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

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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