Impact of Employee Turnover on Performance and Productivity of Tour and Travel Organisations: A Study on First Choice

This study analyzes the impact of employee turnover on the performance and productivity of First Choice, a British travel company. It identifies the reasons for high employee turnover, examines its influence on performance and productivity, and determines the ways and practices adopted by First Choice to overcome this issue. The research methodology used is interpretivism philosophy, inductive approach, and qualitative research. The study is based on secondary sources of information and includes a Gantt chart. The conclusion suggests that effective communication, recognition for employees, and improved remuneration can help overcome the problem of employee turnover.

Foundation year project

Contents
Chapter 1-INTRODUCTION..........................................................................................................3
Chapter 2- Research Methodology..................................................................................................3
Chapter 3- Literature review............................................................................................................3
Chapter 4- Research based on secondary sources............................................................................3
Chapter 5- Conclusion.....................................................................................................................3
REFERENCES................................................................................................................................4

Chapter 1-INTRODUCTION
The topic that has been selected for the specific research projects is based upon the turnover
of employees which comprises the overall measurements relative to the number of employees
who leave the organization in specific time period over the year. In addition to this, the business
selected for the following research is First choice, which is a reputable British travel company
and has multiple operations across UK and Ireland. Moreover, it is one of the largest
independently-owned traveling company in the UK and has various traveling centres in both
Ireland and United Kingdome that focus on providing enhanced traveling experience to tourists.
The primary objective of the research is to focus as well as analyse on the issues of employee
turnover along with its overall impact on the productive level of the organization(Bake., 2019).
The situation of COVID-19 pandemic has also caused various issues and challenges relative
to management operations for the travelling organization and has caused hindrance in its
operations due to lockdown and other measures. Although after re-opening of traveling
companies the major issues has been high turnover that can resulted in high level of staff leaving
the organization along with lack of motivation to work due to health concerns.
Research aim:
“To analyse the impact of employee turnover on performance and productivity of tour
and travel organisations. A study on First choice
Research Objectives
 To identify the main reasons of developing the issue of the high employee turnover.
 To examine the influence of employee turnover on performance and productivity First
choice.
 To determine about various ways and practises adopted by First choice to overcome the
issue of the employee turnover.
Research Questions:
 What are the main reasons of developing the issue of the high employee turnover?
 What is the influence of employee turnover on performance and productivity First
choice?
 What are the various ways and practises adopted by First choice to overcome the issue of
the employee turnover?
Research Problem

In context to the present study, one of the research problem is gathering valuable and credible
data for the research to be effective. In addition to this, Present the overall data in a structured
and systematic manner in order for the research to be optimal.
Chapter 2- Research Methodology
Research methodology is one of the integral part of a study that comprises of various tools
as well as techniques used by researcher in order to conduct the study along with the
justification. In addition to this, the present study comprise the use of interpretivism philosophy
which tends to facilitate and support in gaining in-depth knowledge about topic. In addition to
this, it also help researcher to carry out study in a practical and systematic manner. The research
approach which is used is inductive approach as it help in better testing and scanning of facts and
figures gathered for the particular topic(Lew, Yang and Harklau., 2018). In the present study,
qualitative research choice is taken into consideration as it help in collecting secondary
information which includes accurate and appropriate data. One of the main reasons of using
qualitative nature of study is it help in collecting data which is already analyzed and based on
observations. Moreover, there is use of secondary sources of information that has been applied
within the present project. This leads and ensure collection of data from pre existing set of data
which further leads to development of effective and reliable conclusion. Furthermore, it also
assist researcher to gather information within less time and cost effective manner.
Gantt chart:
Gantt chart is defined as a type of bar chart which illustrate a project schedule. In
addition to this, it is one of the useful and popular ways of showing activities against the time. It
aid researcher to decide the initial and the ending time of each and every activity associated with
the study which further leads to attainment of objectives within set time. The Gantt chart for
present study is given below:

Chapter 3- Literature review
Reasons of developing the issue of the high employee turnover
According to the view point of Liu, (2021), it has been observed and effectively analyses
that the issue of increased employment turnover is linked with the overall fact and measurement
of loss of tautened employee’s within the workforce over their period of work. In addition to this,
the reason for turnover relative to employees includes employee’s department along with
resignations, layoffs, terminations and retirements. Moreover, employees that become
overwhelmed with the amount of work received and face lack of reorganization through
ineffective company culture and poor relations with management. Further the aspect of lack in
flexibility and remuneration and benefits also play crucial roles in developing high employee
turnover.
Influence of employee turnover on performance and productivity First choice
As per the view point of ben, (2020), it have been effectively observed that employee
turnover has a negative influence over the overall performance as well as productivity of a
travelling organization as it results in absence of skilled and talented employees leading to low
level of performance. In addition to this, the employee turnover leads to decreased morale and
productivity aspects of employees and results in higher periods of adjustment.
Various ways and practises adopted by First choice to overcome the issue of the employee
turnover
According to Santhanam and Srinivas, 2019, there are various effective ways along with
practices that can be adopted by the management of First Choice in order to overcome the issues
of increased turnover of employees and pays emphasis on enhancing the overall work culture as
well as relationship of management with employees. In addition to this, the organization can
focus on providing better compensations along with incentives in order to reduce its turnover
low. Moreover, it should focus on establishing effective communication as well as leadership
that will ensure increased moral of employees along with develop optimal practices for the
management of First Choice in order to overcome the issues of employee turnover.
Chapter 4- Research based on secondary sources
Presentation of Facts
The employee turnover affects the organisation and its operations. High employee
turnover can create a negative impact and is also considered as a non economical concept

and various negative outcomes can be caused due to culture of the organisation, support and
communication mode. In the present scenario, all the organisation and various industries are
facing tough situations due to high employee turnover which is basically because of the lack
of satisfaction level and motivation factors among employees due to increase in the
competitors (Taylor and Pillemer, 2009).
Figure 1: Employee turnover rate, 2021
From the above chart, it clearly depicts the problem due to employee turnover and it is very
important for the industries and business organisations to address this issue. The main industries
who are dealing with the problem of employee turnover basically involves the hotel and travel
industry.
Figure 2: Cost lead out by employee turnover, 2021.
In addition to that, the HR departments are fighting and dealing with issue of employee
turnover since decade now(Gellatly and Hedberg, 2016).The turnover is basically costing very

expensive in terms of month and is very important to consider the costs which is related with the
turnover that can result in affecting a company’s operations and which can be clearly indicated
from the above pie chart. Moreover, the loss in productivity is considered to be the main risk
which is highly lead because of high employee turnover accounting. The selection cost,
recruitment cost, training and orientation cost are comprised in the 14%, 20% and 11%.
Analysis of the data
From the above report it had been analysed that situation of pandemic has decreased the
motivation level among employees and also had lead to stress and concern related to health that
basically results in increase in high employee turnover within the tourism industry. In addition to
that it has been also observed that the influence of high staff turnover results in decrease in
productivity with increase in recruitment costs. The time involved in training employees results
in decreasing the productivity level and also loss in sales. Furthermore, it has been analysed that
the training, orientation and recruitment costs also results in negative influence because of
employee turnover. In the last, the effective communication along with the recognition for
employees and improved remuneration tends to be effective element to deal and overcome with
the problem of employee turnover.
Chapter 5- Conclusion
From the above study , it had been concluded that employee turnover is basically related to
to the various employees who leave a particular industry or organisation due to specific reasons.
The main reason behind the high employee turnover involves the ineffective remuneration and
lack of motivation. The other main issues involves the increasing cost of recruitment with the
orientation cost and higher training. Participative leadership and communication can result in a
positive workplace that will help in dealing with the issue of employee turnover.

REFERENCES
Books & Journal
Bake, M., 2019. The importance of leadership and employee retention. Radiologic
technology, 90(3).pp.279-281.
Gellatly, I. R. and Hedberg, L. M., 2016. Employee turnover and absenteeism. In Handbook of
employee commitment. Edward Elgar Publishing.
Lee, T., 2018. Research on employee turnover: past, present & future, with recommendations for
managers.
Lew, S., Yang, A.H. and Harklau, L., 2018.Qualitative methodology.In The Palgrave handbook
of applied linguistics research methodology (pp. 79-101). Palgrave Macmillan, London.
Liu, H. and Ge, Y., 2021. Employee Turnover Prediction: A Deep Survival Analysis
Approach. Available at SSRN 3867963.
Ma, B., Ma, G., Liu, X. and Lassleben, H., 2020. Relationship between a high-performance work
system and employee outcomes: A multilevel analysis. Social behavior and personality:
an international journal, 48(1).pp.1-9.
Santhanam, N. and Srinivas, S., 2019. Modeling the impact of employee engagement and
happiness on burnout and turnover intention among blue-collar workers at a
manufacturing company. Benchmarking: An International Journal.
Taylor, C. and Pillemer, K., 2009. Using affect to understand employee turnover: A context-
specific application of a theory of social exchange.