How to Reduce Employee Turnover with Motivation
1. Introduction
Nowadays, a word is very popular in white collars. It is “luo ci” in Chinese, which means people leaving their current work without a new job. With the development of society and the improvement of the level of people’s life, the phenomenon of “luo ci” become more and more common. As we know, the employee turnover of hospitality industry is quite higher than other industries. In 2004, Wildes warned that hospitality would face a significant work force deficit of quality managers in the near future. Not only is there a shrinking labor pool due to other industries attracting our potential managers (i.e., retail, banking, and healthcare) (American Express, 2006), but turnover continues to be a significant problem. High turnover not only causes the hotels lose their good employees and makes the level of service declined, but also increases the costs and expenses of recruitment and training. So, those hotels should take some measures to reduce employee turnover.
Through some information, there are four main reasons: salary and welfare, personal development, sense of achievement, and interpersonal relationship. Clark and Estes (2002) suggest that employee turnover may not be purely a function of remuneration but rather of employee motivation. From this sentence, we know employee motivation plays a very important role in hospitality industry and it is an effective way to solve the problem of brain drain. The methods of employee motivation can be divided into two parts: substance incentive and spiritual incentive. According to the reasons of leaving, the management should pay more attention on their employees’ needs and motivate them from material and spiritual.
Substance incentive means motivating and encouraging employee by some material, such as salary, welfare, bonus, or penalty. It is the main mode of motivation. Besides, it is the most common motivation mode. A study from a salary survey by Hewitt Associates showed that the human resource
Nowadays, a word is very popular in white collars. It is “luo ci” in Chinese, which means people leaving their current work without a new job. With the development of society and the improvement of the level of people’s life, the phenomenon of “luo ci” become more and more common. As we know, the employee turnover of hospitality industry is quite higher than other industries. In 2004, Wildes warned that hospitality would face a significant work force deficit of quality managers in the near future. Not only is there a shrinking labor pool due to other industries attracting our potential managers (i.e., retail, banking, and healthcare) (American Express, 2006), but turnover continues to be a significant problem. High turnover not only causes the hotels lose their good employees and makes the level of service declined, but also increases the costs and expenses of recruitment and training. So, those hotels should take some measures to reduce employee turnover.
Through some information, there are four main reasons: salary and welfare, personal development, sense of achievement, and interpersonal relationship. Clark and Estes (2002) suggest that employee turnover may not be purely a function of remuneration but rather of employee motivation. From this sentence, we know employee motivation plays a very important role in hospitality industry and it is an effective way to solve the problem of brain drain. The methods of employee motivation can be divided into two parts: substance incentive and spiritual incentive. According to the reasons of leaving, the management should pay more attention on their employees’ needs and motivate them from material and spiritual.
Substance incentive means motivating and encouraging employee by some material, such as salary, welfare, bonus, or penalty. It is the main mode of motivation. Besides, it is the most common motivation mode. A study from a salary survey by Hewitt Associates showed that the human resource