Factors Affecting Employee Turnover in Travelodge Hotel Sydney Airport

Running head: TRAVELODGE HOTEL SYDNEY AIRPORT
TRAVELODGE HOTEL SYDNEY AIRPORT
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Abstract
Problem statement
The research study will be focusing on the problems faced by the Travelodge Hotel Sydney
Airport in retaining employees and determines the policy mechanisms those are undertaken for
reducing the impacts of the employee turnover on Travelodge Hotel Sydney Airport. The
research study will focus on understanding the factors that lead to the growth of employee
turnover in the hospitality industry.
Research methods
The research process is conducted for the study based upon the combination of both the
secondary and the primary research activity. The secondary research is carried out based on the
study of the books, journals and the case study related to the employee turnover issues in the
hospitality industry of Australia. The primary research is based on both the interview and the
survey process encompassing both the qualitative and the quantitative research approach.
Findings
This study finds out that there various factors for which the Travelodge Hotel Sydney Airport is
facing the employee turnover issues like the lack of training, employee development, negative
work environment and existence of the reduced compensation level. In the interview process, the
supervisor declared that there is a lack of effective interactions and communication among the
manager and the subordinates. The employee in the front desk department stated that the
organization should provide the financial and non-financial incentives system for the employees.
The interview and the survey process finds out that these factors will help the employees to
maintain the work-life balance and will reduce the employee turnover rate.

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Conclusion
The research study concludes that the increase in the employee turnover rate not only affects the
performances of the organization but also affects the customer requirements thereby affecting the
profit margins of the organization. The increase in the employee turnover rate tends to cause an
increase in the manpower cost of the organization by recruiting and training new professionals.
Recommendation
This study recommends that the Travelodge Hotel Sydney Airport is required to ensure that the
management of the organization is increasing the compensation package and introduces the open
consultant forums for the employees. The study recommends building an effective work
environment by developing effective interactions among the managers and the subordinates.

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Table of Contents
Introduction......................................................................................................................................5
Overview of the company...........................................................................................................5
Problem statement.......................................................................................................................5
Research aims.............................................................................................................................5
Research question.......................................................................................................................5
Research objectives.....................................................................................................................5
Significance of the research........................................................................................................6
Literature review..............................................................................................................................6
Causes of employee turnover......................................................................................................6
Factors affecting employee turnover rates..................................................................................8
Impact of employee turnover in the hospitality industry of Australia........................................9
Policies taken for mitigating employee turnover rates..............................................................10
Methodology..................................................................................................................................12
Research paradigm....................................................................................................................12
Research design.........................................................................................................................12
Research strategy......................................................................................................................13
Sampling...................................................................................................................................14
Data collection methods............................................................................................................14

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Data analysis.............................................................................................................................15
Research ethics..........................................................................................................................15
Findings and Discussions..............................................................................................................16
Findings from the interview analysis........................................................................................16
Causes of employee turnover...............................................................................................16
Impact of the employee turnover on the production of Travelodge Hotel Sydney Airport. 16
Importance of effective organizational culture....................................................................16
Factors encouraging the growth in Employee turnover.......................................................17
Principle factors for the employee dissatisfaction................................................................17
Policies that encourages the growth of employee satisfaction.............................................17
Strategies to be undertaken for reducing employee turnover...............................................18
Findings from the Survey Analysis...........................................................................................18
New trend of employees quitting Travelodge Hotel Sydney Airport..................................18
Most important factor for employee turnover in Travelodge Hotel Sydney Airport...........19
Reason behind employee dissatisfaction in Travelodge Hotel Sydney Airport...................20
Factors for effective organization culture............................................................................20
Strategies for reducing the employee turnover rate..............................................................21
Conclusion and recommendation..................................................................................................21
References......................................................................................................................................23
Appendix........................................................................................................................................27

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Introduction
Overview of the company
The Travelodge Hotel Sydney Airport is one of the major hotels in Australia for airport
services. The organization focuses on providing the customers great services along with the
quality foods and beverages. The organization is unable to retain their employees for more than
one year.
Problem statement
The operation of the Travelodge Hotel Sydney Airport is greatly impacted by the
increasing level of the employee turnover where it is observed that the management is unable to
retain the newly recruited employees for more than 1 year. The continuous recruitment and
training of people affect the performances as well as the potential of the organization.
Research aims
The aim of this research study is to find out the factors that contribute to the increasing
rate of employee turnover in the organization. This study also aims to find out the strategies and
policies undertaken by the management of the organization for reducing the employee turnover
rate.
Research question
This research study is conducted based on the research question that is Does human
resource management practices impact on employee turnover intention in the Front office
department in Travelodge Hotel Sydney Airport?

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Research objectives
 To realize the concept of employee turnover
 To find out the policies that are required to be undertaken by the management Travelodge
Hotel Sydney Airport for reducing the employee turnover rate
 To determine the factors that contribute to the growth of employee turnover
The significance of the research
The importance of this research study is to determine the factors that cause employee
turnover in the organization and also determining the strategies and policies that could be
undertaken by the organization to mitigate the increasing rate of employee turnover in the
organization. This research study would also enhance sustainable growth in the performance
potential of the organization by reducing the employee turnover rate.
Literature review
Causes of employee turnover
As stated by Millán (2018), the employees are considered as the most important resources within
the organization that helps in achieving competitive advantages. Human resource management
deals with the organization's workforce of human resources. This is responsible for the
recruitment, selection, training, and assessment of employees, while in addition overseeing the
leadership, culture and the compliance with the employment and the labor laws of the country.
Thus this can be stated that human resource management is responsible to retain employees by
looking after the issues them facing within the organization.

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The effectiveness of the human resource management practices on the staff turnovers and the
intentions for quitting from the hotel industries are linked to the popular theories like the Adam
Smiths’ Equity Theory, the Folger and the Greenberg Organizational Justice theory. The theories
have been adopted because of the fairness and justice could have been found to be the important
factors that lead to employee satisfaction in the services industry like hotel and hospitals.
Millán (2018), also stated that the major reasons for the employee turnover intentions. The rude
behavior towards the employees and the indignities creates great effect towards the employees as
the employees generally tend to quit because of the rudeness, assigning blame, back-biting,
playing favorites and the retaliations are the reasons for aggravating towards the employee
turnover. The feelings of resentful and being mistreated will not be able to develop a good work
environment. The employees seek a healthy work environment in the organization and this also
improves their performances. Another reason for the employee turnover intention is the work-life
imbalance that increases along with the economic pressures and the continuous demands of the
organization that is one person doing the work of one or more people. This is found out in those
organizations that restructures and also resulting in the long hours and the weekend work. The
employees are forced to choose between personal and work life. Rosario-Hernández (2018),
argued that the lacking of feedbacks and coaching is considered as one of the important reasons
that lead to employee turnover retention. The effective managers are the ones who know how to
help the employees for improving the performances and would consistently provide coaching
and honest feedback to the employees. The ineffective managers are often found to put off giving
feedbacks to the employees by knowing that giving honest feedback is essential for the growth of
the successful teams. The lacking of decision-making ability also impose the employees towards
retention. The micromanagers are often found out to be insecure regarding the employee’s ability