E XECUTIVE WHITE PA P E R
A new study on employee motivation and performance lays the
groundwork for creation of the SITE Foundation Motivation Index .
In The Hospitality Industry
About the Research
The CANE Model
Implications for Employers
About the Researchers
Where to Get the Study
mployee turnover within the U.S.
fast-food and hotel industries
costs those industries in the
neighborhood of $140 billion annually. In
more bite-sized terms, it will cost roughly 100% to 200% of an employee’s base salar y to recruit and train a replacement.
Although the turnover rate for these
industries hovers between 78.3 percent
and 95.4 percent on a national basis,
some fast-food restaurants and hotels
experience much lower rates, and have
significantly greater success retaining
employees. Overall, higher levels of
motivation and motivated performance
translate into a 53 percent reduction in
It is generally understood that employment in these industries is often considered to be temporar y, or stop-gap employment, with workers leaving eventually for what they will consider “greener pastures.” And certainly, different economics are at work depending on the
region, the type of establishment, etc.
However, turnover rates also vary within
the same economies, the same chains, the
same cities, and the same regions. All
things being equal, then, what accounts
for the differences in turnover rates? And
more importantly, what can managers do
to reduce turnover at their properties?
The Site Foundation is seeking to
answer those questions by studying
employee motivation and performance in
the fast- food and hotel industries. The
study - Motivation in the Hospitality
Industry - measures key indices of motivated behavior using the widely recognized CANE (Commitment And Necessary Effort) Model of Motivation.
The following describes key findings from
research to date and offers methods
managers can use to reduce turnover in
their fast-food or hotel operations.
About The Research
Hotel and fast-food employees from
twenty-two job sites located in the Orlando,
Florida area were surveyed in October
Published by: T he SITE Foundation
Copyright 2004. All Rights Reser ved.
This paper is an edited version of a full
report by the same name written by Steven
J. Condly, Ph.D., Educational Studies Dept.,
College of Education, University of Central
Florida, and Robin DiPietro, Ph.D., Rosen
School of Hospitality Management,
University of Central Florida.
EXECUTIVE WHITE PA P E R
Employment in these industries is often
considered to be temporary, or stop-gap employment,
with workers leaving eventually.
2003. All told, 545 responses were
received. Mid-scale hotels contributed
14.9 percent of the responses; fast-food
restaurants contributed 85.1 percent. A
follow-up phase conducted in February
2004 surveyed the same job sites.
The survey instrument was modeled
after the CANE Model (Richard Clark,
1998). The CANE Model helps us to
understand the various aspects of why
people are motivated to perform a
The CANE Model
The following chart illustrates the
dynamics at work in the CANE Model. It
is followed by an explanation of the ten
predictor variables and questions in which
the employee might express the effect of
the variable on his or her behavior.
(Commitment And Necessary Effort)
Perceptions of Capability
Simply put, the study demonstrates that
certain behaviors have various impacts
on turnover in various ways, and these
differences suggest strategies employers
might use to reduce turnover. These
T urnover is less when employees
have a high level of value for...
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