Impact of High Staff Turnover Rate in the Hotel Industry

Independent critical analysis project
Name of the student
Name of the university
Author note

Executive Summary

Toc

1.0 Introduction
This research examines the impact of high staff turnover rate in the hotel industry. In
this scenario, Hyatt Sydney has been chosen as the organisation for analysis. This research
examines why there has been significant increase in staff turnover in the hotel in the past few
years and the way it can be mitigated using suitable strategies.
1.1 Background of the study
The Australian hotel industry has been experiencing increase in staff turnover in the
past few years and the managers have expected increase in future turnover in their respective
industry. Recent study suggest that hotel industry in Australia lose half of their employee
every year due to high turnover. The average turnover in the hospitality industry is more than
15% which is three times the staff turnover at other industries. This makes the operations in
various hotel more costly than the expected cost. This is the reason it is essential for the
organisations to understand the reason why the staffs leave so that the companies have a
better profit margin and customer service quality. Employee turnover puts an organisation in
jeopardy and it affects organisational productivity and performance. This is due to the loss of
crucial company assets and corporate resources. Hotel industries are in constant need of
strategies so that they can maintain an adequate workforce and improve the quality of
engagement, work environment, job satisfaction and motivation. The study conducted the
bureau of labour statistics shows that employee turnover results in increase in cost by $25
billion in a year. Moreover, it is difficult to understand the fact that employees in hotels leave
in huge numbers and considerable research is required in this field.
1.2 Research problem
Employers have noticed that there has been significant increase in staff turnover in
Australia in the past three years. This has been confirmed by conducting a survey with
managers hiring new staffs. The survey showed that more than 15% of the employees are
expected to search for new jobs in the upcoming year. Moreover, more than 60% of the
employees have seen relevant increase in average staff turnover. On the other hand, these
companies have implemented strategies and have measures to manage expected turnover but
still the expected turnover is forecasted to rise. It is shocking to see that more than half of the
organisations lack wellness programs and employee appreciation programs. Employees are
the backbone of the organisations so it is essential to develop effective human resource