Staff Turnover in the Australian Hospitality Industry

This research study explores staff turnover rates in the Australian hospitality industry and aims to establish approaches of retaining employees in hotel chains across the nation. The study reveals that career advancement practices, employee involvement, fair career advancements and promotions, compensation, the empowerment of women employees, employee training, and effective work environments as well as flexible working hours remain important in the retention and minimization of turnover rates in the hospitality industry in Australia.

Running head: STAFF TURNOVER IN THE AUSTRALIAN HOSPITALITY INDUSTRY
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STAFF TURNOVER IN THE
AUSTRALIAN HOSPITALITY INDUSTRY
Name
Institution
Course
Tutor
City/State
Date

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Abstract
Employee turnover is currently reaching a crisis proportion for organizations in the
tourism industry that are struggling to maintain proper and effective staffing levels in the
competitive labour market. Turnover in several cases has been utilized as a measure of an
organization or industries performance, an aspect that remains expensive in regards to
operational and financial efficiency. Research studies have revealed that the hotel industry in
Australia has noted higher turnover rates over the past few years. This study therefore seeks to
explore staff turnover rates in the Australian hospitality industry in an effort to establish
approaches of retaining employees in hotel chains across the nation. A qualitative research
method will therefore be used in the collection of data from various peer-reviewed journals,
books and other relevant literature. The findings of the study revealed that career advancement
practices, employee involvement, fair career advancements and promotions, compensation, the
empowerment of women employees, employee training, and effective work environments as
well as flexible working hours remain important in the retention and minimization of turnover
rates in the hospitality industry in Australia. The study additionally found that the lack of growth,
low salaries, and the minimal opportunities to develop employees in the industry were the main
causes of higher rates of turnover in the industry. This research study therefore expects to add on
knowledge to the body of research in an effort to improve on workforce retention in the
hospitality industry in Australia.

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STAFF TURNOVER IN THE AUSTRALIAN HOSPITALITY INDUSTRY
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Table of Contents
1. Introduction.............................................................................................................................................4
2. Background and Rationale.......................................................................................................................5
3. Problem Statement:................................................................................................................................5
Aim and objectives......................................................................................................................................7
4. Justification and potential output of the research project......................................................................7
5. Theoretical Framework............................................................................................................................8
5.1 Literature Review..................................................................................................................................8
5.2 Research Methodology:.......................................................................................................................11
6. Secondary Data and Data Analysis Methods:........................................................................................12
7. Data Analysis and Findings....................................................................................................................14
8. Discussion..............................................................................................................................................15
9. Conclusion.............................................................................................................................................16
Budget Estimation.....................................................................................................................................17
Gantt chart................................................................................................................................................18

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1. Introduction
The principal intent of this research study remains in exploring the element of staff
turnover rates in the Australian hospitality sector within a section of hotel chains in the country.
The researcher therefore acknowledges that resource constraints such as time challenged the
study in examining several hotels in Australia, efforts that would have helped in generalizing the
findings of this study. The aim of this chapter remains to provided an outline on the research
study. The research paper will be disintegrated into six sections. The first section will provide a
brief background of the study as well as its rationale. In the second part, the researcher will
provide a prescription of the research studies problem, an aspect that will be followed by the
studies aim and objectives. The next section will give a description of the studies research
methods and questions. The core of the study will be protracted from the contributions of other
literatures in the literature review section in which the structure of the research as well as its
relationship with other subsequent chapters will be provided followed by a summary of the
research study. Staff turnover therefore remains a vital subject for executives and organizations
in the Australian hospitality sector since staffs are observed as assets and pillars to an
organization and the failure to establish methods of retaining them would result in turnover, an
aspect that costs organizations a considerable amount of money. According to Deery & Shaw
(2008), employees make considerable inputs to the organizations they work for in regards to
skills, abilities, and knowledge, an aspect that aid the hospitality industry to gain a competitive
advantage in the industry. This therefore denotes the need to address this issue, positing the
intent of this paper.

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2. Background and Rationale
The hospitality industry in Australia according is one of the largest and the most
expanding industries in the world, an aspect that has seen hotels viewed as the ingredients of
globalization since they provide homage to tourists and business personnel’s from different
regions of the world. Research studies on the hospitality industry in Australia revealed that the
workforces in the hotels are insecure, unskilled, and possess limited language skills (Gallardo wt
al, 2010). The research studies revealed that the labour force in the Australian hotel sector
mainly encompasses a section of casual workers lacking the required perpetual labour contracts,
thus pointing to the fact that they receive limited wages and their job openings require minimal
or no occupational training or formal education hence the low wages (Iverson & Deery, 2008).
Moreover, studies have revealed that the hotel industry in Australia is faced with higher gender
imbalances, with ladies covering 62% of the industry as equated to 40% in the other different
industries, with a limited number of this population slated for the managerial levels. Several of
the working populations are mainly young people, with a majority of this populace considered as
migrants. Lastly, the hotel industry in Australia is subjected to higher levels of labour intensity
with minimal wages; no doubt the industry has a higher turnover rate.
3. Problem Statement:
The hospitality industry delivers numerous occupations around the world and contributes
broadly to GDPs (Gross Domestic Products) (Rishi & Gaur, 2012). This exposition contemplates
investigated representative turnover in the hospitality business and concentrated on the reasons

STAFF TURNOVER IN THE AUSTRALIAN HOSPITALITY INDUSTRY
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why such a large number of workers withdraw from the business and how to diminish the
turnover. The workers turnover rate is exceedingly taking off, remaining at more than 37% every
year in the hospitality business (Australian Bureau of Labour Statistics, 2013). The Bureau of
Labour Statistics demonstrated the month to month turnover rate to bring down in different
businesses like construction, education and retail. Hall noted 75% of labourers leave hospitality
following a half year, 53% following one year and just 12% stay following three years (Hall,
2010).
The retention of employees remains a major challenge in the hospitality industry in
Australia given the growth of expansion in the service industry as well as the related costs
involved in the development of the workforce. Research has revealed that rates of turnover are a
significant challenge in the sector given that the hospitality sector in Australia is considered to
have a higher turnover as associated with other industries. Employees therefore serve as human
resource and equally play substantial roles in the sector given that the sector relies to a larger
extent on the services provided by workers (Marren and Kennedy, 2010). This therefore poses a
problem for managers and organizations, probing the need for approaches of minimizing
turnover. Business turnover-detachment without a doubt influences industry income alongside
monetary development, regardless of whether broadly, provincially, or comprehensively.
Keeping workers in the business is fundamental to accomplishing retention. The lack of retention
of employees can be costly for a firm. It shows low morale among the employees and it leads to
low productivity. The role of a workforce in any organisation cannot be stressed enough. They
are the backbone of the company. Dysvik and Kuvaas communicated that tourism industry
should step toward in lessening turnover rates immediately and keep searching for techniques to
address this occurrence in Australia (Dysvik and Kuvaas, 2010).

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The tourism industry in Australia additionally needs to discover approaches to urge
representatives to remain in that capacity a high turnover rate may demoralize great workers
from remaining. Holding workers is central to the accommodation segment and accomplishing a
higher standard for dependability involves a successful administrative activity. The hospitality
business is a work-intense industry and labourers may have low confidence, low sense of pride,
and an unfortunate perspective of bosses. Such a negative view or disillusionment brings about
bothering between labourers which can make them leave (Walsh and Taylor, 2007). In lieu of
this, the study seeks to examine the effects of turnover rates in the tourism industry in Australia.
Aim and objectives
The was aim of this research is to investigate the reasons and factors that cause
employees to depart their job in hospitality industry and the impact of high turnover in the
Hospitality business and purposed the methodologies to reduce turnover. The objectives of this
examination are to:
 Determine the current rate of turnover;
 Examine the factors that influence the turnover of workers in the hospitality industry,
and;
 Develop strategies to decrease the turnover in the hospitality industry
Research Question
1. What are the possible reasons and causative factors for the increasing staff turnover rates
and levels in the Australian hospitality sector?

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4. Justification and potential output of the research project
This documented report is of significance since it calls attention to critical factors that
lead to high employee turnover in the Australian hospitality industry. It provides insight,
knowledge, skills as well as possible solutions to various stakeholders in the industry to mitigate
the myriad of issues leading to employee departure. The theoretical concepts outlined in this
paper are fashioned to explain and advance knowledge pertaining the maintenance and
management of the proper staffing levels in the industry. In practice this concepts can be used to
invest in training, offering support, career advancement opportunities and reward incentives to
the workforce. Such offerings constitute some of the most fundamental aspects expected to retain
employees in an organization.
5. Theoretical Framework
5.1 Literature Review
In this section, the researcher will conduct a literature review from appropriate primary
and secondary sources. The collected data will then be evaluated to draw an understanding of the
research subject, an aspect that will provide more insights into staff turnover rates in the
Australian hospitality industry.

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Figure 1.1: Conceptual Framework (Source: Created by the Researcher)
Labour force and shortages in skills are considered as the most trivial challenges facing
the Australian hospitality industry. With the increasing resource boom driving the aspect of
demand for workers, the raising pace of retirement, the increasing migrant numbers, and the
constraints experienced in the labour market increasingly turning out as a challenge, a heightened
rate of staff turnover remains eminent in the hospitality industry. Within the Australian tourism
industry, skills and labour challenges have inhibited immense pressures, thus impacting the
Staff
Turnover
Rates
Job
Satisfaction
Job
Stress
Extended
Working
Hours
Reward
Management
and
Incentives

STAFF TURNOVER IN THE AUSTRALIAN HOSPITALITY INDUSTRY
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performance of the industry. According to Kuvaas & Dysvik (2010), employee turnover is a
process in which employees or staff members leave a hotel and their position has to be filled, an
aspect that is injurious to an organization. Some employees leave for various reasons, with some
including the quest for better opportunities, death, lower salaries, and the pursuit for education.
Staff turnover in the Australian industry has turned out to be a field of interest to several research
studies. Vasquez, Noriega, Pender & Kasen (2014) states that several research studies have
mainly focused on job retention, with evidence proving that satisfaction in a staff member’s
current job is a key factor in their choice to remain in an organization. In other words, the more
employees get satisfaction in their jobs, the lesser their intention remains in leaving their job
positions in search for others.
Allen, Shore & Griffeth (2003) and Bonn (2002) purport that salary remains a motivator
that grants staff members recognition for the efforts they put in a company, an aspect that
encourages the members of staff concentrate and perform better. In this regard, it is essential to
note that incentive schemes are considered as additional compensation provided to employees
with the sole objective of motivating them as valuable staff members, efforts that enable them to
stay put in a company. Cairncross & Buultjens (2007) also stress that binding incentive schemes
and salaries may be a better approach of increasing the performance of employees, citing this as
one of the reasons why employees leave hotels that fail to compensate them well. According to
Cairncross & Buultjens (2007), employers in the tourism industry in Australia may need to
initiate more approaches aimed at compensating potential employees as an approach aimed at
retaining them within the industry. The inclusion of incentive schemes would enable employees
to take interest in their jobs and work efficiently towards meeting an organizations goal.

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On the other hand, it is evident that most hotels are known for extending their working
hours especially during peak seasons in an effort to heighten their productivity through double
shifts. Barron, Maxwell, Broadbridge, & Ogden (2007) states that hotels have not established or
defined their working hours since customers need services any time. Besides this, employees are
forced to work on more allotted shifts with minimal pays. The extension of working hours
therefore affects employee turnover, forcing more employees to seek for other job opportunities
that provide favourable working hours. It is in this case necessary to note that long working
shifts tend to be disastrous to the health and well-being of employees besides its effects of their
physical exhaustion as well as mental exhaustion, thus affecting the quality of work delivered
(Barron et al, 2007). This therefore results in poor performances, forcing employees to leave
since they are not in a position to bear with the emanating pressures in the industry.
5.2 Research Methodology:
To accurately assess the different factors causing turnover in hospitality industry in
Australia and to develop strategies to reduce the turnover, this study has chosen qualitative
methodology to conduct this study. As established, research studies may either take the
quantitative or qualitative forms. This study however relies in the qualitative method. The
qualitative research method is designed to help researchers gain in-depth insights on staff
turnover in the Australian hospitality industry, efforts aimed at understanding human behavior in
the making of decisions. The qualitative methodology remains appropriate for this study given
that it will allow the researcher to delve deep into finding the answers to the studies research
questions. Bryman (2012) adduces that qualitative research method helps in examining specific
cases in greater depth, thus siting the need for the inclusion of this method.

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On the other hand, Bryman (2012) alleges that qualitative research method primarily
focus on words as opposed to quantifications in the collection of data, efforts that help in
adducing the relationships between a study and its theory. It is evident that interviews remain the
main instrument used in the collection of data in a qualitative study, therefore establishing the
fact that this study will deploy the usage of surveys as well as interviews in the collection of
data. In regards to the labor turnover rates literature as well as industrial panels, an online survey
will be designed and distributed to five star hotels in Australia, an aspect that will result in the
interviewing of 30 Human Resource Managers in the industry and 12 employees, thus providing
a representative response and sample of 30 percent. Given the way that there are high turnover
and worker turnover impacts affect employee and business in the hospitality industry in
Australia. The literature review section will adduce its sources from peer-reviewed journals,
dissertation studies, government data and other relevant publically available data relating to the
topic.
6. Secondary Data and Data Analysis Methods:
This study used secondary data form different sources like peer-reviewed journals, data
from Australian Bureau of Statistics database, and different other online sources such as research
published in the same field and credible online websites addressing the same topic. Various peer-
reviewed articles were dedicated to the employee turnover in the hospitality industry in Australia
and approaches need to execute keeping in mind the end goal to diminish turnover (Neuman,
2014). After collecting all the data and information for this study, different factors affecting
turnover will be identified, and impact of those factor on employee turnover will be examine,
and interpretation of patterns and themes in data and information will be done and will be

STAFF TURNOVER IN THE AUSTRALIAN HOSPITALITY INDUSTRY
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determining how these patterns and themes helps to understand the high turnover, and finally
develops strategies to decrease the turnover in the hospitality industry in Australia.
Sampling Method: Unlike the qualitative research method in which a random sampling method
remains a common phenomenon, this study will utilize the purposive sampling method.
Purposive sampling in this case allows the researcher to choose his participants relevantly in
order to address the research studies intent (Neuman, 2014). The researcher in this case will
sample information from two groups: the employees and managers, from a group of three five
star hotels in Australia.
Data Analysis: For the purpose of the study, secondary data from the government and industry
sources and data from different online sources will be used. The data analysis method will be
based on the need to understand the concepts and themes examined in the data. According
Neumann (2014), concepts are established to provide responses to research questions before an
analysis is conducted. This therefore denotes the need for a coding approach in analyzing a
qualitative study, an approach that entails the process of organizing the collected raw data in
themes and categories in an effort to derive a concept.
The coding process takes three forms, an open-coding process in which the collected data
is lined into categories for an examination to find the relevant themes, the axial coding approach
in which researchers concentrate on the concepts and categories and compares each of the
categories to find possible connections, and the selective coding method in which data is accrued
to support the developed categories (Neuman, 2014)This study will therefore combine the three
methods of coding together given that the respondents originate from different organizations
with different managerial styles, thus denoting the need to analyze them selectively before
linking them together.

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7. Data Analysis and Findings
The five star hotels and residential accommodation facilities are a significant force
behind the employment of labor and operate in a volatile and competitive market. The study
revealed that one of the significant approaches of determining the performance of the industry
remains in gauging the efficiency of the sector through the attraction and retention of employees.
The data therefore revealed that the industry is faced by a an annual turnover rate of close to
50.64% among operational employees, thus suggesting a predictable pattern pf an increasing
turnover rate in the housekeeping, restaurant, bar, front office, and the kitchen; considered as the
largest units of employers within the industry (Australian Tourism Labour Force Report 2011). It
is additionally essential to establish that the study found out that the rate of turnover among the
executives, departmental managers, and supervisions stood at 40.05%, higher than the expected
levels. Given this, it is essential to note that the levels of turnover imply that both the operational
employees and managers are likely to possess similar experiences within the sector given the fact
that similar reasons cause the higher turnover rates. For instance, it was evident that the
employees at all the levels of employment mostly left because of low salaries, wages, the quest
for better opportunities, job stresses, and extended working durations.
Secondly, the study revealed that labor turnover remains greatest in the remote and
regional hotels in Australia as compared to hotels around the city, with this attributed to poor
working conditions, isolation, and distance (Faldetta, Fasone & Provenzano, 2013). This has
therefore made the attraction and retention of employees a challenge within the sector. As
established in the collected data, the primary rationale for operational staffs and manager’s
turnover was based on low salaries and wages, job stresses, extended working conditions, and
the pursuit for better opportunities, causing voluntary resignations (Carbery, Garavan, O’Brien,

STAFF TURNOVER IN THE AUSTRALIAN HOSPITALITY INDUSTRY
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& McDonnell, 2003). On the other hand, performance related resignations or termination were
slightly lower, with the main motivation for the change of jobs among the staffs and managers in
the Australian hospitality industry attributed to the quest for better career opportunities and
flexible working hours. Changing jobs to other industries is in this case motivated by better
career paths, higher salaries, and flexible working hours. The data therefore suggests that better
working conditions and higher wages are the main drivers of employees and managers leave.
8. Discussion
Employees make considerable inputs to the organizations they work for in regards to
skills, abilities, and knowledge, an aspect that aid the hospitality industry to gain a competitive
advantage in the industry, positing the intent of this paper. In an effort to draw an in-depth
understanding on this subject, the research study was broken down into different sections. The
first section will provided a brief background of the study as well as its rationale. In the second
part, the researcher gave a prescription of the research studies problem, an aspect that was
followed by the studies aim and objectives. The next section gave a description of the studies
research methods and questions. The core of the study was protracted from the contributions of
other literatures in the literature review section in which the structure of the research as well as
its relationship with other subsequent chapters will be provided followed by a summary of the
research study. The study therefore revealed that staff turnover rates remains a vital subject for
executives and organizations in the Australian hospitality sector since staffs are regarded as
assets and vital resources to organizations and the failure to establish methods of retaining them
would result in turnover, an aspect that costs organizations a considerable amount of money. As
established in the collected data, the primary rationale for operational staffs and manager’s

STAFF TURNOVER IN THE AUSTRALIAN HOSPITALITY INDUSTRY
18
turnover was based on low salaries and wages, job stresses, extended working conditions, and
the pursuit for better opportunities, causing voluntary resignations.
9. Conclusion
As projected in this research study, employee turnover is currently reaching a crisis
proportion for organizations in the tourism industry that are struggling to maintain proper and
effective staffing levels in the competitive labour market. Turnover in several cases has been
utilized as a measure of an organization or industries performance, an aspect that remains
expensive in regards to operational and financial efficiency. Labour force and shortages in skills
are considered as the most trivial challenges facing the Australian hospitality industry. With the
increasing resource boom driving the aspect of demand for workers, the raising pace of
retirement, the increasing migrant numbers, and the constraints experienced in the labour market
increasingly turning out as a challenge, a heightened rate of staff turnover remains eminent in the
hospitality industry. The primary rationale for operational staffs and manager’s turnover was
based on low salaries and wages, job stresses, extended working conditions, and the pursuit for
better opportunities, causing voluntary resignations. It is therefore crucial for employers in the
tourism industry in Australia to initiate more approaches aimed at compensating potential
employees, repealing their working hours, and harnessing their skills through development and
training as an approach aimed at retaining them within the industry. The inclusion of these
measures would enable employees to take interest in their jobs and work efficiently towards
meeting an organizations goal.

STAFF TURNOVER IN THE AUSTRALIAN HOSPITALITY INDUSTRY
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Budget Estimation
Proposed Task Estimated Amount required
Literature review $ 1500
Collection and Analysis of Primary data $2000
Collection and Analysis of Secondary data $ 2500
Total Estimated Budget $ 6000

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Gantt chart
May June July August Sept October
Project
Proposal
Literature
Review
Data
Collection
Data
Analysis
Final
Review
Submission
of Report
Closure

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