High level of employee turnover continues to be the most serious challenge in the hospitality industry (Hinkin & Tracey, 2000; Wasmuth & Davis, 1983). The hospitality industry has an exceptionally high turnover rate compared to other industries. * Definition of employee turnover
Price (1977) defined employee turnover as “the ratio of the number of organization members who have left during the period being considered divided by the average number of people in that organization during the period.” Meanwhile, Woods and Schmidgall (1995) focused on the entire process in the organization during a period. They prefer to employee turnover as “each time a position is vacated, either voluntarily or involuntarily, a new employee must be hired and trained. This replacement cycle is known as turnover.” * Purpose of study
The purpose of this study is to reduce the high employee turnover in hospitality industry focusing on causes and influences of employee turnover and retention strategies adopted to keep low turnover rate. The following research objectives guide this study. 1. To determine the causes for employee turnover
2. To state the positive and negatives influences of employee turnover 3. To examine the retention strategies used to keep employee turnover low The Causes of Employee Turnover
In order to take the necessary steps for recruiting and retaining well-qualified personnel, the first thing the company should do is to determine what the common causes of employee turnover are. According to an article, causes of turnover can be divided into three key categories (Cotton and Tuttle, 1986). The first and most common one is called work-related factors. These factors have direct and strong effects on turnover which include pay, job performance, role clarity, task repetitiveness, job satisfaction, and organizational commitment (Cotton and Tuttle, 1986). Within the work-related factors, job satisfaction is one of the most widely studied variables in employee turnover research (Berg, 1991; Mobley, 1977; Mobley, Griffeth, Hand, & Meglino, 1979; Price, 1977). Meanwhile, job satisfaction was found to be a very important factor to predict employee turnover in the retail and hospitality industry (Blau & Boal, 1989; Brooke, Russell, & Price, 1988). Most of the previous studies agreed that dissatisfaction directly leads to employee turnover (Mobley, 1982; Mowday, Porter & Steer, 1982). Another cause is named personal factors. Personal variables that demonstrate strong confidence that they are related to turnover include age, tenure, education, number of dependents, biographical information, met expectations, and behavioral intentions (Cotton and Tuttle, 1986). More specifically, age, tenure, and number of dependents are negatively related to turnover, while education and behavioral intentions are positively correlated (Cotton and Tuttle, 1986). For instance, young employees are more likely to leave their jobs than more mature employees. Also, employees with long work experience have been found to have a low turnover tendency (Schulz & Bigoness, 1987). In addition to the factors listed above, there are some external environmental variables, including unemployment rates, employment perceptions, and union presence. These factors are usually unchangeable in the short run, while work-related variables and personal variables can be quite manageable (Jang, B. S. J., 2008). Specifically, the perception of job alternatives is positively related to turnover while the presence of a union and the unemployment rate are negatively related. Therefore, researchers paid more research attention to work-related factors and personal factors as the determinants of employee turnover (Michaels & Spector, 1982; Wotruba &Tyagi, 1993). The Impacts of Employee Turnover
* Positive Effects
Employee turnover typically has a negative connotation,...