Introduction
Staff turnover is vital for a hospitality organization, especially when the organizations aim at a high-quality service. The focus of the hospitality business must be to provide outstanding service that will give a memorable experience to the guests. For offering such experience, trained and happy people are required. A high rate of employee turnover has negative and immediate effect on the organization.Hospitality industry is a labor intensive industry, requiring a variety of skills, knowledge and attitudes, and levels of competency. The labor turnover rate in the hospitality industry is observed as higher than other segments. Many positions are available in the hospitality organizations ranging from skilled level to managerial leadership. Every position and every level of the employment has experienced relatively higher employee turnover in this sector. There are mixed responses from the employers regarding the costs of employee turnover. However, it is assumed that higher job turnover causes monetary strain, customer dissatisfaction, diminished employee morale, inconsistent productivity, sub-standard service quality within the hospitality organization. This essay attempts to explore the field of employee retention from various dimensions.
Causes of turnover and Retention strategies
A considerable amount of research has been conducted to explore the causes of employee turnover. Various causes and reasons are attributed to employee turnover. Jen-Te Yanga, Chin-Sheng Wanb, and Yi-Jui Fuc (2012) have examinedthe topic of turnover, and systematically classified the research into two strands. One, the causes of job turnover and the other, retention strategies by the companies. On the basis of analysis of various studies, they have organized the causes of labor turnover to five categories. They are inappropriate recruiting practices, unfit work placement, discontentment with pay structure, benefits and job opportunities, lack of proper people management system, and job stress and burnouts inherent in the job. Similarly, Yanga, Chin-Sheng Wanb, and Yi-Jui Fuc (2012) looked at the retention policies practiced by the HR managers, and categorized them as managing employees’ career aspirations, organization of social structure within the organization, design of working environment, and development of a career ladder for the employees. However, the researchers conducted an interview with the hospitality workforce and suggested various innovative and valid retention strategies.
Talent Management
The retention issue of the tourism sector is viewed from talent management angle. Talent management is considered as philosophy and practice. The researchers Hughes J C, and Rog, E, (2008) did a meta-analysis of the topic of talent management in hospitality organizations in relation to recruitment, retention and engagement of employees. They observed that talent management is an enterprise wide approach in which top management, as well as work-force,views the human resources as having valuable asset for the success of the organizations. The HR policies of an organization that focuses on employee talents can be different from the ordinary HR functions. Shaping an employee to suit the business of the organization is part of talent management. And there is a widely accepted belief that a talent-managed company will add to the competitive advantage of the company, and the employees of such companies are also likely to feel satisfied with their jobs. It is well known that highly job satisfied employees have reduced the likelihood of turnover. As part of their discussion on retention, talent management and its significance on the organization, novel HR concepts of employer branding, value proposition by the employer, etc. are introduced.
Perceptions regarding benefits and pay
Services in the hospitality industry are very utmost, and sharp service quality can be achieved only through application of human capital (S.C Bagri, A. Suresh Babu, Mohit Kukreti, andScott Smith (2011).The role of human capital is very significant in delivering and sustaining organizational competitiveness. The researchers demonstrated that focused human capital is an asset of the organization. However, for the work force to become human capital, each employee within the organization must have optimum motivation, attitudes, and perception. Motivated employees have influence on theirs as well as others job satisfaction. With a survey conducted at Himalayan tourist place and the review of various hospitality related literature, they concluded that no hotel or resort has a perfect mix of the positive ingredients needed for a perfect employee satisfaction scenario. The circumstances of each hotel are different. Hence, the approaches to employee management also should vary. Their study at the Himalayan town indicated that hotels can achieve positive employee satisfaction through cordial work environment and with appropriate non-financial benefits to the employees. However, perception about wages is the prime factor that determines job satisfaction. Places where the wages fall short of positive perception, job satisfaction cannot be achieved. The authors expressed that it was difficult to understand an employee’s perception or attitude about the “good benefits”. It is an aggregate perception of various factors and experiences influence the job satisfaction.
Learning from Convention and Exhibitions Industry
Hospitality industry has a chance to learn from other sectors in tackling the turnover and retention issues. Convention and Exhibition industry also has high employee turnover and is struggling to retain its work-force. But, it can provide valuable insights in managing the retention issues. A study by McCabe.V S (2012) proposes an innovative employment scheme with respect to generation of the employee. Depending on the generation of the employee (baby boomer, Gen X, Gen Y, etc.) the company must provide appropriate placement and job content. The research quotes an example that the baby boomers may be placed in the tasks of customer service. Such placement will help the organizations to achieve the customer care and mentor younger workers. Along with matching generation with job content, providing flexi-time employment is another way to retain the employees. Recognizing casual employees on a par with core workforce can increase the morale and team work of the employees. The study suggests the values of great work environment, challenging jobs and effective management leadership in reducing labor turnover and increasing retention.
Retention strategies at Owner Operated Businesses
The study by Choudhury N and McIntosh A (2013) provides insight into employee retention issues in small hospitality businesses. Their study indicates that the turnover is not a big issue for them. It is very surprising to observe such a viewpoint. The circumstances regarding retention seem to be differentfor the small businesses. The managers / owners of small business can attract the labor (students) from a nearby university with minimal or non-expensive forms of recruitment. Another important finding is that the students who sought employment at small hotels and restaurants had previous experience, and that reduces the need for training. The techniques used by these small business owners are through organizational socialization i.e. mentoring and heart-to-heart conversations. Many small businesses customize the retention strategy. Robinson and Barron (2007) observed that good organizations do not just fill the job vacancies, but involve to help the employees stay and plan their careers within the organization.
Conclusion
The key to reducing employee turnover is to understand every employee’s expectations for the job and create customized retention plan. The research literature indicates that the more the employee expectations match with retention plan, the greater will be employee satisfaction. The satisfied employee is likely to stay for a longer period.
REFERENCES
Yang, J., Wan, C., & Fu, Y. (2012). Qualitative examination of employee turnover and retention strategies in international tourist hotels in Taiwan. International Journal of Hospitality Management, 31(3), 837-848. doi:10.1016/j.ijhm.2011.10.001
Choudhury, N., & McIntosh, A. (2013). Retaining students as employees: Owner operated small hospitality businesses in a university town in New Zealand. International Journal of Hospitality Management, 32, 261-269. doi:10.1016/j.ijhm.2012.07.003
Hughes, J., & Rog, E. (2008). Talent management: A strategy for improving employee recruitment, retention and engagement within hospitality organizations. International Journal of Contemporary Hospitality Management, 20(7), 743-757.
Bagri, S. C., Babu, A., Kukreti, M., & Smith, S. (2011). Human Capital Decisions and Employee Satisfaction at Selected Hotels in India. FIU Hospitality Review, 29(2), 104-120.
McCabe, V. S. (2012). Developing and Sustaining a Quality Workforce: Lessons from the Convention and Exhibition Industry. Journal of Convention & Event Tourism, 13(2), 121-134. doi:10.1080/15470148.2012.673247
Robinson, R.N.S.and Barron, P.E., (2007). Developing a framework for understanding theimpact of deskilling and standardization on the turnover and attrition of chefs.
International Journal of Hospitality Management 26 (4), 913–926.
