Impact of Employee Turnover on Hotel Operations

The provided content discusses various studies and reports related to employee turnover in the hospitality industry. The articles explore factors influencing job satisfaction, loyalty, and intent to stay, including training and development, mastery-approach goals, work intrinsic motivation, emotional intelligence, leader-member exchange, group-oriented organisational culture, and career growth opportunities. Additionally, there are references to online reports on the UK hotel market, trends, and forecasts for 2015.

Research methodology

EXECUTIVE SUMMARY
Employee turnover is the crucial issue for corporatism because it create barrier in
meeting requirement of business. This is because high attrition rate affect productivity and
profitability of organization. In this regard, hospitality industry of UK is selected which is
growing at rapid speed but issues like high attrition rate is also increasing at the same pace.
The qualitative study will be applied for completing the study where primary and
secondary data will be collected. Here, simple random sampling will be used to approach number
of respondents who can provide large amount of information for the study. Furthermore,
thematic analysis will be used to analyze the collected data in an effectual manner.
It is expected that employees turnover has direct impact on the performance of
corporation due to high cost associated with hiring new employees. It also create barriers in
managing the competitive edge of the firm and increasing customer base. Thus, employees
turnover affect growth and success of hospitality industry of UK in negative manner.
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TABLE OF CONTENTS
TITLE AND INTRODUCTION......................................................................................................3
Significance of the study..............................................................................................................4
Research questions.......................................................................................................................4
Research objectives and framework............................................................................................5
Literature review .............................................................................................................................5
RESEARCH METHODOLOGY AND DESIGN ..........................................................................8
Type of investigation...................................................................................................................8
Research approach.......................................................................................................................9
Research design...........................................................................................................................9
Data collection method ...............................................................................................................9
Sampling......................................................................................................................................9
Data analysis..............................................................................................................................10
ETHICAL CONSIDERATIONS...................................................................................................10
Outcome ........................................................................................................................................10
TIME LINE AND GANTT CHART.............................................................................................11
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TITLE AND INTRODUCTION
Topic - The topic selected for the study is to investigate the impact of employee’s turnover on
organizational growth and success.
The staff turnover refers to number of employees who leave an organization and
employees are replaced with the new one. It causes a negative impact on the overall performance
of corporation because management has to plan for recruitment and selection of new employees.
The present study is being conducted on the impact of staff turnover on the growth and success
of hospitality industry of UK. The hospitality industry of UK is outperforming due to increase
number of visitors and rapid growth in hotel as well as food sector. These are the most common
reason through which visitors get attraction and visit the Britain. Another main reason behind
high growth of hospitality industry is Olympic which invite large number of people to country. It
create huge opportunity for employees of local residents and bring improvement in the
economic condicti0on of country to great extent (UK hotel market to see 24,000 more rooms by
2015, 2015). All these factors increase the scope of hotel sector in the marketplace and it is the
main reason for rapid growth of this sector. However, the employee turnover is becoming the
crucial issue in this sector due to external factors like political, economical and technological.
These affect growth and performance of industry because employees tend to seek their good
opportunity. This in turn employees turnover take place (Trends & Reports, 2015).
The hotels selected in the current study are Thistle, Holiday Inn and IHG. Along with that
Marriott hotel and Hilton hotels are included for data collection. Here, Holiday Inn is
multinational brand of hotels and it is the one of the world's largest hotel chains. It is based on
three major cities like Atlanta, London and Rio de Janerio. On the other hand, Thistle hotel is
based on UK and operates in three as well as four star sectors. The selected hotel is sized largest
by number of bedrooms and has portfolio of 33 hotels. Furthermore, InterContinental Hotels
Group is British multinational hotel. It has operation in near about 400 countries. In addition to
this, Hilton hotel is also full services resorts and flagship brand. In addition to this, Marriott hotel
has broad portfolio of hotels and related lodging facilities (UK Hotels Forecast 2015, 2015). This
organization has more than 4087 properties in over 80 countries. Recently, Marriott hotel opened
its 4000th hotel in Washington. Furthermore, it was proposed for the corporation that in
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November 16, 2015, corporation would purchase Starwood Hotels and Resorts Worldwide for
$12.2 billion. These selected corporation are used for the purpose of data collection in
accordance with their issues of employee turnover.
Research issue
The research issue in the present study is related to employees turnover in hotel sector of
UK. The high employee turnover in this sector creating issue in long run growth and success of
the corporations. Because management is not able to recruit the personnel in less time and meet
the the requirement of customers in an effectual manner. It increases cost of production and bring
uncertainty in term of organizational success. As it is not possible to hire experienced employees
in less time and increase the productivity as the same pace. Thus, present report is being
conducted to analyze the impact of employee turnover on growth and success of hospitality
industry of UK.
Significance of the study
Employee turnover is the crucial issue for the hospitality industry of UK. This is because
employees easily shift from one to another corporation in order to ensure their own well being. It
creates problem for the industry because overall rate of return keep on decreasing. Also,
management faces the problem in meeting long as short term demand of customers on right time.
This in turn has direct impact on the overall productivity as well as profitability of number of
corporations. Owing to this study is being conducted to identity different solution through which
this problem can be solve and performance of industry can be improved to a great extent. It will
also be helpful for other industry as this is the most common problem in all industries or sectors.
Thus present research will bring improvement in the hospitality industry of UK, especially hotel
sector.
Research questions
Following research questions are prepared which are to be addressed by the researcher in
a structural manner. The research questions facilitate the conduct the study effectively and select
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the resources accordingly. It also enables researcher to fulfilled all the steps of research proposal.
These are as follows-
 What is the impact of employee turnover on the productivity of corporations in
hospitality industry of UK?
 What are the reasons behind high employee’s turnover in hospitality industry of UK?
 What are the different ways through which employee’s turnover can be reduced?
Research objectives and framework
Objectives
Research objectives for the present study will be formulated as follows which prove to be
effective in reaching at the aim of study-
 To analyze the impact of employee turnover on the productivity of corporations in
hospitality industry of UK.
 To examine different causes behind employee’s turnover in hospitality industry of UK. To suggest different ways through which employee’s turnover can be reduced.
Framework
The framework of study consists of different methods and techniques which are used to
fulfill the research objectives. In this regard, qualitative study will be done to analyze the
theoretical aspect of study. Further, both data collection methods such as primary and secondary
will be used so as to gather large amount of information. Further, interpretivism philosophy will
be used to collect the data from social constructed environment. On the other hand, descriptive
research design is used to present the findings and outcomes of study in an effectual manner. It
will assist the researcher to draw a valid conclusion from the collected data and to provide the
suggestions accordingly.
There are several reasons such as low motivation, low pay scale and long working hours
which motivate employees to leave organization and grab another appropriate opportunities.
Similarly, improper working conditions also reduces attention of employees towards their
present job and forces them to leave the firm in less time and shift to another one. This in turn
create issue in maintaining competitive edge of corporation because customers need are not
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satisfied in an effectual manner. Thus, attrition rate just increase cost of production and lower
down overall productivity. Also, due to staff turnover, customer base also decrease.
LITERATURE REVIEW
Hom and et.al., (2012) of employee turnover is linked with the concept of duration till
which staff members would stay within an organization and frequency at which they will be
replaced by the new workforce. Any time, if specific employee leaves organization due to any
reason then it is regarded as the turnover. Further, employee turnover has direct link with the
growth and development of enterprise as in case when more employees work in the organization
for longer period of time then it is fruitful for the entire business as management does not have to
make efforts in providing training to the new workforce. In case when large number of staff
members prefers to leave the firm on continuous basis then it is having an adverse impact on the
business enterprise. Further, many causes of employee turnover are present which every business
enterprise considers.
It can take place voluntary or involuntary. In case of voluntary turnover, staff members
quit the organization. Moreover, main reason can be like finding better position in other
company. In short, growth and personal development of employee encourages leaving the
organization. Apart from this, involuntary turnover is also present in which staff member is fired
by the management and this can be due to change in business focus or employee has committed
any act which is against the culture and ethics of business enterprise. Therefore, this type of
turnover can also take place. However, Jordan and Troth (2011) argued that the real impact of
replacing any staff member depends on large number of factors where main difficulty for
management is to fill the vacant position. Further, it is a well known fact that when any a new
employee joins the organization then company has to allocate the funds for providing training
which enhances the overall cost of business enterprise. Moreover, in the present era, every
organization has started to take initiatives for retaining its employees within workplace so that
overall performance can be enhanced easily.
Further, human resources are regarded as the most valuable assets of business and
without effective workforce; it is not at all possible for the business to operate efficiently. Due to
this basic reason, management of every enterprise applies efforts in retaining the most skilled
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and knowledgeable employees as through this, business can easily gain competitive advantage.
Moreover, the change in overall operations of organization encourages the business to retain its
valuable workforce for longer period of time and due to this reason, companies are able to grow
in the competitive market. But on the other hand, rising employee turnover has negative and
unfavorable impact on business where it has been found that management faces large number of
difficulties in carrying out the overall operations. As per the views of Dysvik and Kuvaas,
(2010) reducing employee turnover allows business to gain large number of benefits that are
present in the business environment. Further, every business enterprise has started to operate on a
wider platform due to which need for skilled and talented staff is a necessity. Retaining new
employee is considered to be costly for the firm and reduces overall efficiency of company as
higher efforts have to be applied in training and development of new staff members.
Low turnover represents that employees are highly satisfied with the job and working
conditions are in favor. Further, through this, management can get an idea whether its employees
are working for the betterment of business or not. Loyal employees that are working in company
can support in raising the productivity and through this, overall performance of business can be
easily enhanced in the market. Apart from this, various goals and objectives are set by
management to survive in the market which can be only attained if management takes initiative
in retaining its workforce rather than giving focus on hiring new staff members.
According to Sturman, Shao and Katz (2012) before turnover becomes the major issue in
business enterprise, it is necessary for the management along with the top authorities to take
initiative in order to enhance the motivation level of staff members. Apart from this, if any staff
member is leaving the organization voluntarily then exit interview must be taken through which
the main reason behind rising employee turnover can be known easily. Further, the most
common reason of employee turnover are money and other kind of benefits. Therefore, it is the
first and foremost duty of management to ensure that proper benefits are provided to the staff
members and they are well satisfied with this. However, Costen and Salazar (2011) argued that
carrying out employee satisfaction survey on regular basis is regarded as the most effective
method to know whether internal environment of company is effective or not. On the other hand,
large number of benefits is present for reducing employee turnover where major one is the
consistent production as in case when experienced staff member leaves organization then other
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employees may not be able to carry out the production process. Due to this reason taking
initiative for retaining skilled workforce is the most effective way and through this, company can
gain long term benefits.
Reduced cost is another key advantage where it has been found that to provide training to
the new employee is costly and due to this reason, retaining old employees saves major cost
which is linked with training, hiring etc. Moreover, it is a well known fact that judging the
efficiency of any business enterprise is also necessary and it can be measured with the help of
employee turnover. Rise in turnover rate indicates inefficient company as management is not
able to retain its existing workforce and main stress is on hiring new employees. On the other
hand, low employee turnover shows that business is efficient and possesses capability to retain
the workforce for its growth and development. As per the views of Nadiri and Tanova (2010)
reducing employee turnover allows business to gain competitive advantage and has positive
impact on the brand image of firm which is regarded as one of the key objectives of business. In
short, retaining workforce for the longer period of time provides benefits to business in long term
such as company can easily deal with the condition of rise in competition level in the market
with the help of plans that are prepared by its skilled workforce. Apart from this, internal
strength of company can be enhanced if business focuses on motivating its present workforce.
According to Stanley and et.al., (2013) employee turnover have adverse effect on the
organizational performance. If there is frequent turnover of employees in the organization than it
will increase the cost of the company, it will disrupt the plan of the organization, ongoing project
may get affected and cause untold difficulties. It also impact the morale of other employees
working in a company and sometimes impact may be too high that satisfied employees also
started leaving the organization. Furthermore, the employee turnover affect the company by
decreasing the performance of a firm because there are not much employees left in the
organization to complete the task and eventually it will lead to unfulfilled daily task and
functions.
The employee turnover in hospitality industry also has a greater impact on its business
performance. Mohr, Young and Burgess Jr (2012) stated that attrition rate impact the unpleasant
and uncertain working environment in the hotels. Frequent turnover of hotel staff will involve
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huge cost of recruitment of new people and it will directly impact the profitability of the hotel.
When employee will leave the hotels than hotel may face the lack of human resources and
customers may not be treated well. Thus employee turnover may impact the customer service
and customer ay be left out unsatisfied.
As per the study of Iqbal (2010) employee turnover also have a positive effect on the
performance of an organization. The advantages are that this will remove the ineffective
employees from the organization so that performance of hotel can be improved. Also the old
employees will be replaced with new ones which may have more advance skills, experience and
knowledge. This will also drive the management to bring improvement in the policies and
procedures of organization due to which employees are leaving the organization.
According to Nouri and Parker (2013) employees turnover generally take place due to
inappropriate working condition where employees feel insecure. It create negative attitude
among them and they made their mind to leave corporation so as to find the next good
opportunity. A counter argument might be that employees get boredom from present work also
tend to change their job. Furthermore, another reason like working in peak load and do not
getting leave ever in festival season. It makes employees frustrated and influence them to leave
the companies in short time span. In addition to this, improper style of leadership does not allow
employees to adjust the new environment. For example, if an organization make use of autocratic
style of leadership then employee becomes dissatisfied. On the other hand, sudden change in
work environment and organizational structural is also the main reason which increases
employee turnover. At this juncture, personnel feel uncomfortable to adjust in such kind of
environment and accordingly they start seeking another good opportunity.
Zheng and Lamond (2010) asserted that policies and procedure of corporation also create
boundations for workforce because they need to work in that boundary only. It generates need of
proper communication through which employees can be retained. Further, barriers in flow of
communication is also the another reason behind high attrition rate. This is because due to
improper span of control and lack information, employees cannot perform their targets on right
time. It create negative image of personnel at workplace.
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RESEARCH METHODOLOGY AND DESIGN
The research methodology is the most imperative aspect which assists number of
methods and procedure for completion of the study. It assists researcher to gather necessary
information and accordingly reach at the conclusion. These are as follows-
Type of investigation
The type of investigation selected in the proposed research is qualitative. The reason
behind selecting this research is to analyze the research issue in precise manner and develop
several alternative solutions in the same direction (Saunders and et. al., 2007). The reason behind
not selecting the quantitative type of investigation is to draw meaningful inferences from the
present research on the basis of theoretical aspect. Further, qualitative type of investigation
makes it possible to analyze the collected data effectively and produce the valid outcome in the
same direction. In addition to this, qualitative type of investigation contribute towards creating
strong base by accessing the wide range of data collection sources.
Research approach
There are two research approaches for conducting the study such as inductive and
deductive. In the present research on analyzing the impact of staff turnover on growth and
success of hospitality industry of UK, deductive approach will be used. By using this approach
scholar move from general to specific which leads to collect large amount of information
(Kothari, 2011). On the other hand, deductive approach will facilitate to understand the concept
of employee turnover and potential causes behind the issues for overall hospitality industry. In
addition to this, selected approach leads to solve the issues which are being faced by industry. It
leads to provide appropriate recommendations accordingly.
Research design
Research design is the most important part of research methodology. This is because it
enables scholar to present the findings in an appropriate manner. For the current study
descriptive research design will be used. However, there are several other designs such as
exploratory and explanatory but in qualitative type of research where problem has already is
defined in concise manner, descriptive research design will be used (Jackson, 2011).
Furthermore, it is the only way through which researcher can make use of appropriate data
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collection source. In addition to this, descriptive research makes it possible to interact with actual
environment from which data is to be collected.
Data collection method
There are two types of data collection methods used such as primary and secondary. For
the current study primary data will be collected from questionnaire method by formulating set of
structured close ended questions. This proves to be effective to save time and gather large
amount of information. Furthermore, secondary data will be collected from range of sources like
books, journals and other published material (Silverman, 2010). All these sources of information
develop deep understanding among researcher regarding the topic. Similarly, both primary and
secondary data facilitate to do in-depth analysis of research issue which is being faced by
hospitality industry of UK.
Sampling
Sampling is the most important way to collect large amount of information which leads to
carry out study in an effectual manner. Sampling represent individual unit of population which
need to referred while collecting the information (Patton, 2005). For the present research simple
random sampling will be used to collect information. However, employees of the organization
serve as the population. However, it is not possible to approach all employees of different
organizations. Owing to this, it is very important to select sample size. Here, 50 employees from
different corporation like Thistle hotel, Marriott and Hilton hotel. Along with that, Holiday Inn
and IHG will also be considered for collecting large amount of information. Here, 10 employees
will be selected each corporation and they will be approached through questionnaire or online
survey. Therefore, by selecting employees from different corporation data overall scenario of
hospitality industry of UK can be examined with regards to employees turnover.
Data analysis
Data analysis is the another important part of research methodology which assists scholar
to analyze the collected data in an effectual manner. For the current study on analysis of
employees turnover on growth and success of hospitality industry of UK, qualitative method
(Singh, 2010). Here, themes will be prepared in accordance with research aim and objectives.
Along with that research questions are also considered for making appropriate themes. Similarly,
all these will be presented with graph which depicts clear results of each. It will help scholar to
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analyze the situation effective and draw meaningful outcome for the study in an effectual
manner.
ETHICAL CONSIDERATIONS
Ethics is the most imperative aspect of any study which need to be considered by scholar
at each and every phase of completing the study. However, these are several research issues
involve in every research while collecting and analyzing the data. Here, issue may arise when
accessing the secondary sources for collecting the information (Pring, 2014). This is because
most the sources are restricted to use but in such conditions prior permission will be taken for
such sites so as to incorporate all important information in the study. On the other hand, issues
may be faced at the time of approach the respondents. However, researcher will communicate the
purpose of the study among respondents so they can provide data in less time.
OUTCOME
After completing the study, it will be expected that proposal will depicts that employee
turnover has direct impact on the growth and success of the firm. This is happened due to impart
of several internal and external factors like low motivation, improper communication and lack of
personal growth. Along with that, inappropriate business environment as well ineffective style of
leadership put pressure of workforce and they tend to leave the organization in very short time
span. Further, study will shed light on negative aspect of high employees turnover because it
increase additional cost and affect overall performance of industry to a great extent.
TIME LINE AND GANTT CHART
The Gantt chart is the most effective way to allocate time for each research activity.
According to the following table research proposal will be written in two weeks whereas
literature require total two weeks. On the other hand, collection of primary data generate need of
four weeks and analysis of collected secondary and primary data will require total 3 weeks.
Furthermore, total 15 weeks are required to complete all research activities of project.
Research
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Writing
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REFERENCES
Journals and books
Costen, W. M. and Salazar, J., 2011. The impact of training and development on employee job
satisfaction, loyalty, and intent to stay in the lodging industry.Journal of Human Resources
in Hospitality & Tourism. 10(3). pp. 273-284.
Dysvik, A. and Kuvaas, B., 2010. Exploring the relative and combined influence of mastery-
approach goals and work intrinsic motivation on employee turnover intention. Personnel
review. 39(5). pp.622-638.
Hom, P. W. and et.al., 2012. Reviewing employee turnover: focusing on proximal withdrawal
states and an expanded criterion. Psychological bulletin. 138(5). pp. 831.
Iqbal, A., 2010. Employee turnover: Causes, consequences and retention strategies in the Saudi
organizations. The Business Review, Cambridge.16(2). pp. 275-281.
Jackson, S., 2011. Research Methods and Statistics: A Critical Thinking Approach. 4th ed.
Cengage Learning.
Jordan, P. J. and Troth, A., 2011. Emotional intelligence and leader member exchange: The
relationship with employee turnover intentions and job satisfaction. Leadership &
Organization Development Journal. 32(3). pp. 260-280.
Kothari, R. C., 2011. Research Methodology: Methods and Techniques. New Age International.
Mohr, D. C., Young, G. J. and Burgess Jr, J. F., 2012. Employee turnover and operational
performance: the moderating effect of group‐oriented organisational culture. Human
Resource Management Journal. 22(2). pp. 216-233.
Nadiri, H. and Tanova, C., 2010. An investigation of the role of justice in turnover intentions,
job satisfaction, and organizational citizenship behavior in hospitality
industry. International journal of hospitality management. 29(1). pp. 3-41.
Nouri, H. and Parker, R. J., 2013. Career growth opportunities and employee turnover intentions
in public accounting firms. The British Accounting Review. 45(2). pp. 138-148.
Patton, M. Q., 2005. Qualitative research. John Wiley & Sons, Ltd.
Pring, R., 2014. Philosophy of Educational Research. 3rd ed. Bloomsbury Publishing.
Saunders, M. and et. al., 2007. Research Methods for Business Students. 4th edition, Prentice
Hall.
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Silverman, D., 2010. Qualitative research. Sage.
Singh. K. Y., 2010. Research Methodology.APH Publishing.
Stanley, L. and et.al., 2013. Commitment profiles and employee turnover. Journal of Vocational
Behavior. 82(3). pp. 176-187.
Sturman, M. C., Shao, L. and Katz, J. H., 2012. The effect of culture on the curvilinear
relationship between performance and turnover. Journal of Applied Psychology. 97(1). pp.
46.
Zheng, C. and Lamond, D., 2010. Organisational determinants of employee turnover for
multinational companies in Asia. Asia Pacific Journal of Management. 27(3). pp. 423-443.
Online
UK hotel market to see 24,000 more rooms by 2015. 2015. [Online]. Available through:
<www.thecaterer.com/articles/352318/uk-hotel-market-to-see-24-000-more-rooms-by-
2015>. [Accessed on 19th November 2015].
Trends & Reports. 2015. [Online]. Available through: <http://www.bighospitality.co.uk/Trends-
Reports>. [Accessed on 19th November 2015].
UK Hotels Forecast 2015. 2015. [Online]. Available through:
<http://www.pwc.co.uk/industries/hospitality-leisure/uk-hotels-forecast/overview-uk-
hotels-forecast-2015.html>. [Accessed on 19th November 2015].
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