“High Employment Turnover Rate In Hospitality Industry worldwide”

Problem Identification:
This research is conducted in order to find out the reasons that why employment
turnover is high in hospitality industry worldwide. Previous researchers have
studied the several reason of employ turnover but they didn’t able to find the
reasons of high employ turnover in hospitality industry.
One of the most challenging issues faced by the hospitality organizations today is
to manage the changing employment relationship. Being in customer service
business, hospitality industry capitalizes heavily on its human resources to achieve
its competitive advantage. Hospitality industry is a high customer service oriented
business where interaction between employees and customers determine the
competitive advantages and success of the business (Chand & Katou , 2007 ; Choi
& Dickson, 2009).

Problem Statement:

The general business problem addressed in this study was that employee turnover
is detrimental to the competitiveness and profitability of organizations in the
hospitality industry. The specific business problem addressed is that hospitality
leaders do not know the relationships between employee motivation, job
satisfaction, job stress, reward management system, working hours, and employee
turnover.
Research question:
Based on the issues that have been mentioned in the previous section, the question
that has been formulated by researcher are:
1. What is the significant factors employee turnover at hospitality industry?
2. How to minimize employee turnover at hotels?
Aim and Objectives :
The aim of the paper is to study the employee turnover rate in hospitality industry
world wide.

Objectives:
The objectives of the study are as follows:
 To study the impact of job satisfaction on employee turnover rate.
 To study the impact of employee motivation on employee turnover rate.
 To study the impact of job stress on employee turnover rate.
 To find out whether the extended working hours affects the employee turnover
rate.
 To analyze the impact of reward management practices on employees.

Theoretical Framework:

 Independent Variable:
Job Satisfaction, Job stress, Employee Motivation, Extended working hours and
Reward Management.
 Dependent Variable:
High Employee turnover.

Research hypothesis:
Therefore certain assumptions have been considered in order to facilitate the
investigation and to achieve the research objectives. So the hypotheses are as
follows.
 Employee motivation, Job satisfaction and Job stress can influence the employee
turnover rate negatively and positively.
  Extended working hours are one of the reasons that influence the employee
turnover rate in a very bad way.
 Reward management practices and incentive schemes can make positive
influence in the employee turnover rate.

Operational Definitions:
The following terms were unique and specific to the topic of exploring the effects
of employee turnover on the hospitality industry. Definitions of the critical terms
assist readers in understanding the context of this research.
 Hospitality Industry: . Hospitality Industry is a broad category of fields in
the service industry that includes lodging, event planning, theme parks,
transportation, cruise lines, and other in the tourism industry
 Employee turnover: Employee turnover is a reduction in the number of
employees who plan to leave their job.
 Employee motivation: Employee motivation is the desire of a person to
achieve an objective. Employees often achieve goals when they are
motivated; when they are not motivated, goals are typically not met.
 Job satisfaction: Job satisfaction is a combination of attitude and emotions,
influenced by internal and external factors that individuals feel about the job
they are performing.
 Job stress: It can be defined as the harmful physical and emotional
responses that occur when the requirements of the job do not match the
capabilities, resources, or needs of the worker. Job stress can lead to poor
health and even injury.
 Extended working Hours:
The number of hours a “nonexempt” employee may spend doing work for
his or her employer without being entitled to overtime pay. Under the Fair
Labor Standards Act, that number is 40 hours per work week.

 Reward Management System:

Armstrong and Murlis (2004 p3) defined reward management “as the
process of formulating and implementation of strategies and policies that
aim to reward people fairly, equitably and constantly in accordance with
their value to the organization. It also deals with the design, implementation
and maintain of reward processes and practices that are geared towards the
improvement of organizational, team and individual performance”.