Staff Turnover

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STAFF TURNOVER IN HOSPITALITY INDUSTRY

INTRODUCTION

1} TURNOVER
In human resources context, turnover or staff turnover or labour turnover is the rate at which an employer gains and loses employees. Simple ways to describe it are "how long employees tend to stay" or "the rate of traffic through the revolving door". Turnover is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. High turnover may be harmful to a company's productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers.

In the United States, the average total non-farm seasonally adjusted monthly turnover rate was 3.3% for the period from December 2000 to November 2008. However rates vary widely when compared over different periods of time or different job sectors. For example, during the period 2001-2006, the annual turnover rate for all industry sectors averaged 39.6% before seasonal adjustments, during the same period the Leisure and Hospitality sector experienced an average annual rate of 74.6%.

When accounting for the costs (both real costs, such as time taken to select and recruit a replacement, and also opportunity costs, such as lost productivity), the cost of employee turnover to for-profit organizations has been estimated to be up to 150% of the employees' remuneration package.  There are both direct and indirect costs. Direct costs relate to the leaving costs, replacement costs and transitions costs, and indirect costs relate to the loss of production, reduced performance levels, unnecessary overtime and low morale. In a healthcare context, staff turnover has been associated with worse patient outcomes.

Employees are a company’s most valuable asset
Worldwide researches have suggested that employee turnover is among the highest in the hospitality industry. But what exactly is employee turnover? Generally speaking it is the rate at which an employer gains and loses employees. Many hoteliers are familiar with this costly problem. When employees leave, valuable knowledge is lost and even guests may follow the departing employee. Moreover, getting a new employee ramped up to performance levels similar to the one you’ve lost takes time and money. Hoteliers who actively find ways to retain employees gain a sustainable competitive advantage. Solutions by protel hotel management can support you in creating an effective and success-oriented strategic workforce management.

2) SURVEY OF INDUSTRIES, 2002-03 REPORTON ABSENTEEISM, LABOUR ANNUAL TURNOVER, EMPLOYMENT &LABOUR COST IN SAMPLE SECTOR LABOUR TURNOVER Labour Turnover is an important parameter which indicates the over all health of an industry or an establishment in terms of wages, industrial relations, working conditions and other welfare facilities provided to the workers. Labour turnover, which refers to the movement of employees in and out of a business, measures the extent of change in the work force due to accession (total number of workers added to employment) and separation (severance of employment at the instance of workers or employers) during a particular period of time. High Labour Turnover causes problems for a business. It is costly, lowers productivity and morale and tends to get worse if not dealt with. Labour Turnover does not just create costs, but some level of Labour Turnover is important to bringnew ideas, skills and enthusiasm to the labour force. A natural level of Labour Turnover can be a way in which a business can slowly reduce its workforcewithout having to resort to redundancies. A high level of Labour Turnover could becaused by many factors:...
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