Impact of Labour Turnover in the Hospitality Industry on Guest Satisfaction - Essay Example

The aim was to prove that the hypothesis of acceptance of this culture leads to devastating consequences and that high turnover must be prevented, minimized, and managed. In order to meet the aims of the study, it was necessary to examine the causes and nature of turnover, whether it is considered to be bad or if it is considered to be good and necessary in the operation of companies. Existing arguments were examined as some believe that high turnover is desired in the hospitality industry yet some do not believe it to be a positive thing.

Another argument included turnover as a culture of the industry. The Greek market was used as a case study to provide examples and illustrations which proved the writer’s hypotheses and aims. The Greek hospitality industry’s study also allowed the examination, evaluation, and findings of this study.In order to meet the objectives of this study, a literature review was conducted to define high turnover and various aspects of the topic in relation to the hospitality industry. Turnover is when employees stay only for a short time before moving on or becoming dismissed for one reason or another.

(D’Announzio-Green, Maxwell, & Watson 2002, quote Barron and Maxwell, 1993, p. 5). “Turnover is the result of both quits and layoffs.  Thus, some turnover isa result of jobs in one firm being destroyed and jobs in another firm being created — and hence due to the reallocation of jobs across the economy in response to changes in product demand.  A majority of job changes, however, are because workers reshuffle across the same set of jobs, and this worker reallocation occurs over and above job reallocation,” as written by Lane (2000).

 Some hospitality industry sources report that turnover rate is between 100 and 150 percent each year.  This causes poor attitude amongst staff and affects the quality of service and care that is given to the customers.  (Crabtree, 2005.)  It is usually considered to be a bad thing; however, as Stark (2004) states “research has demonstrated that some turnover is healthy, indeed essential to organizational well being.”  Scholtz (n.d.) reports that there are companies who have a turnover rate of ten percent or more and think it is a good thing because “they are replacing the bottom performers with new people will improve organizational performance.”