Factors Contributing to Staff Turnover in the Hotel Industry: A Literature Review

Abstract

The purpose of this chapter is to analyze the factors that are contributing to staff turnover in the hotel industry. Staff turnover rate usually affects an organization’s performance, productivity and profitability, and can contribute to the loss of assets and resources. This sector of the hospitality and tourism economy was selected for the study as it is deemed to be very demanding and oftentimes overwhelming. In general, the sector is believed to be very stressful especially since the employees have to deal with satisfying the needs and wants of customers and uncertain working conditions. Literature review was used as the methodology for ascertaining the factors that are contributing to staff turnover in hotels. From this review, the chapter identifies that these are both push and pull factors. Push factors are dissatisfactions with the current job which cause employees to seek alternative employment and pull factors are the reasons that attract employees to a new workplace. The chapter concludes that it is important for hotel managers to establish an employee-centric environment with deliberate and effective workplace practices to retain employees. The findings of this study will be very useful in advancing the literature as well as informing hotel practitioners.

1. Introduction

The global economy in the 21st century is driven by three major industries; technology, telecommunication and tourism [1]. Tourism is one of the world’s largest and rapidly growing industries [2] and the hospitality industry is a major segment of this global economy [3]. Tourism and in particular, the hospitality industry and sectors are centred on service and according to O’Cass and Sok [4], the employees who are the providers of the service are essential to the overall success of tourism. However, the turnover of employees within this global economic activity is a concern.

Staff turnover is defined as the number of workers who leave an organization and are replaced or rotated with new employees [5]. Zhang [6] further explains that staff turnover refers to the number of persons who voluntarily or involuntarily leave an organization within a specific period. It has been well documented that the level of turnover or in other words the staff turnover rate usually has an impact on organizations. It can in fact contribute to the loss of a company’s assets and resources [7].

Ronra and Chaisawat [8] postulate that turnover is one of the key issues in the world’s hospitality industry. Narkhede, [9] advances the discourse by stating that staff turnover in the hospitality industry is having an effect on performance, productivity, and profitability. In fact, the turnover rate in the hospitality industry usually averages around 20 to 300 percent annually [10]. It is posited that employee turnover in the hospitality industry is triggered by dissatisfaction, which includes relationships with supervisors, working conditions, work schedules, workload, job content, and salary and benefits [9].

Yazinski [11] posits that staff turnover rate in the industry can be broadly divided into three groups; external factors (e.g. perception of both employment and unemployment rate, and presence of trade union), internal factors (e.g. tenure, education, and gender) and thirdly, work-related factors (e.g. wage, job satisfaction and organizational commitment). Other contributing factors could be narrowed down to employees’ expectations of the job, the discrepancy between the job and person, not enough coaching and feedback, minimal growth and career opportunities, stress from being overworked, poor working conditions and job status, whether the individual is fully employed, contracted or seasonally employed [12]. This justifies the claim by Chalkiti and Sigala [13] that there are a plethora of reasons leading to staff turnover in the hospitality industry. It is pointed out that the industry is a very complex one to steer due to its various sub-industries or sectors [14]. In addition, the working environment can be very stressful and overbearing to the staff who have to deal with satisfying the needs and wants of customers as well as dealing with uncertain working conditions [15]. It is therefore imperative to identify the factors that impede staff retention in the industry and subsequently cause staff turnover.

This chapter focuses on staff turnover in the hospitality industry but specific to the hotel category which according to Slattery [16] is one of the free standing hospitality businesses. For the purpose of this study, the term hotel industry will be used throughout the chapter to describe the hotel business which according to Roa and Sahu [17], provides accommodation, meals and other types of services to guests. The hotel industry is chosen for this deductive analysis because it is reported to be a major challenge in this hospitality business [18]. This matter is of great concern in many countries such as in the United Kingdom and Australia [18] as well as small developing island states such as Jamaica [19]. Furthermore, turnover rate in the hotel industry is a worldwide endemic as it is not country-specific [20].

The importance of staffing issues in the hotel industry is driven by the fact that it is service-oriented and highly dependent on the employees [18]. There are several challenges that are encountered when working in the hotel industry to include hard deadlines, long working hours, unexpected interactions with guests and high emotional demands that are accompanied by poor working conditions and low wages [21]. Further study on staff turnover in the hotel industry is imperative in advancing the literature on the matter and informing hotel practitioners of workable and feasible practices to achieve staff retention. According to Davis [22] employee retention is important to the economic advancement of an organization. Replacing employees in the hotel industry can be very costly and is an unhelpful expense due to the fact that it can result in loss of productivity particularly because employers have to train new employees [23]. It is therefore essential that managers seek to grasp a better understanding of staff retention in the hotel industry [22]. Likewise, managers and leaders should strengthen and improve the factors that stimulate employees to stay at the hotel. Having knowledge of these factors; organisational and personal, and instituting appropriate strategies to appreciate employees and stimulate them have the propensity to retain their engagement with the workplace [24] as well as increase their abilities to improve productivity [22]. The purpose of this chapter, therefore, is to analyze the factors contributing to staff turnover in the hotel industry and the subsequent impacts of staff turnover on productivity. The chapter will also propose some strategies that can be implemented by managers to reduce staff turnover in hotels. A review of extant literature will be used as the methodology. This is a plausible approach as according to Xiao and Watson [25], literature review establishes the foundation of academic enquiries.

2. Literature review

This review of the literature highlights the factors contributing to staff turnover in the hotel industry as well as the subsequent impact on productivity. This section will also present some strategies to mitigate staff turnover in hotels.

2.1 Factors contributing to staff turnover in the hotel industry

Hotels typically regard high turnover as part of the work-group norm and employees tend to believe that they are entering jobs with limited career development opportunities [26]. Aside from the three groups of staff turnover posited by Yazinski [11]; external factors, internal factors and work-related factors, Faz et al., [14] propose that the main contributing factors of staff turnover in the hotel industry are categorized into two subgroups; push factors and pull factors. Push factors are dissatisfactions with the current job and employees then seek alternative employment [27]. Pull factors are those reasons that attract employees to a new workplace [8] The literature will focus on these two categories as indicated in Table 1.

Push Factors	Pull Factors
Poor relationship; Lack of growth opportunities; Job insecurity; Limited amount of interaction among staff	Career advancements; Job satisfaction; Higher salaries; Benefits and rewards

Table 1.

Factors contributing to staff turnover in hotels.

The following information will expand on the factors:

2.2 Push factors contributing to staff turnover in hotels

2.2.1 Poor relationship

Poor relationships are deemed to be the main factor of high staff turnover in the hotel industry [14]. This matter is of significant importance as relationships are discerned as a direct element of an employee’s intention to stay at an organization. This is supported by Musa et al., [28] that poor relationships with management and colleagues can result in staff turnover in hotels. In a diverse work setting like the hotel environment where persons travel across the world with the need for accommodation, it is pertinent that employees develop a healthy working relationship as this can be the make or break point for the business [14]. Any strained relationship and discomfort at work can encourage a dissatisfied employee to seek alternative employment in another organization [14].

Employers should show interest in employees’ growth so that they create a surrounding where the employees will be enthusiastic and one that will motivate them to remain employed at the organization [14]. It is found that there is a strong dissatisfaction with limited growth opportunities in hotels [29]. The fairness of the promotion process is of significant concern for hotel employees and this can negatively impact employee productivity [30] as well as deter prospective employees [31].

From a gender perspective, it is posited that men tend to have more access to career opportunities than their counterpart [32]. It is also postulated that if women believe that they are unable to move up the ranks in the hotel, then they may leave the organization [33] and this can also impact productivity. Narkhede [9] emphasized that the lack of opportunity for growth in the hotel industry for staff members in their present role is the primary rationale for seeking employment in another organization.

2.2.2 Job insecurity

Etehadi and Karatepe [34] define job insecurity as an employee’s concern regarding the stability of their job at an organization. Job insecurity is identified as one of the main contributors to staff turnover [35]. Employees normally feel threatened about their jobs when there is a lack of communication within the organization, particularly during seasonality periods [35]. Akbiyik [36] shares a similar view which suggests that if a hotel decides to reduce the size of its staff based on the uncertainty of its occupancy without informing their employees ahead of time, then this can create a level of mistrust that can lead to high turnover rates.

Job insecurity is crucial because of work-related stress as it activates several emotional reactions among staff members [34]. They further explain that job insecurity can initiate deceitful employees, demotivated staff, decreased productivity as a result of staff demotivation, reduction in employees’ emotional wellbeing while on the job, and low job satisfaction that can eventually lead to burnout. Akbiyik [36] adds that job insecurity in the hotel industry influences absenteeism among employees as they are under the impression that they can lose their job at any time. Once an employee displays high rates of absenteeism then the employer will be forced to terminate the staff member for poor work performance which ultimately contributes to staff turnover within the hotel industry [36].

2.2.3 Limited amount of interaction among staff in the hotel

Employee engagement helps to cement organizational culture that promotes unity within the organization [37]. When employees see that there is a positive magnitude of organizational interaction within the business, they are more propelled to display a higher level of interest [38]. Minimal employee interaction could lead to high turnover rates because employees tend to be uninformed of what is taking place within the organization [37].

Kuria et al., [20] highlight that low interaction in the hotel industry can be developed from inadequate transparency among employers and employees or staff and staff. They further indicate that it is a crucial factor for interaction among employees because it helps to influence their decision as to whether they want to stay at the hotel and further their career or leave the organization to seek more suitable development. Fathy [37] posits that a lack of motivation and interaction from an early stage between employers and employees is one of the key factors that lead to staff turnover in the hotel industry. This is because employers failed to develop a strong interaction relationship between employees and as such they are not driven to grow as one within the organization.

2.3 Pull factors contributing to staff turnover in hotels

2.3.1 Career advancement

According to Chalkiti & Sigala [13], one of the main factors that lead to high staff turnover rate in several different industries is the lack of career advancement. There is no difference with the hotel industry as McGinley et al. [39] assert that career advancement opportunities in the hotel industry are a conspicuous concern. The opportunity for career development encourages job satisfaction, ensures that employees are successful and enhances their employability (Jugan [40]. If employers do not provide employees with these opportunities there is a high propensity that this will result in great staff turnover [41].

Faz et al., [14], however, caution that the hotel industry is a severely high labour intensive sector that creates numerous competitions between staff members, which decreases the possibilities for career development for other staff members. It is also found that when employees enter the hotel industry they view their employment as short-term and are often of the belief that it is a temporary job opportunity. Subsequently, they are hopeless of any advancement [42]. However, Mwilu [43] on the other hand explains that people seek employment locally and internationally in the hotel industry because of the perceived employment opportunities. Mwilu [43] concludes that people will gravitate more to organizations where they will gain more benefits, thus, the urge of leaving the current organization is very high. Another important point as explained by Narkhede [9] is that, if employees feel that an entity is not fully invested in their career advancement, they will not display any interest in the business development. This is with the view that their efforts will be preoccupied to seek opportunities for growth elsewhere.

2.3.2 Job satisfaction

Rok & Mulej [44] note that job satisfaction is a delightful and positive state of an individual’s career advancement which results from a person’s job or experience at work. Albattat & Som [12] add that job satisfaction will influence an employee’s decision as to whether or not they are to leave their job. Hence, it is likely that job satisfaction will have an impact on employee turnover rates [12].

Several studies have been conducted regarding the relationship between work-related variables and job satisfaction which will ultimately result in employee turnover. For example, a study by Zopiatis et al., [42] in Cyprus highlights that there is a negative relationship between organizational commitment and job satisfaction and this can result in turnover intention.

Davis [22] believes that job satisfaction concentrates mostly on Herzberg’s Hygiene Factors. These factors are elements that are correlated to a job that may or may not create satisfaction for employees [45]. The Hygiene Factors take into consideration the environment in which employees do their job and enhance the satisfaction and commitment of the employees. This is supported by Holston-Okae [46] who contends that organizational leaders should meet their employees’ hygiene factors to avoid dissatisfactions. This may not immediately lead to job satisfaction or motivation but is a stepping stone.

2.3.3 Higher salaries

Mwilu [43] highlights higher payment packages and technical challenges as pull factors that captivate employees. Dwesini [47] concludes that compensation and rewards are factors that could influence staff turnover in the industry. AlBatta and Som [12] further emphasize that unsatisfactory salaries among intolerant working conditions and poor training could lead to staff turnover. Whenever employers fail to provide employees with favorable salaries, wages or even service charges that are linked to their job function, it is likely to contribute to job turnover. This is supported by [20] who conclude that if organizations do not compensate their workers beneficially it is possible they may encounter high levels of staff turnover by way of the staff leaving for alternate jobs that are higher paying.

2.3.4 Benefits and rewards

Reward systems entail various policies and procedures that are arranged and governed like one [40]. Whenever employees are rewarded it gives them a sense of belonging and makes them feel appreciated by relevant authorities [40]. Rewarding employees allows them to have a better relationship with the organization [48]. This is supported by Jehanzeb et al., [49] who indicate that rewards play a critical role in the retention of employees; it makes them feel wanted and motivates them to continue doing an excellent job. Sageer et al., [50] believes that employees should be rewarded appropriately for their contribution. Rewards are a stepping stone to job satisfaction which leads to a greater probability of the employees remaining within the organization. Jugan [40] suggests that organizations must focus on the extent to which rewards contribute to employee motivation and engagement with the organization and that the factors which determine this degree should be understood. Happy employees represent the organization in the public sphere [50].

Jehanzeb et al., [49] state that rewards have a lasting impression on employees as it communicates how much they are valued within the organization. A survey carried out in hotels in Kisii, Kenya concludes that the lack of fringe benefits encourages persons to leave the organization and this increases the rate of employee turnover [41]. This suggests that whenever an employer is not offering benefits such as sick leave, and education and retirement facilities to the employees, it will result in an increase in the rate of staff turnover [41].

2.4 Impacts of staff turnover on productivity

Productivity refers to how effectively and efficiently goods and tasks are carried out. It is further explained as the efficiency in production and is simply measured by the amount of output obtained from a given set of inputs [51]. According to Haenisch [52], productivity in the workplace is detrimental to the success of every organization. Ugoani [53] shares a similar view whilst focusing on the aspect of manpower and determining that employee productivity is a critical factor for the organization to survive financially. Consequently, employers must put specific measures in place for employee performance as it is vital to the success of their business [54]. They should strengthen the work environment to improve employees’ performance and productivity as this will ultimately lead to higher profits as well as customer satisfaction and retention [50].

Productivity is used to determine the level of performance of an organization and that decreases with high employee turnover [53]. This was underscored in a study conducted by Ahmad and Scott [18] to determine the issues in managing staff in the front office department. The results were obtained through interviews with managers which showed that staff turnover results in a shortage of staff which causes difficulty in delivering excellent service. The respondents further elaborated that insufficient staff resulted in limited time to interact with staff or complete tasks effectively. These findings reinforce the claim by Siddiqui [54] that the success of a company is ultimately dependent on employees.

Additionally, time must be allocated to train new employees. Fathy [37] elaborates that when hotels replace experienced staff with inexperienced employees, it disrupts the flow of production as time must be allocated on schedules to train the staff on how to properly carry out services and tasks. This also interrupts the time that should be spent catering to the requirements of the guests and this may lead to dissatisfied customers and thus, a decrease in customer retention and ultimately reduced profitability. Hinkin, and Tracey [55] conclude that the hiring and training processes are costs that are associated with turnover.

The hotel industry is service-oriented, therefore, the productivity of the business as it relates to output is measured by the service received by guests. The quality of service conveyed to the guest is a competitive tool and since employees are the ones that deliver the service, it is imperative that they are satisfied and motivated [56]. This is even more important due to the characteristic of service. Service is simultaneous as it is created and consumed at the same time. By way of being perishable, productivity is determined by the number of rooms occupied on a daily basis with the role of the hotel staff being very integral to this matter. For example, the functions of the housekeeping staff or room attendant are critical to the profitability of the hotel [57]. The level of service provided is an indication of guests’ satisfaction and whether or not they will stay as well as return the next time.

Using data from 527 hotels within the same chain, Hesford et al., [58] examine how housekeepers and front desk attendants impact revenue and productivity through customer satisfaction. The findings reveal that the tasks carried out by the housekeepers and front desk attendants have significant effect on guest experience. Additional findings reveal that the majority of customer in the budget hotel segment complained about the cleanliness of the rooms. This is the direct responsibility of the housekeeping staff. Poor hospitality and service was also found to be a frequent driver of complaints. This generally refers to guest interactions with the front desk staff. The results indicate that turnover in both positions negatively impacts the customer’s experience and satisfaction, and these are some of the main determinants of productivity among hotels.

Notably, hospitality service operations evolve around branded and standardized offerings to customers, therefore, consistent employee performance is a very important element of business strategy [59]. In addition, high staff turnover will lead to higher complaints because of the time it takes to train new employees as well as the loss of key employees. Customer satisfaction, therefore, becomes synonymous with productivity levels in hotels [60]. Hence, if staff turnover is frequent and high, it will disrupt the quality of service [61]. In support, Singh and Amandeep [56] conclude that staff turnover harms the steadiness in the standardization of hotel services.

Moreover, the service will be further impacted as new employees will require time to become as efficient as the previous ones. This was supported by Faz et al., [14] who articulate that a new employee can take up to two years to accomplish the same level of productivity as the previous staff since they have to become knowledgeable of all the necessary skills required to complete their tasks. In addition, the loss of key employees can result in a reduction in both the quality of the service provided and the experience attained by the guest as well as productivity [62]. From a financial perspective, Fathy [37] points out that employee turnover represents 60 percent of the cost of loss productivity.

High staff turnover can also result in disruption of service for other employees and managers resulting in reduced productivity. The disruption in operations redirects managers away from their usual duties of planning, controlling and sales to now training and monitoring new employees. According to Hesford et al., [58], the time that the head housekeeper spends on training new employees pulls them away from inspecting rooms, monitoring the remaining workers and responding to special cleaning requests. Similarly, general managers typically “shadow” a new front desk attendant for the first few shifts. This diverts the manager’s effort and attention away from strategic functions such as marketing the property and networking.

3. Methodology

This study carefully and systematically reviewed the literature on the factors contributing to staff turnover in the hotel industry; both push and pull, and their consequent impacts on the productivity of hotels. The literature was also reviewed for recommended strategies that are used to mitigate staff turnover in hotels. Literature review is used as the methodology for this study in order to provide a comprehensive review of the literature related to staff turnover in the hotel industry. This is a plausible research technique and is supported by Paul and Criado [63] who postulate that literature review is useful in synthesizing prior studies to strengthen the foundation of knowledge. In addition, Xiao and Watson [25] point out that literature review establishes the foundation of academic enquiries.

Although literature review is usually used as an assessment procedure in nursing settings [64], Snyder [65] proposes that its use as a research method has become more relevant than before, especially in the area of business research. This technique was used by Aziri [66] to examine the subject of job satisfaction and by Ngai [67] to relate on customer service management. It was also used by Brodeur et al., [68] to synthesize insights emerging from a number of studies on the economics of COVID-19. These are all studies in the area of business.

This chapter therefore, examined staff turnover in the hotel industry which is a business research. It was carried out by reviewing research papers in journal articles and book chapters among other sources, for extant literature on the matter. This approach is further recommended by [64]) who posit that effective literature searching is a crucial stage in the process of writing a literature review and that a systematic organized search of the literature that uses available resources is more likely to produce quality work. The review of literature is intended to provide current stance on the subject as well as rationale, positions and discussed ideas [69].

4. Strategies to mitigate against employee turnover in hotels

Many hotels face the challenge of high turnover in their organization whether voluntary or otherwise. Hartman and Yrle [70] explains that employees will leave their job even if they are satisfied and conceptualized this voluntary departure as the hobo phenomenon. It is therefore imperative for managers to identify the factors that affect employee turnover and implement appropriate strategies to attain stability in the organization. They need to be aware of their employees’ feelings regarding their job functions as well as their satisfaction levels with their working conditions, superiors and peers [71]. Being aware of these factors will allow employers to implement sustainable strategies so as to improve the productivity and efficiency of employees and subsequently influence a reduction in staff turnover. Emphasis and focus should be placed on adequately managing these factors in order to create satisfaction for employees and maintain their interest in working at the organization.

It is important for hotels to conduct an audit of their situation to determine where they are at so that the appropriate strategies can be employed. If they do not have the internal resources to do so, then Ferry [72] recommends that they procure the services of a consulting company to assist them in this regard. As indicated earlier in the chapter by Holtom and Burch [62], the loss of important employees is detrimental to productivity and work quality. Managers need to be cognizant of this matter and implement suitable retention strategies for employees. Some of these strategies include implementing job enrichment plans, promoting job satisfaction, managing hygiene factors, incorporating job embeddedness, including career development and advancement factors, instituting appropriate remuneration, recognition and reward programmes in addition to good training and management. Furthermore, Long and Perumal [73] contend that employees who have little to no intentions to leave an organization have a positive relationship with staff training, compensation or benefits, development of careers in specific areas, performance management, and employee relationships. The following are some of the strategies that can be implemented in large hotels to directly or indirectly reduce staff turnover.

4.1 Implement job enrichment plans

The hotel industry leaders need to understand the factors that encourage employees to display high potential in staying with the organization in comparison to them leaving [74]. Managers need to consider job enrichment to avoid high turnover in their organization. This involves designating employees with different types of work without increasing the workload level. Job enlargement can also improve intrinsic motivation for employees and give them more reasons to stay. Onimole [75] contends that when managers provide job enrichment then employees will grasp a deeper interest in doing the work, thus a greater responsibility will be acquired by employees resulting in higher levels of productivity.

4.2 Promote job satisfaction

Milman and Dickson [74] proffer that employers should view employees as internal customers of the organization. This can provide important value and create awareness for managers as well as influence the implementation of appropriate strategies to reduce staff turnover. In support, Kim [76] points out that in order to realize a reduction in employee turnover, the human resource management team should conduct internal marketing on employees, focusing on their traits and designing effective programmes for new employees with multiple backgrounds. In addition, Onimole [75] finds that both effective training programs and job satisfaction have a very good relationship. Providing an effective training programme could therefore be a response to reducing the high turnover rate by way of employees being satisfied with their job. Training has proven to be vital in the retention process and in helping to reduce turnover. This is supported by Chen [77] who notes that training of employees influences their retention. When an organization invests in training and development activities it shows that they have placed high importance on employee capacity building. Not only will employees have a sense of being valued but training opportunities will create an emotional tie between employee and employer [78]. Therefore, employees are less likely to leave the organization when they receive the chance to acquire training on the job. Therefore, having a dedicated training procedure to improve employee skills and capabilities have the potential to reduce their intentions to leave.

Stress management is also of importance. McGinley et al. [39] state that there are various ways to deal with stress in the workplaces, which is likely to impact staff turnover intentions. The implementation of task-oriented strategies can cause a reduction in turnover intent and in turn improve on job satisfaction [39]. It is likewise imperative for managers to understand the intentions of their exceptional employees and implement solutions that will increase their desire to stay in the organizations [74]. Lapointe and Vandenberghe [79] summarize that it would be beneficial for managers to put strategies in place to strengthen employee’s commitment to the organization and their subsequent satisfaction can possibly reduce turnover rates.

4.3 Manage hygiene factors

As indicated earlier in the chapter, job satisfaction concentrates mostly on Herzberg Hygiene Factors and are used to determine employee satisfaction with their job. Examples of such factors are fair pay rate, respect from other workers, salary, incentives and good conditions for work. Other hygiene factors include company policies, supervision, interpersonal relationship and job security. Zhu et al., [80] postulate that the hygiene factors when compared to the motivation factors in the Hertzberg two-factor model (motivation factors and hygiene factors) are more effective in predicting turnover intentions. This means that that will contribute to employee satisfaction which in turn, will reduce high turnover rates.

In essence, the hygiene factors are used to determine employee satisfaction with their job; a high rate of job satisfaction will reduce job turnover intentions. The underlying premise of hygiene factors is that, as long as employees become satisfied, then managers will need to maintain these factors so that they will not resort to dissatisfaction which reduces productivity. In terms of the influence of hygiene factors on productivity, Ogbo et al., [81] find that good working conditions improve employees’ productivity. They posit that if working conditions are poor it will create negative impact on employees and as such managers should aim to maintain factors that aid in the increase of productivity. Deri et al., [82] conclude that the hygiene factors of job satisfaction are paramount and managers are to pay attention to them.

4.4 Incorporate job embeddedness

Ehrler [83] explains that job embeddedness consists of a range of influences that contribute to an employee’s decision to continue with their job. Onimole [75] shares the notion that job embeddedness indirectly reduces high staff turnover costs incurred by the organization. It is therefore important for the hotel organizations to implement activities that can improve job embeddedness and reduce staff turnover.

Embeddedness in the job can create a positive relationship or connection with co-workers. It is determined by the level of co-worker dependency and a sense of belongingness and as such employees will more likely have a long tenure in a company where there is a positive relationship among employees [84]. Employees have a less likely tendency to leave the organization when they are embedded in their job. Ehrler [83] posits that the diversification of employee job embeddedness positively impacts their retention by reducing turnover.

4.5 Include career development and advancement factors

Career development as well as advancement opportunities are vital in improving employees’ loyalty and retention in the hotel industry [79]. Akyüz et al. [85] assert that if employers desire to reduce the staff turnover rate then they will need to improve the organizational climate and the human resource activities being carried out. The process of molding each employee’s career is therefore imperative [86]. This strategy can be a cost saving measure for hotels to save money that would have otherwise been spent on continuously recruiting and training new employees because of turnover.

Offering mentorship to hospitality employees is another great way to mold their careers and keep them empowered and motivated [87]. Mentorship can provide several benefits and opportunities for the personal and professional growth of employees. It is found to be a vital tool in bridging the generation gap and promoting diversity in the workplace as well as transform the organization into a learning one [88]. Mentorship in the workplace is usually carried out by experienced professionals who help in the process of molding other employee’s careers and providing the opportunities for them to grow and develop their potential. These mentees will now feel a sense of connection and commitment to the business and its overall success. Hence, managers are to be able to identify opportunities and implement mentorship and training programmes to help and retain young employees. This is despite the claim by Gursoy and Dhar [89], that younger persons will stay in the organization in more cases than the older ones.

Having a formal and structured mentorship programme is recommended [88]. It will facilitate high-quality leader-member relationships. This type of relationship according to Davis [22] will not only engage and inspire employees but will also lead to organizational commitment and lower turnover rates. In essence, hotel managers should be concerned about the growth and development of all employees [29] despite age and gender. As per the latter, they are to remove gender bias perceptions and ensure that programmes are in place to coach female employees in advancing their careers [90]. Overall, managers should provide all employees with opportunities to develop and improve key internal relationships, career advancements and job performance. Employees are comfortable when opportunities to improve themselves arise [89]. Akyüz et al., [85] studied the influences that academic development and organizational climate provides in having healthier organizational commitment which reduces employees’ desire to leave the organization. They find that employers that pay special attention to academic development, tasks, and the promotion of improved commitment to the organization recognize that it improves job performance and increases retention rates.

4.6 Implement remuneration, recognition and reward programmes

Adequately and fairly remunerating, recognizing and rewarding the efforts and accomplishments of employees are important in staff retention. According to [91] employees tend to develop an emotional bond with the organization and remain an employee when they perceive that the work they have done is appreciated and valued. Long and Perumal [73] point out that employees that are placed on the front-line in the hotel operations are more likely to proportionately receive low salary or rewards, and therefore will be the ones to switch jobs. Rewarding and recognizing these among other employees would make them feel respected, desired and appreciated, resulting in reduced staff turnover rate. However, employees expect to receive recognition and rewards that are established from a fair performance appraisal review [91].

4.7 Implement best hiring practices

In order to understand the reasons why employees leave their organization, the human resource management team should hire smartly and implement exit and stay interviews to practice and maintain the communication process [79]. Selecting the right people for the right jobs is one of the most incremental solutions to reducing staff turnover as according to Bin [92] they will be more satisfied and engaged with their jobs. Employees who are not the right fit for a position will be more likely to quit as they may not possess the right skill set, knowledge or even mental ability to tackle that role.

The screening of employees who enter the organization will help employers make better decisions when hiring [39]. Hotel managers should identify the abilities of each employee through the hiring process and according to Sinclair-Maragh et al.; [93], they should foster talent management through coaching, mentorship, motivation and empowerment. Managers should employ effective sourcing strategies as well as maintain, retain and train these employees as it is imperative in the process of improving guest services in the industry. This is supported by Long and Perumal [73] who find that training is vital to the success of any modern organization. They posit that training is the backbone of strategy implementation and the lack of training in critical areas will lead to increased complaints. In providing the necessary conditions to develop the professionalism of employees, managers should consider training them on the job which results in job satisfaction and a reduction in turnover levels [94].

4.8 Encouraging communication

Communication between the two parties; managers and employees is paramount. The philosophy and intentions of the hotel should be communicated to the employees to guide them in carrying out their respective tasks [95]. Likewise, employees should be allowed to communicate their potential career path so that they can purposefully envisage their future with the hotel.

Employees should be allowed to identify specific milestones for their achievement and ways in which the employers can use supporting resources to assist them in achieving their goals. The relationship between employees and employers will make it easier for both parties to have a clear, consistent and direct communication about career advancement steps. This will help employees feel more engaged in the organization and increase their job satisfaction, thus, staff turnover rate will be reduced. Sandhya and Kumar [96] conclude that communication between the employee and employer will lead to high levels of employee retention. Communication can also be achieved by way of conducting employee attitudes surveys. This should be aimed at identifying how each employee feel about their role, their intention to stay within the organization and also the goals that they want to achieve in the organization. Care should be taken not to generalize the data collected for human resource management and development strategy implementation [97].

5. Conclusion

The purpose of this chapter is to analyze the factors contributing to staff turnover in the hotel industry and the subsequent impacts of staff turnover on productivity. Additionally, the chapter proposed some strategies that can be implemented by management to reduce staff turnover. The review of literature finds that employee turnover has been a major concern in the hotel industry in several countries despite location. The literature distinguishes two main categories of factors that cause job turnover. The push factors are job-related dissatisfiers such as poor relationships, lack of growth opportunity, job insecurity and limited amount of interaction among staff. Pull factors are those opportunities that attract employees to a new workplace such as career advancements, job satisfaction, higher salaries and benefits and rewards.

Staff turnover needs to be addressed as it can negatively impact productivity. It is important for hotel managers / employers to generate unique and creative solutions to retain employees in the hotels despite the size and location. These include the implementation of job enrichment plans, promotion of job satisfaction, management of hygiene factors, incorporating job embeddedness, including career development and advancement factors, instituting appropriate remuneration, recognition and reward programmes, implementing best hiring practices and encouraging employee-employer communication channel.

Based on the literature review conducted, it is evident that high staff turnover rate is prominent in the hotel industry. It is essential that these managers select the right persons for the respective jobs, foster their abilities and talents, and motivate them in an employee-centric environment. Deliberate and effective workplace practices are therefore recommended.

The findings of this study will be very useful in advancing the literature in the area of staff turnover in the hotel industry and providing relevant information pertaining to people management in that environment. From a practical standpoint, the chapter will be able to inform hotel practitioners of these factors as well as how staff turnover can impact the productivity levels of the hotel. Further studies can be done to empirically assess the factors that are contributing to staff turnover in the hotel industry and the impact of staff turnover on hotel productivity. Future studies can also empirically examine the relationship between hotel productivity and hotel performance.