High Staff Turnover in the Hotel Industry: A Case Study of Imperial Hotel

RUNNING HEAD: Introduction of Management 0
Imperial
Introduction of Management

Introduction of Management
1
Contents
Introduction...........................................................................................................................................2
Analysis of the individual problem........................................................................................................2
Conclusion.............................................................................................................................................6
References.............................................................................................................................................8

Introduction of Management
2
Introduction
The hotel industry in the UK remains with the highest level of staff turnover. The hotels are
badly affected by the highest level of staff turnover. It puts a negative impact on the business
performance. The staff turnover is generally high in the hotel sector. It is due to the short-
term nature of employment such as students wanting to work for short term period even at
low pay. In the case of the Imperial Hotel, the turnover of staff is high particularly in the
frontline staff. The interviews were conducted with leaving staff which helped to identify
various issues such as poor work culture in the hotel, aggressive management style, lack of
proper training, poor pay scale, less opportunity for promotions and more. The high level of
staff turnover puts an impact on the staffing budgets. The cost of staff runs around 35% of
sales which is high for the hotel. The need for hiring new staff has increased training costs
which have put a negative impact on the quality of service provided to guests. It is causing a
reduction in the number of regular guests and making bookings in other hotels.
The high staff turnover causes dissatisfaction among employees caused by poor relationships
with managers, poor working conditions and lack of training opportunities. As a consultant,
Peter Farnsworth analyzed the problem of high staff turnover to reduce the negative impact
on the business performance of the Imperial hotel. The impact on the quality due to the
comprising quality puts an impact on it’s long-term sustainability.
Analysis of the individual problem
The hotel industry comprises both service and production feature. The formation and
execution of services from the hotel to the staff can be realised through staff only. The
industry is signified by people so it is considered a labor-intensive industry. The Imperial
hotel is facing the problem of high staff turnover along with the problem of staff leaving. The
turnover in the hotel industry is considered to be excessively high. It turnover averages 200%
to 300% per year. The danger contributes to the highest staff turnover are discrimination in
the workplace, shortage of skills, recruitment and selection, job satisfaction and more. These
factors contribute to the high level of staff turnover in the hotel industry (Akgunduz & Sanli,
2017). According to Peter, the previous manager has a role in such a condition as democratic
approaches can be used at the time of consulting staff. Such an approach helps in selecting
staff through the efficient recruitment step including HRM, training, development, and
benefit. The industry can achieve success only if it takes the necessary steps to reduce the