Impact of High Turnover on Customer Service

Running head: MARKETING
Marketing
Name of the student
Name of the university
Author note

1MARKETING
BA/BSc BUSINESS PROGRAMMES
DISSERTATION PROPOSAL PROFORMA
Name of Student
Name of Dissertation
Supervisor
Research Question/Problem
To investigate the impact of high turnover on customer service
Terms of Reference
The main aim of the research are as follows:
 The study will aim to investigate the negative impact of high turnover rate on
customer services
 The research will examine the different elements of turnover rate to identify the
major reasons for turnover within the organization
 The research will examine the different aspect of customer service to understand
the impact.
 Triangulation will be used to collect data and analyse it using different method to
check the validity of the data collected.
 The research will aim to provide valid recommendation based on the findings so
that management in hotel organizations can improve their customer services.
Research hypothesis
H0: There is no impact of employee turnover on the customer service quality
H1: There is significant impact of employee turnover on the customer service quality
Background and Context
Employee turnover is a major concern for the hotel industry and it has the highest turnover
rate among all other sectors. Studies shows that modern employees in hotels are
expected to leave their jobs as they are more focused on the job experience and not the
compensation they are receiving (Menon 2017). Moreover, the employees in the hotel
industry are under constant scrutiny from the internal stakeholders, such as line
managers, floor managers, owners but also from the guests and customers. The stressful
work environment in the hotel organizations have made it difficult for the companies to
engage their employees which is one of the major reasons that human resources kin the
hotel industry leave within three years of service. Surveys conducted on the hospitality
employees in UAE shows that majority of the employees are focusing on switching to
different jobs and better opportunities in the near future (HotelierME 2018). This is a major
concern for the organizations in the hotel industry in UAE and the research will take the
various cases into account to evaluate the turnover rate intentions of the employees and
its current and future possible impacts. Moreover, the research will aim to increase the
awareness of the management of the hotel regarding different issues faced by employees
while working in the hospitality industry and how the organization can mitigate those
issues to improve the service quality.
However, in the recent years, various organizations have not been able to hold up to

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the standard of service they have been known for so the research will evaluate the impact
of turnover on the customer service to provide suitable recommendations. This research
topic has been chosen for research as it one of the most important issue in organizational
context and will facilitate in developing analytical skills. This skills can be used in future
context for solving management issues in practical scenarios in the future.
Summary of Relevant Theory
Mohsin, Lengler and Aguzzoli (2015) states that it is essential to make careful investment
in human resources for maintenance and management of talented workforce. Staff
turnover is a key issue and impacts the performance of the organization. Brandt, Bielitz
and Georgi (2016) states that the cost of recruiting new employees has significant impact
on the profit margin of organizations. There are many hidden or indirect cost attached to
recruitment of new employees. Staff results in shortage of staffs and excessive work load
for the existing employees. This reduces the effectiveness of the organization and affects
the service quality. Mohsin and Lengler (2015) states that impact of staff turnover is not
monetary but also affects the morale of the employees. This causes issues in meeting the
demands of the consumers due to high stress level and low morale of the employees. Call
et al. (2015) opined that there is significant increase in staff turnover among employees
due to lack of satisfaction from the current job role. Mohsin, Lengler and Aguzzoli (2015)
supported by explaining that employee turnover results in unnecessary increase in
management waste, monetary cost and lack fo motivation.
Patiar and Wang (2016) states that staff turnover affects the service level of the
employees which in turn affects customer satisfaction. On the contrary, (Wong, Wong and
Wong (2015) focused on the advantages of employee turnover where downsizing has
been considered as a natural phenomenon and the presence of casual and part time
employees makes the employee turnover data skewed. However, the author admits that
there is adverse impact of employee turnover on customer service. There is lack of
satisfaction among the employees in the organization which results in increase in turnover
rate. The importance of staff satisfaction is high in contemporary businesses which deals
with the problems of performance and loyalty of the consumers. Employee turnover is one
of the most common issue in the hospitality industry due to the increase in employee job
dissatisfaction. Patiar and Wang (2016) states that employee turnover in not limited to a
few factors but there are groups of factors that result in lack of motivation and employee
turnover.
Methodology
Research methodology consists of set of framework, assumptions and concepts required
for knowledge development. In this research, Saunders research onion will be followed to
unfold the different methods used in each step of the data collection and analysis. In this
current research, pragmatism will be chosen as the research philosophy. Pragmatism
accepts theories when valid actions support them (Flick 2015). Pragmatism considers that
there are multiple ways of interpreting an issue which results in existence of multiple
realities. In this study, pragmatism will facilitate in performing a mixed method analysis.
There are mainly two types of research approaches, inductive and deductive approach.
The difference between the deductive and the inductive approach can be understood by
the significance of hypothesis in the research. Inductive approach is used for developing
new generalisations and theories. On the other hand, deductive approach is used for
testing existing theories in the research (McCusker and Gunaydin 2015). In this given
study, both inductive and deductive approach will be used to perform the mixed method
analysis. The study will use a sequential explanatory research design where initially
quantitative analysis will be performed to analyse the relationship between employee