Literature Review

Topics: Employment, Labor, Hospitality industry Pages: 6 (2261 words) Published: October 14, 2011
Literature review
As for years hospitality industry is suffering from high staff turnover. The main aim to chose this topic for the literature review is that continuous problem and effect causing to the organization in terms of labor shortage especially skilled labor and organization having no control on the staff retention due to which it is become a challenge for hospitality industry especially human resource that how to attract and retain the talented and skilled staff (Barron, 2008). Demographic change in UK Paul Barron has said the hotels in UK are struggling to retain and recruit the experienced and talented staff (Barron, 2008). Organization is also facing the significant demographic change in the population. As there has been tremendous increase in the aging population and also very low population of young people entering the industry. Due to this sudden transformation not only causing shortage of staff but also facing the problem to retain the knowledgeable and experience staff. (Govaaerts et al., 2011). According to the author the unevenly distributed population is the prime reason for the lack of skilled employees in the hotel industry. (Choi, Woods, Murrmann, 2000). Due to this sudden transformation not only causing shortage of staff but also facing the problem to retain the knowledgeable and experience staff (Govaaerts et al., 2011). Paul Barron has criticized that industry always had a bad reputation of paying low wages to the staff, unusual working hours, boring job and limited opportunities for career growth due to which the hospitality industry has always found it difficult to motivate staff, and retain qualified and skilled labor. (Barron, 2008). Future challenges for industry According to author, in the coming decade the demand of talent would be very high and companies would be fighting for the talent with their competitors therefore the company need to see that they can retain their talented and skilled staff so that they can have that competitive advantage and always be ahead with their rivalries (Govaaerts et al., 2011). This high labor turnover issue in the hospitality industry has become one of the key problems for them. The turnover culture identified in the UK and Australian hospitality industry found turnover rates as high as 300 per cent per annum (Barron, 2008). If organization not able to retain the staff then the employees would not only leave the company but also take the companies private information and company would also have to recruit and train new staff this would again be the additional cost for the organization (Govaaerts et al., 2011). Hospitality industry spends alone £2,575 on training for one employee and when it is compared to average of all other industries it is £1,725 a year. Even in recession in 2009, when the industry was not having a good time in terms of business still they were having highest labour turnover which is 31% per annum in 2009. 65% of the business report stated that their employees lacked the customer service skills and the other skill area shortage included management, chef, IT, leadership (Druce, 2010). The government new rule on immigration stating that only graduates will be only allowed to apply tier 2 visa which is a 2 years work permit for skilled migrants that till April 2012. This would be a bad news for the ethnic restaurant which heavily dependent on 13,000 non European chefs around UK and according to British hospitality association feel that by tightening the law on migration could result in closure of £3 billion ethnic restaurant sector (heller, 2010). And now UK just facing with the line of events like Olympics 2012 which is just door away from England and it is still facing a huge skill shortage of labor...
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