Nowadays labour turnover is one of the major problems in service sector. Hospitality is not an exception. Indeed, this branch of industry is strongly affected by labour turnover. Different works dedicated to this problem are written and published in the whole world. Research is constantly being done on the issue of labour turnover in hospitality which makes it possible to claim that this topic is relevant and it is important to discuss it. It is obvious that hospitality as part of service sector is inevitably connected with communication between customers and employees. Generally speaking, hotel employees are in constant contact with guests, therefore it is essential to have qualified employees who are capable of offering good service. In other words, we can state that employees largely determine prosperity of a hotel. In this situation, labour turnover slows a hotel’s development and results in a loss of money. In this paper, I am going to analyze the reasons and prevalence of labour turnover in hospitality, as well as its consequences and cost for this industry. Different ways of reducing labour turnover are also going to be discussed in order to help improve the situation.
As it has already been stated, labour turnover is a relevant and very serious problem in hospitality. According to the statistics as of the beginning of 2015, among different industries hospitality was the leader in separations, hires, and job openings rates with approximately 5% for each of them (“Job openings and labor turnover,” 2015). A Deloitte report adds that labour turnover in hospitality is now 31% and can even go up (Lean, 2015). This rate is twice as little for other industries. Why is the problem so urgent? First of all, F.H. Forget (2015) states that many hotels themselves regard labour turnover as something common and do not want to put much effort into changing the situation, ergo people who apply for a job in some hotel think in advance that this position is temporary and does not presuppose any career. According to Smith et al. (as cited in Faldetta, Fasone, & Provenzano, 2013, p. 585), after 6 months of working, many employees start to feel dissatisfaction and consequently leave their jobs causing high level of labour turnover. In addition to this, working in hospitality is connected with different derogatory stereotypes. They include, for instance, “low wages, poor working conditions, lack of job security and promotion opportunities” (Forget, 2015). Taking these two factors into account, I can say that hospitality attracts, first of all, those for whom stability and long career are not the top priorities. This point of view is expressed also in a Deloitte’s report which says that hotel employees are primarily young people who are ready to do without regular working hours and high payments (Lean, 2015). There are other factors of labour turnover mentioned in the studies, for example, hospitality’s seasonal fluctuation, lack of professional training and promotions, and poor management (as cited in Faldetta, Fasone, & Provenzano, 2013, p. 585). With regard to these factors, I can say that hotel employees often do not take their job seriously and do not plan a career in this industry. Low dedication consequently affects the quality of services and results in undesirable costs for employers.
According to Deloitte’s report, “An average hotelier spends 45 percent of operating expenses and 33 per cent of revenues on labour costs (Lean, 2015).” These data confirm the idea that employees are extremely important for business prosperity in hospitality. However, labour turnover makes all the expenses on recruiting and training useless because people simply quit their job. The same report claims that 52% of recruiting and 14% of training expenses are lost due to employee turnover (Lean, 2015). Speaking about consequences, they can be subdivided into direct and indirect. The first group is connected with the above-mentioned extra cost of recruiting and training. The second group involves employees’ attitude toward their work. Low commitment, disappointment, and decrease in productivity are typical indirect consequences of labour turnover (Faldetta, Fasone, & Provenzano, 2013, p. 584). Since hotel employees work directly with guests, their dissatisfaction results in customers’ dissatisfaction. In other words, the problem of labour turnover is quite costly for hospitality. Nevertheless, the situation can be improved, and the leading role in this process should be taken by human resources management (Faldetta, Fasone, & Provenzano, 2013, p. 585). If a person applies straight to the company, he or she shows their interest in this work and generally receives more information than those employees who are recruited with the help of newspapers or agencies (Faldetta, Fasone, & Provenzano, 2013, p. 588). Training is also extremely important. It is already been mentioned that training costs a lot for the employers whose employees quit their job but it is also essential to hire qualified specialists in the first place so they could teach newly hired employees. Moreover, it is important to use bonuses and different rewards, both monetary and non-financial, to motivate staff. Fairness, honesty and good relationships between employees and between them and employers can also reduce labour turnover because few people would want to quit a job they love. Psychological aspect is very important.
Thus, as a result of the study, I have found out that the problem of labour turnover in hospitality really exists, and this topic is very relevant nowadays. There are different reasons which cause labour turnover. Most of them are connected with attitude to working in hotels and involve little prestige, no career possibility and lack of dedication. Despite high prevalence, labour turnover can be reduced with the help of well-organized recruitment and employment of qualified specialists who are capable of training others. The system of bonuses and rewards is also essential, as well as positive psychological atmosphere within the company. This research is important because it clearly states the existing problem of labour turnover; identifies the major reasons and level of prevalence of labour turnover; estimates the costs and consequences of labour turnover; and reveals the ways of solving the problem. This research should help hoteliers understand the true dimension of the problem and start to take actions which will help reduce labour turnover, increase productivity and provide stable development of their business.
References
Faldetta, G., Fasone, V., & Provenzano, C. (2013). Turnover in the hospitality industry: Can reciprocity solve the problem? Revista De Turismo Y Patrimonio Cultural, 11(4), 583-595.
Forget, F. H. (2015, September 21). Human resources and employee turnover in hospitality industry. Retrieved February 26, 2016, from https://www.linkedin.com/pulse/human-resources-employee-turnover-hospitality-industry-forget
Job openings and labor turnover, January 2015 : The Economics Daily: U.S. Bureau of Labor Statistics. (2015, March 12). Retrieved February 26, 2016, from http://www.bls.gov/opub/ted/2015/job-openings-and-labor-turnover-january-2015.htm
Lean, G. (2015, June 04). Briefing: High staff turnover is costly for hospitality businesses. Retrieved February 26, 2016, from http://hospitalitypeoplegroup.com/2015/06/04/staff-turnover/
