Analyzing Employee Turnover Impact on Hospitality: Ritz London Case

This report investigates the impact of increasing employee turnover on the hospitality industry, using The Ritz London as a case study. It aims to identify the concepts of employee turnover, determine the impacts of increasing employee turnover on Ritz London, and explore ways to improve organizational performance. The research employs a positivism research philosophy and a deductive approach, utilizing a mono method research choice and a survey research strategy. Primary and secondary data collection techniques are used to gather information. The report highlights the negative effects of high employee turnover, including decreased productivity, loss of staff morale, and increased recruitment costs, and suggests strategies such as providing training and development opportunities, understanding employee and customer needs, and improving employee performance to mitigate these impacts and enhance organizational effectiveness.

To identify the impacts of
increasing employee turnover
on hospitality industry

Table of Contents
INTRODUCTION...........................................................................................................................3
Introduction to proposal.........................................................................................................3
The background......................................................................................................................3
Research aim..........................................................................................................................3
Research Objective.................................................................................................................3
Research Questions................................................................................................................3
Research rationale..................................................................................................................4
Research Scope.......................................................................................................................4
LITERATURE REVIEW................................................................................................................5
What is the concept of employee turnover?...........................................................................5
What is the impact of increasing employee turnover on Ritz London?.................................5
What are the ways that could be used by Ritz London to improve organizational performance?
................................................................................................................................................5
RESEARCH METHODOLOGY.....................................................................................................7
Research Philosophy..............................................................................................................7
Research Approach.................................................................................................................7
Research choice......................................................................................................................7
Research strategy....................................................................................................................7
Research time horizon............................................................................................................8
Research techniques and procedures......................................................................................8
Time Scales......................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Introduction to proposal
The proposal is based on identifying the impact of increasing employee turnover on
performance of hospitality industry. Employee turnover can influence the performance and
productivity of business. It is important for an organisation to focus on reduce the employee
turnover within business by engaging and motivating the staff (Lee, 2018). There are various
reason of employee turnover such as lack of growth and progression, being overworked, lack of
feedback and recognition, reward and compensation, boss trouble and various other reasons.
The background
Employee turnover can means when people wants to leave company due to certain issues.
The chosen organisation for this report is Ritz London, it is one of the famous and recognized
hotel in London that offers hospitality services to its customers. Ritz London is special due to its
historic elegance, impressive suites, legendary afternoon tea, impeccable services and many
other services.
Research aim
“To identify the impacts of increasing employee turnover on performance of hospitality
industry. A case study of The Ritz London”
Research Objective
 To identify the concepts of employee turnover
 To determine impacts of increasing employee turnover on Ritz London
 To determine different ways that could be used by Ritz London to improve organizational
performance
Research Questions
 What is the concept of employee turnover?
 What is the impact of increasing employee turnover on Ritz London?
 What are the ways that could be used by Ritz London to improve organizational
performance?

Research rationale
The rationale behind conducting this research is to identify the impact of employee
turnover on Ritz Hotel. This research also determine the ways through which hotel can improve
its organisational performance. The research is important for students, researcher and
stakeholders of Ritz Hotel. Reason behind choosing this topic is to identify the impact of
employee turnover and also examine the ways through which Ritz London can improve its
performance.
Research Scope
The research is related with identifying the impact of increasing employee turnover in
hospitality industry. Employees are the valuable assets of organisation, it is important to make
them feel appreciated and motivated in order to reduce employee turnover. In an organisation,
employee turnover can influence the performance and productivity of business. Thus, it is
necessary to reduce the employee turnover as it can create negative working environment and
also reduce the brand image of business.

LITERATURE REVIEW
Literature review is a document which helps in depicting the information related to
particular topic. The purpose of conducting literature review is to understand the current research
in specific field before doing research.
What is the concept of employee turnover?
As per the opinion of Lyons and Bandura (2019), employee turnover is a process where
number of employees leave the organisation due to their personal and professional issues. There
are different types of employee turnover such as voluntary turnover, involuntary turnover,
retirement and internal transfers. The turnover rate of employees is calculated by dividing the
number of employees who left the organisation by average number of employees in certain time
period. When there is high turnover rate of employees within company it can negatively affect
the performance of business and also it is costly for firm. There are various causes of employee
turnover such as lack of communication, company culture and support. It is important for an
organistaion to focus on reducing the employee turnover as it can create an impact on the
profitability and productivity of business (Carnahan, Kryscynski and Olson, 2017). Company
must focus on hiring the employee with right skills and knowledge so that they can give
productive outcomes in achieving the goals and objective of business.
What is the impact of increasing employee turnover on Ritz London?
According to Pohler, D. and Schmidt (2016), there is a huge impact of increasing
employee turnover on organisation. The high staff turnover leads to decrease in productivity, loss
of staff morale, increase in recruitment cost and less time spent on training activities and many
other factors. There is negative impact of high turnover rate within an organisation. Ritz London
must focus on reducing the high employee turnover as it can influence the sale and profitability
of business. Organisation must focus on making their employees feel happy and satisfies within
workplace so that they can give their best efforts in making things achievable. The increasing
employee turnover can influence the brand image and reputation of company. The cost of high
staff turnover is expensive and also it reduces the morale of employees.
What are the ways that could be used by Ritz London to improve organizational performance?
As per the viewpoint of Nica (2016), there are various strategies which can be used by
company in order to improve their organisational performance such as providing training and

development opportunity, understanding the need and expectation of employees and customers,
improving the performance of employees, using advance technology and offering high quality of
services to its customers. These are the factors through which company can increase the
performance and productivity of business. It is important for Ritz London to provide training and
development opportunities to their employees so that they can learn something new and gain
knowledge. Through training and development program, company can increase the skills,
knowledge and capabilities of staff. Ritz London must also focus on understanding the needs
and requirement of employees so that they can fulfil their needs and make them feel happy while
working in an organisation. Through understanding the need and expectation of customers,
company can also create loyal customers which lead to increase in profitability and productivity.
The organizational performance can also be increased by improving the performance of
employees by encouraging feedback, offer incentives and training them.

RESEARCH METHODOLOGY
Research Philosophy
Research philosophy is mainly of three types which the researchers use for their
investigation. Such as positivism and realism along with the Interpretivism. In the current
research, positivism research philosophy is used. This is because it is based on the scientific facts
and figures that require the factual information while having the practical implementation and
gathering of the public opinions. That is why positivism is used in the current research (Snyder,
2019).
Research Approach
Research approach is mainly of three types which the researchers use for their
investigation. Such as deductive and abduction along with the inductive. In the current research,
deductive research approach is used. This is because it is based on the practical observations and
collecting of the real time time data which is authentic in nature. That is why deductive is used in
the current research (Rinjit, 2020).
Research choice
Research choice is mainly of three types which the researchers uses for their
investigation. Such as mono method and mixed method along with the multi method. In the
current research, mono method research choice is used. This is because it is based on the one
single method of research that is the quantitative rather than qualitative research which is in the
form of numerics. That is why mono method in the form of quantitative research is used in the
current research (Cr, 2020).
Research strategy
Research strategy is mainly of eight types which the researchers uses for their
investigation. Such as experiment and survey along with the archival and case study which is
followed by the ethnography and action and also the grounded theory or narrative enquiry. In the
current research, survey research strategy is used. This is because it is based on the direct form of
data collection which will be in the form of questionnaire containing the questions. That is why
survey is used in the current research (Pandey and Pandey, 2021).

Research time horizon
Research time horizon is mainly of two types which the researchers uses for their
investigation. Such as cross sectional and longitudinal time horizon. In the current research, cross
sectional research time horizon is used. This is because it is based on the short term studies
which do not take much time longer than one month or less than one week. That is why the cross
sectional is used in the current research (Nayak and Singh, 2021).
Research techniques and procedures
Research techniques and procedures is mainly of two types which the researchers uses
for their investigation. Such as primary and secondary type of data collection. In the current
research, primary research techniques and procedures is used. This is because it is based on the
direct form of data collection in which the direct interaction is conducted with the respondents.
Secondary sources is also used in the form of literature review where indirect form of data
collection is conducted with the help of books and journals along with the articles and internet.
That is why the both the types of data collection is used in the current research (Bairagi and
Munot, 2019).

Time Scales

CONCLUSION
It is being concluded form the above information that organistaion should focus on
reducing the turnover rate of employees as it can create a negative image of brand due to which
the profitability and performance of business gets influenced. Employee turnover can influence
the business performance as it leads to decrease in productivity, low sales, increase recruitment
and avoidable time spent on training new employees.

REFERENCES
Books and Journals
Bairagi, V. and Munot, M.V. eds., 2019. Research methodology: A practical and scientific
approach. CRC Press.
Carnahan, S., Kryscynski, D. and Olson, D., 2017. When does corporate social responsibility
reduce employee turnover? Evidence from attorneys before and after 9/11. Academy of
Management Journal, 60(5), pp.1932-1962.
Cr, K., 2020. Research methodology methods and techniques.
Lee, S., 2018. Employee turnover and organizational performance in US federal agencies. The
American Review of Public Administration, 48(6), pp.522-534.
Lyons, P. and Bandura, R., 2019. Employee turnover: Features and perspectives. Development
and Learning in Organizations: An International Journal.
Nayak, J.K. and Singh, P., 2021. Fundamentals of research methodology problems and
prospects. SSDN Publishers & Distributors.
Nica, E., 2016. Employee voluntary turnover as a negative indicator of organizational
effectiveness. Psychosociological Issues in Human Resource Management, 4(2), pp.220-
226.
Pandey, P. and Pandey, M.M., 2021. Research methodology tools and techniques. Bridge Center.
Pohler, D. and Schmidt, J. A., 2016. Does pay‐for‐performance strain the employment
relationship? The effect of manager bonus eligibility on nonmanagement employee
turnover. Personnel Psychology, 69(2), pp.395-429.
Rinjit, K., 2020. Research methodology.
Snyder, H., 2019. Literature review as a research methodology: An overview and
guidelines. Journal of business research, 104, pp.333-339.