the reason of high staff turnover rate in hospitality industry

Topics: Employment, Hotel, Time Pages: 11 (2912 words) Published: April 21, 2014
Executive Summary
Purpose – The purpose of this report is to find out what couse high staff turnover in hospitality industry. And try to solute those problem.

Methodology – The reason of high staff turnover rate divide by three major types, which are individual factors, enterprise factors and industry factors. After explain three types of factors, this report will show some method to solute each problem.

Findings – Company should do something to remain their staff to decrease the damage from high staff turnover rate. Each problem can be fixed by different method.

Practical implications – Staff is the most important source in hospitality industry. With a high turnover in the company, it can be a big damage. So, to be able to remain your staff, can be able to a successful company.

Table of Contents
Executive Summary1
Table of Contents2
The reason of high staff turnover rate in hospitality industry6 Solution10
Reference list14

Nowadays, hospitality industry is the largest industry around the world. However, the hospitality industry is now facing on a big embarrassment which is the high staff turnover rate. It is a severe problem to the operation of all hotels. First of all, let’s us first find out what is staff turnover rate.

“Employee Turnover is the Percentage of a company's employees who leave during a specified period. Although it is most often expressed at annual turnover rate, the calculation can be done for shorter or longer periods.” (F. John Reh, No date.) Simply speaking it is the rate the company loss their staff. Which is “the number of employees who leave the company within a period of time” divided by “the average number of employees in the company within the same period of time”.

And it is know that there are both good side and bad side of the staff turnover rate. The researcher is going to look through the situation happen in hotel industry and find out what is the effect that the high staff turnover rate brings to the hotel industry.

In this paper, we are going to find out the reason of high staff turnover rate within hotel industry and also the solution of this problem.

Background Information

Staff Turnover
Is staff turnover rate must be a bad thing to the company? In face no. Within a stable and appropriate of staff turnover rate, it can improve the performance of the organization.

First, it can bring in new idea to the organization. New staff always will bring some fresh idea, which makes the organization enable to have an innovative environment. It is good for creating new ideas and solutions. Also, it remains the competitiveness of the organization. Internal turnover allows existing staff move to a suitable position that he/she may do a better job. And also, external turnover will let the existing staff have “sense of crisis”, that their job may replace by other candidates, in order to motivate them to do their job better.

A coin has two sides, so as staff turnover. It also brings a lot of trouble to the organization.

First, it is time consuming. If a firm always has a high staff turnover rate, which means that this firm must spend a lot of time on recruiting new staffs. Time is always an important winning factor in the business world. No firm will willing to spend a lot of times on finding the suitable staffs again and again. Instead they can use that time to go a better training of staff or make a better work force plan. ‘Lowering staff turnover is also vital in reducing recruitment agency costs and the inconvenience of starting the hiring process.’ (Startup World Staff, 19 January 2014)

Second, the expense will be high. If the staff turnover is the external one, which means that the original staff leave the organization and thus the employer need to replace the staff by hiring someone from outside the organization. During the process, the organization will have expense...
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