European Journal of Economics, Finance and Administrative Sciences

ISSN 1450-2275 Issue 29 (2011)

© EuroJournals, Inc. 2011
http://www.eurojournals.com

An Empirical Study of Retention Issues in Hotel Industry:

A Case Study of Serena Hotel, Faisalabad, Pakistan

Aaisha Arbab Khan

Scholars, School of Management Studies, The University of Faisalabad, Faisalabad, Pakistan

Babak Mahmood
Assistant Professor, Department of Sociology, University of Sargodha, Pakistan

Mehvish Ayoub
Scholars, School of Management Studies, The University of Faisalabad, Faisalabad, Pakistan

Shabbir Hussain
Lecturer, Department of Rural Sociology, University of Agriculture, Faisalabad, Pakistan

Abstract
The study was aimed to identify factors reducing employee turnover and to explore the
impact of retention strategies on workforce. Serena Hotel, Faisalabad, Pakistan was
selected as sample for this study because of its uniqueness in practicing modern HR
techniques. The research was based on case study method; for this purpose thirty surveys
and six face to face interviews with key personnel were carried out. A total of 36
respondents were selected within the population of 285. Variables like HR strategies, work
place environment, training and development, and compensation were found more effective
in employee retention at Serena Faisalabad. The study revealed that for higher control over
retention, management must work over monetary rewards and career progression. Overall,
current HR practices at Serena may be benchmarked by others to decrease turnover.

Keywords: Retention, Strategies, Productivity, Turnover, Rewards

Type: Research Paper

Introduction
Serena Faisalabad (FSH) is the only four star hotel located 2km away from Clock Tower, surrounded
by lush green gardens in Faisalabad. It was inaugurated by Prince Karim Aga Khan and Zia-ul-Haq
(former president of Pakistan) in 1987. Serena Faisalabad is one among 33 chain-of-hotels spread
internationally. It has a repute of an attractive employer in market place of Faisalabad, with a turnover
rate less than 1.5% (Serena HR Department, 2010). While American, Irish, Australian, Greek, Niagara,
Cyprus and Indian hotel industry is experiencing high levels of staff turnover (AHLA, 2007; O,Leary
& Deegan, 2005; Davidson, Timo, & Wang, 2010; Chand, Katou, 2007; Willie, et al., 2008; Chalkiti,
&Sigala; 2009; Zopiatis, & Constanti, 2007) . Employees are retained at Serena for longer period of
time. This proposed an empirical research on factor causing retention at Serena FSH.
The term retention can be defined as “…a systematic effort to create and foster an environment
that encourages employees to remain employed by having policies and practices in place that address
their diverse needs” (Workforce Planning for Wisconsin State Government, 2005). Retention is the key
concern of most leading organizations especially in service industry. “They are aware that
8 European Journal of Economics, Finance and Administrative Sciences Issue 29 (2011)

competitiveness is devised from talent and it follows that recruitment and retention are not just human
resource issues but an important part of business strategy” (Thornton, 2008). Johanson, Martenson, &
Skoog added “technology based competitiveness is transient, the sustainable advantage lies in
managing intangible resources (2001).”
The importance of issue, lead us to find factors effecting retention and strategies reducing
turnover at Serena FSH. As turnover increases, negative effects on work place efficiency, productivity,
and cost of hiring and developing new employees can be seen (Deery & Shaw, 1997; Lashley &
Chaplain, 1999). Smartly devised strategies can help Serena Faisalabad in talent management i.e.
“attracting, developing, retaining, and utilizing people with required skills and aptitude to meet current
and future business needs (Lockwood, 2006, p.2)”as cited in (Hausknecth, Rodda, & Howard, 2008) .
Reviewing past literature reveals, a study on factors causing employees turnover is much
focused (Rappaport, Bancroft, & Okum, 2003) as cited in (Hausknecth, Rodda, & Howard, 2008, p.4).
Previously examined facts proposed a research through case-study method to meet following
objectives:
1. To study the factors reducing turnover and enhancing retention.
2. To examine the role of HR department regarding strategy formulation and
implementation about retention and turnover.
3. To suggest intervention regarding improvements in retention strategies at Serena
Faisalabad.

Literature Review
The exploration of literature regarding retention yielded several dimension of work by researchers.
According to Walker and Miler retention is a term given to keeping employees jumping from ship
(2010). Retention is relative concept so it must be studied along with quitting process (Maertz &
Campion, 1998). Traditionally factors propping up turnover are job satisfaction (Holdsworth &
Cartwright, 2003), organizational commitment or psychological contract, career expectations, work life
balance, lack of training and development (Tutuncu & Kozak, 2007; Carbery et al., 2003; Davidson et
al., 2010) peer and supervisor relationship (Graen, Dansereau, & Minami, 1972) cultural context
(Sheridan, 1992), rewards (Hansen, Smith, & Hansen, 2002), seasonality of business, and nature of
jobs (i.e. part time, casual, or seasonal) (Hartman, & Yrle, 1996; Deery, & Shaw, 1997; Ladkin, &
Juwaheer, 2000; McCabe & Savery, 2007; Willie, Jayawardena, & Laver, 2008). Control over these
factors can save this “labor intensive hospitality industry” (Birder, 2002; Brien 2004; Chalkiti, &
Sigala, 2009) from bearing high cost of turnover (Davidson et al., 2010).
Lashley and Chaplain (1999), claims “labor turnover is not only a significant tangible dollar
cost but also intangible cost, with loss of skills, inefficiency and replacement cost”. In addition to this
‘retention’ and ‘turnover’ is strongly related to good will and repute of organization as potential
employer. Knox and Walsh (2005) suggest in a research conducted on hotel industry of UK that hotel
size is a factor that reduces turnover because of adoption of HRM practices (Lockyer, & Scholarios,
2004). In cultural context of Faisalabad, human resource is often considered as cost instead of asset.
Staff must be treated as human with feelings, aspirations, and self-esteem, their dignity may not be
invaded and they must not be considered as cost or burden instead of asset (Lucas & Deery, 2004;
Abeysekera, 2006). In the theory of Human Capital given by Becker in 1964, he proposes that
individual’s skills, experience, and knowledge bring economic value to the organization. This serious
problem of turnover is underestimated many a times. Increased turnover results in: increased cost,
stress, disenchantment with industry, loss of business and productivity, and wastage of trained and
experienced employees (O’Leary & Deegan, 2005; Davidson, et al., 2009). Babak et al., (2010) found
in their study that under influence of global business culture now employer do understand the cost of
loosing employee even in a country where high level of unemployment prevails and they (employers)
are using different tactics like decentralization and attractive rewards to overcome employee turnover.
A study also showed that turnover in UK is less than America and approximately non-existent in hotel
9 European Journal of Economics, Finance and Administrative Sciences Issue 29 (2011)

industry of Singapore because of un-employment (Holtom, Mitchell, Lee, & Eberley, 2008). This
reminds of the work done by March and Simon (1958) Theory of organizational equilibrium;
describing two important factors one is job satisfaction and other is availability of opportunities in
market. Employees with higher satisfaction and lack of alternatives are less mobile. Employee
retention is also influenced by psychological, behavioral, and demographic factors (Hausknecht, 2008).
From the point of view of Susskind et al., (2000) turnover problem should be dealt with
carefully crafted strategies concentrating human resource problems. Areas like career progression,
team support (socialization), comfortable environment, communication, etc, if administered properly
then can enhance employee retention and can save tangible and intangible cost of organization
(Davidson, et al., 2010; Chalkiti, & Sigala, 2009). Proactive approach of employer regarding retention
cultivates employee satisfaction, enhanced goodwill and germinates trust that ultimately leads to
productivity (Willie, et al., 2008; Earle 2003).

Hypotheses
H1: Retention of employees at Serena hotel is high due to HR based strategies that focus on
advancement opportunities, constituent attachment, extrinsic rewards, flexible work, job
satisfaction, location and work-life balance.
H2: Goodwill, employee empowerment, shared values, and goodwill of organization, contribute to
retain employees.

Conceptual Framework
Socio-Economic Variables Intervening /Moderating Variables

 
• Training and 
Development 
• Age  • Rewards and 
• Gender  recognition 
• Teamwork  Dependent Variable
• Marital Status 
• Religion  (constituent 
• Back ground  attachment)  Retention
• Salary  • Work‐Life Balance 
• Experience 
• Education 
• Level 
• Good Will 
• Location of org.  Independent Variables
• History of org.  • Empowerment
• Job satisfaction 
• Shared Values 
• Control and 
monitoring 

Methodology
The study was conducted on the only luxury hotel (Serena Faisalabad; four-star) of Faisalabad, a third
largest city of Pakistan, also known as Manchester of Pakistan with thick population of 6 million. The
10 European Journal of Economics, Finance and Administrative Sciences Issue 29 (2011)

city is popular because of its textile, hosiery, soap, and pharmaceutical industry. It is considered as a
business hub for national and international trade. The hotel was established in 1987 with a futuristic
approach. It’s a part of hotels chain located in Islamabad, Quetta, Swat, Gilgit, Hunza and Shigar Fort.
Case study method was applied to find out the factors playing vital role in retention along with
HR strategies at Serena Faisalabad. This is because no prior research on hotels of Faisalabad is
available and little is known about causes, outcomes and strategies used by HR department to retain
employees. A similar research was conducted by Chalkiti and Sigala (2010) on Greek tourism industry.
Workforce size at Serena is 285 (permanent staff) and varies to 300 to 350 because of casual and
contractual staff. A group of 36 respondents was carefully selected through convenience sampling for
true representation. Convenience sampling refers to collection of data from people or units easily
available (Zikhmund, 1996). This sampling technique is used to gather data quickly and economically
and is best for exploratory research (Gu, & Siu, 2008). Out of 36 respondents; quantitative data related
to the objectives of study was collected through 30 self administered questionnaires (designed on the
base of researchers’ observations and literature review: from the study of (Herzberg, 1959; Potter and
Steer, 1973; March and Simon, 1958)), measuring effect of 12 socio-economic, 4 intervening, and 4
independent variables on retention. Well known Likert scale ranging from used to rate 26 questions,
with 1 = Strongly Disagree and 5 = Strongly Agree. Response rate was 100% as all questionnaires
were properly filled and was returned on time. Descriptive statistics like frequency distribution and
percentage of 10 socio-economic factors (Table: 1) were calculated along with mean and standard
deviation for rest of 26 questions (Table: 2 & 3). Cross table, multivariate analysis and chi-square test
was applied to check relationship and significance of independent variables with retention (dependent
variable) by processing data through SPSS (Table 5).
For deeper insight along with validity and reliability, a semi-structured interview based on the
findings of questionnaire was conducted. The average time for interview was 19 min. and 5 sec.,
maximum time 27 min. and minimum time 15 min. The interviews were conducted with 6 key
personnel, ranging in experience from 3 to 22 years in hotel industry. Out of 6, 5 men and a lady were
interviewed in their respective offices; respondents were heads of different departments. The answers
of the semi-structured interview were positive and audio taped. All questions were answered along
with explanations and logics, Table: 6 shows the findings of these interviews.

Analysis, Findings and Results

1. Results Through Questionnaire
Univariate analysis presented in Table 1 gives an insight of demographical characteristics of sample.
Out of 30; 60% respondents were found below 30 and rest of 40% were above 30. The result shows
more presence of younger work force in Pakistan’s hotel industry than older. While in American hotel
industry according to department of labor (2005) the availability of young work force will be less by
2014. Gender diversity at Faisalabad Serena is 1:3 that is 66.7% male and 33.3% females. The sample
represents married to unmarried percentage of 40 and 60 % respectively. 33% people belong to rural
area and others are from urban area. Highly salaried (above 45000) employees are only 20% and rests
of 80% are below the range. This finding is similar to other researchers’ findings in different regions,
i.e. hospitality industry has a minimum wage rate as compared to other industries (Hosmer, 2009;
Kelly, & George, 2001). Level of education at Serena Faisalabad is high; 53% of employees have
master degrees, 33 did bachelor and 6.7 HSSC and SSC. The respondents are currently working at
different levels in the organization as shown in Table 1. Their response towards different attributes of
retention was positive, Table 2, 3 and 4 are affirming the statement. Some factors with no significance
were identified; these are the areas where HR department and management of Serena have to put their
focus.
11 European Journal of Economics, Finance and Administrative Sciences Issue 29 (2011)
Table 1: Distribution of the respondents according to their socio-economic characteristics

Age Frequency Percentage

Below 30 18 60.0
30 or above 12 40.0
Total 30 100.0
Gender
Male 20 66.7
Female 10 33.3
Total 30 100.0
Marital status
Married 12 40.0
Unmarried 18 60.0
Total 30 100.0
Background
Rural 10 33.3
Urban 20 66.7
Total 30 100.0
Salary
15000-45000 24 80.0
45000 and above 6 20.0
Total 30 100.0
Experience
1-5 years 17 56.7
6-10 years 5 16.7
Above 8 26.7
Total 30 100.0
Education
SSC 2 6.7
HSSC 2 6.7
Bachelors 10 33.3
Masters 16 53.3
Total 30 100.0
Level
Supervisor 12 40.0
Manager 16 53.3
Non-Manager 2 6.7
Total 30 100.0

These variables were studied because they play a major role in retention of employees. As
young people are more mobile and switch careers frequently than mature workers that are less transient
(Wille, Jayawardena, & Laver, 2008).

Table 2: Distribution of the respondents according to their opinion about the following statements

Sr. No. Statements 5 4 3 2 1

1 Do the employees have the right to make decision regarding job
33.3 60.0 6.7
related activities?
2 Does management have faith in employees regarding decision
20.0 60.0 20.0
making at different level in organization?
3 Do the employees consider the company as a good place for career
60.0 40.0
growth and development?
4 Is the company an attractive employer in the market place for
46.7 53.3
talented person?
5 Company policies promote dynamic and diverse workforce 53.3 46.7
6 People from different background get a chance of employment and
43.3 40.0 10.0 6.7
socialization in the company?
7 Company has an image of equal employment opportunity
40.0 43.3 16.7
employer?
12 European Journal of Economics, Finance and Administrative Sciences Issue 29 (2011)
Table 2: Distribution of the respondents according to their opinion about the following statements - continous

8 Do the employees have clear understanding of mission, vision and

20.0 70.0 3.3 6.7
culture of organization?
9 Is succession planning (who is the next to get promoted for a
6.7 66.7 26.7
particular seat) evident in the organization?
10 Support to all employees regarding work and difficulties from
supervisors, coworker and management are a key element of work 40.0 60.0
environment?
11 Does promotions of good performers in the organization is often? 36.7 56.7 6.7
12 Do all the employees get equal chances of training and
40.0 43.3 10.0 6.7
development?
13 Trainings are conducted and imposed by management on all
43.3 43.3 6.7 6.7
employees currently working at Serena?
14 Instead of in-house trainings employees also get a chance to go out
30.0 43.3 6.7 20.0
for development purpose?
15 Trainings are attached with certain rewards that are given to high
10.0 40.0 33.3 16.7
performer
16 Highly trained employees get perks and increments compensations
6.7 46.7 30.0 16.7
and benefits
17 Flexible working hours and environment is provided to all for
16.7 63.3 16.7 3.3
retention and high satisfaction?
18 Employees are retained in the organization through different
23.3 70.0 6.7
policies and procedure for maximum benefits?
19 Restructuring of jobs, layoffs, or resignations increases work load
6.7 80.0 6.7 6.7
on other employees?
20 Job burnout is reported by different people at different level in the
3.3 43.3 30.0 16.7 6.7
organization?
21 Hiring new staff at low cost is preferred over retaining old staff at
20.0 10.0 30.0 30.0 10.0
high cost at some or all the level of organization?
22 Due to inflation and poor economic conditions cost of living has
been increased in Pakistan, does this resulted in increments at all 6.7 53.3 13.3 23.3 3.3
level?
23 Does employee quit from the organization solely because of pay,
20.0 33.3 30.0 16.7
wages or salary?
24 Due to active role of HR department regarding retention and
6.7 66.7 26.7
development, employee tenure is prolonged?
25 Work life balance is easy to attain while working on current
6.7 36.7 43.3 13.3
position
26 Convenience in approaching location of organization is also a
13.3 66.7 13.3 6.7
reason for considering it as good employer?
Scale: 1 = Strongly disagree, 2 = Disagree, 3 = Neither agree nor disagree, 4 = Agree, 5 = strongly agree
N = 30

Table 2 and 3 measures 26 questions related to retention. These 2 tables provide the overlook of
participant responses to different variables included in research for retention and table 3 illustrate the
mean and standard deviation of the same statements. The mean of these statements ranges from 1.40
minimum to 3.00 maximum and standard deviation lies from 0.50 to 1.29. This data shows least
variation among the responses of participants; this also refers to the validity of data.

Table 3: Mean and Std. Dev. of the following statements

Statements Mean SD
Do the employees have the right to make decision regarding job related activities? 1.73 .58
Does management have faith in employees regarding decision making at different level in 2.00 .64
organization?
Do the employees consider the company as a good place for career growth and development? 1.40 .50
Is the company an attractive employer in the market place for talented person? 1.53 .51
Company policies promote dynamic and diverse workforce 1.47 .51
13 European Journal of Economics, Finance and Administrative Sciences Issue 29 (2011)
Table 3: Mean and Std. Dev. of the following statements - continous

People from different background get a chance of employment and socialization in the company? 1.80 .89
Company has an image of equal employment opportunity employer? 1.77 .73
Do the employees have clear understanding of mission, vision and culture of organization? 1.97 .72
Is succession planning (who is the next to get promoted for a particular seat) evident in the 2.20 .55
organization?
Support to all employees regarding work and difficulties from supervisors, coworker and 1.60 .50
management are a key element of work environment?
Does promotions of good performers in the organization is often? 1.77 .77
Do all the employees get equal chances of training and development? 1.83 .87
Trainings are conducted and imposed by management on all working in organization? 1.77 .86
Instead of in-house trainings employees also get a chance to go out for development purpose? 2.17 1.09
Trainings are attached with certain rewards that are given to high performer 2.57 .90
Highly trained employees get perks and increments compensations and benefits 2.57 .86
Flexible working hours and environment is provided to all for retention and high satisfaction? 2.07 .69
Employees are retained in the organization through different policies and procedure for 1.83 .53
maximum benefits?
Restructuring of jobs, layoffs, or resignations increases work load on other employees? 2.13 .63
Job burnout is reported by different people at different level in the organization? 2.80 1.00
Hiring new staff at low cost is preferred over retaining old staff at high cost at some or all the 3.00 1.29
level of organization?
Due to inflation and poor economic conditions cost of living has been increased in Pakistan, does 2.63 1.03
this resulted in increments at all level?
Does employee quit from the organization solely because pay, wages or salary? 2.43 1.01
Due to active role of HR department regarding retention and development, employee tenure is 2.20 .55
prolonged?
Work life balance is easy to attain while working on current position 2.63 .81
Convenience in approaching location of organization is also a reason for considering it as good 2.13 .73
employer?
Scale: 1 = Strongly disagree, 2 = Disagree, 3 = Neither agree nor disagree, 4 = Agree, 5 = strongly agree
N = 30

The multivariate analysis shows in table 4 reports high level of retention at Serena. Training
and development, work life balance and job satisfaction are the cause of prolonged tenure of
employment at Serena Faisalabad. The only non significant variable among all was reward or salaries.
A reason for dissatisfaction regarding salaries may be high cost of living and increasing dearness in
Pakistan.

Table 4: Multivariate Analysis- Coefficient alpha

Unstandardized Coefficients Standardized Coefficients t Sig.

Model Std.
B Std. Error Beta B
Error
1 (Constant) .583 1.093 .533 .599
Retention 2.667 .374 .788 7.139 .000
Training and development .177 .072 .250 2.474 .021
Reward or Salaries -.022 .080 -.025 -.271 .789
Work life balance .340 .126 .230 2.696 .013
Job satisfaction -.045 .119 -.033 -.382 .706
Dependent Variable: Retention

Table 5: Chi-square test

Chi-square Gamma
Variables D.F. P-value
value value
Association between work life balance and retention 10.63 4 .03* .770
Association between training and retention 15.67 4 .00** .727
Association between reward & recognition and retention 4.31 4 .36NS -.388
14 European Journal of Economics, Finance and Administrative Sciences Issue 29 (2011)
Table 5: Chi-square test - continous

Association between constituent attachment, culture and

9.27 4 .05* .256
retention
* = Significant
** = Highly significant
NS = Non-Significant

1. The chi-square (10.63) shows a significant association between work-life balance and retention.
The gamma value shows a positive relationship between the variables. Its mean higher work
life balance, higher will be retention. Similar to the findings of (Cho, Woods, Soocheong, &
Mehmet, 2006; McCabebe, & Savery, 2007; Wildes, 2007) who in general are in view after the
research that the organizations that continuously make the effort of maintaining this balance are
always able to retain their employees for longer time and multiply the worth of their
organization.
2. The chi-square (15.67) shows a highly significant association between training and
development and retention. The gamma value shows a strong positive relationship between the
variables. The results match with the findings of Davidson (2010) who correlated training and
development with the human asset and proved that T&D increases loyalty and ownership of
employees towards their organizations.
3. A non-significant association (P = .36) has been found between rewards or salary and retention;
while the gamma value shows a negative relationship between the variables. It refers to the
findings of Chalkiti and Sigala on staff turnover in Greek tourism industry (2010). Babak et al,
(2010), in their research on export based textile organizations working in the same area
(Faisalabad, Pakistan) with reference to employees’ changing perception about rewards found
that rewards has been emerged as an important indicator to behavioral shift.
4. The chi-square (9.27) shows a highly significant association between constituent attachment,
culture and retention. The gamma value shows a positive relationship between the variables.

Findings Through Interviews

The selected six people for interview were asked about their reasons for staying at Serena FSH and role
of HR department. In general, people at Serena are found satisfied with the performance of HR
department and its current practices. They reported that HR worked out for the betterment of entire
workforce, its playing a proactive role concerning all areas (e.g. recruitment, selection, negotiation,
cafeteria offerings, performance appraisals etc.).
In the course of research this was found that high performers were highly respected by the
management and have been retained for years. They love to work for Serena and are enjoying their
current jobs and found much satisfied; so why the percentage of absenteeism also found low. The top
of list causes of retention reported by associates at different level were prestige offered to them,
learning environment (in-house and external trainings), promotions and growth, empowerment and
sense of ownership, facilities (like laundry, percentage off, free medical, tea, lunch and etc.), chances
of socialization and recreational activities, international brand name (Serena) and good will, team work
and cooperation, ease of communication, Retirement plans (employee old age benefits i.e. provident
fund, pension and insurances), easy accessibility, flexibility in work, lack of alternatives and lastly the
rightsizing of workforce. The definitions and description of the reasons of retention are being given in
table 6:
15 European Journal of Economics, Finance and Administrative Sciences Issue 29 (2011)
Table 6: Definition and Descriptions of Factors Causing Retention

Sr. No. Terminology Definition Frequency Parentage

1 Job Satisfaction “a pleasurable or positive emotional state resulting from the 5 83%
appraisal of one’s job or job experience”
2 Learning An organization with a philosophy of continuous improvement 6 100%
environment serves the definition of learning environment
3 Advancement To potential for rapid advancement for higher level or 4 66.67%
opportunities position.
4 Rightsizing “Ensure the organization has the right employees with the right 6 100%
skills in the right place at the right time”
5 Empowerment Transmission of organizational power to individual through 5 83.34%
systematic process
6 Lack of Beliefs about the unavailability of jobs outside the 4 66.6%
alternatives organization
7 Goodwill Perception of organization as reputable and well regarded 6 100%
institute
8 Location “The proximity of workplace relative to one’s home” 4 66.7%
9 Socialization Association between supervisor, co-workers and other 6 100%
(constituent members involved in operations inside and outside of
attachments) organization.
10 Flexibility Scheduling of working hours at office. 4 66.67%
11 Retirement Benefits offered to employees on their retirement 6 100%
Plans
12 Communication Sharing of ideas and thoughts with supervisors, peers and 5 83.34%
subordinate.
13 Prestige Respect offered to the employees in spite of their role in 6 100%
hierarchy
14 Facilities Benefits and services offered to associate other than pay 6 100%
[Citation for the contents in table: (Daft, 2009); (Price & Muller, 1981); (Steers, 1977); (Mello, 2007); (Beach, 1996);
(Anthony, Kacmar, & Perrewe, 2002); (Daft, & Mercic, 2009); (March, & Simon, 1958)]

Suggestion and Recommendations

Hotel industry contribute to economy, as it is providing services to number of customers and
employing thousands of employees. Retention at hotels is very important otherwise turnover will affect
employees in form of dissatisfaction and emotional instability (Cho et al. 2006). The current studies
revealed the factors causing retention at Serena Faisalabad and provide a guide line to other for control
over turnover. Implementing retention in hotels requires active role of HR department to develop
career progression programs, and knowledge retention strategies (Chalkiti, & Sigala, 2010),
commitment from management in order to instill employees for behavioral shift, and cultural
improvements through motivation and appreciations. This will leads to enhanced service quality,
customer satisfaction, retention of knowledge and enrich cultural values, organizational productivity in
terms of profits and performance. At the moment Serena hotel has maintained issues of employee
retention and is heading towards growth with positive attitude.

Future Research
• Findings were gathered from a small sample, a replica study with large sample size should seek
validity.
• A comparison of Pakistani and international hotel industry could be made to identify the gap
and recommendations for improvements.
• A study of factors other than these could be conducted: indicating the effect of other forces and
strategies on retention.
16 European Journal of Economics, Finance and Administrative Sciences Issue 29 (2011)

References
1] Abeysekera, I. (2005). Managing human capital in a privately owned public hotel chain.
International Journal of Hospitality Management, 25, 586-601. doi:
10.1016/j.ijhm.2005.04.006
2] American Hotel & Lodging Association (2006). Top ten issues in hospitality industry for 2007.
3] American Hotel & Lodging Association (2006, November). Top ten issues in the hospitality
industry for 2007. Retrieved from: http://ahlaradio.hsyndicate.com/news/4029554.html.
4] Anthony, P. W., Kacmar, K. M., & Perrwwe, P. L. (2002). Human Resource Management. (4th
ed.), USA: Thomsan-Learning.
5] Babak Mahmood, Iqbal Zafar, and Haq Nawaz. (2009). A Study of Modern Export Based
Textile Organizations with reference to Employees’ changing Perception about Motivation,
Rewards and Commitments: A Case study of Punjab. Pakistan Journal of Agricultural Sciences,
46(2), pp153-157.
6] Babak Mahmood, et al, (2010). Evaluation of Employees’ thinking about Performance
Appraisals, Training and Development in Competitive Era of Globalization: A Study in Export
Based Textile. Pakistan Journal of Agricultural Sciences, 46(2), pp153-157.
7] Beach, A. J. (2006). Empowerment to the people: creating an atmosphere for growth.
Empowerment in organizations, 4(1), 29-33.
8] Becker, G. S. (1964) Human Capital National Bureau for Economic Research. New York.
9] Birdir, K. (2002). General Manager Turnover and root causes. International Journal of
Contemporary Hospitality Management, 14(1), pp43-47.
10] Brien, A. (2004). The New Zealand hotel industry: vacancies increase while applicant and
caliber decreases. International Journal of Hospitality and Tourism Administration, 5(1),
Pp.87-103.
11] Bureau of Labor Statistics (2005). Civilian labor force by age, sex, race, and Hispanic origin,
1984, 1994, 2004, and projected 2014. Retrieved July 5, 2010 from
http://www.bls.gov/opub/mlr/2005/11/art3full.pdf
12] Carbery, R. G., T. N., O’Brien, F., & McDonnell, J. (2003). Predicting hotel manager turnover
cognition. Journal of Managerial Psychology, 18(7), Pp.649-679.
13] Chalkiti, K., Sagala, M. (2009). Staff turnover in Greek tourism industry: A comparison of
insular and peninsular industry. International Journal of Contemporary Hospitality
Management, 22(3). 335-359. doi: 10.1108//09596111011035945
14] Chand, M. & Katou, A. A. (2007). The impact of HRM practices on organizational
performance in the Indian hotel industry. Employee Relations, 29(6), 576-594. Doi:
10.1108/01425450710826096
15] Cho, S., Woods, R. H., Soocheong, J. & Mehmet, E. (2006).Measuring the impact of human
resource management practices on hospitality firms’ performance. International Journal of
Hospitality Management, 25(2)262-277.
16] Daft, R. L. (2009). Organization theory and design. (3rd ed.), India: Cengage-Learning.
17] Daft, R. L., Mercic, D. (2009). Understanding Management. (6th ed.), USA: Cengage-Learning.
18] Davidson, M. C. G., Timo, N., & Wang, Y. (2010). How much does labor turnover cost? A
case study of Australian four-five star hotels. International Journal of Contemporary
Hospitality Management, 22(4), Pp.451-466. doi:10.1108/09596111011042686
19] Earle, A. H., (2003). Building a workplace of choice. Journal of Facilities management, 2(3),
244-258
20] Garaen, G., Dansereau, F., Minami, T. (1972). Dysfunctional leadership styles. Organizational
Behavior and Human Performance, 7, 216-228.
21] Gu, Z., & Siu, R. C. S. (2009). Drivers of job satisfaction as related to performance in Macao
casino hotels. International Journal of Contemporary Hospitality Management, 21(5), 561-578.
doi: 10.1108/09596110910967809
17 European Journal of Economics, Finance and Administrative Sciences Issue 29 (2011)

22] Hansen, F., Smith, M., & Hansen, R. B. (2002). HRM and universalism: Is there one best way?
International Journal of Hospitality Management, 221-228.
23] Hartmen, S., & Yrle, A. (1996). Can the hobo phenomena explain voluntary turnover?
International journal of Contemporary Hospitality Management, 8(4), 11-16.
24] Herzberg, F. (1959). The motivation to work. New York: Wiley.
25] Holdsworth, L., Cartwright, S. (2003). Empowerment, stress, and satisfaction: An exploratory
study of a call center. Leadership and organizational Development Journal, 3, 13-22.
26] Hosmer, J. A. (2009). Why employees talk: A study of the decision making process leading to
Turnover or retention. Presented at International CHRIE Conference-Refereed. Retrieved from
http://scholarwork.umass..edu/refereed/Session/Saturday/7
27] Johanson, U., Martenson, M., Skoog, M. (2001). Mobilising change through the management
control of intangibles. Accounting organizations and Society, 26, 715-733.
28] Kelly, P. D., & George C. (2001). Securing graduate Commitment: an exploration of the
comparative expectations of placement students, graduate recruits and human resource
managers within the hospitality, leisure and tourism industries. International Journal of
Hospitality Management, 20(4), 311-323.
29] Knox, A. & Walsh, J. (2005). Organizational flexibility and HRM in the hotel industry:
evidences from Australia. Human Resource Management, 15(1), pp.57-75.
30] Ladkin, A. and Juwaheer, T. D. (2000). The career paths of hotel general manager in Mauratius.
International journal of contemporary Hospitality Management, 12(2), 119-125.
31] Lashley, C., & Chaplain, A. (1999), Labor turnover: hidden problem – hidden cost. The
Hospitality Review, 1(1), 49-54.
32] Lockwood, N. R. (2006). Talent Management: Drivers for organizational success. 2006 SHRM
Research Quarterly. Alexandria, VA: Society for Human Resource Management.
33] Lockyer, C., & Scholarios, D. (2004). Selecting hotel staff: why best practices does not always
work. International Journal of Contemporary Hospitality Management, 16(2), 126-136.
34] Lucas, R., & Deery, M. (2004). Significant developments and emerging issues in human
resource management. International Journal of Hospitality Management, 23, 459-472.
doi:10.1016/j.ijhm.2004.10.005
35] Maertz, C. P. Jr., Campion, M. A. (1998). 25 years of vouluntary turnover research: A review
and critique. International Review of industrial and organizational psychology, 13(49). 49-81
36] March, J.G., & Simon, H.E. (1958). Organizations. New York: John Wiley.
37] McCabe, V. S., & Savery, L. K. (2007). Butterflying a new career pattern for Australia?
Empirical evidences, Journal of Management Development, 26(2), 103-116.
38] Mello, J.A. (2007). Strategic Human Resource Management. (2nd ed.), India: Cengage South-
Western.
39] O’ Leary, S., & Deegan, J. (2005). Career progression of Irish tourism and hospitality
management graduates. International Journal of Contemporary Hospitality. 17(5), 421-432.
Doi:10.1108/09596110510604841
40] Porter, L.W., & Steers, R.M. (1973). Organizational, work, and personal factors in employee
turnover and absenteeism. Psychological Bulletin, 80, 151-176
41] Rappaport, A., Bancroft, E., & Okum, L. (2003). The aging workforce raises new talent
management issues for employers. Journal of Organizational Excellence, 23, 55-66.
42] Sheridan, J. E. (1992). Organizational culture and employee retention. Academy of
Management Journal, 35, 1036-1054.
43] Steers, R. (1977). Antecedents and outcomes of organizational commitment. Administrative
Science Quarterly, 22, 46-56.
44] Susskind, A. M., Borchgrevink, C. P., Kacmar, M. K., and Brymer, R. A. (2000). Customer
service employees’ behavioral intentions and attitude: an examination of construct validity and
a path model. International Journal of Hospitality Management, 19(1), 53-77.
18 European Journal of Economics, Finance and Administrative Sciences Issue 29 (2011)

45] Thornton, G. (2008). Recruitment and retention: the quest for right talent. International
Business Report. (p. 1). Retrieved from: www.internationalbusinessrepot.com
46] Tutuncu, O. & Kozak, M. (2007). An investigation of factors affecting job satisfaction.
International Journal of Hospitality & Tourism Administration, 8(1), pp. 1-19.
47] Walker, J. R., & Miller, J. E. (2010). Supervision in the hospitality industry: Leading Human
Resources. (6th ed.). (p. 67) New Jersey: Jhon Wiley & Sons, Inc.
48] Wildes, V. J., (2007). Attracting and retaining food serves: how internal service quality
moderates occupational stigma. International Journal of Hospitality Management, 26(34), 630-
480.
49] Willie, P. A., Jayawardena, C., & Laver, B. (2008). Attracting and retaining quality human
resource for Niagara’s hospitality industry. International Journal of Contemporary Hospitality,
20(3), 293-301. doi: 10.1108/09596110810866109
50] Workforce Planning for Wisconsin State Government. (2005). Employee retention. Retrieved
July 1, 2010 from
http://www.cs.state.ny.us/successionplanning/workgroups/Retention/employeeretentionreport.p
df
51] Zikmund, W. (1996), Exploring Marketing Research, (6th ed.), Thomson Learning, Mason, OH.
52] Zopiatis, A., & Constanti, P. (2007). Human resource challenges confronting the Cyprus
hospitality industry. EuroMed Journal of Business, 2(2) 135-153.