Employee Turnover Assignment Outlining the Causes in Hospitality Industry in Australia
Task: This research will be focused on the cause of high employee turnover in the hospitality industry in Australia. In addition, the paper will show the reasons of high labor turnover in this industry and give some suggestions for this. This paper will have problem statement which the description of problem; then the aim and objective; methodology which mention data collection and data analysis; finally the references of this will be provided.
- Problem statement
Labor turnover mentions to the number or percent laborers who leave an organization and are supplanted by new employees. Definition employee turnover can be useful to leadership that need for the explanations behind turnover rate or examine the expense for employee with financial objectives.
Employee turnover are unavoidable and numerous organizations and businesses have to face with this problem every day. “It is also a great issue in the Hospitality Industry, the intensity were varies according to the size of the establishment, some are low and many is as high as the height of their buildings.” (Ersan Suria Pranoto, 2011). “Therefore, it is in the best interests of hospitality managers to understand the causes and the effects of turnover so that they may reduce its costs.” (Ersan Suria Pranoto, 2011).
This paper will be focused four main reasons which make the employee turnover higher in Hospitality Industry. “One of the main determinants predicted to have a significant role in an individual's decision to leave an organisation is that of the turnover culture.” (Iverson, 1997). “The psychological contract approach to the employment relationship within the hospitality industry with special reference to highly educated employees.” (Blomme et at., 2010). “The relationships between work organisation, bullying and intention to leave (ITL) in the Australian hospitality industry, using pressure, disorganisation and regulatory failure (PDR) to measure work organisation.” (Bohle et al., 2017). “The impact of coworker instrumental support and coworker emotional support on turnover.” (Tews et al., 2013)
The objective of this paper is to examine the impact of labor turnover in the Australian Hospitality Industry; to explore key reasons why employee leave their workplace. The information can then be useful in building strategy for retention labor and estimate the cost for employee in Hospitality Industry in Australia.
- Aim and Objective
The core aim of this paper is to explore the reasons of high employee turnover in the Hospitality Industry in Australia.
The objectives of this paper:
- To examine the reasons in Human Resources perspective related to labor turnover.
- To create a research which helps to have a strategy to retain employee.
- To find the solutions how develop and retain employee.
- Literature Synopsis
The key reasons of employee turnover will be provided in secondary source. The secondary sources will be included in journals, articles, interview, books available from CQU library (online & campus), Google Scholar and other online sources.
- Data series & Surveys
Qualitative Approach: An set of questionnaire and forms will be designed for employees, managers or participants which will be distributed them through on line surveys at online sources.
Quantitative Approach: An collected data will be transform into graphical forms like charts, graphs etc, which states high employee turnover in the hospitality industry in Australia.
The present study of employee turnover assignment is addressing the cause of high employee turnover in the hospitality industry in Australia. The phrase employee turnover in reality differs from the meaning of its literal terms ‘employee’ and ‘turnover’. Employee turnover may be referred to as the turnover of the number of employees within an organization. In simpler words, the percentage or number of the employees that exits from a given organization and the percentage and number of appointed new members that are resituated for filling in the vacant places; the rate of the said is indicated by the term employee turnover of a company. Employee turnover (high) can be addressed as an emerging evil in the current business world, irrespective of the sector. Employee turnover deciphers three possible outcomes which can also be affirmed as a measuring scale. The outcomes of the said sector can either be high employee turnover or low employee turnover. Within a company, maintaining a standard employee turnover, that is, a reasonable rate of exit and replacement of the employees has been confirmed as the best business policy that requires to be followed for efficient flow of any business.
In the recent prevailing business arena, the hospitality sector deciphers an annual employee turnover rate of 74.9 percent globally, as evaluated in the year 2018. It surged for 2.4 present in relevance of the previous year wherein the rate of the concerned, as completed, was around 72.5 present in 2017. In this study of employee turnover assignment, the reasons for such a high rate of employee turnover have been explored with sheer focus on the root causes. Further, the various aspects with the help of which the anomalies within the industry of hospitality can be vividly mitigated, discussion regarding the attributes of the same has also been included.
1. Problem Statement
As the study of employee turnover assignment discussed earlier, the implied meaning of employee turnover may be addressed as the collective rate of turnover, that is, rate of in and out of the employees within a company. The hospitality sector or industry can be considered to be a broad sector that involves accommodation, services regarding food and drink, transportation, cruise line, theme parks, travelling as in tourism fields, event planning and similar other additional arenas. However, the prima facie comprehension that may be drawn by the term hospitality industry refers to accommodation, food services, drinking services and similar other services. Precisely speaking, the meaning of the word hospitality indicates reception, treatment and providing requisite services for the guest in a way that can be held as friendly and generous (Frye et al., 2019). Therefore, the employee turnover assignment illustrates that the substantial and immediate aim of the hospitality sector is to deal with the guest, herein customers, in the best possible way so as to provide then with an experience of comfort and ease. Understanding the literal meaning of the term ‘hospitality’ which was derived from a Latin word ‘Hostis’ that means ‘to have the power’, this can thus be affirmed that the said sector deals with receiving or entertaining guests and treating the same (SHARMA, & Gursoy, 2018).
In the said sector, employee turnover may be regarded as one of the most important aspects as recognised by the companies devoted to the said sector. In a given organization that focuses on hospitality, high employee turnover depicts that the rate of departure and replacement of the employees are high (Pohler, & Schmidt, 2015). The information provided in the employee turnover assignment implies that an employee does not work for a long period (tenure) in the organization and frequently drops out from the company either voluntarily or involuntarily. This gives rise to a number of graveproblems that deciphers the full potential to hold back the progression of the concerned company, a few of which are of such potential that can be the root cause for even the downfall of the concerned. For instance, owing to the high rate of worker turnover, the number of experienced employeesreduces in a notable amount which gives rise to lack of loyalty and reliability issues within the workforce (KRØTEL, & VILLADSEN, 2015).
Further, it has been noted in the employee turnover assignment study that the added risk of incompetency of the organization of handling and training the newappointees would also be prominent (Pereira, Malik, & Sharma, 2015). For instance, an experienced employee who has been associated with a company for more than 10 years would be able to acknowledge various aspects in which the organization prefers to work. Such well-experienced employees would also be cautious about mitigating probable issues before hand before it lays a pessimistic impact over subordinates. Now, if the employee exits the organization within a few years of joining, there would be a created gap in which the organization may lack the number of competent employees that can train the new employees. As a result, an employee who would be 2 to 3 years experienced shall be delegated the responsibility of training and development of the new workers which can be thus expected not be deciphering the best results (Holston Okae, 2018).
In the recent times, as per the words of Jeetesh, (2015), it is noted in the employee turnover assignment that the monotonous and less challenging work genres generally and evidently reduces the degree of motivation and willingness and also increases the boringness in the said type of work. This may be reasoned as one of the factors that are responsible for affecting the employee turnover in a company. Further, opting for better employee retention can be affirmed as the, one of the many, best possible ways out for the emerging problem in the hospitality industry within Australia (Holston-Okae, & Mushi, 2018).
2. Aim and objectives
The prime aim of the employee turnover assignment study may be summarized as to investigate and explore the attributes that are responsible for the high turnover of employees in the hospitality sector within Australia.
The drafted objective for the purpose of achieving the said aim of this employee turnover assignment study can be enumerated as follows:
- To inspect the acumen in accordance to employee turnover in a viewpoint of Human Resource.
- To develop a research that may assist to draft a strategic approach towards retaining employees
- To explore the probable solutions that may permit a development and retention of the employees.
What are the possible research questions developed within the study of employee turnover assignment?
The research question for this study have been developed aligning with the aims and objectives of the concerned and are stated as follows:
- What are the acumens in accordance to employee turnover in a viewpoint of Human Resource?
- How can a research be developed that may assist to draft a strategic approach towards retaining employees?
- What are the probable solutions that may permit a development and retention of the employees?
Scope of the study
Scope of the employee turnover assignment study refers to as the range and reachability of the study in regard to the research topic focusing on gaining knowledge about the same. Within a study, a few ambits of a given topic, generally, aimed to be addressed which is affirmed as included scope and the part or aspects related to the topic that are not addressed by the study is considered to be the excluded scope of the same.
The included scope of this employee turnover assignment study can be affirmed as owing to the contribution of this study, the reader can inevitably able to acknowledge and investigate the various attributes that are related to and also can be referred to as the root causes that resulted as deciphering high employee turnover in the hospitality sector in Australia. Further, after identification of the acumens of the concerned problem in the hospitality industry, the study shall deliberately focus exploring the factors that can add on to the eradication of the emerged issue (Kadiresan et al., 2016). This would allow the reader to gain a holistic knowledge about affecting key factors which requires attention so as to solve the prevailing issue. In addition to this, enumerating the various ambits of employee retention the study shall help the readers to comprehend and understand the probable solutions that may lower the rate of employee retention in the said sector (Cloutier et al., 2015). Owing to the credibility of this employee turnover assignment study, the same deciphers the potential to provide and enlighten the reader in lieu of the various factors that may enhance the strategies of employee retention which can be applied not only within the hospitality sector but also any other sector that depicts a similar issue.
The excluded scope of the employee turnover assignment study can be affirmed to be that it only focuses on employee turnover and held the same as an important aspect of the business, thereby neglects the other vivid aspects that can variable impact on the business process. The reason and acumen that would be identified in the due course of the employee turnover assignment study may also be mitigated or rather met and fulfilled by a few diverse methods overflowing the scope of employee turnover and retention, which has also been excluded.
Justification of the study
Herein in Australian hospitality sector, the attributes and emerging problem that can be prominently comprehended is that the rate of employee turnover is high which indirectly affects the said industry. In light of a survey that has been conducted by Australian Human Resource Institute (AHRI) in this context of employee turnover assignment, this has been identified that as much as 57 percent millennial born, left their jobs every single year. As much as 67 percent of the employers within the hospitality sector have reported an increased rate of worker turnover in that last five years. Though as per the Australian and New Zealand Standard Industrial Classification(ANZSIC), the employment within accommodation sector has been expected to be 114,700 and alike in the food and beverage genre has been projected to be 970,000 by the year 2023, but in contrary to the same, currently 1.8 million individuals in Australia within the hospitality sector are searching for new employment (National Industry Insights Report, 2018).
Figure 1: Employment projection of hospitality sector in Australia
(Source: National Industry Insights Report, 2018)
The high employee turnover rate may be evidently reasoned as owing to the dissatisfaction of the employees, especially the employees belonging to the lower strata of the said arena of business. The growing rate of dissatisfaction of the employees discussed in this employee turnover assignment refers to the difference of opinions, workplace bullying, displeasure and boredom that are experienced by the workers in accordance with the line managers and supervisors (Anitha, 2016). In addition to this, as observed in many facets of the hospitality industry, the lag in career development and enhanced working conditions of undesirable genre within the provinces of Australia can be affirmed as the leading aspects that collectively outcomes as high rate of staff turnover (Sei Chan, & Lin Dar, 2014). Further, the retention strategies are not adequate along with poor structured opportunities for training and development of the workers has also been enumerated as the major factors for retarding the said ambits.
Potential Output of the study
The potential output of this employee turnover assignment study may be ideally summarised as owing to the various components and streams that are focus within the study strives to provide a complete understanding regarding the ingredients that sums up to offer a concise knowledge about the research topic of high employee turnover in Australian hospitality sector. Due to the holistic approach of collecting the requisite data that have been obtained to achieve the aims and objectives of the respective study of employee turnover assignment; further striving to identify the valid solution of the emerged problems, the reader may be able to not know only a few facets of the problem as because of the wide scope.
Figure 2: Conceptual Framework
(Source: Created by Author)
3.1 Literature Synopsis
This study of employee turnover assignment shall include a detailed review of literature that may enable to peek in and culminate within the deep arenas of the research topic. Further, aligning the section of literature review with the research objectives and aims, the various causative factors of employee turnover in Australia within the sector of hospitality may be separately analysed and investigated. Selecting the sources of secondary data requires performing cautiously as owing to the extended range of the studies that are conducted by the same. Keeping the mentioned in mind, only those data have been extracted that are exclusively adhering to the topic of this research. The secondary data needed for reviewing the literature in accordance with the concerned argument, relevant articles, reports, journals, books, interviews, previously completed surveys and other publisheddocuments has been included from reliable sources such as CQU library (campus and online), Google Scholar and other online and offline sources.
3.2 Data series and Surveys
Methodology of the employee turnover assignment study can be affirmed as the particulartheoretical representation of the practical procedural aspects in which the research within the study would be carried out with the specific target of achieving the aims and objectives of the study. In simpler words the said concept concentrates, determines and states the method of identification, selection of the adequate techniques, analysis and processing of the data that has been collected so as to steer the study in an implied perception to ensure the holisticity of the entire work. The methodology of a study of employee turnover assignment includes quite a number of attributes that helps to align the study in a path that ensures the increase of credibility of the same. The few attributes that are necessary for this study are namely, research design, research approach, research philosophy, research strategy, population and sampling techniques, data collection methods and ethical considerations (Grotto et al., 2017).
Research Philosophy indicates the belief and perception, opting for which the collection of data and further research would be carried out. This is basically the former perception of the researcher that needed to be adapted, owing to the nature of collection of the data and performing the analysis of the same. Herein, this study of employee turnover assignment strives to use primary method of data collection and therefore, keeping the same in mind the best suited philosophy would be positivism and realism, as the former seeks to reach the other end of the result facilitating the various scientific verifications (most preferred) like experimental and statistical documents and figures. While the latter suggests building a perception that strives to judge the obtained data in lieu of present reality (Silverman, (2016).
Within the concerned research, data would be collected with the help of primary method of data collection for which exploratory research design may be considered to be the ideal one as with the help of the same, a view can be vividly obtained that would be subjective genre (Walliman, 2017). The approach of the concerned study herein would be deductive research approach as through the facilitation of the said an entire coverage regarding the spectral ambits of the topic would be obtained. This brings us to the subsequent factor of the methodology chapter which focuses on narrating the research strategy of this study of employee turnover assignment. The research strategy in simplified terms may be considered to be constructive arrangement that outlines a clear path of extracting the implied findings in accordance with the topic of the research and the same herein is the primary method of data collection.
There are two probable approaches of data collection and the same are primary method of data collection and secondary method of data collection. The secondary method of collecting data (thematic analysis and hypothesis development) focuses on extracting data, depending on previously conducted study or published documents that are relatable to the present study. On the other hand, the study of employee turnover assignment used primary method of data gathering which may be defined as a type of data collection that concentrates on exploring the topic of research depending on interactive measures. The said method may be categorised into two distinct categories namely, quantitative method (e.g. surveys) and qualitative methods (e.g. interviews) (Sutton, & Austin, 2015). Herein, the primary method of data collection has been opted for owing to the nature of the problem indicated by the topic of the concerned research. Within the primary method both quantitative methods and qualitative methods have been comprehended as the same would allow gaining a more accurate outcome for fulfilling the objectives of the study herein.
Further, for conducting the survey a total of 100 individuals, in which 20 employees would be surveyed from 5 hospitality facilitating organizations such as hotels, restaurants and similar others. In addition to this, it has been noted in this employee turnover assignment that among the selected 5 organizations, 3 companies would be high end organization, preferable MNCs, while 1 fated to be large organization of domestic genre and the remaining 1 may be affirmed to be a small and medium sized enterprises. For the purpose of completing the qualitative research, 10 individuals of executive rank would be interviewed abiding the stated organization selection procedure. The sampling technique that requires to be used would be probability sampling technique.
Organization of the study
The introduction of the study of employee turnover assignment strives to lay down the prima facie understanding that can be obtained by the research topic. Problem statement in this study refers to the problem that can be identified comprehending the topic herein. This basically reflects the origin and factors responsible behind the occurrence of the emerging problem in the hospitality industry. Further, aims and objectives of the employee turnover assignment affirms the immediate target and path that may lead to obtain the answers to drafted question in the ‘research questions’ section. Next the methodology section in this research identifies and states the line of progression, the attitude and perception and other aspects that would be undertaken to ensure the holistic and ideal nature of the study and avoid any possible biasness.
Project budget and schedule
Gantt chart: Timeline
In the light of the above discussion, this may be inferred that the employee turnover may be considered as one of the major factors influencing the distinct business processes in the sector of hospitality. This study of employee turnover assignment concentrates on the various implied attributes that can be affirmed as the directive reasons that act as a catalyst influencing the employee turnover in Australia within the said sector. Further, this research strives and holistically identifies the various negative factors in accordance with employee retention that potentially decipher an outcome of high employee turnover. In addition to this, affirming the diverse valid solutions that may vividly mitigate the negative aspects impacting on retention of the employees embedded in the hospitality industry.
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