How to Improve the Loyalty of Employees in the Hospitality Industry

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CHAPTER I Introduction

1.1 The Current Situation

As the rapid development of China's tourism industry, the hospitality industry has an increasing scale and the intense competition, so that the problems of development in the hospitality industry are increasing. The high hotel staff turnover rate has became a trouble for managers. As the labor-intensive industry, the staff turnover rate in the hospitality should be less than 15% under normal circumstances. However, a survey conducted by World Hotel in April, 2009 shows that 35% of hotels’ staff turnover rate is more than 3o%, and 36% of hotels’ staff turnover rate is 15% to 30%, only 5% of hotels’ staff turnover rate is less than 15%. The appropriate employee turnover can be used to maintain the vigor and vitality of the hotel. But the high turnover rate will cause an adverse impact on the overall development due to a lack of support from a more stable workforce. The reason of this phenomenon lies in the low-loyalty of employees in the hospitality industry.

1.2 The Significance and Effects of the Loyalty of Employees in the Hospitality Industry

The loyalty of employees plays a vital role in the development of the enterprise. Firstly, the loyalty of employees determines the work performance. As the members of the enterprise, the enthusiasm of a large number of employees represents morale of the enterprise, which will stimulate initiative and creativity of employees, so that the higher loyalty of employees, determines the stronger competition of enterprises. Secondly, the loyalty of employees maintains a stable relationship between the employees and the enterprise. In the modern economic development, employees will constantly look for development spaces for themselves based on their own personal judgments. The turnover of employees is a universal phenomenon. In order to maintain a long-term and stable relationship between employees and enterprises, the establishment of reliable and sincere employment relationships is necessary, which can develops and improves the loyalty of employees. Thirdly, the loyalty of employees enhances the core competitiveness of enterprises and forms the unique enterprise culture. The higher loyalty the employees have, the higher stability of the enterprise exists, which forms a stable and efficient working environment and a smooth, harmonious and interactive culture. Lastly, the loyalty of employees reduces the enterprises’ costs of employee turnover. When the loyalty of employees is low, the employees will complain about enterprises and leave, which leads to employee losses. In order to fill the blank of staffs losses, the enterprise has to recruit and train new employees, which may not only cause the low working efficiency, but also increase the replacement costs.

CHAPTER II Analysis of the Low-loyalty of Employees in the Hospitality Industry

2.1 Reasons on the Low-loyalty of Employees in the Hospitality Industry

On the issues of the low-loyalty of employees in the hospitality industry, the enterprise should find out reason in a comprehensive way. Therefore, the thesis will analyze it from the internal and external aspects.

2.1.1 Internal Factors

Referred to internal factors, it is related to the problems of enterprise itself, including the issues of compensations and benefits, training system and development space.

Currently, the hospitality industry is a low-profit industry whose wage levels of employees is much lower than that of other industries, resulting in the employees' dissatisfactions. According to a survey, the average wage of many three-star hotel staffs is about 500 Yuan per month in 1992, however, the highest of average wage do not exceed 10,000 Yuan per month and the lowest is about 700 Yuan per month after several years ago. The average wage in other industries has increased several times, even...
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