How to Reduce Employee Turnover with Motivation

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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 department in the hotel groups offering at least one plan of pay to performance rise from 51 per cent in 1991 to 77 per cent in 2003 (Jeffrey Pfeffer, 2007). Except carrying out the necessary substance incentive, the spiritual incentive is especially important, because it is a key factor to improve employees’ career happiness. According to different needs do some different spiritual incentive, such as, empowerment, make a future career development program for employees, making some effective communication and so on. In conclusion, with the improvement of living standard, more and more people begin to pay more attention on their internal happiness and pursuit. Taking substance incentive purely cannot meet the demands of the employees. Therefore, substance incentive and spiritual incentive are equally important and complement each other, are indispensable. And the proper motivation not only can retain the best employee, but also can improve the productivity. 2. The current situation of personnel in hospitality industry The current situation of personnel in hospitality industry is structural shortage and non-normal loss. And as a labor-intensive enterprise, the turnover of the hospitality industry should be no more than 15%. But a survey from China Tourism Association suggests that the employee turnover in hospitality industry in nearly 5 years are 25.64%, 23.92%, 24.2%, 22.56%, 23.41%, and the average turnover rate is as high as 23.95%(Zheng Lu, 2009). With the widely and increasingly fierce competition, the employee turnover rate always remains high and personnel training and supply of the hotel cannot keep up with the speed of development of hospitality industry. In China, we have learned the foreign hotel management for more than twenty years. And large numbers of hotel managers and service personnel have grown up. Except part of high-quality employees are hired by some foreign companies, there is a good deal of personnel retaining our domestic hotels....
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