities, employee turnover is one of the major issues that forms a major area of
concern for business organizations. The very phrase ‘turnover’ refers to the intention vested in an
employee to quit the present job (Khan, 2014). In the case of the hotel industry in Australia, the
cases of employee turnover has increased. Studies unearth the fact that the Australian hotel
industry is facing these issues on a regular basis. Due to the rates of employee turnover, the hotel
industry in Australia faces huge loss incurred due to the expenditures on the former employees.
Additionally, the hotel industry also experiences major problems related to the loss of expertise
due to high employee turnover rates (Dusek et al., 2014).It is necessary to adopt measures that
help in the retention of the employees for a longer period of time. Recent studies have projected
that the reduction of employee turnover rate in the hotel industry is one of the most important
areas of concern (AlBattat et al., 2014). In addition to this, it is essential for employers to keep a
track of the reasons for employee turnover, which in turn, will help the employers in
implementing the measures. Studies also serve to present that huge employee turnover rates can
lead to the increase in the various costs such as the costs incurred in resources and during
recruitment (Cloutier et al., 2015). In order to stop this from happening, organizations need to
inculcate comprehensive measures that can accentuate the retention rate of the employees in the
hotel industry of Australia.
It is seen that checking the rates of employee turnover is a challenging area in the hotel
and hospitality industry (Brown, Thomas & Bosselman, 2015). Needless to say, to check the
employee turnover rates in Australia is also a challenging task. Given the present scenario, it is

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extremely crucial to check the turnover rates to ensure the better survival in the future. In the
Australian hotel industry, the employee turnovers are perpetrated by various factors. Studies
justifies the stance that the hotel industry in Australia faces the problem of perpetual employee
turnover (Robinson et al., 2015). To avoid this from happening, the employers in the hotel
industry must impress upon the employees about the loss that they will incur after leaving the job
at the hotel industry (Robinson et al., 2015). Another study presents the idea that in order to
check the high rate of employee turnover in Australia; the managers must indulge in practices
that serve to amalgamate the diverse cultural workforce (Manoharan, Gross & Sardeshmukh,
2014).In addition to this, the hotel industry in Australia. In Australia, the cases of the high
employee turnover can be traced in the cases of the hotel industry in Australia and New Zealand
(Guilding, Lamminmaki & McManus, 2014).In order to stop this, the organizers and authorities
need to adopt concrete measures that can help in alleviating the rate of employee turnover.
Employee Turnover
Employee retention depends on factors such as high level of motivation, high
engagement of the employees and attractive wage and incentive schemes (Kundu & Gahlawat,
2014). Studies also reveal that there are many causes for the factor of employee turnover in the
hotel industry in Australia. One of the major factors that contribute in the higher employee
turnover in the Australian hotel industry is the factor of low remuneration. Low remuneration
can lead to the perpetration of less job satisfaction and more employee turnover (Terera &
Ngirande, 2014). This is a major cause for the employees in hotel industry to leave their jobs. It
has to be accepted that without proper remuneration, it is not possible for the employees to
sustain in the industry. This can lead to the generation of higher dissatisfaction amongst the
employees in the hotel industry. The factor of salary affects the temperament of the employees

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who do not feel satisfied with the current job prospects (Emiroğlu, Akova & Tanrıverdi, 2015).In
addition to this, some studies also project the fact only twenty four percent of the Australian
graduates are employed in the hotel and hospitality industry (Ahmad, Rashid & MohdShariff,
2014).Further, it is also seen that the high cases of employee turnover are the result of the erratic
behavior of the customers in the hotel industry. This paves the way for the employees to look for
other options related to career. Employee turnover is caused by the inability of the employees in
understanding and adjusting with the erratic needs and complaints of the consumers. It has to be
accepted that the business of the hotel industry chiefly focuses on the intrinsic connection
between the consumers and the employees (Nivethitha, Dyaram & Kamalanabhan, 2015). In
addition to this, it is also seen that the employee turnover rates in the hotel industry is also
caused by the various internal factors such as the preference based on age as well as gender
(Emiroğlu, Akova & Tanrıverdi, 2015).
Further, it is also seen that another cause for employee turnover in the hotel industry can
be traced in the need for the employees to land at better opportunities in life (Pietersen, C., &
Oni, 2014). Availability of better job opportunities can assist the employees in concretizing the
decision to reach out for the other option. Studies also reveal that the turnover rates among the
waiters are quite high.
Research Gap
Despite the innumerable research in the field of the reasons for employee turnover in the
hotel industry, most of the research fails to pinpoint the exact reasons for the higher cases of the
employee turnover. In addition to this, the previous researches failed to trace the solutions and
strategies to check the increase in the employee turnover in the hotel industry. Further, the

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previous researches also fail to encompass the idea of the effects that are produced upon the hotel
industry by the present rate of employee turnover. Thus, the following research will try to delve
deeper into these issues to suggest measures to stall the employee turnover.
Research Variables
The variable of employee turnover is dependent on the factors such as the involvement of
the employees, income level. The variable of the hotel industry’s performance is truly dependent
on the independent variable of employee turnover (Deery & Jago, 2015). It has to be said that
lesser the rate of employee turnover, more the rate of productivity. Studies also depict that the
Australian hotel industry faces the major problem of the employee turnover because of various
factors. This needs to be reduced to ensure the greater future sustenance of the hotel industry.
Methods Employed
The research has tried to arrive at the conclusion and answer the proposed research
questions by adopting certain methods. To arrive at the research questions, the research had tried
to indulge in an in-depth analysis of the available secondary resources. Further, to arrive at
concrete research questions, the research had adopted the method of concrete research practices
that were conducted on the available secondary resources. To base the questions and the
resulting research on the thematic method, this research has strived to inculcate the ideas
generated from the secondary sources.
Research Plan
Followed by this, the research had tried to conduct the research following the philosophy
and method of interpretivism. Interpretivism refers to the manner in which the secondary sources
will be interpreted to arrive at the proper results. The philosophy of interpretivism focuses on the

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qualitative data (Howe, 2014). The philosophy of interpretivism will help in the concretization of
the beliefs that there is no single and complete reality or truth (Aliyu et al., 2014). Followed by
this, the research has also taken into consideration the accumulation of quantitative data through
the amalgamation of the available resources. In addition to this, a proper thematic approach has
been used to arrive at the answers of the second and third research question. The thematic
analysis had helped in delineating a pattern in the acquired secondary data. The thematic analysis
had helped in understanding the nature of the problem of employee turnover and the causes. A
thematic pattern was established amongst the sources to arrive at the idea that there are various
causes such as employee’s need to shift to other areas of career interest and the cause of low
remuneration. After framing the research objectives and questions, the research delved into
finding the relevant literature which was followed by the analysis of the acquired data.
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Selection of correct
Topic
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Data collection from
primary as well as
secondary sources
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Creation of layout 
Literature review 
Interpretation of
relevant and acquired
Data
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Findings 
Conclusion 
Formulation of
Required Draft
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Submission of the final
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Fig: Gantt Chart
(Source: As created by the author)
Data Collection
To collect data in a proper and concrete manner, the method of rigorous collection of data
was implemented. To collect proper data from the available secondary sources, the research had
tried to collate the resources and tried to segregate the relevant ones. This was done by relating
each secondary source to the topic concerned. The sorted sources were further analysed to
arrive at the relevant ideas. The data was collected from Google scholar and the government
statistics.
Data
Secondary resources and statistical figures project the fact that the Australian hotel
industry strives to spend $70 million every year for the development of the inherent skills of the
employees and staffs (Australian Hotels Association, 2019). Studies have also revealed that the
Australian market is in need of myriad skills to cope with the changing times (Department,
2019). In addition to this, statistics also reveal that the Australian Hotel Industry faces high
employee turnover because it offers moderate growth for crucial workers such as the
professional cleaners (The Australian Government, 2019). With the scope of moderate growth, it

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is not possible to retain employees. Another study unearths the fact that the Australian hotel
industry can reduce the cases of the employee turnover if the hotel industry can inculcate the
practice of managing the culturally diverse workforce (InDaily, 2019). Additionally, it is also
seen that the Australian hotel industry had faced major employee turnover of about 66% in the
year 2015 (Deloitte Access Economics, 2015).
Data Analysis
The acquired secondary data was decoded by employing a closer analysis of the acquired
data. The project was conducted by the use of the required methodology. The findings were
arrived at after taking into consideration the various secondary resources.
Findings
Through the secondary research, it was found that the employee turnover can severely
affect the hotel industry as this can lead to the drainage of proper skills from the industry.
Secondary resources have presented that employee turnover can be related to the increased
expenditures of the industry that engages in training of the employees concerned. It is also found
that the hotel industry faces the perpetual challenge of overturning employee turnover. Despite
the huge investment and expenditure on the skill development activities, the Australian
government finds it difficult to inhibit employee turnover rate. This finding is suggestive of the
fact that the hotel industry needs to identify As well as address the present issues, which in turn,
will lead to the finding of exact solutions based on the identified issues.
Discussion
It can be discussed that the various causes of employee turnover in the hotel industry
contributes in the perpetration of this phenomenon. In the previously reviewed literature, it was

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seen that the causes of employee turnover chiefly focused on the factors of the idea of concrete
communication shared between the customers as well as the employees. The previously
reviewed literature also focused on the factor of excessive stress at job that is considered as a
major reason for employee turnover in the hotel business enterprises. However, the findings
from the current secondary resources present that the presence of other causes also accentuates
the cases of employee turnover. The present secondary data analysis projects that causes such as
the internal factors such as the variable of age as well as gender also contributes in the increase
of the turnover rates and intentions of the employees. In addition to this, after analyzing the
available secondary data, it was found that the previously reviewed literature did not take into
consideration the aspect of the supposed solutions to halt the occurrence. As opposed to the
previous literature review, the present literature review takes into consideration the causes that
are related to the psychological implications in a job. The secondary data analysis projects that
the rates of employee turnover increase with the increase in the cases of higher job
dissatisfaction (Lu & Goursoy, 2016). The previously reviewed literature also focuses on the
aspect of the involvement of skills and expertise in the employee turnover. The findings from the
secondary sources presented that the hotel industry needs to adopt comprehensive changes to
allow the investments to bear the fruits.
The secondary data analysis projects that the rampant rates of employee turnover can be
resolved by the adoption of measures, related to employee retention (Radford, Shacklock &
Bradley, 2015). The previous review focused on the idea that solutions need to be found.
Whereas, the analysis of the secondary data reflected that the concrete solutions such as
incorporation of regulatory measures can assist in finding the exact statistics and the measures

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that are to be adopted in relation to each cause. It can be said that the previous review of the
literature has paved the way for the secondary research analysis t arrive at the proper results.
Conclusion
Recommendations
 It is recommended that the hotel industry in Australia should incorporate measures to
trace the exact reasons for the high employee turnover rates.
 It is also recommended that the hotel industry in Australia adopts measures to gauge the
exact and devastating effects of the huge employee turnover in the hotel industry of
Australia.
 It is also recommended that the hotel industry in Australia adopts measures to identify as
well as enact the solutions that are needed to halt the rampant process of employee
turnover.
Limitations
Every research work faces certain limitations. This research has faced the limitation of
the less availability of proper secondary resources. The limitation that was faced was that some
of the secondary resources projected secondary information that was not based on the primary
collection of data.
Conclusion
It can be concluded that the research will provide comprehensive strategies to combat the
cases of employee turnover. In conclusion, it can also be mentioned that the employee turnover
in the hotel industry depends on various factors and causes. The need of the hour is to adopt
measures to rectify the issues of employee turnover.

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