Hospitality

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Introduction

Ciragan Palace is an Ottoman palace, built by Sultan Abdul Aziz in 1863. In 1989 it has been renovated by a Japanese corporate and became a five-star hotel of Kempinski Hotels chain. It is located between Besiktas and Ortakoy on the shore of Bosphorus with 284 rooms and 20 suites in hotel section and 11 VIP suites in the palace section. The greatest suite in the palace section is Sultan’s Suite (458 sq.m), billed at 30,000 euro per night and listed as 14th on World’s 15 most expensive hotel suites in 2012. To maintain the Kempinski standards nearly 870 employees are working under the roof of Ciragan Palace. Hotel has five F&B outlets, two bars and three restaurants, not only serving hotel guests but accepts reservations from outside guests as well. The first restaurant is Gazebo, which is open from 06.30 am to 12.00pm with a great range of food as well as breakfast and afternoon tea. The second restaurant is the Laledan restaurant which is a fine-dining restaurant serving the richest Sunday brunch in town. Lastly Tugra restaurant that is located in the original palace section, creating an Ottoman dining experience with its oriental atmosphere and blended Ottoman and Turkish cuisine (Ciragan Palace Kempinski, 2012). Nowadays providing a good service is simply not enough, guests are more complex and challenging and their expectations are higher. All of these F&B outlets hosts high demanding guests with high expectations who needs attention and recognition. A good service maintains the vow effect, which simply takes the experience one step forward than the guest expectations. There is no need to say that, in according to meet these needs of the guests and surprise them, Ciragan Palace Kempinski needs high qualified employees who can maintain the Kempinski standards, who can manage stress and who are flexible. However, hospitality and tourism industry has a huge issue of finding and keeping employees. Employee turnover is a growing issue in the industry and this problem is one of the biggest problems of Cıragan as well, especially in Food and Beverage department (Chikwe, 2009). This paper addresses the key issues of employee turnover in hospitality industry. It analyzes the causes and effects of turnover and suggests some solutions to reduce and control employee turnover. Observational research and secondary sources has been used in this paper to support the initial ideas. In addition on account of lack of time it wasn’t possible to make a survey amongst the employee and managers however it would have been more efficient and precise if that kind of date has been used.

Critical Analysis and Recommendations

According to Chikwe (2009), employee turnover is “the rate at which an employer adds and looses staff.”. Many other experts define turnover as movement of workers in and out of the organization (Chikwe, 2009). Labor market is getting narrower everyday and this affects hotels that are struggling to maintain proper staff because of the high employee turnover (Wilson.T., 2000). Ciragan Palace Kempinski is struggling on high turnover on employee as well. Employee turnover effects the company negatively especially in Hospitality industry. Hospitality industry is an industry highly depended on labor force. The constant change in employee has several negative effects on the company. The major effect is the high costs engenders because of the employee turnover. There are two types of costs, which affect the hotel they are direct and indirect costs. Direct costs are the costs arise at the process of selection, hiring, training and separation. The cost of turnover is approximately $600 per employee who leaves (Chikwe, 2009). These costs add up to $1 billion annually for the food service and lodging industry (Chikwe, 2009). Employee turnover is not only extremely costly, but it is also tiring and annoying for those who invest time and effort in training and hiring employees (Alexander, 2006). According to...
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