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The Causes and Consequences of High Turnover in the Hospitality Industry - Research Paper Example

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The author concludes that in every segment of the hospitality industry the problem is the same, the causes and consequences of high turnover remain the same. The hospitality industry is seasonal in nature and because of its typical characteristics of long working hours, it carries a negative image  …
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The Causes and Consequences of High Turnover in the Hospitality Industry
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Download file to see previous pages Retaining the employees benefits the organization as they receive service quality from dedicated and loyal staff. The cost of turnover too is high and results in huge losses both in terms of time and profits. Most organizations in the hospitality industry expect high turnover and dissatisfaction because of the nature of the business and the demographics of the typical employee (DiPietro, Thozhur & Milman, 2007). The demand for qualified employees is high while the labor market is experiencing a shortage of staff. Besides, societal norms are changing and loyalty is no more an important criterion (Gustafson, 2002). Hence it is challenging for the industry to retain talent as the staff is unskilled and untrained.
The hospitality industry has its own characteristics; it is seasonal in nature and numerous small organizations can be found in the industry (DiPietro, Thozhur & Milman, 2007). Working hours are inconvenient and there is a lack of career opportunities. The restaurant industry is low-skilled and voluntary turnover is very common. Involuntary turnover occurs when the employer terminates the services of the employee due to poor performance or unacceptable behavior.
Eight frequently cited reasons have been found by Gustafson - a quality of supervision, ineffective communication, working conditions, quality of co-workers, inability to ‘fit’ with the organizational culture, low pay and few benefits, lack of clear definition of responsibilities, no direction at work. Lee (2000) found that job redesigning can lead to job satisfaction by making the job interesting. An individual’s identification with and involvement with the organization is an important factor that explains the employee’s commitment to the organization. In the lodging industry apart from pay, communications problems, lack of advancement in career, recognition, and conflict with management are other reasons that lead to high turnover.   ...Download file to see next pagesRead More
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