Impact of Work Stress on Staff Turnover: Novotel Case Study

This research report examines the significant impact of work stress on employee turnover within the hospitality sector, using Novotel Surfers Paradise as a case study. The report identifies excessive workload without adequate compensation as a primary stressor, leading to increased employee turn...Read More

Research Report

EXECUTIVE SUMMARY
The main purpose of this report is to analyse main causes of job stress for worker and its
related to strategies through which they can be minimised. The main aim of this report was to
critically analyse the impact of work stress on high turnover of staff in hospitality sector. It had
been identified that excessive workload without monetary benefit was the main reason of
workers stress in hospitality sector. Evaluation of findings had shown that HRM strategies are
helpful for hospitality sector for reducing employee turnover. Stress release sessions for
employees are main sessions that will help in overcoming stress issue of employees.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................2
FINDINGS ......................................................................................................................................3
Various types of stressors.......................................................................................................3
Different strategies to reduce stressors...................................................................................4
DISCUSSION..................................................................................................................................5
CONCLUSION................................................................................................................................5
RECOMMENDATIONS.................................................................................................................5
REFERENCES................................................................................................................................6
1

INTRODUCTION
Hospitality sector is considered as one among the widest sector which is expanding every
single day with rapid speed. It has been observed that employees who are working in hospitality
sector have to develop their skills day by day so that so that they can sustain longer in the
industry. Business activities of employees dealing in this sector is increasing every single day as
customers expectation are raising (Deery and Jago, 2015). Higher expectation of customers and
pressure placed by superiors have increased stress level of employees belonging to hospitality
sector. Along with this, it can be further said that increase in job stress also results in high
employee turnover. The present research report is based on Novotel Surfers Paradise, a medium
sized hotel located on the Gold Coast, Australia. Along with the accommodation facility
Novotel also provides restaurants services to its customers. But, with recent evaluation, it has
been analysed that employees of this hotel are feeling pressurise due to excessive work load.
This ultimately increases their stress and ultimately hampers working pattern. Continuous based
increasing stress have also raised employees turnover and directly influenced profitability of this
hotel. The main purpose of this report is to analyse influence of work stress on the performance
of employees and increasing staff turnover. The present report is divided into five core sections.
The first and foremost among them is introductory section which provides basic idea of
investigation. The second section discusses about main issues related to the topic which can also
be seen as the findings. At next, third section of this report is on discussion which critically
evaluated finding attained in previous section. Fourth section of this research is stated as
conclusion which clearly summarises findings and analysis of above sections. The last section of
this report provides recommendation on the topic which will be helpful for companies belonging
to hospitality sector in reducing work stress of employees. With context to the chosen topic
research aim for the current study have been formulated by investigator which is stated as below:
Research aim
The research aim for current study is “To analyse the impact of work stress on high
turnover of staff in hospitality sector”. A case study on Novotel Surfers Paradise.
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FINDINGS
Various types of stressors
According to the thoughts presented by the author named as Kang, Gatling and Kim,
(2015)it can said that job stress is considered as the unpleasant emotional state that is being
experienced by individuals when their job performance is not meeting with job requirement. Job
stress is highly affecting an employees performance as they are not able to work in effective
manner. It has been analysed that job stress are mainly of occurred because of few sources such
as unhealthy environment, social stressors, physiological situations and own thoughts of
employees. In addition to this, it has been further analysed that there are certain factors which
directly contributes in enhancement of work stress (Rehman and Mubashar, 2017). These factors
includes excessive workload, conflict at workplace, when employees performance are not able to
meet with employers expectation and unclear job responsibilities to employees (Deery and Jago,
2015). It can be said that all of these factor are directly leading to the enhancement of work
stress. With reference to Novotel Surfers Paradise, it can be said that if its employees are not
getting appropriate and positive environment then it would contribute in the enhancement of
stress. Along with this, there are some more workplace stressors which are faced by staff at
workplace. All of them are stated as below:
Stress belonging to social life of employee: Social life of an employee can also become
reason for employees stress professional dispute of employees will affect their working
capability which will ultimately distract their mind from work that would contribute in
enhancement of work stress (Zhao and Ghiselli, 2016).
Personal emotions: Every individual has their own emotion which makes them happy as
well as sad. It can be said that if employee's emotions are positive then will take working
responsibilities normally but if in case these employees are already in the bad mood then they
will take every small work as a stress (Kim, Im and Hwang, 2015). Emotions of an employee can
any time convert into stress which directly influences performance of the employee.
Ineffective management style: Management style of every organisation contributes in
developing environment at workplace. It can be said that if management team of Novotel Surfers
Paradise is not having effective management style then it might create unnecessary conflict at
workplace. Along with this, it might also low morale of employees as they are not getting
appropriate environment at workplace (Rehman and Mubashar, 2017).
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Excessive workload: Another stressor which is being faced by employees of Novotel
Surfers Paradise at workplace is related to excessive workload. It has been seen that hospitality
sector is mainly torturing employees to work for extra hours in order to provide better services to
the customers in less costing (O’neill and Davis, 2011).
Different strategies to reduce stressors
According to the above stated stressors, it can be said that it is mandatory for Novotel
Surfers Paradise to focus on different strategies through which the management of this hotel can
reduce stress of employees in order to reduce workforce turnover. In this regard, it can be said
that management team of Novotel Surfers Paradise is required to adopt retention strategies which
will be helpful for this hotel in retaining employees for longer period of time (Lu and Gursoy,
2016). Retention strategies includes numerous of sub strategies that will be helpful for Novotel
Surfers Paradise. Some of the core inclusion of employee's retention strategies are HRM
strategies, internal marketing strategies and knowledgeable retention strategy. The further
classification of both of them are stated as below:
HRM strategies
 Compensation policies
 Rewards
 Training and development
Internal marketing strategies
 Free and fair decisions,
 Promotional opportunities,
 Education and training to promote employee skills centralised leadership,
 Integration of human resources with marketing to keep and reward employees managerial
support for the staff and encouragement,
 Internal coordination and communication
 External marketing communication
knowledge retention strategies
It includes conduction of feedback program at regular basis (Yang, Wan and Fu, 2012).
These strategies are helpful for the Novotel Surfers Paradise in reducing effect of these
stressors
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DISCUSSION
On the basis of above discussed strategies for reducing difference stressors, it can be said
that all of these strategies have both the positive and negative influence on reduction of
workplace stressors. It can be said that first section of findings have helped in knowledge
enhancement on most influential stressors which affects employees whereas in the second
section of findings have provided information on various strategies that could be used by
Novotel Surfers Paradise in order to decline employer turnover.
CONCLUSION
From the above discussed report, it has been analysed that main cause of workers stress
in hospitality sector is excessive workload without any monetary benefit. It has been further
analysed that this stressor could be reduced by using effective HRM strategies that is rewards
schemes on good performance. These strategies will influence interest of employees towards
company. As a result, they will work in the same company for longer period of time which
results in reduction in employment turnover.
RECOMMENDATIONS
According to the overall analysis of the research, some of the recommendation for
management team of Novotel Surfers Paradise for reducing their employee turnover are stated as
below:
 Management team are required to focus on conducting regular based stress releasing
sessions (Qiu and et. al., 2015).
 Training and development sessions for employees for their personal development. These
training session will develop skills of employees. This will also influence employee to
work with the same company as along with the job their skills are also developing. This
ultimately reduces employee turnover in the hotel.
 Attractive reward schemes should be added in reward policies. This will attract employee
towards the company as with these rewards employees will be able to fulfil their wants.
As a result, they will sustain in the company for longer period of time.
All of these stated recommendation will be helpful for Novotel Surfers Paradise for
minimising their employee turnover.
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REFERENCES
Books and Journals
Kang, H. J., Gatling, A. and Kim, J., 2015. The impact of supervisory support on organizational
commitment, career satisfaction, and turnover intention for hospitality frontline
employees. Journal of Human Resources in Hospitality & Tourism. 14(1). pp.68-89.
Kim, S. S., Im, J. and Hwang, J., 2015. The effects of mentoring on role stress, job attitude, and
turnover intention in the hotel industry. International Journal of Hospitality
Management. 48. pp.68-82.
Lu, A. C. C. and Gursoy, D., 2016. Impact of job burnout on satisfaction and turnover intention:
do generational differences matter?. Journal of Hospitality & Tourism Research. 40(2).
pp.210-235.
Lu, L., and et. al., 2016. Work engagement, job satisfaction, and turnover intentions: A
comparison between supervisors and line-level employees. International Journal of
Contemporary Hospitality Management. 28(4). pp.737-761.
Qiu, H., and et. al., 2015. Exploring antecedents of employee turnover Intention–evidence of
China’s hotel industry. Journal of China Tourism Research. 11(1). pp.53-66.
Tongchaiprasit, P. and Ariyabuddhiphongs, V., 2016. Creativity and turnover intention among
hotel chefs: The mediating effects of job satisfaction and job stress. International
Journal of Hospitality Management. 55. pp.33-40.
O’neill, J.W. and Davis, K., 2011. Work stress and well-being in the hotel industry. International
journal of hospitality management. 30(2). pp.385-390.
Deery, M. and Jago, L., 2015. Revisiting talent management, work-life balance and retention
strategies. International Journal of Contemporary Hospitality Management. 27(3),
pp.453-472.
Zhao, X. and Ghiselli, R., 2016. Why do you feel stressed in a “smile factory”? Hospitality job
characteristics influence work–family conflict and job stress. International Journal of
Contemporary Hospitality Management. 28(2). pp.305-326.
Yang, J.T., Wan, C.S. and Fu, Y.J., 2012. Qualitative examination of employee turnover and
retention strategies in international tourist hotels in Taiwan. International Journal of
Hospitality Management. 31(3). pp.837-848.
Karakaş, A. and Tezcan, N., 2019. The Relation Between Work Stress, Work-Family Life
Conflict and Worker Performance: A Research Study on Hospitality
Employees. European Journal of Tourism Research. 21. pp.102-118.
Rehman, N. and Mubashar, T., 2017. Job Stress, Psychological Capital and Turnover Intentions
in Employees of Hospitality Industry. Journal of Behavioural Sciences. 27(2).
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