Analysis of Employee Turnover at Travelodge Hotel Sydney Airport

This report investigates the issue of employee turnover at the Travelodge Hotel Sydney Airport, aiming to identify contributing factors and propose effective mitigation strategies. The research employed a mixed-methods approach, combining secondary research of literature with primary data collection through interviews and surveys. Findings revealed that lack of training, employee development, negative work environment, and inadequate compensation are key drivers of turnover. Interview data highlighted communication gaps between management and subordinates, while survey results indicated the need for financial and non-financial incentives to improve work-life balance and reduce turnover. The report concludes that high turnover negatively impacts organizational performance and customer satisfaction, increasing manpower costs. Recommendations include enhancing compensation packages, establishing open communication forums, and fostering a positive work environment through improved manager-subordinate interactions. The study emphasizes the importance of addressing these issues to ensure the long-term sustainability and success of the Travelodge Hotel Sydney Airport within the competitive hospitality industry.

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

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towards their job without any manger directing every move. The organizations require
employees to have the ownership and to be empowered as the empowered employees have the
freedom to make decisions and the suggestions. This also builds up trust bonding with the
employees and the organization. Therefore the organizational leaders are required to involve the
employees in the decision making the process that will make them more responsible towards
their performances and this strategy of involving employees in the decision-making process
helps to retain employees.
Factors affecting employee turnover rates
Employee turnover is considered as the critical factors for the organizations which are
concerned with one or more employees that leave the organization as the result of the
resignation, termination, and discharge. Employee retention is a major challenge for HR
professionals. When the employee turnover ratio is less, the HR professionals are required to
arrange for the replacements those are required so that the business does not get affected.
Mngomezulu (2015), stated that there are major factors affecting employee turnover rates.
Paying less than the industry standards is considered as one of the effective factors for retaining
more employees. The employees are able to evaluate the current basic standards in the industry
along with the help of popular websites. Also the statistics of the individual companies, the
employee’s salary and their reviews, are wide and clear for the employees to analyze where the
employees are standing as per the trends. Therefore when the employees realize that they are
being underpaid then they seek for better opportunities thereby affecting the turnover ratio of the
organization. Challenor (2015), also stated that cutting pays is considered as the factor that
affects employee retention. This is often found out that the business is not thinking about the
handsome revenues that would turn towards the pay cut of employee. This mostly discourages

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the employees and would result in the attrition. There are various reasons for which the
organizations adopt the pay cuts for avoiding the backlashes, which becomes important for
preparing the HR policies that give employees access to the employee handbooks. This helps the
business to declare all the clauses beforehand for providing the ethical practices that on either
side of the business that leads to the controlling of attrition and the turnover ratios. As stated by
Challenor (2015), impractical and feasible expectations are considered as another major factor
that leads to employee retention. The expectation of productivity is justified from the workforce
and for this, the managers also have rights to push the employees to a certain limit. This is
acceptable only when the business process in the appropriate manner and the objectives that have
been clarified in advances. The strategy of getting the best of the employees is the different way
of setting up the impractical expectations for them, this results in employee disappointments, and
the managers of the company, on the whole, will be contributing towards the poor employee turn
around ratio. Mashau (2015) argued that the lack of recognition and growth opportunities leads
to employee retention that is money is not considered as the only factor which leads to the
employee's satisfaction. The recognitions, appreciation, promotions and better career prospects
could be considered as the factors that lead to the growth of the long term relationships with the
companies as well as the employees. This is found out in the study that when the employees are
not appreciated for their works and the achievements that often breeds the sense of the
discouragement. Also if the employees are not provided with enough opportunities for growth in
the profiles, which tends to feel insecure as the scopes are becoming limited.
Impact of employee turnover in the hospitality industry of Australia
Owusu-Acheampong (2016), stated that the organizational performance of the hospitality
industry in Australia is getting negatively affected due to employee turnover. Even though

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Williams (2016), argued that longer the staff stays, they would get to know the customers and the
organization is greatly affected when the longer staffs leave the organization. This was also
stated in this study that the issue of the employee turnover potentially impacts on the
performance and the production rates for the manpower and also for the business organization as
a whole. Williams (2016), stated that the growing employee turnover rates in the hospitality
industry that tends to increase the level of the manpower and also increases the organizational
cost for the firms that involved in the hospitality industry. Owusu-Acheampong (2016), argued
that the growth in the level of the employee turnover rates in the hospitality sectors requires the
hotel firms management to invest the considerable amount of investment and the times regarding
the recruitment of the right type of the personnel for fitting in the differentiated roles and which
generates the quality training programs for increasing the skills and the knowledge base of the
recruited staffs.
As argued by Williams (2016), employee turnover intention also affects the productivity level of
the hospitality industries in Australia. The moral of the hospitality industries are getting affected
due to the less productive staffs. The less productive staffs are the result of the recent recruitment
as the hospitality industries are unable to retain their employees. The less productive staffs in the
organization lead to the loss of the performance potentials.
Policies took for mitigating employee turnover rates
Özlen (2015), stated that the policies that could be undertaken by the management of the
hotel firms that is recognized as the internal talents in the firms that contribute to generating
customer requirements. This leads to the reward system for the employee performances and the
decision making expertise. This is stated in the study that the hotel management is required to
focus on the generations of two weeks and the monthly meets where the performances of the

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staffs are associated with the different departments like the housekeeping, foods, beverages and
the customer servicing that are required to evaluate for the selection and rewarding employees
for the potential performances. Özlen (2015), stated that there are various types of policies that
could be undertaken by the hospitality industries that reduce the attrition levels. The policies that
are associated with the generation of the training and the employment programs that contribute to
making the hotel personnel felt cared for by the management body. The training and
development programs are mostly carried out at the specific intervals where the new operational
procedure and the technologies could be used along with the hospitality industry. Özlen (2015),
argued that the informed and the interactive environment would be helped for motivating the
staffs for working in a productive fashion for meeting the objectives of the hospitality industry.
The management should focus on the consultation activities that are required to be carried out by
focusing on the problems and the issues faced by the staffs. Thereby also focusing on the
brainstorming of the potential solutions, this id found out that there is close collaboration along
with the stakeholders.
The literature gaps that have been identified in the study is that in the first article the
study elaborates the causes of the employee turnover intention in the organization. The study
elaborated about the causes of employee retention but has not provided strategies for reducing
the rate of employee turnover. Therefore this study will describe the effective strategies for
reducing the employee turnover rates along with the causes of the employee turnover. The
second article describes the factors that affect the employee turnover retention but this study will
also elaborate on the employee retention should be followed by the organization by providing a
reward system, extra paying facilities, and others. The third article describes the effect of the
employee turnover intentions in the hospitality industries but lacks the evidence that shows the