Analyzing Employee Turnover and Retention at Woolshed Pub

This research report addresses the problem of high employee turnover at Woolshed Pub, a waterfront restaurant and bar in Docklands, Victoria. The study investigates the root causes of this issue, including payment dissatisfaction, lack of work-life balance, staff characteristics, poor management, and workplace diversity conflicts. It explores the effects of high turnover on staff performance and proposes mechanisms to manage it effectively, drawing on theories such as Herzberg's motivation factors and the Leader Member Exchange (LMX) theory. The goal is to provide solutions that will help Woolshed Pub retain its performing employees, reduce costs associated with turnover, and improve overall revenue. Desklib provides access to similar solved assignments and past papers for students.

1.0 Introduction and Research Problem
In the world, the tourism and hotel sectors have greatly contributed in job creation. It is estimated
that millions of people are either direct or indirect beneficiary of the hospitality industry. The
industry has various segments that range from clubs, hotels, camp sites, cottages, bars and pubs
just to name a few. Today the hotel sector is facing a challenge of high staff turnover which
presents an ugly state of affairs for all the practitioners in the industry in particular employers
and employees. Staff turnover is a popular challenge affecting hospitality sector. Since the
hospitality sector relies much on human labor, high staff turnover is a problem that cannot be
overlooked.
Woolshed Pub in Docklands is a waterfront restaurant and bar which offers a beautiful view. The
pub offers beverages including both alcoholic and non-alcoholic drinks as well as the modern
Australian cuisine for the guests to enjoy. Woolshed Pub is stationed at Esplanade, Docklands,
Victoria 3008. It’s providing employment opportunities to approximately 50 employees working
either on full-time basis or casual workers. The employees work in various segments of the Pub;
hot kitchen, human resource department bar, engineering, restaurant, human resource, sales and
marketing.
This research paper seeks to provide solution on the challenge of increasing employee’s turnover
in Woolshed Pub which is one of the main problems it’s facing. Among other problems it faces
are increasing competition from new entrants at the harbor, rising operation expenses on
electricity and insurance covers. Moreover, this research study focusses on the challenge of
increasing number of employees leaving Woolshed Pub. The study explores and resolve the
rising levels employees quitting Woolshed Pub.
High employee turnover problem is leads to the company incurring both direct and indirect cost
which eventually results to loss revenue by the woolshed Pub. Therefore, it is quite important to
address the problem before it gets out of hand. The best way to address to issue is by
understanding first of all the root cause of the soaring numbers of employees leaving the
company. For instance, in Woolshed 3 head chefs and many more employees have left over the
period of one year leading to loss of income and equally pinched by costs in bid to find
replacements. If high staff turnover is not strategically managed in a hospitality entity, it has
great consequences which may lead to loss of revenue.

Objectives of the Research:
 To find-out the root causes of high employee turnover
 To identify the effects of increasing employee turnover on staff performance
 To come-up with best mechanisms to manage staff turnover in Woolshed Pub.
In woolshed pub high staff turnover has not been well looked into and therefore this research
comes to offer the solutions that will see to it that the performing employees are retained for the
well-being of the pub.
2.0Literature Review:
Staff turnover in the hospitality industry has broadly been discussed by several scholars. High
employee turnover has greatly been attributed to increased levels of competition and changes in
the technology sector thus making it one of the greatest huddles in hospitality sector. This
phenomenon is not new issue as it happens in any other sectors and the economy at large.
Meanwhile, employee turnover is a common issue in hospitality due to labor intensive nature of
the industry. As a result of hospitality industry relying much on human labor, the need for
various human labor arises like skilled, semi-skilled and unskilled personnel’s who are stationed
in various sections as either casual or permanent. The fact that hotel sector depends immensely
on human labor, the challenge of increasing staff changes is still a nightmare. The problem of
employee turnover has affected the hospitality industry ever since and still remains a major
problem today. Hence, becoming barrier in achieving highest productivity levels and efficiency
in business (Kim2012).
But still remained an essential hurdle all over the world for the human resource team to handle it
and contain the matter. From one perspective, it has been difficult to attract suitable labor in
hospitality industry while on the other perspective there exist a substantial loss on resources in
hiring and equipping new staff (Davidson, Timo & Wang 2010). According to Pearlman &
Schaffer (2013) the costs divided into categories which are direct and indirect costs. Example of
direct costs are employing and training while indirect costs bared are a drop in quality of service
and overworking staff. Therefore, it’s evident that increasing workers turnover is problem in the
hotel sector creating a hindrance towards attracting suitably motivated, qualified and trained
labor while retaining productive staff in a rapid growing hospitality industry.

Previous studies undertaken by scholars in the hospitality sector point at several factors that
contribute to high levels of staff turnover in the industry. Below are some of the scholarly views.
 Payment is a main element influencing high employee turnover. When employees are
dissatisfied about their pay which may result to turnover, they are therefore, attracted by
higher wages and great employment benefits from other establishments. Remunerative
goodies like monthly income, daily stipends and economic incentives are likely to be the
most influencing factors towards employee’s turnover in a company. Favorable and good
salary is probably a great motivating factor for staff to work in a company for an
extended duration. Money contributes significantly on staff to facilitate their well-being.
They therefore, use the monetary rewards to satisfy the daily wants or needs. A good
salary influences the staff decision on whether to stay longer or quit the organization.
Whereby, low pay enhances the employee to opt leaving the current organization in
search of another that offers more competitive pay and incentives.
 Blomme, Rheede & Tromp (2010) focusses on factors that may lead to staff quitting from
organization through analyzing the how flexible the work station is, difference that arise
at home as result of the work undertaken and how a company carries out its duties. There
is need for socialized and healthy relationship at work with staff personal life. In order to
eliminate stress, fatigue and boredom at work it important to introduce flexible working
hours where employees shall have more time with friends and relatives. This will
minimize family conflicts enabling the employee ascertain and maintain conducive
balance while at work with the personal life.
 Kim (2012) notifies that staff characteristics and psychological elements inclusive to
recent working experiences relates directly with employee turnover. The workplace norm
and tradition as well as employee character influences greatly on how he/she will survive
the stay at the workplace. The employee’s traits and attitude may hinder their stay at
work if they are not favorable. Recent working experiences of the staff may differ from
their present thus leading to changing of staff in a business entity.
 According to Gustafson (2002) the main reasons for workers lay off are; poor
management , ineffectual communication, poor co-worker’s relation, absence of work

recognition, employee-management conflicts and lack of room for career development In
order to sustain and retain the employees there is need for effective passage of
information in the
Organization to avoid wrangles which are brought by gaps in communication. The
managers should motivate the employees while giving recognition and credit where it
deserves. The management should create opportunity for growth to the hardworking staff.
Through this, employees shall be satisfied at work place and perform effectively.
 Brazzel (2003) establishes that workplace diversity is a main element in workplace-
conflict resulting to employee turnover. He further illustrates that, employees may
encounter injustices among themselves as a result of their sexism, racism or heterosexist.
These injustices will lead to discrimination making an employee dissatisfied hence
influencing high employee turnover. For instance, in today modern world where multi-
culture and diversity is an order of the day, it becomes difficult for employees to cope
with it in the organizations thus leading to high employee’s turnover.
Stated above components are essential and contributes significantly towards the quitting and
absorption rate of staff in a given company. The stated components have to be ascertained with
great significance in an organization. Therefore, it is evident that employee’s turnover
phenomenon is a complex challenge relating with various attributes of workers in an entity.
Research Questions
 What are the root causes of the soaring levels of staff turnover in Woolshed Pub?
 What are the best mechanisms that can be employed by Woolshed to control staff
turnover?
Important Notions.
Motivation Factors According to Herzberg (1974)

In a study done by Frederick Herzberg he looks how employees perceive motivation while at the
work. Frederick delves into understanding what contributes to fact that an employee is either
satisfied or dissatisfied with the conditions at the work station (Lundberg, Gudmundson &
Anderson 2009). Despite the various terminologies used to describe motivation, it can simply be
defined as an inner drive to undertake a given task (Wildes 2005). Motivation is group into either
external or internal. Intrinsic (internal) motivation is the drive that emerges from within an
individual as a result of improvement at the work station while extrinsic (external) motivation is
triggered by external factors such income and rewards from the organization.
According Herzberg, the leading aspect in ensuring that employees are motivated is cleanliness.
Cleanliness takes into consideration the environment in which employees operate in. The
working environment needs to be conducive encouraging employees to engage in further more
challenging tasks. Work environment covers; the security levels at work, manager to employee
relationship, job politics and leadership qualities. As much as these factors cannot actually solve
employee turnover, they help to keep employees at motivated to work. Secondly, Herzberg states
satisfaction at work, promotion, appraisal, promotion and recognition as motivating factors.
Application in the Research
Each and every organization has set standards of keeping their employees engaged and
motivated while at the work station. Employee motivation helps to ensure employees are
satisfied within, they receive good monetary reward and maintain a great connection at work.
Motivation is one way of maintaining employees in an organization. According to Gursoy, Maier
& Chi (2008) the benefits accrued from monetary rewards range from improving an individual
esteem to settling the basic human needs. However, monetary reward is not a sure way to control
employee turnover in companies as there are instances where individuals are well paid but still
quit employment due to other work or personal related issues.
Basically, it is quite important for human resource managers to understand that apart from the
salary and monetary reward that they offer to employees as compensation for the services
rendered there is need create a conducive environment for employees to thrive. A conducive
environment is where employees are free to air their views and that they relate well with their
fellow workers. The management should further offer a hearing ear to the grievances raised by
employees by encouraging open and free flow of information despite the difference in ranks.
Equally, employees also have a role to play at the work place. Employees should ensure that they
perform their duties as stipulated and also be motivated to handle more challenging duties and
further develop an inner motivation and also encourage other employees to perform their duties.
Leader Member Exchange (LMX) Theory (1970)
The two way relationship between the leaders and their workers is described in the Leader
Member Exchange (LMX) theory also known as Vertical Dyad Linkage Theory (Borchgevink,
Cichy and Mykletun 2001). The communication between the management group and the
subordinates is emphasized on the positive teamwork. It states that leaders focus on having a

reliable group of staff carrying out their responsibilities effectively, by interacting with every
employee. The theory enhances on positive influence on subordinates by creating positive
working environment and finally the organization success is achieved. The relationship between
the members and the leaders is built by three main factors below:
Role taking:
The performance of apprentices and employees working abilities is assessed by a leader in the
organization. This is to highlight any important activities for future reference.
Role making:
Shared regard, trust and skill between the manager and the new staff is upgraded in this stage.
The understudies are required to create solid bond and feeling of connections after culmination
of the program whereby the pioneers pick the best part and make offers.
Standardization:
The leader and the member form a bond between them in this phase.
Application in the Research
LMX theory describes how the influence of the leaders to the members and organization. The
employees performance and their attitudes are affected by how they are been treated by the
leaders or managers. Managers are the link between the employees and the management hence
they have influence for creating a good relationship between the two. If there is good alliance
then this will lead to a positive working space which will result to job satisfaction and
automatically the organization will turnout successful.

The concept map shown above illustrate the factors of employee turnover and it is divided into
external and internal factors.
Internal factors:
 Salary/wages: It is the money that the employees are awarded by the company, weekly,
monthly or yearly for their hard work and services. If the employees earn low wages or
not paid they are likely to transfer to other organization.
 Organization's culture and traditions: These are the approaches and societal aspects inside
the association. Inadequate association culture, for example, poor and negative workplace
will lead representatives to move to other company.
 Work-family Conflict: This happens when the working hours are inflexible; employees
are over worked hence they lack time with their family. These can cause the thoughts of
transferring to another organization.
 Career development and planning: This is the growth and development opportunity for
the employees in the company. This is through acquiring higher job positions and new
skills.
External factors:
 Government Policy: These are factors that cannot be control by the association. The
strategies and principles for moment are the working impediments, the visa type and
condition likewise lead to worker turnover.

 Industry State/Phase: This is either when the business is confronting a droop or a blast.
For instance: on the off chance that the business is confronting a monetary retreat, at that
point it can prompt scaling down.
3.0 Methodology
Research Approach and Design
An open-ended research also known as qualitative approach focuses on the research topic
perspective. This research approach has been used particularly to assess the high employee
turnover problem in Woolshed Pub. It aims to examine the understanding of participants’
behavior insightful.
Sample and Technique
The participants from Woolshed Pub are selected using the non-probability sampling method.
This method has enabled limited number of voluntary participants so as to easily collect data.
The limited participants does not represent everyone so it has some subjectivity and bias
however the method is used in collecting information and data from the Woolshed’s employees
available. The employee’s contacts were fetched from the management to be contacted.
Data Collection
Woolshed Pub have different type of staffs; part-timer, permanent and temporary staffs working
here. Two research approaches were used to collect primary data; unstructured interviews and
semi-structured interviews.
Semi-structured interview questions were undertaken by seven participants. The interview was
established in regard to what they understand by high staff turnover and their experience in the
industry.
Similarly, in unstructured observations, the communication, attitude and behavior of the
employees were observed in the working place during real working period. After observation
the data was collected.
Theme analysis was used to analyze the data collected from both the research approach. For
easy understanding of the information told the descriptive data refined into more specific data.
Ethical Consideration
The ethical factors have been addressed firmly in the research. First, the general manager of
Woolshed hands out an official permit to conduct the research and also the employees participate
voluntarily. During the interviews the employees were assured their identity would be
anonymous to the general manager or business owner. During the observations no personal
information was recorded, the research was very confidential.

4.0 Research Findings
In this research, qualitative research has five phases according to Yin’s (2011), it is used to
analyze data. The data is then divided into secondary and primary data. The following are the
five phases of qualitative research Yin (2011): compiling of data, disassembling data,
reassembling data, interpreting and finally concluding the research report.
Compiling of data into logical order was the first step in the analysis of the collected data. The
seven staff participants of Woolshed Pub took the semi-structured interviews. Below is a table
with a matrix of theme have been developed to evaluate the responses:
Positive Response Negative Response
Opinions on high employee
turnover?
The topic is a complicated.
It is the responsibility of
management to work more
efficiently.
People go and come
To hire and fire and hire
people is normal.
This process is used to every
organization.
Peer-to-peer relationship Respondent 1: we all support
each other in the workplace
and that’s what makes us
work together.
Respondent 3: In the
workplace we have a good
relationship with most of the
kind employees.
Respondent 3: some of the
employees are rude and not
cooperative to work with.
Management practices that
will lead to high employee
turnover
First Respondent: The
managers support and guide
the staff so that they can
serve the customers well and
have a good experience.
Respondent 2: Managers
promote and encourage staff
members to work together
and help each other. They put
up training programs to
increase staff skills and they
are all encouraged to take
Second Respondent:
Managers don’t know how to
control their anger towards
the staff members especially
on busy days, they tend to be
rude and blame the staff on
everything. .
Respondent 3: the managers
over work the employees.
The staff work for long hours
without rest and it’s
overwhelming.

part.
Respondent 4: Managers have
to ensure between the
management and employees
there is good communication
which leads to good
relationship.
In what ways can the staff be
motivated to enable them
work and stay in the company
for long.
Respondent 1: Managers
should provide a positive
working environment so that
the staff can work hard and
be motivated to grow and
advance. A work-life balance
should be established for the
staff to avoid family conflict
that can lead to high
employee turnover.
Respondent 3: Employees
should challenge themselves
to improve their skills, work
independently sometimes and
get experience.
Respondent 4: Good pay
motivates the employees to
work very hard. The staff
needs the pay to acquire basic
needs and wants.
Respondent 2: Money is very
important as one can earn and
authority and power.
The semi-structured interviews have thought of a few topics. The administration level in
Woolshed, trust that high work turnover is a major issue. They trusted that staffs should regard
the pioneers, clients and build up an expert disposition and conduct in the workplace. The
preparation programs, given by the administration, have been set up for each staff to take an
interest and increment their aptitudes. Notwithstanding, a few staffs said they were similarly
situated for long time and haven't been advanced, directors encourage the staff to be
understanding that it requires investment. It was additionally discovered that staffs are being

exhausted amid occupied periods which they accept has prompted family struggle. They likewise
trusted that administration isn't doing a lot to make a decent connection among the board and
representatives in the work place. Precedent amid occupied periods, special seasons, the
executives enlists new easygoing staffs that are awkward and this squanders significant time
clarifying the fundamental work environment obligations, said one of the staff part.
These interviews additionally discovered that, a large portion of the staffs are content with the
compensation gotten from Woolshed. They concurred that money related advantages model the
impetuses gathered amid the ends of the week, and the great, positive condition are a portion of
the things that spurred them to remain in the association. 'Well-disposed and fun air at work will
remove your pressure and tiredness amid work 'said one respondent.
Unstructured observation was likewise done to record the considerations and conduct through
perception of the staffs amid work. Waddington (2004) recognizes that there are three particular
stages in perceptions process in hierarchical research which include getting into the field,
carrying out the field research and recording data and finally exiting the field.
The observations have not produced any significant data, unlike interviews, due to limitations.
The researcher must be careful not to violate any of the ethical issues. Example it was observed
that too much pressure was put by the senior chef, they used inappropriate language to junior
chef especially during periods that are busy however, this is what hard work in the kitchen is
identified as.
5.0 Discussion
Comparison of Research Findings and Literature Review:
The condition of the high staff turnover in hospitality industry has been seen, in the research, to
be caused by direct and indirect factors. The research took part in one restaurant, although it does
not represent the entire restaurant, the results are highly genuine and reliable in every possible
ways. This is because the participants involved in the research really worked in the restaurant.
The research and the literature reviewed results and outcome, on employee turnover issue, is
very similar and relevant. The research problem is covered widely in this research, using the

literature review approach. The literatures cover the bond between the staff turnover and a
hospitality industry.
The employee turnover, Kim (2012), is described as an obstacle in obtaining success business
operation and high productivity level and success business operation. In efficient functioning and
obtaining customer satisfaction the research shows that staff turnover is one of the factors.
According to the research, when the old employees leave and replaced with new employees, the
managers easily identify the levels with less productivity. The new recruited employees perform
poorly and ineffective since they have no clue what they are doing at the beginning. In the
literature written by Kim (2012) recruitment is similarly as challenging as the research for the
management. The Woolshed management also agrees that the process of recruitment and
training is challenging, the company loses capital directly and indirectly, also the pressure to
manage to hire good employees. Company loses capital directly through the high cost in hiring
process and indirectly through the training program for the new members.
In Woolshed most staff employees disclose in the report that salaries and incentives are
important motivators in the industry. This is because with wages everyone is able to afford their
wants and basic needs. When employees experience pay dissatisfaction according to the
literature reviewed by Chan and Kuok (2011), employees look for better opportunities that pays
better with economic benefit. In employee turnover of any organization, pay is an important
factor as shown in both the report and literature review findings.
The other finding of the report was the absence of work attitude and conduct at the working
environment. A few staffs in Woolshed were observed to be amateurish and lacking hard
working attitudes and was an issue. These untrustworthy practices prompted terminating
representatives. Kim (2012) writing inspected demonstrates that worker's conduct and work
experience straightforwardly relates with staff turnover. Representatives who need hard working
attitudes have less likelihood of working in same spot for longer timeframe.
The report found that the administration and staff at Woolshed have a correspondence hole
which has prompted harsh connection between them subsequently make work disappointment at
the two dimensions which destroys the employees and organization as well. Due to diversity
among the staff there were no workplace conflicts in Woolshed however according to, Brazzel
(2003), in the workplace diversity can play a huge role in work conflict.
Research questions and answers:
 What at are the major reasons behind the employee turnover and why it’s high in
Woolshed?
One of the major reasons behind employee turnover is work-life balance because
employees are over worked especially holiday seasons, which leads to family conflict.
Similarly, another major issue is the conflict between employees and management since
both have agreed on poor communication between the two which has led to job