Case Study Report: Analyzing Staff Turnover Issues at Imperial Hotel

This report examines the high staff turnover problem at the Imperial Hotel, a London-based international brand. The analysis identifies key issues contributing to employee departures, including poor work culture, long hours, low pay, and limited opportunities for promotion. The report delves into the negative impacts of high turnover on the hotel's performance, such as increased recruitment costs and decreased productivity. It then proposes several management strategies to address the issue, including implementing appropriate recruitment strategies, providing career development opportunities, introducing fair competition and employee promotional activities, improving training and development programs, and applying equity theory to enhance employee motivation. The report also suggests utilizing contract work and staffing agencies as cost-effective solutions. The analysis emphasizes the importance of human relations theory in fostering a positive work environment and the need for a comprehensive approach to employee retention, ultimately aiming to improve the hotel's financial and non-financial performance.

Introduction to Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysis of the high staff turnover problem................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Management of the employees is the most important part in the hotel industry. The
organization is required to keep an eye on all the crucial aspects in order to carry out the
operational activities properly and effectively. Employees should be supported and feel valued in
order to retain them. The management requires to understand the various reason because of
which can employee leaves the company. This report is on the case study of Imperial Hotel
which is based out in London, UK. It is the international brand having 25 hotels under it along
with 500 bedrooms, 450 staffs in total which consists of 6 departmental heads along with
outsourced specialist services like the cleaning, laundry services etc. The business management
is the critical factor which results into attaining success or failure of the organization. The
problems faced by the entities differs which includes monitoring performance, future
uncertainty, regulations and compliance and recruitment.
For the effectively managing the employees it is important to create an employee centred
environment which is focused on improving and building a good relationship among the
employer and employees. Through the analysis of the case on the Imperial Hotel clearly proves
the disgruntlement between the employees which leads to the high rate of staff turnover within
the period of 1 year. This report is focused on the challenges which are being faced by Imperial
Hotel and a particular decision will be on high staff turnover problem faced by the organization
and thus provides resolution for the same.
MAIN BODY
Analysis of the high staff turnover problem
The organization is experiencing the dysfunctional turnover of its staff where the efficient
employees are leaving the job before the completion of the contract. The Imperial Hotel is facing
the high staff turnover rate which is considered mainly due to the increase in the temporary
nature of employment which is being provided to students, foreign nationals who are in need for
the job for short terms and at the low pay. In addition to this, the high turnover is mainly high in
the front line staff. This is the major concern for the hotel because of the negative effect it will
have on the performance of the organization. In addition to this, based on the exit interview
conducted, the management identified the number of issues like the poor perception pertaining to
the work culture with aggressive management styles, long working hours along with poor pay
levels. In addition to this, there is little place for promotion or rewards. It has also been identified

that there is lack of proper training provided to the staff and lastly, the high cost of transportation
poses as a challenge in reaching home late at night contributed towards the greater turnover rate.
Therefore, such hostile and unfavourable working conditions have forced the staff or workers in
seeking jobs at the competitors place. Thus, this issue results into increase in the recruitment and
training cost for the organization which consequently results into affecting the profitability as the
hotel is required to incur high cost of replacement for hiring new staff. There appears to be a
cycle emerging which can be linked to the rising employee turnover and this consequently
affects the entire company. It is also identified that the employees are less committed towards the
work in addition to the satisfaction which induces them to leave the organization (Ferreira,
Mueller and Papa, 2018). All these problem results into increase in absenteeism, poor employee
performance leading to creating stress for the staff and affecting the overall productivity of the
employees. Apart from this, these factors or the issues faced by the employees within the hotel
has consequently led to the increase in the pressure among the colleagues in respect to pick up
the slack which results into contributing towards the routine system problem. This results into
reducing the chances of promoting someone. Thus, this problem is very big and requires
immediate attention in order to control the situation.
In order to over come the problems faced by the Imperial hotel it is important to note that
the human resource management have implemented various tools and techniques in order to
measure the performance of the organization. In respect to the case of Imperial hotel the
organization should consider taking holistic approach in which it will spend time in regard to
understanding the influence of high employee turnover on the function of the business (Bratton
and Gold, 2017). Based on the theory of Boxall and Purcell which states that the process by
which the management builds a workforce and works on creating human performance which the
organization is in need of. This is only possible through the way of implementing the correct
recruitment strategy in place. The organization requires to have the most suitable staff to the
position available by ascertaining the best recruitment related plan. Most of the international
hotel chain are successful in attracting the talented personnel. Therefore, the human resource
management of Imperial Hotel should provide its employees with the long term career
development opportunities which will add great experience (Komodromos, Halkias and
Harkiolakis, 2019). In this way, the organization can retain the best employees resulting in
reaching the higher performance. In addition to this, as per the author, the management should

implement the fair competition and employee promotional activity which will result into
boosting the motivational level of the employees. This is considered as the best strategy to retain
the staff with the maximum potential.
Another strategy which is being proposed by Boxall and Purcell is by improving the
existing training and development programs. The organization should work on introducing the
career development program which would be customized for providing training to the staff as per
the goals and objectives of the company. This strategy is costly pertaining to providing training
to the staff and is also somewhat risky as there are chances that the employee may resign (Goh,
Nguyen and Law, 2017). But on the other side, it is beneficial for the company as well in terms
of retaining the employees who are having the required skills and experience relevant for the
organizational needs. This management theory is having another advantage which is providing
sufficient training is the best and foremost important factor which helps in retaining the talented
and best potential employees along with meeting with the goals of the organization. It is crucial
to note that through the implementation of this management theory, it will help in reducing the
employee turnover rate and the benefits which will be derived from the training programs will
outweigh the cost which is incurred on the training.
The new manager can also implement the equity theory on the personnel enumeration as
it will result into decreasing the employee turnover rate. Through this theory of management, the
morale of the employees will be enhanced which will result into improvising the performance
and productivity of the staff (Liang and et.al., 2017). Situation when the efforts put by the
employees is equivalent to the output received then the employees feel highly motivated. But is
important for the organization to ensure that satisfactory output of the employees is properly
rewards and appreciated (Equity Theory of Motivation. 2020). With the help of equity theory, the
employees are encouraged positively which makes them committed towards the work and duties
assigned to them. Therefore, in order to accomplish the best performance, it is suggested to
Imperial Hotel to implement attractive reward system.
Apart from the above, there is a management theory which emphasis on taking into
account the contract work for the purpose of minimizing the turnover rates. It is recommended to
Imperial hotel to encourage use of contract work under the situation when the organization is
facing higher turnover rate in comparison to the industry on an average (Gupta, 2019). By the
way of outsourcing some of the work will help in making sure that the employees are working

efficiently in order to complete their responsibilities and duties. In regard to the Imperial hotel it
is better for the management to employ contract work or jobs in which the employees are
required to work for a set period of time which is being agreed upon and this contract can be
extended over consideration by both the parties. This is an effective strategy by which the
organization can overcome the problem of its increasing employee turnover rate. Along with
this, making use of the staffing agency can be a cost effective approach towards recruitment of
the right employee resulting into reducing the cost of recruitment.
Summary justification of key proposals
Thus, based on the above, the hotel should implement human relation approach as
through this, the managers would be able to effectively determine and analyse the organizational
behaviour and culture through the way of understanding how the employees within the
workplace interact and communicate with one another (Human Relations Theory of
Management. 2020). It is being stated that the organization can attain its objectives in a better
way through the help of its people. The hotel manager requires to have a better understanding in
respect to the human behaviour and key factors that can affect it along with the way to relate it to
the employees (Holston-Okae and Mushi, 2018). By building a good relations results into
creation of better working environment where greater production thrives. Therefore, by
maintaining this relationship among the employees helps in ensuring that the people do not
switch to its rivals.
In addition to this, the hotel should introduce right recruitment strategy which will help in
ensuring long term career development opportunities for the staff. Through this, the employees
will tend to remain within the organization as their career is developing along with gaining
desired experience. Therefore, by providing effective and timely training to the employees will
help in retaining them to the business along with reducing the high employee turnover rate. In
addition, the equity theory will help in making sure that the employees are satisfied with the pay
offered to them which results into making them feel that they are equal (Christou and
Chatzigeorgiou, 2019). The equity theory also works on effectively meeting with the needs of the
employees through the way of having a collaborative team which would help in encouraging
team work. Therefore, this teamwork would result into bringing in harmony and providing
employees with the rights et of environment for the purpose of working. The outcome of this

theory is that the employees will not move to the competing firms, thus, resulting into resolving
the problem faced by Imperial hotel in respect to the high employee turnover.
CONCLUSION
It can be inferred from the above that there are various problems which is being faced by
the Imperial hotel but the most profound issue is the higher employee turnover rate. The above
analysis conveys that the increasing turnover problem which is being faced by the organization is
due to the no growth opportunities, lack of motivation, fewer chances of getting promotion or
increase in pay and the poor working environment. All these factors were the reason behind the
employees leaving the organization. The working environment created by the hotel had a direct
impact over the business functioning and the final outcome of the organization. This makes it
important for the management to undertake corrective steps in order to overcome the problem
being faced by the company otherwise, it has the potential to affect the organization in both
financial and non-financial terms like profitability, revenue, brand image, reputation and so forth.
The new manager of Imperial Hotel can implement various managerial theories which
will help it in effectively handling the situation of rising employee turnover. These theories like
the equity theory, will help in making sure that the employees are feeling highly motivated and
the management is effective in meeting with the requirements of the staff. This results into bring
positive work experience, working environment and the satisfaction to the staff. This would
consequently lead to generating better return along with decreasing the operational cost of the
business. Therefore, management is the key terms which represents all the aspects of the
business and inability to follow it might generate negative outcome for the organization.

REFERENCES
Books and Journals
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hospitality education: The meat in the sandwich. Journal of Contemporary Education
Theory & Research (JCETR). 3(2). pp.31-35.
Ferreira, J., Mueller, J. and Papa, A., 2018. Strategic knowledge management: theory, practice
and future challenges. Journal of Knowledge Management.
Goh, E., Nguyen, S. and Law, R., 2017. Marketing private hotel management schools in
Australia. Asia Pacific Journal of Marketing and Logistics.
Gupta, V., 2019. Talent management dimensions and their relationship with retention of
Generation-Y employees in the hospitality industry. International Journal of
Contemporary Hospitality Management.
Holston-Okae, B. L. and Mushi, R. J., 2018. Employee turnover in the hospitality industry using
Herzberg’s two-factor motivation-hygiene theory. International Journal of Academic
Research in Business and Social Sciences. 8(1). pp.218-248.
Komodromos, M., Halkias, D. and Harkiolakis, N., 2019. Managers’ perceptions of trust in the
workplace in times of strategic change. EuroMed Journal of Business.
Liang, T. L., and et.al., 2017. Transformational leadership and employee voices in the hospitality
industry. International Journal of Contemporary Hospitality Management.
Online
Equity Theory of Motivation. 2020. [Online]. Available
Through:<https://www.iedunote.com/equity-theory-of-motivation>.
Human Relations Theory of Management. 2020. [Online]. Available
Through:<https://www.toolshero.com/management/human-relations-theory/>.