The Impact of Motivation on Employee Retention in Budget Hotels in the UK

This research study examines the impact of motivation on employee retention in budget hotels in the UK. It explores the importance of motivation and retention in the hospitality industry and identifies strategies to retain employees for long-term success.

The Impact of Motivation on Employee Retention in Budget Hotels in the UK.

TABLE OF CONTENTS
CHAPTER 1 INTRODUCTION.....................................................................................................4
1.1 Background of the research ..................................................................................................4
1.2 Problem statement .................................................................................................................4
1.3 Rationale of the study ...........................................................................................................5
1.4 Research aim and objectives .................................................................................................5
1.5 Research Questions................................................................................................................6
1.6 Structure of the study:............................................................................................................6
1.7 Summary ...............................................................................................................................7
Chapter 2: Literature Review...........................................................................................................8
2.1 Introduction ...........................................................................................................................8
2.2 Motivation and its importance ..............................................................................................8
2.3 Retention and its importance ................................................................................................9
2.4 Motivational factors assist in retaining the employees in Hotel Industry............................10
2.5 Employee turnover ..............................................................................................................12
2.6 Impact of employee turnover on business performance of budget hotels ..........................13
2.7 Conceptual framework ........................................................................................................15
2.8 Conclusion...........................................................................................................................15
Chapter 3: Research methodology ................................................................................................16
3.1 Introduction .........................................................................................................................16
3.2 Research Approach .............................................................................................................16
3.3 Research design...................................................................................................................16
3.4 Research philosophy ...........................................................................................................17
3.5 Data collection ....................................................................................................................18

3.6 Sampling..............................................................................................................................18
3.7 Data analysis........................................................................................................................19
3.8 Reliability and validity ........................................................................................................19
3.9 Ethical consideration ...........................................................................................................19
3.10 Limitations ........................................................................................................................20
Data analysis .................................................................................................................................21
3.1 Introduction .........................................................................................................................21
References .....................................................................................................................................32

CHAPTER 1 INTRODUCTION
1.1 Background of the research
The background of the research deals with motivational practices adopted within the
budget hotels in UK. Employee retention has been considered very significant towards the
accomplishment of business goals and objectives. It can act as a vital source of gaining
competitive advantages for any company. In the existing business environment, things such as
technology, globalization, trade agreements etc. are affecting the employee & employer
relationships (Albrecht, 2012). Till date, loyalty was the cornerstone of the relationship, however
loss of efficient employees may also be detrimental to the future success of the company. The
existing employees may leave the company due to factors such as dissatisfaction, de-motivation
etc (Huang, 2009). While retaining the workers, it is expected that company may face different
types of issues and challenges. Here motivation can create some differences in retaining the
people within the firms. They are required to practice motivation giving approaches in effective
manner. It may act as a solution to different kinds of problems including the employee turnover.
1.2 Problem statement
Under this research study, impact of motivation on the employee retention in budget hotel
industry in UK has been examined. The major focus is to identify the best of organizational and
management approaches which can help in retaining the employees. Workers are regarded as the
backbone of the organization as they are in direct contact with the consumers within the
hospitality industry (Qualls, 2008). Generally the turnover rate is very high in the industry
because individuals work at minimum wages with having no additional benefits. The bonus rate
is also very low as compared to the other industries. It can have a substantial impact on the
business operations. Loss of productivity, profitability, brand image, increase in costs etc. are
some of the issues faced by the budget hotels. In this regard it has become important for the
managers to look for ways to motivate the workers (Roberts, 2013). However, attracting and
retaining workers could be done by creating and maintain positive reputation, internally as well
as externally. Further, undertaking effective motivational strategies and approaches assist the
course of managerial level people of hotel industry to retain employees as well as influence them
to generate the best possible results. This may influence their decisions to extend their longer
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tenure with the organization. This research study will makes an attempt to analyze the impact of
motivation on the employee retention in case of budget hotels in UK.
1.3 Rationale of the study
The major objective of this research work is to identify and explore the leading
motivational factors which affects the employee retention in the budget hotel sector. Within the
context of problem of retention, this research which is both qualitative and quantitative in nature
is mainly focused on offering feasible solutions for reducing the turnover rate. It will help the
hotel owners and managers in identifying how to retain the workers. Looking at the current
environment of hospitality sector at times it is important for the hotels at large or small level to
bring new skills so that enthusiasm and new ideas can be promoted but parallel to this, hotels
may face issues after losing the key employees. Customers of hotel industry are always looking
for leisure time and effective services but high retention rate at a budget may create problems for
both customer and employee to communicate effectively because he/she is relatively new to the
organisation. Whereas, customer may feel more comfortable talking to the same old employee
and expects the desired level of quality and efficiency in the services. They can focus towards
recognizing the methods to decrease the turnover rate within the business. Apart from that the
study will offer appropriate solutions related to different types of motivational issues faced by
the budget hotels in UK.
1.4 Research aim and objectives
Aim:
The major aim of the research is to analyse the impact of motivation on employee
retention in budget hotels in the UK.
Objectives:
For achieving the defined aim it is essential for the researcher to frame small and smart
that leads to understand each and every concepts and aspects of the selected topic. Herein,
researcher objective is to evaluate the impact of motivation on employee retention in budget
hotels of UK. Following are the objectives for the current study:
 To review the key literature on the motivation and retention
 To recognize the motivational factors which could help in retaining the employees in
budget hotel industry
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 To discover the impact of employee turnover on the business performance of the budget
hotels
 To find out the ways through which workers can be retained for a long period of time in
the budget hotel industry
1.5 Research Questions
Research questions are the important element of the study as they assist the course of
research conductor to execute the entire course of dissertation on the chosen topic in suitable and
reliable way. Further, defined questions assist in addressing varied aspects of the study that helps
investigator to present appropriate conclusion and recommendations. Following are the research
questions for the current study:
 What are the concepts of motivation and retention and their importance to corporate
world?
 Which of the motivational factors can help managers of hotel industry to retain
employees?
 What are the impacts of employee turnover on the business performance of budget
hotels?
 What ways or strategies through which workers can be retained for a long period of time
in the budget hotel industry?
1.6 Structure of the study:
There is a need to frame an appropriate structure for the research. The above study is
based on the following structure:
Chapter 1 – Introduction
The first chapter offers a broad overview about the research. It talks about the
background and gives an appropriate rationalization behind the study. Along with that, aim and
objectives related to the subject are also framed insider the chapter so that it can give direction to
the study. This section is very important from the point of view of learning the basics.
Chapter 2 – Literature Review
The second chapter is literature review which obtains relevant literature on the subject. Here the
literature will be examined on the basis of past studies. The section will attempt to make a link
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between the past and existing findings with regard to the research subject. The contributions
from the past researchers will be examined and analysed and then gapes will be identified.
Chapter 3 – Research Methodology
It is the research methodology which has been exploited within the study. The chapter
states briefly about the research tools and techniques which are used in the collection of data.
Things such as philosophy, type, design, data collection, data analysis etc. has been discussed in
this section. Research methodology holds a great importance in the achievement of goals and
objectives of the study.
Chapter 4 Analysis and findings
The chapter is concerned with deriving findings and doing the analysis from the data
collected for the investigation. It shows the application of a suitable data evaluation technique. In
this research, the researcher will make use of pie chart, graphs, bar charts, tables etc. to show the
clear results. Use of graphs will help in offering the results with more justifications.
Chapter -5 Conclusion & Recommendation
This is the final chapter of the whole investigation. At this stage, from the derived
findings, different types of conclusion are made. It will show how the aim and objectives has
achieved the managerial implications. Apart from that different kinds of limitations will also be
highlighted so that recommendations can be made to the future researchers.
1.7 Summary
The above chapter broadly introduced the background, problem statement, rational and aim &
objectives of the research. It can be summarized that motivation has an important role to play in
managing the employees in the hospitality sector in UK. Further the problem of employee
turnover can be solved though making use of different kinds of approaches. The next chapter will
try to methodically explore the existing literature related to the research subject.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
After completing the introduction part another important section of dissertation is
literature review. In general, it can be defined as the detailed theoretical study of selected topic
through the means of secondary analysis. However, it is the integral part of the study and helps
researcher to develop suitable theoretical base for understanding the each and every aspect of
selected topic in effective and efficient manner. On the other hand, the main purpose of carrying
literature review is that it assist in developing appropriate understanding towards the aspects and
concepts of research. It is further denoted as the secondary study which is done with the aim of
attaining the defined objectives of current investigation. In addition to it, researcher focuses on
presenting the thoughts and views of different authors and scholars about the study on the basis
of their journals, books, online blogs, articles etc. Herein, study aims at analysing the impact of
motivation on employee retention in budget hotels of UK. In order to carry out entire course of
study in effective way different prospects of the topic has been discussed in literature review
such as motivation and retention and their importance. Further, factors that motivates the
individual in retaining in hotel industry for long terms. Thereafter, implications of employee
turnover and its impact on the business performance of budget hotels. Lastly, researcher through
the means of past studies and researches depicts the strategies and tactics to retain employees in
hotel industry.
2.2 Motivation and its importance
As per the view point of Albrecht (2012), motivation can be defined as the internal and
external factors that stimulate desire and energy in people to continually interested and
committed towards job, role or tasks and make valiant efforts to attain goals. In term of
management Bellé (2015) defines that, motivation is the approaches or ways through the means
of which managers promotes productivity in their employees and encourage them to work
effectively for generating desired level of out (Agarwal, Yadav and Acharya, 2015). While on the
other side of it, authors explains that employee motivation is considered as one of the best
method to enhance the use of individual in carrying out any activity or tasks. Supporting to this
fact Conrad, Ghosh and Isaacson, (2015) states that, employee motivation is psychological forces
that determines the direction of an individual’s behaviour in an organisation through the level of
efforts and persistence towards the given tasks or operations. Further he/she defines that happier
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workers are the productive workers therefore motivating in employees or individual in the career
prospects helps the course of generating commendable outcomes (Conrad, Ghosh and Isaacson,
2015).
Considering the thoughts all the authors, researcher focuses on importance of motivation
for an individual or organisation which he understood by the study of Qualls (2008), there are
several facts on the basis of which significance of motivation can be explained. In this regard
viewpoints of different authors have been considered which states that, one of the most
significant need of motivating employees is that it assist in improving their level of performance.
However, highly motivated employees shows great courage to accept any task or operation as
well as show higher willingness towards so that smart and desired results can be generated
(Huang, 2009). According to Roberts (2013), another significance of motivation is that it helps in
changing negative attitudes of employees into positive. However, it is because of the fact that
positive attitude leads to develop effective working environment that removes wastage and delay
in functioning. Similar to this Thomas (2010) states that, constantly changing environment forces
the firms irrespective to their sector to alter or modify their functioning but at times employees
are unable to change their functioning accordingly thus, motivation leads the individual to
always prepare for any changes that is required for the time and helps in accepting the alteration
in more effective and smart way.
2.3 Retention and its importance
According to Sutherland (2013), retention have various meanings in different context
however but in general it is the condition of retaining or keeping something. People memorize
facts in short term but when they remember it for long period is also known as retention of
information. In context to business, firms irrespective to their sector have to make efforts to
provide effective working environment their employees so that they retain them for longer period
of time and generate the best possible results from them. Dweck (2013) states that, companies
need to employee effective retention policies and practices which encourage employee to stick to
it for longer duration. But arguing to this fact Govern and Petri (2012) explains that, retention
policies should not only retain skilled or expert labours but companies also have to undertake
better motivational approaches so that they enhance the skills and abilities of weak employees
and thereafter retain them for better period.
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Furthermore, in the study of Hoffmann (2007) researcher evaluated that, in order to attain
success it is important for the companies to think about their employees from their point of view
so that effective working environment can be established as per the requirement of employee
which indeed motivate him/her to increase its association with firm or enterprise. In this regard
Weiner (2013) describes the importance of retention by stating that, an organisation invest lots of
time and money in grooming the individual and make him/her capable to work under corporate
culture. Thus, if they are unable to retain them then it would be loss of time as well as money for
the firm which in such competitive environment is not at all acceptable. Similar to this researcher
identified that hiring is not an easy task and it requires huge amount of investment (Weiner,
2013). In this context Long (2012) states that, company employ HR professionals to shortlist few
candidates who are capable and suitable enough for the job or tasks and in order to do so lengthy
process need to be followed. Thus, not retaining skilled employee may force the company to
invest in recruitment and selection process which may harm the financial position of the
business.
2.4 Motivational factors assist in retaining the employees in Hotel Industry
As per the findings of Palmer (2005), there are several hospitality companies in UK that
consists of large, small and medium sized organisation operating to provide quality of services to
customers and generates higher profit. However, it has been identified that in comparison to
smaller and medium firms, large organisations i.e. chains have better employee management
system that helps them in motivating employees properly and retain them for long period.
According to the study of Thomas (2010), employee retention is the substitute of employee
motivation. However, motivated individual will be productive and more likely to stay at
organisation for longer. Therefore, the best method to retain employees is to motivate them. In
this research of Garg and Rastogi (2006), investigator identifies that, a sensible employer or
manager to budget should focus on keep attracting the skilled employees. However, attracting
and retaining workers could be done by creating and maintain positive reputation, internally as
well as externally. Further, undertaking effective motivational strategies and approaches assist
the course of managerial level people of hotel industry to retain employees as well as influence
them to generate the best possible results.
On the other hand, arguing to this fact Sutherland (2013) states that, monetary benefits
acts as motivational factors to retain employees in hotel industry. However, everyone knows that
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hospitality sector is one of the most growing corporate areas in the world and there are several
companies at different level making valiant efforts to attract and retain customers as well as
employees through offering them better services and benefits. According to the theory of
Alderfer’s ERG indicates that, money one of the major motivational factors for the workers.
However, theory categories money into existence needs that are is concerned with the person’s
survival and existence in the market (Gitman and McDaniel, 2008). Therefore, paying handsome
money for the efforts of employee assist him/her to stick to the hotel and put valiant efforts to
generate the best possible outcomes. But companies those who are unable to provide better pay
scale to the employees are facing more issues in retaining employees. Contradicting to this Cardy
and Lengnick-Hall (2011), states that, money is not always the reason behind individual’s
leaving the job. However, compensation and other benefits may be key factors in final decision
of the person. There be always other reason associated with it such as bored with job, ineffective
working environment etc. can play important role for individual along with lower pay scale to
leave the job and increase employee retention for the hotels.
Contradicting to this Gberevbie (2010), illustrates various motivators that helps in
retaining employees in hotel industry which are associated with recognition, growth, job
challenge and responsibility. However, author defines that these factors encourages worker to
enhance his/her skills and abilities to reach to a point where they can recognize by other staff
members as well as attain growth for future personal sustainability (Crim, 2006). A motivated
employee is highly responsible as well because he/she takes their role seriously and carry out
their job or tasks in responsible manner so that personal growth can be achieved with hotel’s
corporate objectives. In this regard, Fredrick Herzberg presented a through with name of two
factor theory which comprises two types of factors motivators and dissatisfies. On the basis of
theory, above defined are the motivators that influences individual to retain in the organisation
and perform their job roles in effective and efficient manner. Further, these factors are based on
attributes of individual are depended on each other (A critical assessment of Herzberg’s theory of
motivation. 2012).
Apart from the factors that contributes towards motivating employees and retaining them
for long period is easy in theoretical prospects but in reality it is one of the biggest challenge for
the managers. In this regard study of Chand (2014) illustrated that, due changing workforce,
motivation is one of the major challenge that employers or managers faces. It is because every
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individual associated with the hotel or any other enterprise have different values, attitudes,
thinking and background. This indeed creates problems for majority of managers and employers
as they are not aware about the diversity of their employees which leads them to be unclear about
the different ways of motivating them and generate the best possible results. Similar to this
Jacoby (2014) states that, motivating employees at workplace is becoming challenging for the
employers because of the vigorous nature of needs. It is because, employees have varied needs
and expectations at certain point of time which creates confusion in selecting the best possible
motivational approach to influence people to stay or retain for longer period. In addition to it, for
retaining employees, budget hotels must offer career advancement opportunities to the individual
so that he/she can think of growth in their career (Jacoby, 2014). At times due to lack of proper
operational, strategic and tactical effectiveness fails departments to offer employees better career
opportunities and room for advancement of skills and capabilities and find problems in retaining
qualified employees. Further study of Half (2013) explains that, employee involvement,
recognition, importance of work and career growth opportunities play significant role in
retaining employees.
2.5 Employee turnover
According to the Glebbeek and Bax (2010), staff turnover can be defined as the relation
between individual attracted to join organisation to fulfil the space or designation of people how
have retired, resigned or retrench on the average number of payroll. In an organisation, turnover
of employees is a major issue for the managers. However, high level of turnover is critical issue
for both small and large companies irrespective to their sector. In context to hotel industry where
there are lots of opportunity for an individual increases the turnover for budget hotels.
Kokemuller (2011) explains the fact that, turnover rate in budget hotels is increasing day by day
it is because such hotels are not able to provide adequate growth opportunities as well as
monetary benefits. Further, author defines that it is the duty of human resource manager of the
budget hotels to make sure that they maintain labour turnover to a certain level so that
functioning of hotel can be carried out in smooth manner (Kokemuller, 2011).
Contradicting to this Pujari (2014) defines the negative implications of employee
turnover that, high rate of labour turnover could give rise to varied problems that can affects the
course of overall functioning of hotel badly i.e. it effects the rhythm of the budget hotel,
increases the expenditure of recruitment and selection process of the firm. In this regard,
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researcher understand that having high rate of staff turnover may create problems and obstacles
in the flow of business functioning (Pujari, 2014). Moreover, operating in such a competitive
environment it becomes crucial for the budget hotels to maintain their flow or tempo to sustain in
the market and enhance their level of business functioning by minimizing the extra costs of
selection process. Similar to this study of Bellé (2015) depicts that, labour turnover is a critical
problem of the human resource in every sector. However, companies are facing major issues in
maintaining their position in the market just because their human resource management is unable
to maintain the rate of turnover. Furthermore, increasing rate of employee turnover mainly
affects the profitability, services of budget hotels, productivity and quality (Bellé, 2015).
Conrad, Ghosh and Isaacson (2015) argued that, varied growth opportunities and career
development options have influenced people to go for large or medium hotels so that they
enhance their skills and abilities to a great extent. This indeed leads to create problems for budget
hotels even to employ skilled and capable individuals for the firm that can carry out the operation
in the best possible manner. Contradicting to this Qualls (2008) states that, looking at the current
environment of hospitality sector at times it is important for the hotels at large or small level to
bring new skills so that enthusiasm and new ideas can be promoted but parallel to this, hotels
may face issues after losing the key employees.
2.6 Impact of employee turnover on business performance of budget hotels
Business hire and train employees to carry out the tasks necessary for them to operate and
generate better results. In this regard, businesses depends upon their employees a lot and always
makes efforts to enhance the skills and abilities of employees so that improvement in their
performance may lead to betterment in overall firm’s performance. In this context Sutherland
(2013) describes that, employees may leave their job for various reason such as grabbing better
growth opportunity, retirement or continuing education. Thus, there are several impacts of
employee turnover on business performance of budget hotels.
One of the major impact of employee turnover stated by Dweck (2013) is the fluctuations
in productivity. It is simple because high rate of employee turnover may lead to lower workforce
productivity and negatively affects the overall functioning of business. Further, rationale of this
statement identified in the study of Govern and Petri (2012), that worker who have more
experience are certainly aware about all the policies and procedures of the budget hotel and carry
out their work accordingly so that positive contribution can only be promoted. But on the same
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side, if new employee joins the hotel may face problems in understanding the approaches,
functioning and roles which may lead to effect on the overall productivity of the budget hotel.
Especially for the budget hotels as they have small number of employees may find difficult to
replace workers because retired, resigned employee may carried out variety of specialized tasks
that is difficult for the new one to conduct (Thomas, 2010).
Another major issue is incapability of business in retaining customers and providing high
quality services that can seriously affect the performance of budget hotel is defined by Garg and
Rastogi (2006). However, author explained that customers of hotel industry are always looking
for leisure time and effective services but high retention rate at a budget may create problems for
both customer and employee to communicate effectively because he/she is relatively new to the
organisation. Whereas, customer may feel more comfortable talking to the same old employee
and expects the desired level of quality and efficiency in the services. Jacoby (2014) proposed
that, personal relationship and familiarity can build or develop appropriate customer loyalty.
Further, in the study it was identified that high rate of employee retention leads to lower quality
of customer service.
Contradicting to this Kokemuller (2011) explained that, it is not only that employee
turnover have negative effects because it can be a forceful decision from the management of
firm. However, employee turnover can be meant by replacing veteran employee stuck in his/her
ways to carry out operations thus, bringing fresh talent may leads to new ideas which may assist
in improving the functioning of hotel and leads to achievement of competitive advantage. Similar
to this study of Palmer (2005) highlighted that, employee turnover may improve the diversity of
organisation which in hotel industry is important because customers of different ethnic
backgrounds are attracted. Apart from this, small scale organisations use layoffs of high salaried
workers as a way to cut down the costs during tough financial times. In against to it they hire
new employees so that they can pay low salary as well as bring change to the organisation for the
betterment of future. Article of Huang (2009) illustrates that, promoting employee’s commitment
can have great impact on decreasing the turnover rate as well as helps in making positive impact
on productivity. Furthermore, increased employee commitment has led to improve team
performance and productivity as well as decrease the rate of absenteeism, turnover and intention
to quit which helps in retaining skilled and capable employees for longer period and improves
the performance of business to a great extent (Huang, 2009).
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2.7 Conceptual framework
Current study entails information about impact of motivational factors on the employee
retention in budget hotels of UK. However, considering the level of competition and changing
needs and expectations it has become difficult for the employers to retain workers for longer
period and carry out operations effectively. Furthermore, employee retention is one of the biggest
challenge that managers are facing these days because workers are getting the opportunities
because of growing economic conditions in UK that is helping the course of hospitality sector to
grow and provide more career which encourage them to switch jobs more than often. This
situation creates high employee retention rate of hotels especially budget or small scale hotels in
the town. Following is the conceptual framework of current study:
Figure 1: Conceptual Framework
2.8 Conclusion
In conclusion to the literature review, researcher has been able to develop suitable
theoretical base on the motivational factors and its impacts on the employee retention. Looking
at the present condition of hotel industry in UK it is quite tough for the budget and small scale
hotels to sustain for longer period without skilled and capable labour. Moreover, to this, study of
different authors also illustrated that, manager and employers are facing major challenges in
motivating employees because of the diversity in nature. People from different ethnic
backgrounds have different desires and expectations which indeed cause problems for the
managers to select the appropriate motivational approach so that they can influence individual to
stick with hotel for longer period.
In addition to it, for retaining employees, budget hotels must offer career advancement
opportunities to the individual so that he/she can think of growth in their career. At times due to
lack of proper operational, strategic and tactical effectiveness fails departments to offer
employees better career opportunities and room for advancement of skills and capabilities and
find problems in retaining qualified employees. It is because different scholars stated that,
employee involvement, recognition, work importance and growth opportunities in career are the
essential factors that motivate or influence individual to work within a company for longer
period and enhance their firm loyalty and reduces the rate of employee turnover.
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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
It can be stated that the results of study are directly affected by the kind of methodologies
which are employed by a scholar. This is one of main reason why research methodologies is
considered as one of the most important chapter of any dissertation. The chapter includes
different types of tools and techniques which has been adopted by researcher in order to collect,
analyse and use data. Further, selection of right methodologies helps scholar to carry out the
entire research in the best possible manner. Along with this, it also supports in accomplishment
of aim and objectives of the study in effective manner. On the other side of this, this chapter also
covers ethical considerations and limitations of the study.
3.2 Research Approach
In general terms, the procedures and plans which are developed and used to conduct
study in effective manner is considered a research approach. The use of suitable approach assists
researchers to gather useful information related to the topic under investigation. Research
approach further divided into two major categories which are deductive and inductive. In the
current study, inductive approach to research has been employed by researcher in order to
determine the impact of motivation in employee retention in budget hotels. One of the main
reason behind selecting inductive approach is that it has provided the researcher with more
generalized information regarding the topic under investigations. According to the nature of
present research, the data was required in more generalized from and therefore inductive
approach was more suitable. On the other hand, the use of deductive approach would have
provided the researcher with more specific information and results regrading what kind of impact
does motivation have on employee retention in budget hotels.
3.3 Research design
Research design can be termed as the blueprint which assist researcher in collecting,
measuring and carrying out analysis of information. In simpler terms, research design highlights
the detailed outline of the fact that how the research will be carried out in the best possible
manner. In addition to this, exploratory, descriptive, experimental, case study, casual,
experimental etc. are some common research designs which are used to carry out research. In
exploratory research deign is used in situations where few studies are being carried out on the
topic under investigation. The design focuses on the gaining in-depth knowledge regrading study
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and achieving desired results. On the other hand, in descriptive research design results are drawn
without manipulating factors of the study. In this design, researcher seeks for describing various
elements associated with the study, in order to obtain the best possible outcomes. In case study
design, results are obtained by analyses a particular case whereas in experimental research
design, valid conclusion is drawn on the basis of correlation between different dependent and
non dependent variables. It can be also stated, the selection of research design relies on nature
and objective of study.
The present study aims at assessing the impact of motivation on employee retention in
budget hotels and thus descriptive research design has been employed for the same. The reason
behind selecting this design is that it has allowed the scholar to use more specific form of
collecting information. Along with this, it has also supported in accomplishment of research aim
and objectives by describing the various elements associated with the study. The selection of
descriptive research design has also enhanced the overall quality of this research.
3.4 Research philosophy
The development of knowledge, background and nature of research is termed as research
philosophy. It is one of the most crucial aspect of research methodologies as it is directly
associated with the values and belief of scholar which supports in the process of collecting and
analysing information in the best possible manner. Further, research philosophy is categorized
into two broad from which are interpretivism and positivism. In order to assess the impact of
motivation in employee retention in budget hotels, interpretivism research philosophy has been
used in this research. The use of this philosophy has provided the scholar with more detailed and
reliable information in order to carry out this study. It can be stated that with the help of the
selected philosophy, the scholar is able to interpret different elements which were associated with
the topic under investigation. The rationale behind not using positivism philosophy is that it is
generally employed in studies which are requires different evidence and logics. Therefore, it can
be stated the use of positivism philosophy was not suitable for carrying out the present study and
obtain suitable findings. In addition to this, the use of interpretivism philosophy has helped the
researcher in collecting, analysing and using information of present study in the best possible
manner
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3.5 Data collection
The process of collecting data can be termed as one of the most important and crucial
stage in any kind of research. In addition to this, the quality and effectiveness of research relies
on the type of data which has been gathered by the scholar. The process of data collection is not
an easy task and researcher are required to develop effective plans for the same. For every
research, there are two common sources which can be used to carry out the process of collecting
information. This includes primary and secondary sources of data collection. The information or
data collected from secondary sources is considered as second hand data as it has been already
collected and used by someone else. On the other hand, primary data is the information which
has been gathered for the first time by the researcher himself or herself. In order to gather
primary information various techniques such as questionnaire, survey interview etc. are used.
Along with this, books, journals and online sources are taken into consideration in order to
collect secondary information.
For the present research, both primary and secondary sources of data collection are taken
into consideration. The primary data has been collected by using survey method with an
objective to collect new, fresh, accurate and more reliable information. A well structured
questionnaire has been developed by the researcher on the basis of aim and objectives of the
present study. On the other hand, work and studies of other researcher and scholar has also taken
into consideration as sources of secondary data collection. The rationale behind using both the
sources is that it has provided the researcher with adequate and more accurate information
regrading impact of motivation in employee retention in budget hotels in UK.
3.6 Sampling
Sampling is defined as the process in which different techniques and methods are used to
collect data from primary sources. In this process, appropriate sample and its size is defined by
the research from the overall population. Further, it can be stated that sampling is divided into
two broad categories which are non-probabilistic and probabilistic sampling. In order to collect
primary data on impact of motivation in employee retention in budget hotels, purposive sampling
technique which is a part of non-probabilistic sampling method has been employed by the
research. The data has been collected from managers within budget hotels in the country. One of
the key reason behind using purposive sampling is that it has resulted in saving resources of
scholar such as time and money. Along with this, it has also supported in reaching targeted
18

sample in the best possible manner. The primary data has been collected from 50 employees of
budgeted hotels in the country.
3.7 Data analysis
Data analysis is as the process in which the gathered information is analysed in order to
obtain useful findings. There are two different techniques which can be used in order to carry out
the process of analysing information collected from various sources. Further these are qualitative
and quantitative techniques of data analysis. It can be also stated that selection of appropriate
techniques entirely relies on the nature of study which has been carried out. In the present study,
both information which is qualitative and quantitative technique has been used to obtain the best
and most favourable outcomes. The researcher has used statistical tools such as SPSS in order
obtain desired results with the help of quantitative technique of data analysis. On the other hand,
thematic techniques has been used to carry out qualitative data analysis.
3.8 Reliability and validity
One of the major benefit of research reliability is that it helps in eliminating two different
elements which are dissimilarity and inconsistency associated with the study. Along with this, it
also supports in accomplishment of aim and objectives of the study. In terms of reliability, it can
be stated that the data has been collected from only valid sources. Further, only those
informations which has been published after the year 2005 has been taken into consideration. On
the other side of this, the scholar has well taken care of the validity of the present research. This
includes the paying adequate and required attention on activities such collection of data and
analysis of the same. In order to enhance the validity of present study, the most suitable and
appropriate tools and techniques of research are employed by the scholar.
3.9 Ethical consideration
It can be stated that ethical considerations play very important role in success of a
research and every scholar needs to take care of the same. In the present study, the scholar has
ensured the fact that all the key ethical consideration are addressed in the best possible manner.
The researcher has taken care of the fact that the information which has been collected from
different respondents is not disclosed to any other party. Along with this, their identity is kept
completely confidential. At the time of carrying out activities such as data collection and
analysis, the research has ensured that there is no partiality done. Prior permission has been taken
from respondents before approaching them in order to collect primary data regrading the topic
19

under investigation. The information collected from different primary and secondary sources has
been secured in the best possible manner. Other than this, the research is also going to destroy
the data after using the same.
3.10 Limitations
It can be stated that at the time of carrying out the present study, there are various
limitations which has been faced by the researcher. It can be expressed that cost and time were
the two major constraint which has affected the results of this research. The scholar was having
limited amount of financial resources and time. It was not easy for the scholar to approach
employees of budgeted hotel and collect data from them within given limited resources. The
sample size was also restricted to 50 respondents because the resources available were limited in
amount. Along with this, majority of respondents took more than expected time in order to
complete the questionnaire which was provided to them.
20

DATA ANALYSIS
3.1 Introduction
The chapter of data analysis is considered as an important chapter of study as it directly
supports in obtaining suitable findings. The chapter includes different tools and techniques which
has been employed by scholar to carry out the evaluation of data collected from various sources.
Further, in the present research, both qualitative and quantitative techniques are used to carry out
the analysis of data collected.
Theme 1: Monetary and fringe benefits are very much important for the employee to get
motivated in Budget Hotels
Salary and other fringe benefits Respondents Percentage
Not at all important 3 6
Not very important 7 14
Neutral 8 16
Somewhat important 11 22
Very important 21 42
Findings: From the above graphical presentation, expected outcomes have been identified when
employees working in budget hotels were asked about whether monetary benefits plays
important role in motivating them. 42% of the respondents states that they monetary benefits are
very important similar to this, 22% of the respondents says that they are somewhat important. On
the other hand of it, 30% of respondents thinks that such benefits are not very important but
influence decisions. Whereas only 6% people thinks that salary and other fringe benefits are not
at all important for motivating them.
Interpretation: Monetary benefits are one of the major reason behind motivating employees and
it has been justified with the findings that employees working in hotel industry are influenced by
high packages and pay scale. It is because, industry is growth at significant pace and every
individual want to attain success in their career thus, in order to motivate them and retain them
for longer period managers have to provide them better financial benefits. However, in secondary
research authors’ states that, monetary benefits are important in terms of motivating any
individual but contradicting to this, budget hotels with low economic power are unable to
21

provide higher salary or pay scale that leads to dissatisfied employees and increases the turnover
rate.
Theme 2: Job Safety and Security is essential in motivating employees
Job Safety and Security Respondents Percentage
Not at all important 7 14
Not very important 5 10
Neutral 10 20
Somewhat important 12 24
Very important 16 32
Findings: On the basis of above graph it has been evaluated that, job satisfaction and security is
one of the major motivational factor that influences individual to stay longer with the firm.
However, when selected sample size was asked about this fact, 16 out of 50 employees takes this
as very important while for 12 respondents job security is somewhat important. On the other
hand of it, 12 remaining participants thinks that it not at all important and does not motivate them
at all. Whereas, 20% of the remaining sample size is neutral about this fact as such thinks does
not effective their level of motivation as well as long term decisions.
Interpretation: According to the above analysis, job security is significant factor in motivating
the individual to work for budget hotel on long term basis. Therefore, it is important for the
employer or managers at budget hotels to make sure that they ensure job security for individual
is important in terms of motivating them to enhance skills and abilities as well as develop loyalty
towards functioning of firm so that long term association can be maintained.
Theme 3: Motivation influence employees to work long and hard
Motivation influence employees to work long and hard Respondents Percentage
Yes 38 76
No 12 24
22

Findings: Expected results have been generated when asked to the employees about whether
motivation influence them to work long and hard. In this regard, 38 out of 50 respondents stated
that yes, motivation plays significant role in encouraging or influencing them to the work
effectively and efficiently for longer period. Whereas, remaining 12 said that motivation does not
influence them to become workaholic.
Interpretation: From the above finding researcher analyzed that, employer or leader make valiant
efforts to motivate their employees or staff members so that they can work effectively. However,
considering the hotel industry which possess high level of competition it is essential for the
employer to motivate or encourage his/her employees so that they can work appropriately and
generate better results. However, in the secondary analysis it has been identified that there are
several authors and scholar who proposed motivation as the major tool of retaining skilled and
capable employees. In this regard viewpoints of different authors have been considered which
states that, one of the most significant need of motivating employees is that it assist in improving
their level of performance.
Theme 4: Relationship with superior and subordinates directly impacts motivation level of
employees
Relationship with superior and subordinates directly impacts
motivation level of employees Respondents Percentage
Strongly Agree 19 38
Agree 11 22
Neutral 10 20
Disagree 5 10
Strongly disagree 5 10
Findings: Desired results have been generated when importance of relationship for motivation
asked to the employees. However, 38% of people strongly agree to the fact that having better
relationship with senior and junior employees helps the course in motivating them. Similar to
this, 22% of the respondents states that, they agree to this fact because maintaining relationship
is helping them in carrying out their work effectively. Further, 20% of remaining respondents are
23

confused whereas, remaining respondents are not motivated by mainta8ining relationship with
their superior and subordinates.
Interpretation: According to above findings, researcher has been able to understand the concept
that maintaining relationship in corporate world help the individual not only to carry out his
work but also assist in motivated to work effectively and efficiently within the team so that
personal as well as company’s goals and objectives can be achieved. Looking at the conditions of
budget hotels where staff turnover is increasing at rapid pace thus, make more important for the
employees to maintainer relationship with other associated staff so that they can get help in
overcoming all the obstacles and problems.
Theme 5: Training and development programs motivates people in the organization
Training and development
program motivates
individual
Respondents Percentage
Strongly Agree 19 38
Agree 11 22
Neutral 10 20
Disagree 5 10
Strongly disagree 5 10
Findings: From the information collected, it has been found that training and development
programs at regular intervals directly enhance motivational level of employees. Out of the total
50 respondents, majority which is 38% strongly agree with the above mentioned fact whereas %
agrees with the same. On the other hand, 20% of the total respondents were neutral and 10% of
disagree with the fact. The remaining 10% of the total respondents strongly disagree and said
that training do not affect their motivation level.
Interpretation: The information collected with the help of primary sources highlights that
motivation level of employees gets enhanced when they are provided with training and
development programs. Majority of respondents said such kind of programs improves their skills
and knowledge. Along with this, it also provides them with adequate opportunities to learn new
24

tools and techniques. This creates a sense of satisfaction among them and directly motivates
employees to deliver better performance in accomplishment of organizations aim and objectives.
The same thing has been interpreted from the data collected with the help of carious secondary
sources. The findings of literature review reflects that fact that trained employees are motivated
and put best of their efforts in the success of organization. Training and development programs
creates satisfaction among workers as they start perceiving that their respective organization is
really concern about their growth and development.
Theme 6: Performance of employee gets enhanced when they receive guidance from their
supervisor
Guidance from Supervisor
motivates employee to
enhance performance
Respondents Percentage
Yes 35 70
No 15 30
Findings: The findings of primary data collected depicts the fact that performance of employee
gets enhanced when they receive guidance from their supervisor. Out of the total 50 respondents,
70% agrees with it and the remaining 30% were not in the favour of above mentioned statement.
Interpretation- From the information collected with the help of primary and secondary sources, it
has been interpreted that guidance from supervisor directly results in improving overall
performance of people in organization. The respondents stated they are able to become aware of
the fact that how they can carry out assigned task in effective manner and before the provided
deadlines with the help of guidance from their supervisors. This directly results in improvising
employee performance and making them more productive towards their work. On the other hand,
the results of literature review highlights that employee which receives guidance from their
senior are able to deliver better performance as compared to workers which are not provided
with any kind of guidance. The directions and guidelines provided by supervisors supports
employees to overcome the issues and challenges faced during their work.
Theme 7: employee retention has become a major issues for many budgeted hotels
25

Employee retention is a
major issues for Budget
Hotels
Respondents Percentage
Strongly Agree 15 30
Agree 10 20
Nuetral 8 16
Disagree 8 16
Strongly disagree 9 18
Findings: From the data gathered with the help of primary sources, it has been found that
retention of employee has become a serious issue in front of management of many budgeted
hotels. Out of the total 50 respondents, majority which is 30% strongly agree with it whereas
20% agree with the same. On the other hand, 18% of the total respondents were strongly
disagreed and 16% disagree with the above mentioned statement. The remaining 16% of the total
respondents were neutral.
Interpretation: It can be analysed that retention of employees has become a serious issue which
has been faced by budgeted hotels. Most of the respondents stated that nowadays the hotels are
not able to retain their highly skilled and productive workers. This is affecting the sales,
profitability and overall performance of many hotels. It has become very difficult for businesses
to find right and effective personnels. Further, when they are able to find such kind of employee,
budgeted hotels are not able to retain them. This has created various kind of obstacles in overall
growth and success of many budget hotels. The same result is analysed from the secondary data
26

which has been collected with the help of various sources. It has been observed that employee
retention has become one of the most challenging task for hotels and they are not able to find
effective ways through which they can retain their employees. Late rate of employee retention is
considered as a great loss to any organization. It limits the ability of organization to serve their
customers in satisfactory manner. Along with this, budget hotels spend heavy amount of
resources in training in development of employees. Therefore, when such employee leaves the
organization, it is a great loss to the entire hotel.
Theme: 8 old employee serving period is higher than young ones
Old employees stick to their
organization for longer
period
Respondents Percentage
Much higher 17 34
Higher 25 50
About the same 5 10
Slightly lower 2 4
Much lower 1 2
Findings: The data collected from primary research highlights that as compared to the new
employees, old ones remains with organization for long time period. The results of primary data
depicts that out of the total 50 respondents, majority which is 50% said that old employee
serving period is higher whereas 34% were in favour of much higher. On the other hand, 10% of
the total employees were in favour of about the same and 4% favoured slightly lower. Only 2%
of the total respondents favoured much lower.
Interpretation: From the information collected, it has been observed that old employee serve in
budget hotels for long duration as compared to the new ones. It has been analysed that old
27

employees are the one which seeks for stability in their careers whereas young employees always
look forward for better opportunities for growth and development in their career. The same thing
has been analysed from the secondary data collected with the help of various secondary sources.
Senior employee are mature and they always plan for long term employment tenure for a
particular organization. On the other side, young employees do not have such type of plans and
they only work for a particular hotel until and unless they do not find any other potential
opportunity in the future. Therefore, this is one of the main reason why budget hotels prefer
hiring and selection of employees which are experienced.
Theme 9: Motivated employees serve customers in more effective manner.
Motivated workers assist
budget hotels to serve their
customer satisfactory
manner
Respondents Percentage
Always 20 40
Often 16 32
Sometimes 7 14
Rarely 4 8
Never 3 6
28

Findings: From the information collected, it has been found that motivated employees are able to
serve customers in budget hotels. Out of the total 50 respondents, 40% were in favour of always
and the other 32% were in favour of often. 14% of the total respondents said that motivated
employees provide satisfactory services to customers but only for some times whereas other 8%
favoured rarely. The remaining 6% said that motivated employee never serve customers in
budget hotels with satisfactory services.
Interpretation: It has been analysed that budget hotels are able to serve customer effectively in
situation where they are having team of highly motivated employees. Majority of respondents
argued that employees with high motivation level and morale understand need of customers
effectively. Further they are also able to provide effective services and products on the basis of
those identified needs. The same information has been analysed from the secondary information
collected. Motivated employees always look forward in delivering the best and most effective
products and services to customers. This creates a sense of satisfaction among customers and
assist organizations in their long term growth and profitability.
Theme 10 Employees can be retained by identifying and satisfying their needs and wants
Understanding needs and
wants employees assist
budget hotels to retain
employees
Respondents Percentage
Yes 39 78
No 11 22
Findings: From the information collected, it has been found that understanding needs of
employees and satisfying them results in retaining people in organization. Out of the total 50
respondents, 78% agree with the same whereas the remaining 22% disagree with it.
Interpretation: The results of primary data collected, highlights the fact that one of the major
factor which results in high rate of employee turnover is neglecting needs of people in the
organization. When needs of employee are neglected, sense of dissatisfaction is created among
employees. Further, it also lowers down the morale and motivation level of employees. In such
situation they are not interested in providing outstanding efforts in the success of business
29

enterprise. The same results have been obtained from the secondary data collected. In the present
scenario, the competition among business in budget hotels has become so intense that it is not
easy for them to earn higher profits and sales. Further, they are required to make sure that skilled
and productive employee remain within the organization for long time. This can be done by
addressing needs of workers and satisfying the same in the best possible manner.
Theme 11: Employee can be retain by providing respect and equality to them
Equality and Respect
increase employee retention
Respondents Percentage
Strongly Agree 19 38
Agree 12 24
Nuetral 8 16
Disagree 6 12
Strongly disagree 5 10
Findings: It has been found from the information collected with the help of various sources that
employee can be retained within organization by providing them with respect and equality. Out
of the total 50 respondents, majority which is 38% strongly agrees with this fact and the other
24% agree with the same. 16% of the total number of respondents were neutral and they did not
say anything. However, 12% disagreed and the remaining 10% strongly disagreed with the same.
Interpretation: From the information collected, it has been found that providing equality and
respect helps organizations to retain their employees in effective manner. Discrimination and
unfair treatment creates dissatisfaction among workers and also results in lowering down their
overall productivity. The findings of secondary research highlights that discrimination among
workers and also encourages them to seek for other employment opportunities. High rate of
employee turnover is observed in those organizations which do not offer equality and fair
treatments to their employees.
Theme 12 : Varied reason behind increasing rate of employee turnover in budget hotels
Varied reasons identified behind increasing rate of employee Respondents Percentage
30

turnover in budget hotels
Poor management 6 12
No training and development sessions 5 10
Boredom 8 16
Inadequate salaries and incentives 15 30
Frequent changes 6 12
Excessive workload 10 20
Findings: Varied reasons have been identified when employees were asked about the increasing
rate of staff turnover in budget hotels. However, most of the respondents around 30% states that
inadequate salaries and incentives are the major reason identified behind which employee
retention rate is decreasing and turnover rate is increasing. While on the other hand, 10 out of
remaining 50 respondents’ states, that excessive workload with poor management influence them
to leave the organization. Further, 8 employees of budget hotels say due to boredom they switch
their job which increases the employee turnover rate of the hotels. Apart from this, 22% of the
respondents state that poor management and offering no training and development influence
them to leave the job and increase the turnover rate of employees in budget hotels.
Interpretation: On the basis of above findings and data generated through secondary information
it has been evaluated that budget hotel’s employee turnover rate is relatively high because of
various reasons. However, these reason consists of poor management, providing no training and
development, boredom, excessive workload etc. According to literature review its impact are
more sever for the functioning of firm because it affects the overall performance directly. In
terms of productivity, it is simple because high rate of employee turnover may lead to lower
workforce productivity and negatively affects the overall functioning of business. Especially for
the budget hotels as they have small number of employees may find difficult to replace workers
because retired, resigned employee may carried out variety of specialized tasks that is difficult
for the new one to conduct.
Theme 13: Working environment affects the motivation level of employees in budget hotels
Working Environment affects the motivation level of employee
in budget hotels Respondents Percentage
All the time 12 24
31

Often 15 30
Sometimes 7 14
Rarely 8 16
Never 8 16
Findings: Different responses identified when employees of budget hotels were asked about the
fact that, working environment affects their level of motivation. However, 15 out of 50
respondents stated that if the environment of working is good/bad it affects them often in
positive/negative terms. Moreover, to this, 12 out of remaining respondents states that working
environment of hotel affects their level of motivation all the time and influence them whether to
stay or leave the company. On the other hand, 16 employees says that it rarely and never affect
their level of motivation. Whereas, only 7 residual respondents says that sometime it sometimes
affect not.
Interpretation:Working environment of an organisation should provide adequate base for an
individual to work properly so that he/she can generate desired results. In particular to the hotel
industry which focuses on serving leisure time and services to the customers thus, need to
maintain proper working environment. But from the primary analysis it has been identified that
employees in budget hotels always want better working environment otherwise they switch
organisation which indeed leads increase the turnover rate of the company. From the literature
review it has been identified that, firms irrespective to their sector have to make efforts to
provide effective working environment their employees so that they retain them for longer period
and generate the best possible results from them.
32

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34

APPENDIX
Questionnaire
Demographic
Ques1: Age
 18-24
 25-30
 31-40
 41-50
 Above 50
Ques2: Gender?
 Male
 Female
Ques3: level of Education
 Secondary
 Diploma / HND
 Degree
 Above degree
Ques4: What is your income group (Monthly)?
 100-299
 300-599
 600-999
 1000-1499
Ques5: Years of experiences you have in hotel industry?
 0-6 months
 6-12 months
 1-2 years
 2-5 years
 Above 5 years
Ques6: Does Motivation encourages you to work long and hard?
 Yes
35

 No
Que7: Employee Retention has emerged as major issue which has been faced by budget hotel?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
Ques8: Employee serving period is higher in old employees in comparison with the young ones?
 Much higher
 Higher
 About the same
 Slightly lower
 Much lower
Ques9: As per your opinion, what are the other reason behind employee turnover?
 Poor management
 No training and development sessions
 Boredom
 Inadequate salaries and incentives
 Frequent changes
 Excessive workload
Ques10: Is monetary benefits and other fringe benefits are important for you?
 Not at all important
 Not very important
 Neutral
 Somewhat important
 Very Important
Ques11: Does Job security and safety is important for you to retain in budget hotel?
 Not at all important
 Not very important
 Neutral
 Somewhat important
36

 Very Important
Ques12: Relationship with superior and subordinates directly impacts on your motivation?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
Que13: Does Training and development programmes in Budget hotel motivates you?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
Que14: Guidance from supervisor motivates employee to enhance performance?
 Yes
 No
Ques15: Do working environment affect your motivation level in budget hotel?
 All the time
 Often
 Sometimes
 Rarely
 Never
Ques16: According to you, is motivated workers helps in serving customers of budget hotels in
satisfactory manner?
 Always
 Often
 Sometimes
 Rarely
 Never
Ques17: If your needs and wants are understood will help managers in retaining you?
 Yes
37

 No
Ques18: As per your view, equality and respect increase in retaining employees?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
Attitude towards Budget Hotel
Ques. No. Question HS S N D HD
19 Your feeling as an budget hotel employee
20 Personal policies and procedures employed
21 Independence given in execution of the work
Services conditions of Budget hotels
Ques. No. Question HS S N D HD
22 Recruitment policy in force
23 Mode of Selection
24 Training programmes in budget hotel
25 Growth opportunities provided
26 Leave rules
27 Transfer policy in practice
Ques28: I am satisfied with my manager’s supervision style
 Highly Satisfied
 Satisfied
 Neutral
 Dissatisfied
 Highly Dissatisfied
Ques29: My basic needs have not been satisfied by budget hotels
38

 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
Ques30: According to you what budget hotel should do to retain you for longer period?
________________________________________________________________
________________________________________________________________
39