High Staff Turnover in the Hospitality Industry

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| 2011|
| Critical Issues 2011
Sabrina
|

[High Staff Turnover in the Hospitality Industry – Is there a Solution?]| People Products and Performance within the Hospitality Industry |

CRITICAL ISSUES in HOSPITALITY
Article Front Cover Sheet

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Author Name: Sabrina

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Theme Selected: People Products and Performance within the Hospitality Industry -------------------------------------------------
Paper Title: High Staff Turnover in the UK Hospitality Industry – Is There a Solution?

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Abstract: The aim of this article is to explore one of the biggest issues and challenges now faced by the hospitality industry: that of how to attract and retain staff with a high level of skills. The current staff turnover levels within the industry seem to be becoming ever more of a financial and operational issue which has had significant effects on the ability for businesses to grow and penetrate the market further. Conclusively, this article creates the basis for a discussion on how best to handle these issues so that organisations can successfully attract, train and retain staff whilst provide motivation and inspiration for future talent.

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Introduction
The core hospitality economy has an estimated turnover of £90bn and directly contributes £46bn to the UK economy. Equally this accounts for eight per cent of total employment in the UK generating 2.4m jobs which positions the industry as the fifth largest industry in the UK (BHA 2011). However, the industry’s high labour turnover on a global scale is among the most difficult challenges noted by hoteliers (Wang 2009). As a result, in many communities, hospitality expansion is limited not by its capital, but rather by its human resources. It is considered of high importance to control turnover in business as it is used as a measure of performance in organisations in terms of its financial and operational effectiveness (DiPietro 2007). The hospitality industry is widely interpreted to consist of a part time and casual workforce with an absence of an internal labour market i.e. low job security, promotional activity and career development, plus inadequate wages and low skill requirement levels (FSW 2011). Researchers investigating employee turnover theories in the hospitality industry suggest that there are specific factors influencing the trend (D’Annunzio-Green 2002). Iverson and Deery (1997) call this the ‘turnover culture’ and discovered that this is a prevalent problem in many hospitality organisations. Chikwe (2009) defines this as a normative belief held by employees that turnover behaviour is quite appropriate. Turnover culture can have a negative impact on an organisation by acting as a counterculture to its main objectives; this is especially true when objectives such as quality of service...
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