02. EMPLOYEE TURNOVER IN HOSPITATILY INDUSTRY
What is employee turnover?
Employee turnover is the rate which employee leave a company and replaced by new hires. Employee turnover can affect for the organization in a negative way. Employee turnover will cover all the leavers, voluntary and involuntary. Employee turnover includes resignations, retirements, or redundant. And turnover rate can be calculate more specific breakdown as redundancy related turnover and resignation level turnover. The organizations have to bear a considerable amount of cost when replacing the staff or the replacements. Replacing employee is expensive when compared to retaining employees.
Employee turnover has been defined by Price (1977) as the movement of members across the boundary of an organization. As Mobley (1982) defined that turnover is the voluntary cessation of membership in an organization by an individual who receives monetary compensation for participating in that organization.
Employee turnover is a crucial metric which measure the performances of a human resources department and an organization. There are many reasons which can affect for employee turnover such as,
- Job dissatisfaction
Employees will leave a company if they are dissatisfied with various aspects of their job. Work load, less motivation, lack opportunities for growth and advancement, job responsibilities, compensation are some of the main points which will affect for job dissatisfaction.
- Lack of career development
Some of the organizations do not have a proper career development plan or succession plans with the organization. Employees may seek new opportunities when they feel there are limited career advancement or professional development with in the current organization. With the competitive job market the candidate can find better job opportunities from different job advertisement platforms. Nowadays candidates are paying attention for the organization reputation and what are the career development paths that they can achieve from the organization.
- Unfit company culture
Poor or unhealthy company culture will directly affect for the employee turnover and there are many reason which will affect for unfit company culture such as lack of trust and transparency, poor communication, toxic work environment, lack of diversity and inclusion, resistance to change lack of recognition and appreciation.
- Poor work life balance
The traditional definition of work-life balance is the ratio of the time you spend working to the time you spend doing the things that are important to you outside of work, such as spending time with friends and family or engaging in hobbies and personal interests. When an employee fails to manage their job and the personal life they automatically comes for poor work life balance and with the impact of it burnout, health issues, decrease productivity and motivation, attraction and retention of talent, generational differences, negative company culture.
- Poor management
By fostering a hostile work environment that is marked by poor communication, micromanagement, a lack of rewards and recognition, unjust treatment, a heavy workload and stress level, and a lack of direction and vision, poor managing can increase employee turnover. In order to lower employee turnover and promote a happy and productive work environment, it is imperative that these problems be addressed and that effective management techniques be promoted.
- Better job opportunities
Increased pay and benefits, more opportunities for career advancement, a better work-life balance, a positive company culture, alignment with personal values and mission, better job fit, and more desirable locations are just a few of the factors that can make a better job opportunity contribute to employee turnover. By concentrating on employee retention tactics, such as competitive pay and benefits, chances for professional growth, cultivating an enjoyable work environment, and encouraging open communication and employee participation, employers can lessen the negative effects of improved job opportunities on turnover.
- Lack of recognition and appreciation
Employee turnover can be negatively impacted by a lack of appreciation and recognition since it can lower morale and engagement, increase turnover rates, cause talent and expertise to be lost, create bad word-of-mouth, make it harder to find new hires, and negatively affect organizational culture. Acknowledging and valuing staff members for their accomplishments is crucial to creating a happy workplace, boosting morale and retention, and eventually achieving organizational success.
- Organizational changes
Organizational changes has advantages and disadvantage for the organization. As a disadvantage it affect for employee turnover. Leadership changes, lack of communication and transparency, job insecurity, changes in job role and responsibilities are some of the facts which comes under organizational changes.
- Workplace conflicts
Conflicts at work can negatively impact employee turnover by fueling discontent and disengagement, which in turn leads people to look for job elsewhere. Proactively resolving issues and fostering an environment of positivity and respect at work can help lessen these negative impacts and keep important employees in the company.
- Not having proper training and development within the company
Inadequate training and development programs within an organization can result in higher employee turnover, a decline in job satisfaction, and difficulties luring and keeping top personnel. In addition to helping individual workers, investing in their professional development also helps the company succeed and expand over the long run.
Above mentioned point are directly affect for the employee turnover in an organization. When considering about the hospitality industry it has significant quantity of employee turnover than the other industries. All the above mentioned facts are affect for the hospitality industry turnover and some other special reasons are also affection for hospitality industry turnover. Such as seasonal nature, long hours and shift work, job insecurity, cultural and language barriers.
- Seasonal nature
Seasonal variations in demand affect many hospitality industries, including hotels and resorts. In sluggish seasons, this may result in temporary work or layoffs, raising turnover rates. Most of the organizations in hospitality industry are providing the service charge amount for the staff. This service charge amount is depend on the revenue of the relevant organization. In the off season the revenue of the organizations in hospitality industry goes down. With the effect of this the employees try to move for the other industries.
- Long hours & shift work
The majority of the organizations in hospitality industry work for 24 hours throughout the year. Therefore the employees who are working in this industry have long hours shift when comparing to the other industries but in the other hand as a benefit the employees will get overtime and other incentives for their commitment. Sometimes the long shifts includes with a breaktime between the working hours. Depending on the employee attitudes and the generation some employees leave the organization because of this long hours and shift work.
- Job insecurity
Organizations in the hospitality sector are impacted by job insecurity in a number of ways, including seasonal demand, industry-specific difficulties, and economic swings. A few factors that fall under the category of work insecurity are technological advancements, automation, economic instability, and worldwide events and health crises. COVID 19 had a significant impact on the hospitality sector, resulting in poor revenue and minimal profit margins.
The writer has selected a hotel which belongs to Hayleys Leisure and it is Amaya Kuda Rah Maldives. Kuda Rah has a 170 of staff cadre with different nationalities. Most of the employees are from Sri Lanka, Maldives, Nepal, India, Bangladesh, Mauritius, Indonesia, Thailand.
References
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Shweta (2023). Employee Turnover Rate: Definition & Calculation. Forbes. [online] 23 Feb. Available at: https://www.forbes.com/advisor/business/employee-turnover-rate/ [Accessed 5 Apr. 2024].
EddySoftware. (2023). Job Dissatisfaction: Causes & How To Address It in 2023. [online] Available at: https://eddy.com/hr-encyclopedia/job-dissatisfaction/ [Accessed 6 Apr. 2024].
Healthdirect.gov.au. (2023). Work-life balance. [online] Available at: https://www.healthdirect.gov.au/work-life-balance [Accessed 6 Apr. 2024].
Indeed Career Guide. (2023). 6 workplace conflict examples with useful resolutions. [online] Available at: https://uk.indeed.com/career-advice/career-development/workplace-conflict-examples [Accessed 6 Apr. 2024].
Tandfonline.com. (2024). Search results | Taylor & Francis Online. [online] Available at: https://www.tandfonline.com/keyword/hospitality+industry [Accessed 6 Apr. 2024].
Agreed, technology can play a pivotal role in mitigating turnover. Implementing innovative HR technologies for performance management, feedback mechanisms, and personalized learning can enhance employee engagement and satisfaction. For example, platforms offering continuous feedback and development opportunities empower employees to take ownership of their career growth, fostering a culture of continuous learning and advancement (Tansley & Tietze, 2013).
ReplyDeleteThank you for your insightful comment Meeran! Indeed, the integration of technology within HR practices has become increasingly crucial in addressing turnover issues. As you mentioned, leveraging innovative HR technologies can significantly impact employee engagement and satisfaction (Tansley & Tietze, 2013).
DeleteIntroducing platforms that facilitate continuous feedback and personalized learning experiences can empower employees to actively manage their career development (Tansley & Tietze, 2013). By utilizing such technologies, organizations can cultivate a culture of continuous learning and advancement, thereby enhancing employee retention rates.
Moreover, these platforms offer valuable insights into employee performance, enabling organizations to tailor development plans and provide targeted support where needed (Tansley & Tietze, 2013). Consequently, employees feel valued and supported in their professional growth, which contributes to their overall job satisfaction and commitment to the organization.
Agreed, the definition of employee turnover provided by Price (1977) and Mobley (1982) helps set the context well for understanding turnover's significance ("Employee turnover has been defined by Price (1977) as the movement of members across the boundary of an organization"). However, it might be helpful to further elaborate on the distinction between voluntary and involuntary turnover to provide a clearer understanding for readers.
ReplyDeleteThank you for bringing up an important aspect of employee turnover Tharaka, and I agree that delving into the distinction between voluntary and involuntary turnover can provide valuable insights for readers. While Price (1977) and Mobley (1982) provide a solid foundation by defining employee turnover as "the movement of members across the boundary of an organization," it's essential to recognize the nuances within this phenomenon.
DeleteVoluntary turnover occurs when employees choose to leave the organization of their own accord, often influenced by factors such as job dissatisfaction, better opportunities elsewhere, or personal reasons. On the other hand, involuntary turnover refers to employees departing due to circumstances beyond their control, such as layoffs, restructuring, or termination
The impact of external factors like the COVID-19 pandemic on job insecurity within the hospitality industry is well-articulated. The unpredictability of economic swings and global events further exacerbates turnover challenges, emphasizing the importance of resilience and adaptability in managing workforce dynamics. (D'Netto et al., 2005)
ReplyDelete
DeleteThank you for your insightful comment! The influence of external factors, such as the COVID-19 pandemic, on job insecurity within the hospitality industry is indeed a critical issue. As you mentioned, the unpredictability of economic swings and global events significantly amplifies turnover challenges, highlighting the necessity for resilience and adaptability in navigating workforce dynamics.
Your point aligns well with the findings of D'Netto et al. (2005), who emphasize the multifaceted impact of external forces on job security within the hospitality sector. Their research underscores the importance of proactive strategies to mitigate the effects of such factors on employee retention and organizational stability.