Employee Turnover and Productivity in Hospitality Industry

The assignment discusses the importance of employee retention and training in the hospitality industry, where high employee turnover can lead to decreased productivity and customer satisfaction. Strategies for reducing turnover include designing competitive income structures, providing incentives and perks, and implementing effective training programs. The assignment also highlights the value of personal contact between employees and management in increasing loyalty and sense of responsibility. It concludes that training is a primary way to increase staff productivity and that 'learning by doing' is an effective method for imparting knowledge.

IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
Impact of Employee Turnover on Staff Performance
Name of the student:
Name of the university:
Author’s note:

1IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
Executive Summary:
The objectives of the research is to identify the reasons of the turnover of the employees. The
study tests the influence of labor turnover on the performance of the organizations. It detects the
strategies for decreasing employee turnover for better staff performance. A descriptive cross-
sectional survey in the way of interview was conducted. The aspects and impacts of employee
turnover on staff performance was found to be high work load, proper training, manageable
treatment and developing opportunities. The causes of the employee turnover were found to be
“Loss of productivity”, “High cost training”, “Declination in service quality”, “Lack of
promotional activities” as well as persuasion of higher education. As the measurements,
recognition of the employees, management of flexibility of time for the employees and free
health care for the employees are the strategically proposed. The study therefore recommended
that recognition for significant execution, scopes of advancement and giving opportunity to
enhance the career establishment. Proper treatment of the employees, increased wages and fair
promotion would be created by good staff performance. Therefore, management and authority
must properly make the situation of the employees vulnerable. An interview method of hotel
manager helped to extract the inherent pattern of the staff performance and its impact on
turnover of the employees.

2IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
Table of Contents
CHAPTER 1. INTRODUCTION:...................................................................................................4
1.1. Background Context:............................................................................................................4
1.2. Research problems, purpose, aims and objectives:...............................................................4
1.2.1. Research problems:........................................................................................................4
1.2.2. Research objectives, aims and purpose:.........................................................................5
1.3. Significance of the research:.................................................................................................5
1.4. Scope of the report:...............................................................................................................6
CHAPTER 2: LITERATURE REVIEW.....................................................................................6
2.1. Introduction...........................................................................................................................6
2.2. Employee Turnover and Staff Performance: Meaning and Definitions...............................6
2.3. Types of Employee Turnover and its relation with Staff Performance................................7
2.4. Measurement of Employee Turnover and Staff Performance..............................................8
2.5. Reasons behind association of Employee Turnover and Staff Performance........................9
2.6. Impacts of Staff Performance on Employee Turnover.......................................................11
2.7. Literature Gap.....................................................................................................................12
CHAPTER 3. METHODOLOGY:................................................................................................13
3.1. Introduction:........................................................................................................................13
3.2. Qualitative Study:...............................................................................................................13
3.3. Primary Study Design:........................................................................................................13
3.4. Target Population:...............................................................................................................14
3.5. Interview Method:...............................................................................................................14
3.6. Explanatory Data Analysis:................................................................................................14
3.7. Discussion:..........................................................................................................................14
CHAPTER 4. DATA ANALYSIS:...............................................................................................15
4.1. Results and Findings:..........................................................................................................15
CHAPTER 5. RECOMMENDATIONS AND IMPLEMENTATION:........................................17
5.1. Recommendation:...............................................................................................................17

3IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
5.2. Implementation:..................................................................................................................18
CHAPTER 6. CONCLUSION:.....................................................................................................19
REFERENCES:.............................................................................................................................21
APPENDIX:..................................................................................................................................26
Interview of the Hotel Manager:................................................................................................26

4IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
CHAPTER 1. INTRODUCTION:
1.1. Background Context:
Cohen, Blake & Goodman (2016), define “Employee turnover rate” as the changes over
the years, in the percentage of employees in the total workforce of a company, who are fired or
who quit within a period of time, usually one fiscal or calendar year. This in turn makes it
immensely important for the business organizations to maintain their competitive edges and
productive as well as cost efficiencies. Many of the organizations have appraisal system of the
employees that experiences shortcomings of manual staff evaluating systems (Bertola, 1990).
Strategic implementation of organizational curriculum results the firm employee turnover rate
specifically.
The staff performance emphasizes on the enhancement, learning and improvement to the
quality of works for achieving the inclusive “Business strategy” and for creating a workforce of
high-performance. The gap between justification of pay and the enhancement of skills is a fact of
concern for staff performance (Sheridan, 1985). The realization comprehensive approach
management and reward performance was required. The approach of staff performance was
enhanced. The human resource management is a strategic driver of staff performance completed
by line managers throughout the congruency of objectives of the organization. The performance
review and implementation of “Performance improvement plan (PIP)” confidently lead the
meeting. The positive and motivational performance would improve the ability to interact the
reporting of the employees.
1.2. Research problems, purpose, aims and objectives:
1.2.1. Research problems:
The research report concentrates about concerning employee turnover rates and staff
performance. The research highlights performance of the employees that ultimately influences
the organizational effectiveness that leads to employee turnover. This research study detects the

5IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
causes of employee turnover rate and suggest different recommendations or strategies for
increasing organizational effectiveness.
1.2.2. Research objectives, aims and purpose:
The objectivity of the study is important from the point of view of the influence of
employee turnover on staff performance. The employee turnover has a negative effect on the
overall organizational performance with the theoretical and empirical-analysis. The following
research study just reflects that truth. It also discusses the daily routine interruption of the
organization. Many other researchers on the other side find that the organizations get advantages
due to innovative thoughts in enhancement of staff performance as the impact of employee
turnover (Hassler & Mora, 1999).
The aim is to propose the aspects of increment of staff-performance that grows
motivational level to carry out employee turnover. An effective performance constructs the
groundwork for excellence. The research also aims to focus on the performance objectives and
expectations through the utilization of outcomes, behaviors and actions to make the contents of
the performance review discussion to re-emphasize critical points.
To have the above purpose, the research study discourses the subsequent key objectives:
 To explore the responses of the hotel manager and employee turnovers.
 To determine the impact of the employee turnover in case of effectiveness of the
organization.
 To test the various factors hampering employee turnover, the lesser employee turnover is
required.
1.3. Significance of the research:
As per the assertion of the author, employee attrition is different from that of employee
turnover in the sense that the former usually occurs due to the end of employee-employer
relationship, caused by retirement, death, elimination of the job and others and is thus different

6IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
from turnover as in case of the former, the vacancy created is not filled with a new worker while
in case of the latter, new employees fill up the place (Liu et al., 2013).
1.4. Scope of the report:
Keeping this into consideration, the concerned section of the study, tries to conduct an
extensive review of the vast literary and scholarly works existing in the global framework, in the
aspects of employee turnover, the reasons behind the same, its implications on different aspects
of the operations of the companies and the measures by which it can be averted. There exist
different methods for measuring the turnover of workers of the companies, of which the most
common method is that of calculation of “Employee Turnover Rate”.
CHAPTER 2: LITERATURE REVIEW
2.1. Introduction
As can be seen from the above discussion, in the contemporary period, with the global
business framework becoming more inclusive, integrated and hugely inter-connected and with
more business going global, the level of competition among the businesses of almost all types of
industries across the globe has been increasing (Schaper et al., 2014). Augmenting the views of
the previous scholars, Mowday, Porter & Steers (2013), define the concerned phenomenon of
employee turnover as the percentage of employees present in a workforce, who leave within a
certain time-period, which is usually one fiscal year or one calendar year. As per Ivancevich and
Matteson (2004), “Personal background” and interest might be the reason of “Staff turnover”.
Although the turnovers of the staffs have cost effects in organizations, it would cause the many
customer complaints about the “Low-standard Service”. For this the companies need to address
the different issues which hamper their productivity, profitability and sustainability, of which one
of the primary one is “Employee Turnover” (Swift & Piff, 2014).
2.2. Employee Turnover and Staff Performance: Meaning and Definitions
The term “Employee Turnover” being a broad notion has been defined by the scholars
across the globe from different perspectives. However, in the generalized framework, as
highlighted by Shukla & Sinha (2013), in their research paper, turnover of the employees refer to

7IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
the percentages or the number of workers leaving an enterprise and getting substituted by fresh
employees. In this context, Miller (2017), puts forward the difference between the notions of
employee turnover and employee attrition, which are often used as synonyms or interchangeable
terms.
On the other hand, an employee job performance is a procedure that obtains management
evaluation and feedback. It relates activities expected to a worker and the process how it is
executed. Many business personnel directors evaluate the performance of the employees on a
monthly, quarterly or annual basis to support them to identify suggested segments for
enhancement.
2.3. Types of Employee Turnover and its relation with Staff Performance
Hom et al. (2012), in their literary work, differentiates between the various types of
employee turnovers which can be seen in the global framework, the primary ones being as
follows:
Involuntary Turnover- This kind of turnover does not involve the decision of the employees to
leave the organization. Generally, this kind of turnover occurs due to poor performance,
workplace policies violation or absenteeism of the employees.
Voluntary Turnover- This occurs when the employees of an organization voluntarily or willingly
terminates their employment relationships. Voluntary turnover generally occurs, when the
concerned employees get better employment somewhere else, relocates to other places or for
other personal reasons (Bryant & Allen, 2013).
Employee Turnover
Voluntary Involuntary Desirable Undesirable

8IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
Desirable Turnover- When the employees whose performances fall below the standard or
expectations of the company are terminated and are replaced by a better performing individual,
then this kind of turnover is known as desirable turnover as it helps in increasing the efficiency,
profitability and prospects of the concerned company (Chow et al., 2006).
Undesirable Turnover- This type of turnover usually has negative implications on the company
as this signifies the phenomenon in which the companies lose out those workers whose
performance and skill levels are high and who are valuable resources for the companies. Usually
in this type of turnovers, the employee who replace the terminated ones do not have skills or
efficiency levels of that level of the terminated ones and this form of turnover is most harmful
for the companies, as put forward by Croucher et al. (2012).
It is known to all that “Employee Performance Management” is a fact of aligning the
organizational aims with the measures, developing plans, skills, contemporary requirements and
delivery of outcomes (Dess & Shaw, 2001). “Fresh classified employees” or “Classified
employees” are tending towards a “New position” needed to attend a “Probationary Service
Period”. The span of this period is resolute by the cooperative applicability to bargain
“Agreement” or “Employment program”. Professional staff do not have a probationary or trial
service period.
2.4. Measurement of Employee Turnover and Staff Performance
As highlighted by Hausknecht & Holwerda (2013), proper measurement of employee
turnover is considerably important for the employers as the same helps them not only to analyze
the reasons behind the turnover occurring in their organizations but also contribute in estimation
of cost-to-hire and other costs occurring due to employee turnover in the companies.
The staff performance has various types of measurements of employees that are –
 Planning for the year
 Evaluation of employees especially new employees
 Staying connected with the evaluation of staff performance
 Reviewing the staff performance monthly, quarterly and annually (Ongori, 2007)
 The performance should be measured by written evaluation or one-on-one meeting
 Preparation of measures to reform the evaluation charts

9IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
2.5. Reasons behind association of Employee Turnover and Staff Performance
Through performance appraisal, the supervisors understand employing criteria that could
be understood and accepted by the “Skills of underlings”. The assistants and underlings can also
comprehend and generate faith and poise under managers. The performance of the staffs should
be reduced and the inequality in salary structure would be uplifted. The specialization and
division of labor would help to perform various types of jobs and fixed salaries. It helps to select
the employees for determining job evaluation taken into account. The healthy association
between staff performance and employee turnover could be maintained between employees and
management.
Over the years, there exist considerable debates and opinions across the globe, regarding
the plausible reasons behind turnover the workers in different organizations and the assertions
can be seen to be varying hugely depending on the types of companies, geographical regions and
periods. However, the most common factors, as can be seen in the literary evidences are as
follows:
a. Overworked employees- As cited by Jha (2014), often in the organizations, the workload is not
appropriately distributed among the different workers, which in turn leads to creation of huge
work pressure for few particular workers, who in turn feel to be exploited and not paid as per the
works they do. This in turn may lead to employee turnover.
b. Better Prospects- One of the primary reasons behind turnover of the employees in companies
across the globe, is that of the availability of better prospects in other places or organizations. As
per the work of Sinha & Sinha (2012), a major share of workers leaves the companies when they
are offered higher wages and lucrative packages by other companies and this type of turnover is
generally higher in the companies which offer miserly salaries to the workers and are also
reluctant to give raises to the workers.
c. Toxic company culture- The presence of healthy and productive working environment is
immensely necessary for increased productivity of the companies. In presence of toxic, biased
and discouraging work culture, the happiness of the workers is directly and negatively affected,
which in turn leads to employee turnover (Branham, 2012).

10IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
d. Employees are not recognized- Queiri, Yusoff & Dwaikat (2014), argue that turnover of
workers is higher in those companies where the efforts of the employees are not properly
recognized, thereby creating huge discouragement among the employees.
e. Career development opportunities- Absence of enough career development opportunities for
the workers of an organization also leads to higher employee turnover in the concerned
organizations.
f. Inefficient management- Qiu et al. (2015) also highlights the detail that in the presence of
“Inefficient management” and “Unproductive leadership” in the business organizations, the
employees tend to leave the organizations with lower level of satisfaction.
g. Performance appraisal- The performance appraisal determines the packages, salaries and
wages of compensation records. It identifies the “Strengths and Weaknesses” of the workers for
placing “Appropriate men” on proper joining. It maintains and evaluate the “Potential extant” in
an individual to develop and grow.
h. Influencing working habits- The feedback of employees regarding the performance and
associated status serves the basis for influences.
i. Promotion and compensation- The “Performance Appraisal” assistances to mark the
compensation packages for the staffs. “Performance Appraisal” and “Compensation Packages”
frame the “Training Policies and Programs”. It assistances to analyze the “Strengths and
Weaknesses” to of the staffs so that the authorities frame policies and programs related to the
high “Salary rates”, “Extra benefits”, “Bonus”, “Pre-requisites” and “Allowances” are relied
upon appraisal of the performance.
Apart from these reasons, however, factors like that of company’s own strategic designs,
competitive policies, employees’ own reasons, technological innovations and shift in skill
requirements as well as many other factors contribute in the turnover statistics of the employees
of different organizations across the global scenario. Effective managers elaborate both positive
staff performance and areas for improvement on the daily basis. The documentation of job
planning and job expectations with a written agreement might help to enhance employee’s self-
evaluation. It would develop the level of staff performance. Excellent staff performance would

11IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
help to motivate the employees and further it would continue to be grown, developed and
successful. The “Performance Appraisal” assistances the controllers to make out the “Validity”
and “Urgency” of the selection method.
2.6. Impacts of Staff Performance on Employee Turnover
Turnover of employees, as experienced by different organizations, have considerable
impacts on the operational framework, as can be seen to be discussed by different literary works,
the most significant ones being as follows:
i. Increase in the expenses- According to Mohr, Young & Burgess Jr. (2012), the primary
implication of employees of an organization is that of increase in the operational costs of the
organizations in terms of loss of “Human capital” and rise in the cost of investing in the same.
These costs include those of selection of substitutes, their formal and informal trainings and
other costs (Shaw, 2011).
ii. Loss of experienced and skilled employees- High turnover rates in organizations, leads to loss
of trained and skilled employees, as argued by Medina (2012). This lead to the loss of knowledge
and talent pool, which according to the authors, negatively affect the overall productivity and
sustainability of the companies.
iii. Staff performance and appraisal- One of the most crucial implications of employee turnover,
as highlighted by Nica (2016), is that of the effects on the overall productivity and performance
of the employees. According to the author, when skilled employees leave a company, it leads to
loss of experience and new employees take their place, who requires to be trained to perform the
same roles. However, it takes considerably large amount of time to train them to perform the
same responsibilities with same efficiency, which in turn indicates towards an overall loss in the
productivity and also hampers the overall performance of the workforce in the organization
(Aarons et al., 2009).
iv. Profit- As per the assertions of AlBattat & Som (2013), high turnover of employees leads to
lack of the overall loss of profitability and sustainability of the companies in the global scenario.

12IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
The performance review practices the recommendations in your performance review
meetings that would establish the significant tool for the management. The performance review
could be able to enhance the association of the employees and improve performance for the
organization especially “Employee-Manager Communication”. The better and significant
association between employee turnover and staff performance would bring a boon for consumer
and work relationship. The method to determine the employee turnover for various kinds of jobs
become standardized through evaluation of jobs. It helped to bring the uniformity into the
structure of salary. The managers are capable of making allowances, salary revisions and other
benefits related to the staff performances (Luna-Arocas & Camps, 2007). The turnover of the
staff might be affected due to “Low-renumeration”, “Job dissatisfaction” and “Wrong
treatment”. The employee turnover is estimated by separation, replacement, recruitment and
training costs driven by level of staff performances.
2.7. Literature Gap
From the above discussion of the existing literary works and empirically evidenced
scholarly papers, it can be asserted that the phenomenon of Employee Turnover holds immense
relevance and significance in the global business framework as much of the operational structure,
smoothness of productive activities as well as the prospects, competitiveness, profitability and
long-term sustainability of the companies as well as the welfare of the employees are reflected
by the same (Ongori, 2007). As per the literatures studied, the companies need to take into
account this aspect to stay relevant and prospering. However, although the literatures provide
extensive evidences regarding the term, its calculation, the types of employee turnover, reasons
behind the same and also on the impacts of the same, detailed literary works are however found
to be absent regarding the actual impacts of high employee turnover on the overall staff
performance of the companies (Leggat, Bartram & Stanton, 2011). The job assessment
represents an effort for determining the associating value of every jobs from the staffs as per
employee turnover. The concerned research tries to explore this issue and to interpret the same in
light of the evidences collected and analyzed.

13IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
CHAPTER 3. METHODOLOGY:
3.1. Introduction:
A methodology is a proper way out of “How the researcher knows what they know about
the research topic?”. A well-constructed methodology would identify the approaches carried out
by other researchers that have studied the same type of phenomenon. More of it, the research
methodology detects the research questions and its segments. In methodology section, we
majorly discuss data collection procedure, characteristics of data and research, data analyzing
techniques and advanced ideas and concepts relevant to our business condition. The data
analytical procedure relies up on existing knowledge, compare and contrast credible aspects of
logics. A “Standard Structured Questionnaire” was directed to every “Target respondents” for
determining the insights of staffs about the influence of “Stuff-turnover” on the efficiency of
organization and performance of the employees (Hollway & Jefferson, 2000).
3.2. Qualitative Study:
There exist two common methods for the research designs that are “Qualitative” and
“Quantitative”. For determining the influence of the turnover of staffs on the “Employee
performance” and “Organizational effectiveness”, the questionnaires should be utilized to gather
the data set. It includes “Structured questions” directed to numeral respondents for their
responses that obtains consequences statistically tabulated and tested (Denzin & Lincoln, 1994).
The research design must arrange a qualitative design that permitted the research to be
accomplished as proficiently as possible generating most information with negligible “Expenses
of time”, “Money” and “Effort” (Tracy, 2013).
3.3. Primary Study Design:
The commonly utilized “Primary data” collecting processes are the “Interview” and
“Questionnaire”. Many other researches are concerned to obtain the responses. It could be said
that, “Questionnaire” and “Interview” are data gathering instruments that make the researcher to
posture questions to the themes as per research questions (Saunders, Lewis and Thrornhill,
2009). Primary sources use structured questions for the need of empirical investigation (King,
1994). Therefore, primary data is utilized in this research with the help of structured
questionnaire.

14IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
3.4. Target Population:
One more important aspect that is required for data analysis is proper selection of “Target
Population”. A “Target Population” is the entire group of possible contributors to whom the
analyst would like to accomplish the research (Zikmund, 2003). The “Target population” must
be acquainted with the maneuver of the authority and were capable to provide the analyst more
information about the influence of the turnover of the staffs on the efficiency of the organization
and the presentation of the employees through the administered questionnaire (Qu & Dumay,
2011).
3.5. Interview Method:
The survey process permits the assortment of significant amount of data in an efficient
and economical way (Nunan, 1992). As the sample size of the target population is 1, therefore,
the researcher felt about no need to choose a sample. The personally administered questionnaire
helped to collect the necessary data. The interview process may be time taking and prolonged
(Brinkmann, 2014). However, the method is cheap and effective. The data is collected from the
verbal responses of the researchers. Questionnaire allows a respondent a adequate quantity of
time for considering responses before replying.
3.6. Explanatory Data Analysis:
The explanatory data analysis analyses the specific audience. Such types of analysis
determine the specific needs for the communication. Exploratory data analysis is very much
useful in explaining the interpretable outcomes (Bontis, 1998). The objective is also to explore
that data discovering novel and unexpected patterns as well as investigation. The explanatory
data analysis is based on theoretic data mining, interactive data exploration and analytics (Talja,
1999). This type of analysis method collect data, filter that data and elaborate the data. The
appropriate statistical and economic process analyzes explanatory spatial data. The greater
explanatory nature refers the greater certain preferences (Tukey, 1977).
3.7. Discussion:
The data analysis depends on cross-sectional survey that is explanatory study by
qualitative method. Qualitative research qualifies data and typically applies some form of
statistical analysis (Liamputtong, 2009). Quantitative research quantifies data based on staff
performance level. This type of research is used so that pertinent and precise information could

15IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
be found. The data is collected from primary sources. Hence, it is a primary research survey. The
primary sources of information were structured through structured questions (Burnard, 1991).
The structured questionnaire developed for data collection collected the primary qualitative data.
The qualitative data is collected by interview method. Convenient sampling methods were
utilized for explanatory research study (Zikmund et al., 2013). Only one responder (Hotel
manager) were chosen as a sample size for the study. The response rate of the questionnaire was
found to be 100%. The questionnaires were designed for the descriptive, regression and
correlation techniques. We applied research problem as the researchers required flexibility in
approaching the research problem.
CHAPTER 4. DATA ANALYSIS:
4.1. Results and Findings:
The qualitative data is collected from the interview of a hotel manager. The qualitative
data is analyzed in case of employee turnover. The major reason of employment is found as per
interview. It is “High work-load”. The other types of significant reason of employment turnover
are – “Offering of more money”, “Culture of the company”, “lack of development scopes”,
“Lack of recognition or reward” and “Miscommunication with boss”. The employee turnover is
dependent up on the employees. The responder stated that the people working in a company
grow their skills and find employment with greater scopes and monetary benefits that would
encourage them vastly. The responder defines the employee turnover as the firing or voluntary
leaving of the employees of a company. As per his comment, generally, turnover indicates the
overall employment satisfaction that changes with the change of the organization in their
operations. The way of employee turnover could be decreased in hospitality industry in the ways
like “Proper wages”, “Performance bonus”, “Acknowledgements” and “Praising”. However,
training is the most crucial and effective way to lower the hospitality industry. As per
responder’s consent, companies do not generally fire the employees who are well trained.
The specific cause for the turnover of employees in the “Hospitality industry” is “Higher
competition” and “Many options for the skilled employees”. The “Industry-specific measures”
could be taken to decrease the turnover of the employees in the “Hospitality industry”. Many

16IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
international competitor spaces in the markets with highly cost-effective business structure and
trained employees with training. For reducing employee turnover, hospitality industry is needed
to focus to design the income structures, incentives as well as perks.
The hotel manager also answered about the association between employee turnover and
employee productivity. The knowledge and experience of the job influences the customers. The
loyal companies would come for the goodwill and will mostly decrease the demands. The key
responsibilities and turnover amount of the organization majorly influences the productivity of
the employees. The proposed way out of the staff productivity is given by increased productivity
of the workers of various industries especially in hotel industry. The devising strategies trains the
employees and it also manages the skills of the employees for better offers. Not only that, the
compensations and some productive working scopes are needed to be delivered to the employees
that should indicate the various tasks as per creditability of the good performance.
The hotel manager informed that “Training” is the primary way to enhance the
productivity of the workers. The modes of training for employment productivity are the
requirements of training and planning. The plan is to developed and executed as per purpose.
“Learning by Doing” is the most effective way to impart training and disseminating knowledge.
The responder also informed that the personal contact holds the value in the retention of the
employees in the ways of selecting the opinions and importance that enhances the loyalty and
sense of responsibilities to motivate the existing professional commitment for a prolonged
period.
The organization enhanced personal contact with the employees by conversing each level
at an individual level. He/she recommended that the managing authority must play the important
roles in this context. It is necessary to maintain a transparent, unbiased and one-on-one channel
with each of the employees. Here, the employees could be able to freely share their
considerations and concepts. It would enhance the personal contact of the organization with its
employees at a high-level planning.

17IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
CHAPTER 5. RECOMMENDATIONS AND IMPLEMENTATION:
5.1. Recommendation:
 Top authority and management must create scopes for the advancement of the career in
the group. Generation of scopes for career-advancements might assist staffs to become
more skilled and to rejoice their work even-better.
 Managing authority must comprise staffs in the “Decision-making” procedure.
Managing authority must possess the effectiveness. The employee involvement might be
via meeting representatives.
 Higher authority should improve the working circumstances within the organizations.
Each staff individually must also obtain “Regular” and “Timely” feedback on the fact
how they are performing (Duh, Chow & Chen, 2006). The authority should have timely
feedback on how they are being challenged in their jobs with adequacy.
 Management should appreciate the input of the workers in the organization when they
achieve organizational goals. Obligation could be executed by incentives, notice-board
presentation and letter of commendation.
 Authority must deliver “Induction and orientation” to fresh staffs to decrease the high
“Consumption of resources”. Providing “Training” to the fresh staffs would assist in
decrement of “Consumption of resources” at the time of settling of new members.
 Higher management must enhance the quality of delivery of service in the organization.
Martin (2003) told that the turnover of staffs might contain overwhelming harms on
facility extracted by the association. These factors might welcome the lack to meet the
demand of the customers.
 Higher authority must employ more workers to lessen the gap left by preceding
management to decrease the stress due to work of the current staffs. Higher managing
authority must inspire “Team work” within the association (Grizzle & Pettijohn, 2002).
They must deliver training to fresh employees to decrease expenditure of sources when
fresh staffs settle in and at the consequent time to enhance service-quality.
 Higher authority must provide the credit to its “Internal employees” when there exists
new position in the authority. The working environment could motivate the workforce,

18IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
which also increases the productivity and efficiency (Gelade & Ivery, 2003). That is why,
the employees might lose their eagerness in the work environment to the management.
Staffs might drop keenness in their tasks and may dispense the authority.
 The management must decrease the monotonous due to boredom to employees by
revisiting job description of the employees. If there exist no similarity between
“Employee” and the “Job” tasks on the job description of the employees that have
unrealistic challenges.
5.2. Implementation:
For the influence of employee turnover on Staff Performance could be increased by-
“Planning”, “Organizing”, “Guiding”, “Directing”, “Motivating”, “Training”, “Coaching” and
“Developing Subordinates” (Nelson & McCann, 2010).
1. The companies should establish the development of staff-supporting programs in the
association to support staffs with issues to demolish the “Absenteeism” or “Staff turnover”.
2. Top managements must be aware of organizational assistance. Assistance program is of
crucial importance whereby the workers could get-in-house guidance after being capable to
manage with challenges that have a adverse influence on the presentation which might
hamper delivery of services (Parker & Skitmore, 2005).
3. The better working conditions that is conductive for employee’s health and safety must be
implemented (Selden & Sowa, 2011). While the adverse properties of “Physical Work
Environment” are not presented, the employees might not be able to work better and
superior.
4. The management must provide the advantages that would entice the finest staffs for
remaining in the authority to enhance the delivery of services. The combination of job
responsibilities and employee remuneration of the employees would help to motivate the
improvement of the performance (Aarons & Sawitzky, 2006).
5. The managing authority must provide training to new staffs to concise the gap left by former
workers to decrease “Work-pressure” to represent workers and to decrease intensely.
6. The employees are to be worked to the bone to make work-life balance. On the other hand,
the team members are to be treated somewhat differently.

19IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
7. The team members and workers should make high amount of money creating the toxic
culture in the company.
8. The employees should not follow up career development opportunities. Employees have not
been recognized for their hard work.
9. The multi-dimensional staff performance is required by five factors that are-
 “Supervision”
 “Non-job-specific task proficiency”
 “Job-specific task proficiency”
 “Written and verbal communication proficiency” and
 “Administration and Management” (Jensen, Patel & Messersmith, 2013).
CHAPTER 6. CONCLUSION:
The study highlights the influence of turnover of stuffs on “Organizational Effectiveness”
and “Employee Performance”. Staff-turnover might be instigated by scarcity of scopes for
growth of career, “Working condition” and “Remuneration”. Turnover of staffs is very much
essential as the consideration would affect the outlook of the association, where the consumers
would mislay trust in that association. The lack of stuff turnover would cause the scarcity of
trust. Payment of employees related to market-oriented wage might help the management
authority to retain valuable employees. The production of the company would reduce also
whereas the staffs would be discouraged to work for an association with greater “Staff-Turnover
Rate”. It is so much crucial to confirm that frontline employees are geared up for dealing with
customer requests, ability and inability of frontline staffs.
The “Qualitative concept” was instigated in this analysis and the “Structured
questionnaire” was utilized to gather information from the respondent. In this research, the most
of the respondents had various views in case of turnovers of staff and act of the employees.
Qualitative processes could permit the researcher to utilize interviews for collecting enriched
data from the respondents. The scholars would investigate the research for making a comparative
analysis. It is extracted from analysis that “Top Management” must grow a standard performance
for the employees to measure the performance of the employee. Bad service delivery outcomes

20IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
in damage of clients in the association. Hence, higher authority must provide services to the
consumers for improving customer satisfaction.
Obviously, it is important for organizations to decrease turnover rates. However, for
reducing the turnover rates, authority of the organizations should understand the major reasons
for employment leave for other sections too. Performance appraisal describes a method of
judging, coaching, feedback and assessment of performances of staffs that has huge impact on
employee turnover. The expenses due to salary to hire an employee with recruiting and
onboarding should be managed. Organizations must do everything within its limits and power to
decrease turnover as much as possible. Employee expectations, monetary rewards and employee
recognition are the organizational achievements on the job. The success deserves recognition for
the job satisfaction and employee turnover.

21IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
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26IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
APPENDIX:
Interview of the Hotel Manager:
Q. How do you define employee turnover?
According to my opinion, employee turnover is what we call the firing or voluntary leaving of
the employees of a company. Generally turnover shows the overall employee satisfaction and
also the changes which the organizations bring in their operations.
Q. In your opinion, what is the major reason of employee turnover?
Employee turnover can occur for many reasons. There is not one specific reason behind it. Many
times, people working in a company develop their skills and find employment with higher scopes
and monetary benefits which encourages them to leave their existing jobs. Often clashes also
take place between the employees and the management due to the differences in their vested
interests due to which they quit. Again, turnover is not always dependent on the employees only.
Often, we conduct analysis and find workers who do not contribute positively to the operations
of the company and after prolonged observations we fire them if they do not show any
improvement in their performances. I have also seen more turnover among female employees
due to marriage related issues. The main cause that I can recommend is the presence of
overwhelming work-load. Besides, the offering of more money, culture of the company, lack of
development scopes, lack of recognition/reward and miscommunication with boss are other
reasons of the turnover of employees.
Q. How do you think employee turnover can be reduced in hospitality industry?
As we know, in our industry, there are many supply side player and the level of competition is
very high. Our workers also have many options. So, to retain them back, especially the old ones,
it is primarily crucial to provide them with proper incentives and benefits (both monetary as well
as non-monetary) like proper wages, performance bonus and also steps like acknowledging the
employees to take responsibilities and to praise their works in front of others. Trainings can also
be an important way of developing their skills such that the companies do not need to fire them
while improving their services.

27IMPACT OF EMPLOYEE TURNOVER ON STAFF PERFORMANCE
Q. Are there any specific reasons for the employee turnover in the hospitality industry?
Higher competition and many options for the staffs are present in the “Hospitality industry” and
in general, the supply of skilled employees till now is comparatively less. This, in my opinion,
can be one of the primary reasons behind the turnover of the employees in our industry.
Q. Are any industry-specific measures, which can be taken to reduce the employee turnover in
the hospitality industry?
Yes. As you know the “Hospitality industry” is one of the most abruptly developing and
industries, the demands of the customers in this industry also keep on changing. New businesses
are also coming in the domain and many international competitors are taking space in the
markets with highly cost-effective business structure and international level trained employees.
Thus, to reduce employee turnover in the “Hospitality industry” we required to concentrate on
designing their income structures, incentives and perks and we also need to train the employees
such that they get accustomed to international working standard and work ethics are also infused
in them.
Q. Do you think, there is any relation between employee turnover and employee productivity?
Obviously, there is. You know often the experienced employees who have been working with us
or other companies for years and have vast knowledge and experience of their job, leaves. Their
experience matters a lot for the teams and when they leave the entire team suffers and even we
employ someone capable, it takes time for the person to get accustomed to our services. And in
our profession reputation is a huge attribute and is highly important. Like a restaurant is known
for the quality of food right. Now, if the head chef leaves the food quality obviously changes
which has impacts on the demands of the customers. The loyal ones, who used to come for the
goodwill of the chef will mostly reduce their demands.
Likewise, when the employees leave, the entire team suffers and if the employees who are
leaving are skilled and trusted ones, with vital responsibilities imposed on them, the productivity
of the entire team falls. Thus, there exists direct relationship between the turnover of the
employees in the organizations and the productivity of the employees, especially in our industry,
that is in the hospitality industry.

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Q. How do you think that the staff productivity can be increased?
As I said, the main way of increasing the productivity of the workers of different industries,
especially in the hotel industry is by devising proper strategies to train the employees of the
companies’ such that their productivity increases. However, it should also be ensured that after
increase in the skills the employees do not leave the organizations for better offers. For this it is
of extreme importance to retain the employees in their existing jobs for which proper
compensations as well as some productive work opportunities are required to be provided to the
employees and the companies should also bestow different responsibilities on those employees
who show their credibility by performing well.
Q. In your opinion, is training beneficial for increasing the staff productivity?
Yes. It is the primary way in fact for increasing the productivity of the employees.
Q. Which type of training methods can be used for increasing the employee productivity?
The instructional method can be helpful. Like first analyzing the needs for training and planning
what types of trainings can be provided and then developing the plan and executing the training
plans. “Learning by Doing” is one of the most effective ways of imparting training and
disseminating knowledge among the employees as people tend to remember more of those things
which they practically do than those which are theoretically interested.
Q. In your opinion, does the personal contact hold value in the retention of the employees?
Yes. It gives an idea of belonging and warmth in the worn environment. The staffs feel important
and their opinions valued by their bosses which increases their loyalty and sense of
responsibilities manifold and also motivates the employees to stay back in their existing
professional commitment for a prolonged period.
Q. How can an organization develop personal contact with the employees?
By conversing to each them at an individual level. The management should play crucial roles in
this aspect. It is their job to maintain a transparent, unbiased and one-on-one channel with each
of the employees, where the employees can freely share their thoughts, complaint, feedbacks and

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can also come up with new ideas and get heard. This can increase the personal contact of the
organization with its employees at a considerably high level.