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Turnover
Hemdi & Nasurdin —Predicting Turnover Intentions of Hotel Employees

Gadjah Mada International Journal of Business January-April 2006, Vol. 8, No. 1, pp. 21–42

PREDICTING TURNOVER INTENTIONS OF HOTEL EMPLOYEES:
The Influence of Employee Development Human Resource Management Practices and Trust in Organization Mohamad Abdullah Hemdi Aizzat Mohd. Nasurdin
This study investigates the variables that may be predictive of hotel employees’ turnover intentions. The influence of trust in organization as a mediator in the proposed relationship is also examined. A total of 380 operational employees from 5-star rated hotels completed the questionnaires. Hierarchical regression analysis was used to test the relationships hypothesized in the model. Most of the hypotheses were supported. It is suggested that to enhance employees’ trust in organization and subsequently to reduce turnover intentions, hotels need to continue to provide training and development programs to their employees, conduct fair and formal appraisal system, and provide ample and clear career advancement to their employees. Limitations and suggestions for future studies are forwarded.
Keywords: performance appraisal; training and development; career advancement; trust; turnover intentions

21

Gadjah Mada International Journal of Business, January-April 2006, Vol. 8, No. 1

Introduction
“What determines employee turnover?” The answer to this question has great relevance to the individual who may be thinking about quitting a job, and for the manager who is faced with lack of employee continuity, the high cost involved in the induction and training of new staff, and declining organizational productivity. Within hospitality industry, workforce turnover has been one of the most pressing issues for many years. Studies consistently show that hotels all over the world experienced high turnover rates (Woods 1997). Globally, the turnover rate in the hotel industry is estimated to range from 60 percent to
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