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EMPLOYEE ATTRITION IN THE HOSPITALITY INDUSTRY: A

STUDY ON DIFFERENT HOTEL CATEGORIES IN GOA

A dissertation submitted for the award of M.Com Degree

By

HAZEL FERNANDES

Post Graduate Department of Commerce


S .S Dempo College of Commerce and Economics
Altinho-Goa.

Batch: 2014-15

DECLARATION

I declare that the dissertation work entitled Employee Attrition In The Hospitality
Industry: A Study On Different Hotel Categories In Goa is a record of independent
record work carried out by me under the supervision and guidance of Assistant
Professor Mrs. Vanshika Shirodker . This has not been previously submitted to the
degree, diploma or any other title.

CERTIFICATE
I certify that this declaration entitled Employee Attrition In The Hospitality
Industry: A Study On Different Hotel Categories In Goa submitted to S.S Dempo
College of Commerce & Economics, Panaji for the award of MCom Degree is a
record of Independent Research work carried out by Miss Hazel Fernandes under
my guidance. This has not been submitted to the award of any degree, diploma or
any other title

Vanshika Shirodker
Panaji-Goa
Date:

ACKNOWLEGEMENT
First and foremost I offer my sincerest gratitude to my Almighty and next I would
like to thank my dissertation supervisor Mrs. Vanshika Shirodker, who provided me
assistance and advice on this dissertation. I would like to thank my librarian as well
my Principal.
I am very grateful to our Vice Principal Dr. Harip Khanapuri, for his support and
constant guidance in helping me complete my project.
Last but not the least, I want to thank my Parents for their constant support and
encouragement without whom it was impossible for me to complete my
presentation & to my friends who helped and supported me throughout this process.

TABLE OF CONTENTS

Sr. No

Particulars

Page Nos

ABSTRACT

The hotel industry of Goa has been evolving since a long time. The competition in the industry is
fierce and every brand is putting their best foot forward by providing Service par Excellence to
their guests to increase their market share. The hotel industry is a part of the Service industry and
is characterized by the intangible nature of its product i.e. Service. Unlike the tangible products
produced by other industries, the quality of Service cannot be standardized through machines
because there is a Human factor that is involved in producing & consuming of service. Thus, in
the hotel industry the human element is of utmost importance.
The industry aims at channelizing their human resources towards the attainment of their objectives
and the major challenge faced by the industry today, is the raising attrition rate of its employees.
Attrition is a critical issue and pretty high in the industry these days. Its the major problem which
highlights in most of these service organizations.
This study is aimed at analysing the facts pertaining to the issue of increasing attrition rate in the 3
star and 5 star hotels of Goa and studying the difference in attrition rates between the two types of
hotels. In an effort to do so, a survey in the form of a questionnaire and direct interviews was
conducted from the sample comprising of 60 employees from the random 3 star and five star
hotels in Goa to understand their views on the subject. The reponses received were presented
graphically and analysed using Man Whitney test and Fishers test.
The finding of this research suggest that low pay and salary advancement are the major factors
contributing to the high attrition rate in hotels, which in turn has a great impact on the reputation
of the hotel; and also that the average tenure of employees in the hotels of Goa is found to be less
than a year .

CHAPTER 1: INTRODUCTION

1.1 The Hospitality Industry


The hospitality industry is much broader than most other industries. The majority of business
niches are composed of only a handful of different businesses, but this industry applies to nearly
any company that is focused on customer satisfaction and meeting leisurely needs rather than
basic ones. The hospitality industry is a service industry that includes lodging, event planning,
theme parks, transportation, cruise line, and additional fields within the tourism industry. It is a
multi-billion dollar industry that depends on the availability of leisure time and disposable
income. One of the most defining aspects of this industry is that it focuses on customer
satisfaction. While this is true of nearly every business, this industry relies entirely on customers
being happy. This is because these businesses are based on providing luxury services. Very few
hospitality businesses provide a basic service that people need, like food or clothing.

1.1.2 Goa and Its Hospitality Sector


Goa as a holiday destination and needs no introduction. From families, friends, honeymooners to
individuals and groups, Goa has something for everyone. Goa's acclaimed hotel industry with the
warmest of Goan hospitality makes it a popular conference venue too. It has a mixture of the sun,
surf and sandy beaches; It is the only holiday destination in India with beautiful beaches & also
backwaters has all that an international tourist is looking for. Goa with its spectacular beaches
with picturesque sunsets & sunrise makes it the most preferred holiday destination. Goa, as it is
called Paradise on Earth, attracts large number of tourist from different parts of the globe.
Goa as a destination has some of the best quality resorts and hotels, any destination in India can
offer, due to the high end quality accommodation required by the international & domestic tourists
arriving in Goa an array of nice & clean accommodation in Goa is available. Tourism has brought
a positive impact on Goa in many ways like financial contributions with regard to this it has been
one of the largest contributors to the exchequer. Goas economy receives a major boost from the
tourist industry. Goa, a tourist paradise for both domestic and foreign tourists, it attracts tourists in
thousands.

1.1.3 How is a 3 star hotel different from a 5 star hotel ?

Three Star
Typically these hotels offer more spacious accommodations that include well appointed rooms and
decorated lobbies. Bellhop service is usually not available. They are often located near major
expressways or business areas, convenient to shopping and moderate to high priced attractions.
The hotels usually feature medium-sized restaurants that typically offer service breakfast through
dinner. Room service availability may vary. Valet parking, fitness centers and pools are often
provided.

Five Star
These are hotels that offer only the highest level of accommodations and services. The properties
offer a high degree of personal service. Although most five star hotels are large properties,
sometimes the small independent (non-chain) property offers an elegant intimacy that can not be
achieved in the larger setting. The hotel locations can vary from the very exclusive locations of a
suburban area, to the heart of downtown. The hotel lobbies are sumptuous, the rooms complete
with stylish furnishing and quality linens. The amenities often include: VCRs, CD stereos, garden
tubs or Jacuzzis, in-room video library, heated pools and more. The hotels feature up to three
restaurants all with exquisite menus. Room service is usually available 24 hours a day. Fitness
Centres and valet and/or garage parking are typically available. A concierge is also available to
assist you.

1.1.4 : Introduction on Employee Attrition

1.1.4.1 Attrition
Attrition may refer to the gradual reduction of the size of a workforce by not replacing personnel
lost through retirement or resignation, though the term ATTRITION is common, many would be
at a loss to define what actually Attrition is, Attrition is said to be the gradual reduction in the
number of employees through retirement, resignation or death. It can also be said as Employee
Turnover or Employee Defection Whenever a well-trained and well-adapted employee leaves the
organization, it creates a vacuum. So, the organization loses key skills, knowledge and business
relationships. Modern managers and personnel administrators are greatly interested in reducing
Attrition in the organization, in such a way that it will contribute to the maximum effectiveness,
growth, and progress of the organization. Retaining employees is a critical and on-going effort.
One of the biggest challenges in having managers in the place that understands it is their
responsibility to create and sustain an environment that fosters retention. Staffs require
reinforcement, direction and recognition to grow and remain satisfied in their positions. Managers
must recognize this and understand that establishing such fundamentals demonstrates their
objectives to support nature and motivate their employees

1.1.4.2. Attrition In The Hospitality Industry


The hospitality industry is by putting the employee first. The rationale may not be very obvious,
but it is certainly compelling. Satisfied employees lead to satisfied customers, the only kind we
can afford to have in a service business like ours. Hospitality is derived from the word "hospice",
having a Latin root in "hospitium's, meaning a philosophy or a style of care. It implies a personal
experience delivered by a human being. An architecturally perfect hotel building doesn't form a
part of fond memories of a guest as does a memorable direct experience he had involving a hotel
employee.
Worldwide researches have suggested that employee turnover is among the highest in the
hospitality industry. Studies have shown that the average turnover level among non-management
hotel employees in the US is about 50%, and about 25% for management staff. Estimates of

Average annual employee turnover range from around 60 to 300 percent, according to research
conducted by the American Hotel and Motel Association. Retention experts say hotels spend

thousands every year for each new employee they must train to replace a seasoned worker who
leaves. It is no longer a startling fact that the cost of losing an employee is between half and oneand-a-half times their annual salary!
The efforts to understand the reasons and motivations behind the decision for a job change - from
one hotel to another or from the industry to another sector highlight a well-known reality: that
people are inherently driven to maximize benefits or satisfaction, and that they assume a lifetime
perspective when making choices concerning job changes. The expected benefits or utility for the
employee comes in the form of higher future earnings, increased job satisfaction and enrichment
over one's lifetime and a greater appreciation of his personal interests.
There are studies that support the fact that employees leave an organization for many reasons, but
two common causes are the quality of the selection system and the quality of leadership. It a wellknown fact that the overwhelming majority of people who leave any hotel leave because of the
way they is treated every day. Lack of appreciation, lack of teamwork and the perception that the
company doesn't care about employees are consistently the highest-rated reasons for low job
satisfaction. Once employed, a fifty percent chance exists that any given hotel employee will
leave his job within one year.

1.1.4.3 The High Attrition rate of Employees in the Hospitality Industry In Goa
The hospitality industry in Goa is facing high attrition rate. As the attrition rate of hospitality
industry for the year 2008-09 was 40%. Ever since then it has been growing on a large scale,
There are many reasons behind this but one of the crucial factors involved in this is that many
people are less willing to make compromises on a personal front to establish themselves in this
profession, when more attractive options beckon from outside the industry. Interesting is the fact
that 60-70% of graduates decide to go into banking, insurance, and the customer care industry.
Helmut Meckel burg, General Manager and Area Director - Goa, Taj Group of Hotels, is of the
opinion that once people have understood the needs and demands of their particular job, their
cultural learning and intellectual stimulation comes to an end quite quickly, causing people to lose
interest in their job and look elsewhere. Moreover, the knowledge that people are being paid less

than what they might in another industry, for a comparable position, adds to this sense of
frustration. Also, according to Mr Meckel burg, the management style and HR practices that are

used to stimulate, communicate, recognize, reward and incentives personnel have, in many
instances, not moved with the times.

1.1.5 Kinds of Attrition


Voluntary attrition- Voluntary attrition takes place when the employee leave the organization by
their own will. Pull factors like higher emoluments elsewhere, better opportunities of growth and
promotion etc are responsible for this kind of attrition.
Involuntary attrition- Involuntary attrition takes place when the employees leave the
organizations due to some negative forces or push factors like faulty promotion policy, biased
performance appraisal etc.
Compulsory attrition- It takes place due to the rules and regulations of the government and that
of the organization as well. It includes attrition taking place due to attaining the age of retirement,
completion of tenure etc.
Natural attrition- It takes place due to the causes and factors that are beyond the control of the
individual and organization as well. These factors may include end of life, insanity etc.

1.1.6 Reasons behind attrition


A reduction in the number of employees through retirement, resignation or death as a cause of
which it is highly essential to identify the reasons behind attrition and to find the answer to this
essential question, as toWhy employees are leaving the organization. There are a number of
reasons for employees leaving the organization. Well, the most obvious reason for employees
leaving any organization is higher pay. The main problem is that employees are moved from one
location to another location along with their family. But this problem is taken care of by a salary
hike which may be around 20%-35% per annum.

Work timings: In some organizations, work timings are such that they are making employees
leave the organization.

Career growth: In many organizations, only 20% of employees are able to go to senior levels.
This means that the remaining 80%of employees look for other organization where they can get
opportunities for growth.
Higher education: These days, in many organizations, employees are joining at very young age
because of lucrative salaries being offered. But with time, they apply for higher education and try
to move on to other organizations or sectors to occupy top management positions.
Other factors
These include accident making the worker permanently incapable of doing work, dislike for the
job or place, unsatisfactory work conditions leading to strained work relationships with the
employer; lack of security of employment also contribute for higher attrition rate. Thus we can
say, employees leave organizations for a range of reason. A Fortune magazine survey some years
ago found that nearly 75 per cent of employees have suffered at the hands of difficult superiors.
Most employees leave their work for reasons other than money - and any organization can correct
these reasons. Most leaving employees seek opportunities that allow them to use and develop their
skills. Leaving employees want more meaning in their work. They often indicate that they want to
use their qualities and skills in challenging teamwork led by capable leaders.
A range of reasons are, selection of the wrong job , lack of proper induction / orientation, creates
frustration, lack of future scope, lack of promotion opportunity, poor perception / relation with
boss, lack of career planning, poor implementation of performance appraisal, lack of performance
management system, lack of pay for performance, travel hazard, prefer close to home, high
expectation of the employee, prefer self employment, a flat organization, hence limited scope for
progress, lack of proper induction / orientation, creates frustration, monetary factors ,lack of good
working conditions, no flexible work schedules, lack of respect, very few supportive colleagues,
organization is more concern towards business, employee needs pride in where they work & what
they do, lack of appreciation, lack of challenge in job, job or workplace was not as expected,
mismatch between job and person, little coaching and feedback, lack of support, stress from
overwork and work-life imbalance, loss of trust and confidence in senior leaders, less frequency in
giving rewards.

The hospitality industry is seeing a surge in the northern region especially in East Delhi, NCR
with all major groups setting their foot here. Commonwealth Games 2010 alone had created job

opportunities for nearly 50,000 skilled professionals, as about 70 hotels were likely to be
commissioned in the next three years, assuming that each hotel will need about a 600-strong
regular workforce. This provides for greener opportunities to the employees working currently in
the hotel industry and avails them with more option to switch jobs if need arises. But rising
attrition rates are posing a major threat to the hotel groups. Even though there has been an
increase of over 15-20 per cent in packages being offered to the youngsters here, they seem to
taste foreign waters for more lucrative opportunities. Countries like the US, UK, Canada, Dubai,
Australia etc are being explored by the aspiring youth to start a career in hospitality industry.

1.1.7. Benefits as a remedy to avoid attrition


Nowadays, the companies need to compete fiercely with other competitors. The employees are the
vital resources of the success of the companies so the companies need to provide more benefits for
retaining the good performance of employees. Besides, in order to reduce the attrition rate of the
companies and save the amount of cost of the recruitment, the employers offer the various
compensations for the employees.
The benefits have two types, the financial benefits and non-financial benefits. The financial
benefits divide into direct and indirect benefits. The direct benefits are wages, salaries,
commissions and bonuses. The indirect benefits include social security, family and medical leave
and so on. The non-financial benefits comprise working conditions, flexible working time and the
appropriate status symbols. If the employees receive the financial benefits from the employers,
they will have a sense of belonging of to the industry and have a good cooperation with the
employers. Moreover, providing the benefits for the employees can increase the productivity of
the firm because the employees can work more efficiency and efficient.
However, the human have different expectations in the life so the financial benefits can not satisfy
their whole expectations. The company needs to provide non-financial benefits to satisfy the
employees needs. For examples, if the companies cater the comfortable and harmonious
environment for the employees, the employees will have well morale and concentrate on the
work.

Financial benefits

The financial benefits can be divided into two major categories:


Direct financial compensation and indirect financial compensation.

Direct financial compensation: the financial rewards are paid directly to the employees,
such as wages, salaries, commissions and bonuses.

Indirect financial compensation : the indirect financial compensation can be divided into
two parts: Legally required benefits and voluntary benefits. These benefits are not paid
directly to the employees.
o The Legally Required Benefits includes social security, unemployment compensation
and workers compensation. Social Security generally includes retirement benefit,
disability insurance, Medicare etc. Unemployment Compensation is paid when the
employee is laid off by the company. Workers Compensation is paid when the jobrelated accidents or illness was happened.
o The Voluntary Benefits are paid indirectly to the employees and not tied to an
employees performance. The following are some voluntary benefits the companies
always provide: Payment for Time Not Worked is provided payment to the employees
for time not worked. For example, the companies can provide vacations to employees
when the employees dont need to work. Also the companies can provide payment for
jury duty, voting time and bereavement time. Health Benefits includes health care,
dental and vision care. Employee Services includes relocation benefits, child care
service, educational assistance, Food service, financial services, discount on company
products etc. These benefits are specially offered to some companies employees only.
Premium Pay is paid to the employees when they work under extremely dangerous
conditions or undesirable hours. Benefits for part-time employees are paid to the parttime employees in order to remain their working desire. Moreover, the Voluntary
Benefits also include life insurance, retirement plans, employee stock option plans,
supplemental unemployment benefits etc.

Non-financial benefits

The Job Sometimes, the job may give the employees more intangible benefits. When the
employees work in companies, they will feel their job is worthwhile. For example,
employees can learn more useful knowledge and skills. They can improve themselves
when they are working. The job can satisfy the employees desire. The job seems give
them more intangible benefits than wages.

Job Environment If employees work in satisfied job environments, they will feel valued
and work hard. Sometimes, the job environments are more important than direct financial
benefits such as wages and salaries. If employees work in comfortable environments, they
can work more happily. For example, employees always prefer working in a safe
environment to work in a dangerous environment because the safety is more important
than the number of money

The determinants of those benefits.


Not matter financial benefits or non-financial benefits, all the employees would feel appreciate if
the employers provide more and more. However, every employee has their own decision, if they
can choose the benefits they want. It doesnt matter how good the proposed benefit is. The main
purpose of a benefit program is to make the employee feel better about the company, which they
will do only if they value whatever it is employers are giving to them. So, the employees need is
the main determinants of the benefits.
Therefore, all the employees have their own needs. In order to maximize the utility of benefits, the
employers should ask the employees what they want. Or the employers can found a compensation
consultant to do a survey for them.

1.2 Statement of problem

Human Resource is an area that is growing in importance. As the industry continues to recover, it
needs to focus on its employees and their roles as service providers. Increasing demand requires
increased staffing levels at a time when the labour pool is shrinking. By the very nature tourism is
a service industry its efficient management and successful operation depends upon the quality of
manpower. In India the shortage of skilled manpower poses a major threat to overall development
of tourism and hospitality industry. Like the all other industries Tourism and Hospitality industry
also facing the problem of talent crunch and high attrition rate. This paper discusses the level of
attrition and reasons behind the high attrition rate in the tourism industry in Goa on the basis of a
survey conducted among the employees of various five star and three star hotels in Goa.

1.3 Objectives of the study


1. To identify the key factors that influences attrition in hotels and to analyse the level of
their influence
2. To identify the age group in which high attrition is found among the employees
3. To study the attrition count in the different categories of hotels

1.4 Testing Of Hypothesis


HO: The age factor has no impact on the attrition of employees in the hospitality industry.
HO: Salary has no impact on the attrition of an employee
HO: Commission and bonus has no impact on the attrition of an employee

HO: The company securities like retirement benefits, disability insurance and Medicare has no
impact on the attrition of the employees.
HO: The accidents that are compensated on the job has no impact on the attrition of employees

HO: The cafeteria food has no impact on the attrition of employees


HO: The company environment has no impact on the attrition of the employee
HO: The knowledge and skills provided to employees on the job has no impact on the attrition of
the employees.
HO: Company career development and advancement opportunities has no impact on the attrition
of employees
HO: The flexible working hours of the company has no impact on the attrition of employees.

LIMITATIONS
Due to limited time and finance, this study is limited to only 3 five star and 3 three star hotels in
and around Panjim and hence may not accurately represent all hotels in the industry.
Due to limited time and finance, this study is limited to only 60 employees of the hospitality
industry, 30 respondents from the 3 star hotels and 30 respondents from the 5 star hotels in Goa,
and may not equally represent all employees in the industry accurately.
To suggest the future implementation this study can be repeated by including more employees as
respondents with more categories of hotels in order to have a large sample size.

CHAPTER 2: REVIEW OF LITERATURE


Denvir and McMahon (1992) defines labour turnover as the movement of people into and out of
employment within an organization

Deery & Shaw, (1997) Lashley & Chaplain, (1999) said that High staff turnover in hotels is a
major factor that affects the workplace efficiency, productivity and hotel cost structure.
Louis (1980) states that attrition mainly takes place when new employees compare their actual
experiences with their past work experiences. The past work experience play a significant role in
taking decision to quit the current job in case the new workers expectations are not met.
Griffeth et al. (2000) concludes that pay and pay-related variables have a significant effect on
employee turnover.
Rabinder Singh Bedi, president, Hotel & Restaurant Association (Western India), article on
Business Standard, Feb (2009) the Attrition Rate of the tourism and hospitality industry in India
was estimated at around 30 per cent, as opposed to 40-45 per cent in other established markets
like Singapore .
The Economic Times Oct 3 (2010) As per a study conducted on high attrition by an industry
chamber located in New Delhi revealed that the attrition rate in the hospitality industry in India
was set to double to nearly 50 per cent by 2010.
Mukta Kamplikar, (2011) explored the business model and the relevance of the service concept in
the Indian context and consumer behaviour, the marketing strategy, and communication strategy
of Ginger Hotels. Challenges such as the use of outsourcing, learning and development, and
attrition were also discussed.
Mr T. Natarajan, (2011) Secretary, South India Hotels and Restaurants Association and also CEO
of the Chennai-headquartered GRT Hotels and Resorts,( in an article) says more than getting
skilled manpower, employee retention has become a bigger challenge now. People are prepared
to hop to another hotel just for a couple of thousands of rupees more, without considering their
career growth prospects and opportunities the current employer offers in the long run.

Sunil Panwar, (2012) examined the reasons, why the employees are not able to cope up with the
industry environment. A survey was conducted of different hotel employees and observed that
most of the employees want to be work in other Service oriented industries such as Airlines,
Tourism, Retail and Financial services. Monetary Compensation and long working hours are the

two areas of dissatisfaction for the hotel employees. This study recommends few points for the
Hotel Industry to retain its employees.

CHAPTER 3: Design of the Study


3.1 Study methodology

This study identifies the attrition rate of employees in the various categories of hotels in Goa. The
present study has been conducted among the employee of the 3 star and 5 star hotels of Goa.
These respondents have been chosen for the study randomly. This study will be helpful in
studying the attrition of employees in the hospitality sector with regards to 3 star and 5 star hotels.
For the purpose of the given study primary as well as secondary data has been used. The
Secondary data has been collected from various books, journals, published research papers,
websites etc.
The primary data was collected by means of a questionnaire which was drafted and circulated to
the hotel employees of 3 star and 5 star hotels of Goa with a view to obtain their response. The
questionnaire contained a total of 11 items. The data collected was mainly primary in nature.
For this purpose questionnaires were used as data collection tool. Respondents were selected on
the basis of the employees of 3 hotels of 3 star and 5 hotels of 5 star consisting of 60 respondents
as total sample size. Then, collected data was analyzed using SPSS 21.0
3.2 Sources of data
Primary as well as secondary data was used in this study.
With the purpose of answering the research questions in this dissertation, the Primary data was
mainly used. Data collection was a critical part of the research as this was the core of the
findings. Additionally, using primary data allowed greater control on the collection of information.
3.2.a. Primary Data Collection
Primary data are the data that are collected for the specific research problem in hand, using
procedures that fit the research objective best. For this research, to analyze the employee attrition
in the hospitality industry of goa pertaining to 3 star and 5 star hotels the primary data was
collected through surveys. The survey was done with 60 employees that includes 30 from the 3
star and 30 from the 5 star hotels of Goa. The data collected in excel was exported to SPSS for
data analysis. Then descriptive statistics like graph, pie chart were prepared according to the data

collected. The results of the statistical analysis helped in the testing of the hypotheses of this
research and also in answering the research questions and meets the research objectives of this
study.
3.2. Secondary Data Collection

Data was collected from various journals and magazines.


3.3 SAMPLING PLAN
The data required for the research was collected using the following techniques:

Personal Interviews:

A personal interviews was conducted with the employees & the

Human Recourse Managers of various hotels to understand their perception towards the
increasing attrition rate in the industry which is included in the suggestions.

Sampling Techniques: A random sample of 60 employees representing various categories


of the Hotel industry of Goa from the 3 star and 5 star was selected to conduct this study.

The Sample: In the present study, convenience sampling method has been used. The
questionnaire has been administered on 60 respondents in the hospitality industry.

Tools for Data Analysis: Man Whitey Test, Fishers Test and Cross Tabulation. The data
was analyzed with the help of Statistical Package. The level of significance is taken as
0.05

CHAPTER 4- RESULTS AND FINDINGS


Why does employee join the hospitality industry?

18
16
14
12
10
8
6
4
2
0

The above table shows that % Convert to % 35/60*100 same for the others...join
the hospitality industry because of a friends referral, followed by .% because of
career advancement opportunitiesfiil the remaining like that
People do not join this industry because of salary and benefits.
How many employees leave the hotels:

What are the main reasons behind attrition of employees in the hospitality
industry?

other reasons
better job opportunity
company instability
family and personal reasons
conflict with managers
conflict with employees
no job benefits
lower pay
0

10

12

14

16

18

In the above bar graph, by using excel, the main reasons behind employee attrition is better job
opportunity that is 16% followed by lower pay that is 15 % out of the 40 respondents. Explain
each %

What is the average tenure of an employees work life?

1 3
9

1-6months
6months-1year
2years -5years
5years and above
29

wrong %
In the above pie chart, it has been seen that most of the employees.......% work only for 6months
to 1 year in a hotel. ......% work for 2-5 years. ..........% shift within 6 months but only a small
percentage of employees i.e. around .......% have worked for more than 5 years in one hotel.

Which age group has the highest attrition count?


40
30
20
10
0
18-25

26-35

36-45

above 45

In the above table it shows that, most of the employees from the age group of 26-35 years leave
the hotel i.e. ..% followed by .% from the age group of 18-25 years. Only .%
leave from the age group of 36-45 but none aged above 45years.

FREQUENCY OF HOTELS LEFT


Hotels left

Valid

none
1-2
3-4
Total

Frequency

Percent

Valid Percent

22
37
1
60

36.7
61.7
1.7
100.0

36.7
61.7
1.7
100.0

Cumulative
Percent
36.7
98.3
100.0

The above table shows how frequently an employee leaves a hotel. By using frequency test in
SPSS it has been seen that 61.7% of employees have left about 1-2 hotels in their career where as
only 1.7% of employees switch jobs very often.

Findings of the set hypothesis are:


HO: The age factor has no impact on the attrition of employees in the hospitality
industry.
Age * reasons for leaving Cross tabulation Table 1.1
Count
Reasons leaving
lower
no
job family
and company
pay

Age
Total

18-25 6
26-35 6
36-45 5
17

Total
better

job

benefits

personal

instability

opportunity

1
5
0
6

reasons
0
1
0
1

0
0
1
1

5
10
1
16

12
22
7
41

Chi-Square Tests table 1.2


Value
a

Pearson Chi-Square
Likelihood Ratio
Fisher's Exact Test
Linear-by-Linear

12.203
12.410
10.244
.282b

Association
N of Valid Cases

41

df

Asymp. Sig. (2- Exact

8
8

sided)
.142
.134

.596

(2-sided)
.118
.134
.173
.626

Sig. Exact

Sig. Point

(1-sided)

Probability

.312

.027

As per the above table 1.1, it is observed that from the age group of 18-25, employees mainly
leave the job due lower pay, where as in the age group of 26-35 employees leave the job due to
better job opportunities, and from the age group of 36-45, employees leave the job due to lower
pay.

As per the table 1.2, the result of fishers test has been 0.173, which is more than the significance
level set. Hence it accepts the null hypothesis. Age has no impact on the attrition of employees in
the hospitality industry.

H1: There is no difference in the working condition while comparing a 3 star to a 5 star
hotel
Man whiney test
Hotel
type
3 Star
Happy with salary
5 Star
Total
3 Star
Commission allotted
5 Star
Total
3 Star
Provides with benefits
5 Star
Total
3 Star
Compensation in case of accidents
5 Star
Total
3 Star
Cafeteria offers good food
5 Star
Total
Company caters to comfortable and 3 Star
5 Star
harmonious environment
Total
Employees learn more knowledge and 3 Star
5 Star
skills
Total
3 Star
Company offers career development
5 Star
Total
3 Star
Job is flexible
5 Star
Total

Mean Rank Sum of Ranks

30
30
60
30
30
60
30
30
60
30
30
60
30
30
60
30
30
60
30
30
60
30
30
60
30

22.65
38.35

679.50
1150.50

32.37
28.63

971.00
859.00

22.00
39.00

660.00
1170.00

22.50
38.50

675.00
1155.00

26.60
34.40

798.00
1032.00

30.00
31.00

900.00
930.00

28.88
32.12

866.50
963.50

28.77
32.23

863.00
967.00

23.02

690.50

30
60

37.98

1139.50

Test Statisticsa
Happy with salary Commission Provides with Compensation in case of accidents
Mann-Whitney U
Wilcoxon W
Z
Asymp. Sig. (2-

214.500
679.500
-4.100
.000

allotted
394.000
859.000
-.890
.373

benefits
195.000
660.000
-4.485
.000

210.000
675.000
-4.067
.000

tailed)

Test Statisticsa
Cafeteria
offers

Mann-Whitney U
Wilcoxon W
Z
Asymp. Sig. (2-

Co

caters

good comfortable

to Employees
and learns

Company offers
more career

food

harmonious

knowledge and development

333.000
798.000
-1.998
.046

environment
435.000
900.000
-.308
.758

skills
401.500
866.500
-.906
.365

tailed)

Test Statisticsa
job is flexible

398.000
863.000
-.938
.348

Mann-Whitney U
Wilcoxon W
Z
Asymp. Sig. (2-tailed)

225.500
690.500
-3.577
.000

As per the above table, by using the Man Whitney test it states that Mean rank for employee
acceptance with salary of 3 star hotels is 22.65 while that of 5 star hotel is 38.35. This difference
is statistically significant at 1% level so we reject the null hypothesis.
Mean rank for commission and bonus provided to employees of 3 star hotel is 32.37 while that of
a 5 star hotel is 28.63. This difference is statistically insignificant at 0.37 hence we accept the null
Hypothesis
Mean rank for benefits provided to employees of 3 star hotels is 22.00 while that of a 5 star hotel
is 39.00. This difference is statistically significant at 1% level. hence we reject the null hypothesis
Mean rank for compensation provided at work due to accidents of 3 star hotels is 22.50 while that
of a 5 star hotel is 38.50. This difference is statistically significant at 1% level. hence we reject the
null hypothesis.
Mean rank for cafeteria food acceptance by employees of a 3 star hotel is 26.60 while that of a 5
star hotel is 34.40. This difference is statistically significant at 5% level. hence we reject the null
hypothesis.

Mean rank for comfortable and harmonious environment for 3star hotel is 30.00 while that of a
5star hotel is 31.00. This difference is statistically insignificant at 7.58, hence we accept the null
hypothesis.
Mean rank for employee gaining knowledge and skills at work of a 3 star is 28.88 while that of a
5star is 32.12. This difference is statistically insignificant at 0.36, hence we accept the null
hypothesis
Mean rank for employee career development and advancement for a 3 star hotel is 28.77 while
that of a 5 star is 32.23. This difference is statistically insignificant at 0.34 hence we accept the
null hypothesis

Mean rank for employee flexible working hours at a 3 star hotel is 23.02 while that of a 5 star
hotel is 37.98. This difference is statistically significant at 1% level. Hence we reject the null
hypothesis.

Make a conclusion.as a result how many leave and because of what probable
reason..compare the two types

CHAPTER 5:
SUGGESTIONS, CONCULSION AND RECOMMENDATIONS
Conclusions

The findings of the research can be concluded as under:


1. Increasing Attrition rate is a major concern of the Hotel industry of Goa.
2. There is a high rate of attrition in the age group of 26- 35
3. Majority of the employees have a tenure less than 1 year in the hotel
4. Out of the 100% of the responses about 61.7% stated that they have left about 1-2 hotels
in the past
5. The main purpose of taking up a job in the hotel industry was mainly due to career
advancement and being referred by a friend.
6. There is a high attrition rate in a 3 star hotel compared to a 5 star hotel.
7. Lower pay and better job opportunities are the most influential factors that affect attrition
rate in hotels.
8. It has been even found that the employees in the hotel industry in Goa mainly comprise of
Goans who join only for a short while for the purpose of gaining work experience to take
up a job abroad.

Suggestions & Recommendations


Based on the responses received by the employees by taking their interview and suggestions of the
hotel industry in Goa on the issues related to increasing attrition rate in hotels, the following
suggestions & recommendations are made:
It has been observed that the most important factors affecting attrition are higher pay & Better
job opportunities. The industry should concentrate on these areas and take measures to reduce
employee dissatisfaction of the above aspects.
Hotels should develop a more employee centric approach while designing their employment
policies with an aim towards holistic development of the employees.

Participation of employees should be encouraged in designing and implementing the employment


policies.
6Since the employees spend most of their time on the job, they should be provided with a
comfortable and stress free work environment.
The employees should heed to the suggestions made by their employees on their difficulties and
problems.
There should be flexible working hours

BIBLIOGRAPHY
Denvir, A. & McMahon, F. (1992) Labour Turnover in London Hotels and the Cost Effectiveness of
Preventative Measure, International Journal of Hospitality Management, Volume 11, No. 2, pp 143
Shaw, J.D., Gupta, N., &Delery, J.E., , Alternate conceptualizations of the relationship between
voluntary turnover and Organizational performance, Academy of management journal, Vol.48, pp. 50-68
154.
Louis, M.R. (1980), "Surprise and sense-making: what newcomers experience in entering unfamiliar
organizational settings", Administrative Science Quarterly, Vol. 25 No.2, pp.226-51.
Verson, R. D., & Deery, M. (1997). Turnover culture in the hospitality industry. Human Resource
Management Journal, 7(4),

http://in.hotels.com/customer_care/star_rating.html
Griffeth RW, Hom PW, Gaertner S (2000). "A meta-analysis of antecedents and correlates of employee
turnover: update, moderator tests, and research implications for the next millennium", J. Manage. 26 (3):
463-88.
(Business Standard, Feb 2009)The Attrition Rate of the tourism and hospitality industry in India
articles.economictimes.indiatimes.com/2010-10-03/news/27587450_1_attrition-rate-hospitality-hotelmanagement
Mukta Kamplikar, (2011Ginger Smart Basics, Emerald Emerging Markets Case Studies Collection.
Hotel industry grapples with high attrition, rising staff cost ,R. Ravikumar-This article was published on
April 22, 2011.
Sunil Panwar, (2012), High Staff Turn Over In Hotel Industry, Due To Low Remunerations and Extended
Working Hours !!!, VSRD-IJBMR, Vol. 2 (3), 2012, Pages: 81-89.
IOSR Journal Of Humanities And Social Science (IOSR-JHSS)

Appendix

S.S DEMPO COLLEGE OF COMMERCE AND ECONOMICS


Employee Attrition in The Hospitality Sector
I , Miss Hazel Fernandes student of S.S Dempo College of Commerce and Economics, Mcom part
II The prime motive of conducting this survey endeavour is strictly for academic purpose. The
Responses given by you will be of great importance and will help in arriving at logical
conclusions.
I hereby declare that the information provided by you will be kept completely confidential and
Shall be used only for research purpose.

I have prepared the employee based questionnaire on employee attrition in the hospitality sector
With reference to 3 star and 5 star hotels.
(Respondents will be employees working in the hospitality industry of 3star and 5 star properties

1. GENDER

Male
Female

2. AGE

18-25
26-35
36-45
Above 45

3. EXPERIENCE IN THE HOTEL INDUSTRY


0-1
2-5
6-10
ABOVE 10

4. DEPARTMENT
Housekeeping
Engineering
Front office
Accounting

Sales & marketing


Banquet sales
Human resource
Security

Laundry
Stores & receiving
Public relations
Food and beverage

5. JOB TENURE IN CURRENT HOTEL


1-6months
6months-1year
2years-5years
5years and above

6. REASONS WHY YOU JOINED THE HOTEL( TICK THE BEST OPTION THAT
APPLIES)
Unemployed and needed a

Career advancement

job
Referred by a friend
Fringe benefits
Company name (reputed as

Advertisement
Salary advancement
Other please specify

a good place)

7. HOW MANY HOTELS DID YOU LEAVE


None
1-2
3-4
More than 5

8. AVERAGE TENURE IN PREVIOUS HOTELS


1-6months
6 months-1 year
2years-5years
5years and above

9. WHAT ARE THE REASONS FOR LEAVING YOUR PREVIOUS HOTEL POST
Lower pay
No job benefits
Conflict
with
employees
Conflict with managers

other

Family and personal reasons


Company instability
Better job opportunity
Other please specify

10. How would you rate the following


SR

STRONGLY
FACTORS

NO
1

I am happy with the

salary that is offered to me


I have been allotted

commission and bonus


The company provides me

AGREE

STRONGLY
AGRE

NEUTRA

DISAGRE

with social securities like


retirement

benefits,

disability insurance and


medicare
In case of accidents on the

job I get compensated by


5

the company
The staff cafeteria offers

good food
The company caters to
the

comfortable

and

harmonious environment
for the employees
Employees can learn more

useful

knowledge

skills.
The
company

career

and
offers

development/

advancement
opportunities
Job has flexible working

hours
11.

What should the hotel do to reduce employee attrition ?

DISAGREE