Assessment 2: Employee Turnover in Australian Hospitality Industry

This report, submitted by a student, investigates the relationship between per hour pay and employee turnover within the Australian hospitality industry, focusing on hotels and airlines. It begins with an executive summary, followed by an introduction that highlights the detrimental effects of employee turnover on profitability and competitiveness. The report explores the research background, problem statement, and research questions, aiming to identify the connection between employee turnover and job satisfaction. A comprehensive literature review examines Herzberg’s two-factor theory and other relevant studies, incorporating recent articles to support the analysis. The methodology section details the use of secondary research and includes a Gantt chart to illustrate the research timeline. Findings from the analysis of data from five hotels and five airlines are presented, showing the per hour pay and turnover rates. The discussion section analyzes these findings in the context of existing literature, while the conclusion offers recommendations for improving employee retention. Finally, the report includes a complete reference list in APA style.

Running head: ASSESSMENT
Relation between per hour pay and employee turnover at operational level in Australian
hospitality industry.
Name of the Students
Name of the University
Author’s Note

1ASSESSMENT
Executive Summary
Employee turnover is a measurement of the employee number who leave their organization
during the particular period. While the organization measures the overall employee number, who
leave the organization, the turnover can apply for subcategorizing the overall employee number
in the organization in the demographic group or individual department. This paper tends to
analyses the independent factors for understanding the consequences on the rate of the employee
turnover in the Australian hotels and airline industry. After selecting the airline and hotels in
Australia, the analysis of per hour pay and employee turnover rate will be conducted. This study
finds the relation between per hour pay and employee turnover rate and the way in which they
integrates between them. Employee turnover in the hotels and airlines is the pervasive issue,
which are analyzed in this study with the forefront with the unprecedented full employment
advent in the airlines and hotel industry.

2ASSESSMENT
Table of Contents
Introduction......................................................................................................................................3
Research Background..................................................................................................................3
Problem statement.......................................................................................................................4
Aim and Research questions........................................................................................................4
Literature Review............................................................................................................................5
Herzberg’s two-factor theory.......................................................................................................6
Research Methodology....................................................................................................................6
Findings...........................................................................................................................................8
Discussion on Findings....................................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

3ASSESSMENT
Introduction
The employee turnover is the detrimental to the profitability and competitiveness of the
organizations in hospitality industry of Australia. According to Zimmerman, Swider & Boswell,
(2019) the turnover of the employee threaten the pr4ofitability and performance of the
organization because of the connected loss of the company assets and vital corporate resources.
The leaders of the Australian hospitality industry can implement the strategies and policies in a
better way, which will improve the profitability and competitiveness of the hospitality industry
of the industry understands the aspects, which are effecting the turnover rates significantly
among the employees.
Research Background
According to Yam, Raybould & Gordon, (2018) the per hour pay rate of Australian
hospitality industry, this report helps in finding the employee retention and job satisfaction. The
turnover rate of the employee in the hotel and airline industry is very cost effective. The
management and the organization must monitor the employee’s job satisfaction. The hospitality
industries represent the thriving and dynamic industry in Australia and the industry supports the
activities, which has shaped the economy of the country. As stated by Goh & Okumus, (2020)
the hospitality industry consists of the multiple fields thousands of employees are running the
establishments with multiple responsibilities for which the retention and satisfaction of the
employees becomes very essential to be concerned about. This recommendation and the study on
the turnover of the hospitality industry’s employee are very limited. The aim of this study is for
recognizing and analyzing the collaboration among of employee turnover and employee job
satisfaction in the Australian airline and hotel industry.

4ASSESSMENT
Problem statement
The employee turnover is the damaging factor to profitability and performance of any
organization, which can lead the organization to loss of the diverse intellectual and financial
assets and resources. As stated by Stamolampros et al., (2019) millions of the employees in the
hospitality industry terminated voluntarily their employment with the cost for replacing the
annual salary of the terminated employee. The problem of the general business of the hospitality
industry addressed in this study in which the turnover rate of the employee is very damaging to
the profitability and competiveness of the organization in the Australian hospitality industry. As
mentioned by Uen et al., (2018) the particular problem of this industry addressed is that the
leaders of the organization never understand the relationship among the employee turnover, job
satisfaction, employee compensation, and work environment, employee engagement and
employee motivation. This problem has the vital effect on the effective operation and the entire
profitability of the organization related to hospitality.
Aim and Research questions
The aim of this study is to identify and examine the connection of the fluctuation of the
employees and the employee satisfaction in the hospitality industry in Australia. The Research
questions can be:
1. Is job satisfaction can be the key reason for the turnover of the employee?
2. What will be the consequences because of the employee turnover to the hospitality
industry?

5ASSESSMENT
Literature Review
Turnover of employee is among the most concerning issues in the airlines and hotel
industry. While the employee turnover rate are very high and becomes more challenging when
the turnover rate raises among the workers of the airline and hotel industry due to the disruption,
which is caused by the departures. This has been researched in this study that the employee
turnover rate is effected by the employee dissatisfaction, treatment and the policies of the
employee. Manoharan & Singal, (2019) suggests the integration among the turnover of employee
and the job satisfaction of the employee. Job satisfaction is among the important reasons for
those employees for leaving the job from the hospitality industry. This is assumed that the
independent variables in this study like business organization, de-satisfiers intention of the
employee turnover, job satisfiers. Haque, Fernando & Caputi, 2019) identified that enhancing the
work life balance quality can help in enhancing the total productivity of the organization and
maximize the satisfaction and loyalty of the employees. In the today’s scenario, the organization
are striving for enhancing the performance and productivity of the organization for competing
with the other competitors, who are operating in the hospitality industry. This was argued by
Jang & Kandampully, (2018) the successful industry tend to retain their valuable employee by
considering all the concerning issues in their personal and professional life. The work condition
and the work environment of the employees in the hospitality industry play the vital role in
effecting the job satisfaction level among the workers in the industry. Employee turnover can be
involuntary or voluntary and the employees leave the organization for numbers of reason, which
is not related to the management of the organization. The employee turnover is categorized into
unavoidable and controllable turnover. Employee turnover is unacceptably high in the hospitality
industry though the substantial variation are exiting among the various establishments.

6ASSESSMENT
Herzberg’s two-factor theory
Herzberg’s two factor theory recognizes and analyzes the job satisfaction factors,
dissatisfaction factors, motivating factors of workplace and the demotivating factors of the
workplace’s employees. The analysis focuses on the consequences and the influential factors like
recognition and achievement. For the satisfaction factors, there are supervision and the policies
of the organization. For the factors of the employee dissatisfaction, which has the direct effect on
the turnover thought of the employees. The theory of Herzberg studies on the small area of the
intention of the turnover. According to Holston-Okae & Mushi, (2018) the hygiene factors
consists the policies of the hospitality industry, relationship among the workers, level of the
supervision from employees and managers, sense of the status, structure of salary and the
security level in the organization. Therefore, Hur, (2018) mentioned that the high level of the
motivation and the high hygiene among the employees in the hospitality industry is very ideal for
the industry and their business and all the managers or supervisors should strive for this. This
will help in keeping the workers motivated and will help the organization for reducing the
tension and enhancing the job satisfaction among organizational workers.
Research Methodology
Secondary research is the form of analysis requiring the use of the existing data or
information. Existing data are collated and complied for improving the overall effectiveness of
this study. Secondary data analysis involves the research material. Public libraries, databases,
websites, articles, and surveys with data already filled in, etc., will make these documents
available. Multiple non-government and governmental agencies frequently gathered data that can
be retrieved and used for purposes of research and analysis. According to Umanailo et al., (2019)
secondary research is quick and easy, in contrast to primary research. This aims to get a better

7ASSESSMENT
understanding of the topic. Secondary research as data is already accessible is the quick process.
Researcher must know where to investigate to get the most suitable results. The data obtained by
secondary research provides an indication about the usefulness of primary research to
organizations of hotel and airlines in Australia. Hotels and airlines or enterprises can therefore
form the hypothesis and evaluate the cost of carrying out primary research. When using
secondary data, the researcher must look into different sources from where they can be obtained.
In this case the researcher is certainly not approached with the issues usually correlated with the
original data collection. Secondary data can be either unpublished or published. In another
inquiry, data which are suitable for one inquiry may not automatically be found suitable
(AlBattat, Som & Helalat, 2014). Therefore, if the data available are found to be inappropriate,
the researcher must not use them. In this case, the researcher will help in scrutinizing the
description of various words collection and units which were used while collecting the data from
the primary source. Moreover, this is also vital to the purpose, scope and object of the research
for the genuine inquiry. From all of this can be said that the currently available data is very risky
in using. The researcher must use the data already available when he considers them to be
accurate, appropriate and sufficient. For this research the secondary data is used as the secondary
data has provided multiple information about the employee turnover of the hotels and airlines of
Australia.
Gantt chart

8ASSESSMENT
Fig: Gantt chart
Findings
The collected data from the 10 various firms, which are related to the airport and hotel
industry are analyzed by conducting the primary data analysis. The fundamental descriptive
analysis is performed for communicating the dispersion and main tendency of the data. 5 hotels
of Australia are selected for the interviews and surveys including Langham Hotel Melbourne
with the salary per hour pay of 28.64 with the employee turnover rate of 45.83%, Crown Towers
Melbourne with the salary per hour pay of 26.54 with the employee turnover rate of 57.21%,
Intercontinental Sydney with the salary per hour pay of 24.82 with the employee turnover rate of
53.91%, Park Hyatt Sydney with the salary per hour pay of 27.45 with the employee turnover
rate of 54.75%, and Sofitel Brisbane with the salary per hour pay of 26.54 with the employee
turnover rate of 57.21%. In the scatter plot of the per hour pay of the chosen Australian hotels,
the highest pay is 28.64 AUD and the lowest pay is 24.23 AUD and the mean pay per hour of the
hotels are 26.33 AUD and the highest employee turnover rate is 57.21% and the lowest turnover

9ASSESSMENT
rate is 45.83% and the average employee turnover rate is 52.01% with the standard deviation is
4.73.
5 airlines of Australia are selected for the interviews and surveys Qantas with the salary
per hour pay of 31.20 with the employee turnover rate of 35.57%, Jetstar Airways with the salary
per hour pay of 28.32 with the employee turnover rate of 26.37%, Intercontinental Regional
Express Airline with the salary per hour pay of 30.24 with the employee turnover rate of 24.28%,
Virgin Australia Airlines with the salary per hour pay of 27.34 with the employee turnover rate
of 31.47%, and Tigerair Australia with the salary per hour pay of 28.43 with the employee
turnover rate of 38.57%. In the scatter plot of the per hour pay of the chosen Australian airlines,
the highest pay is 31.20 AUD and the lowest pay is 27.34 AUD and the mean pay per hour of the
hotels are 29.10 AUD with standard deviation 1.57 and the highest employee turnover rate is
38.57% and the lowest turnover rate is 24.28% and the average employee turnover rate is
52.01% with the standard deviation is 6.01.
Discussion on Findings
The turnover rates of the employees are shown in the research findings, which has the
positive and moderate correlation with the worker’s salary in the Australian airline and hotels
when the analysis of the relationship was performed through gathering the information together
for the airline and hotel industries. The relationship analysis between per hour pay and employee
turnover rate that is performed on the information by segregating the hospitality industries shows
that the employee turnover rate does not correlate with the per hour pay. From the findings,
Yam, Raybould & Gordon, (2018) suggested that the data and information collected data can be
misleading to the employees and organization if the organization does not try for understanding

10ASSESSMENT
the correlation between per hour pay and employee turnover rate in the hospitality industry
without separating the particular industries, which come under the hospitality sector.
As discussed by Zopiatis, Theocharous & Constanti, (2018) the findings in this research
have provided the special emphasis on the salary structure and the hygiene factor for being the
motivating factor for the satisfaction of the employees. This report has discussed the other
hygiene factors like relationship with the co-workers, management supervision level, sense of
structure and the company policies. However, in the aspects of the hotels and airlines of
Australia, this never seems for being relevant as the research. According to Manoharan & Singal,
(2019) multiple explanations are there for anticipating for this research findings like the
Australian worker law that is the pro-worker if the organization compare this to the developed
nations. Australia is one of the countries in term of the less wage given to the employees. The
analysis of the regression and the correlation of the information validate per hour pay, which is
not the important aspect, which determines the turnover rates of the employee in the Australian
hotels and airlines. The information proposed, which the employee working at the operational
level in the Australian hotels and airlines never have the potential for the motivation and strong
reason to leave the current jobs with the similar salary and similar job in the other organization.
As mentioned by Haque, Fernando & Caputi, (2019) the employee turnover’s reasons in the
Australian hotels and airlines must be searched in the other domain work. For instance, the
professional life balance is very vital topic, which has been connected significantly with the
intentions of employee turnover. Therefore, the findings and the data analysis in this research
propose that no relationship is there between per hour pay and employee turnover rate in the
hospitals and airlines of Australia.

11ASSESSMENT
Conclusion
The key restriction of this research for collecting data is sample size. In this research, the
analysis is self-evident and not able in representing the entire hospitality industry of Australia.
Therefore, this research findings is not in the generalized form to the all hotels and airlines of
Australia. The other limitation of this study is the independent variables, which were selected for
this research study. If the independent variables were more, this research could have been
impactful in much better way. This study could have help to internalize and understand the
employee turnover and understand the vital aspects of the industry in defining the turnover in the
hospitality sector of Australia.
The findings from this research study adopted the idea of the job satisfaction, workplace
compensation, environment and engagement, which are the vital factors for the employees,
which can impact the community and the customer as well. The turnover of the employee in the
hotels and airlines impacts the organization in multiple way and threatens the customer quality
service. This study indicates that the managers of the organization should be aware of the
requirements of polices and strategies, which will lead to the sustainable workforce. Based on the
findings and outcomes of this research, this can be recommended that the managers of the
organization must implement the conscious efforts for improving the positive perceptions of the
employees about their job satisfaction, employee engagement, and work environment and
employee compensation as these are the vital predictors of the employee turnover intentions in
the Australian hotels and airlines.
To conclude, this research study is very small and vital steppingstone but the important
milestones in gaining knowledge about the aspects responsible for the turnover of the employee