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Dissertation

Thesis · October 2020

DOI: 10.13140/RG.2.2.15357.79847

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What employee motivation strategies can be used

by firms in the hospitality sector in

London/England to increase staff retention.

Student Name : SULEYMAN OZAL

Student ID : L0006KGSKGS0918

Dissertation submitted in fulfilment of the degree of

Master of Business Administration (MBA)

at University of Suffolk

London School of Commerce MBA Supervisor: Dr Rajendra Kumar

London School of Commerce Administrator: Ifrina Ikram

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ABSTRACT

Purpose of the dissertation was to establish the employee motivation strategies firms has been using,
how those methods performed and the impact of these strategies on staff retention levels at
hospitality sector in London / England.

Initial approach was to establish most relevant research questions and problems, followed by
establishing the meaning of motivational methods, motivational theories, impact of low employee
retention to firms’ position & performance, how different management styles impacts to employee
motivations, importance of employee work-life balance, it then followed by summarising the
theoretical findings. It was highlighted that while intrinsic motivated employees are more likely to
perform higher, extrinsic motivational method cannot be ignored altogether. Finding the right
balance of motivational methods established to be producing significantly better result on employee
motivation as well as higher retention levels.

Further on, in-depth analysis of research philosophies, research approaches, research design,
research method, data collection and sampling methods were explained, and relevant methods were
conducted.

Various sources, such as KPMG, ONS, People1st, Deputy and YouGov surveys, analytical data,
annual industry reports have been analysed and utilised to gain deeper interpretation of the current
level of motivational strategies used by firms as well as to understand near future forecast /
recommendations of the UK hospitality industry.

Motivational factors and deeper analysis of research problems and questions were undertaken before
concluding the outcome of findings.

In conclusion, researcher identified the following areas as “the most important” factors that impacts
to employee motivation and staff retention levels.

• Firms’ “vision, mission & values”

• Recruitment and selection methods used
• Importance of the new employee induction process
• Consistency on firms’ guidelines and how these applied to individual situations
• Impact of leadership style to employee motivation and retention levels
• Importance of employee work-life balance

All above has been identified to have direct impact to firms’ financial performance as well as the
positioning of the business within comp-set and industry from non-financial point of view.
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TABLE OF CONTENTS
Declaration
Acknowledgment
Abstract
Chapter One: Introduction
I. Introduction
II. Background of the study
III. Rationale
IV. Statement of problems
V. Research aims
VI. Objectives of the research
VII. Research questions
VIII. Significance of the study
IX. Structure of the thesis

Chapter Two: Literature Review

I. Introduction
II. Definition of motivation
III. Motivational methods
i. Extrinsic motivation
ii. Intrinsic motivation
IV. Motivational theories
i. Maslow’s hierarchy of needs
ii. Vroom’s expectancy theory
iii. Herzberg’s two factor theory
V. Analysis of the other motivational theories
VI. Impact of low employee retention levels
VII. Different management styles and how management styles impact to employee
motivation
VIII. Work-life balance
IX. Summary of theories
Chapter Three: Research Methodology
I. Induction
II. Research philosophy

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 III. Research approach
i. Deductive
ii. Inductive
iii. Abductive
IV. Research design
i. Descriptive
ii. Exploratory
V. Research method
i. Quantitative
ii. Qualitative
VI. Data collection method
i. Primary data
ii. Secondary data
VII. Sampling method
i. Probability sampling
ii. Nonprobability sampling
VIII. Data analysis method
IX. Validity
X. Reliability
XI. Ethical issues
XII. Limitations
Chapter Four: Analysis, findings and discussions on the findings
I. Induction
II. Motivational factors
III. Retention factors
IV. Analysis of the research problems
V. Analysis of the research questions
VI. Motivational approaches
VII. Conclusion of findings
Chapter Five: Conclusion / Limitations / Recommendations
I. Summary of the research findings
II. How the objectives have been met
III. Recommendations
a. Revised “360 degrees” induction program for all new starters.
b. Consistent clear, in-depth communication and employee empowerments
IV. Recommendations for further research
V. Limitations
References

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CHAPTER ONE: INTRODUCTION

I. Introduction
Over the past few decades, hospitality sector has been one of the largest private industry for the
source of employment as well as major contributor to UK economy. This is both from financial
aspect as well as employee numbers.

Industry has many different inner segments such as travel & tourism, hotels, lodging and recreation.
On this dissertation, primary focus will be on London/England hotel sector, more specifically what
employee motivation strategies can be used by firms in the sector to increase staff retention.

As part of above, recent landmark changes in the industry, how these impacted to employees and
how firms will be looking into this area further as well as how hotels evolved from employee
motivation and staff retention point of view.

Impact of the industry evolution, firm strategies and how these impacts to employee career choices
will be researched to establish a meaningful reason, which ultimately will provide clearer indications
of why and how motivation level variances and increasing methods of retention.

II. Background of the study

Hospitality industry, in general operates with managing if not exceeding the guest expectations with
service provided via employees to customers. This theory has been around over a century and
according to Elton Mayo’s “Hawthorne experiments” that was carried out between 1922 and 1932,
it was proven that employee motivation at the workplace, not only motivated by financial benefits
but by management leadership skills, condition of work place, relationship between the firm and the
employees. (Mayo, 1933)

Today’s hospitality world, every firm targeted by owner or shareholders to increase their market
share and advantage to their direct and indirect competitors, this is well known norm that
continuously repeated year after year. While sales and marketing strategy, market positioning
amongst to competitors, efficient control of profit & losses, inventory control and preventative
maintenance of the property may though to be absolute priority to deliver results; human resource
management has a direct impact to success of the firms performance. While quantitative data
regularly produced to validate this, there are many other qualitative aspects that human resource

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management techniques that can deliver the employee motivation, training, career planning and
increasing higher staff retention level. This aspect is where direct contribution generally being made
by effective human resource management approach towards the performance of the firms.

III. Rationale
Negative perception of the public on hospitality jobs, benefits, pro’s, and con’s has been challenging
matter for most employers. (Robinson, 2016)

Staff retention volume has been historically above the national average due to various reasons which
will be explored further too. (Muller-Heyndyk, 2018)

Considering high cost of the recruitment process & time it takes; it is essential to constantly monitor,
adjust and re apply the employee motivational tools to enable for continuous success of the firm.
From this point of view, the objective of the dissertation will be to establish the impact of staff
motivation on retention levels and how firms are acting to make sustainable choices.

IV. Statement of the problems

Below three problems have been identified which current London/ England firms facing as a
challenge which directly impacts to staff retention levels.

Problem 1:

Lack of firms' focus on staff motivation due to various management style, employee types
and job role variations.
Achieving high staff retention route goes via motivated team however every firms /
management adopts a different approach to deliver a team motivation which plays the most
important role on results. It is also required to take into an account the various background,
nationality, and cultural differences of the employees to formulate “a method” that would be
acceptable for majority of the employees. While employee “A” may be extremely happy to
be recognised for his/her hard work in front of others, employee “B” might appreciate a
discreate simple “thank you” on one to one level. Hardest of all motivational approach is
having an experienced manager who delivers this method spot on every time.

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It is essential to understand how CEO’s vision filters through all the way down to Casual
contracted employee and how each layer of management delivers the message / instructions.
(Rosie, 2020)

In a nutshell, job role and responsibility of each employee, how his/her colleague or line
manager communicate, assist, or support, directly impacts to staff motivation and retention
levels.

Problem 2:
Extended period of uncertainty due to Brexit and reduced foreign (European) worker entries
to London / England and impact of this on ever growing lack of qualified / knowledgeable
candidate availability.

According to research conducted by Guilding; “true cost of staff turnover” and how “labour-
intensive” the process was once again emphasised. (Guilding, 2013)

Announcement of the Article 50 being triggered back in March 2017 (Government, 2016)
undoubtable created a tsunami effect over the past 3 years with real impact instantly being
felt by the hospitality industry around the country. Due to industry having as high as 43% of
their current employees being from Europe (in 2017) with London hotels heavily depending
on European nationals, this was simply a beginning of a new era for the hospitality sector.

As it can be seen on below chart, in 2017, European workers were a major supply of
employment source for Hospitality in UK. (KPMG, 2017)

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Problem 3:
Impact of the existing above national average staff turnover, negative impact of this on firms
and stress it causes on existing employees as well as laps on customer service delivery
quality.

Unlike other industries, hospitality and more specifically hoteliers, constantly faces
increased demand of customer service and satisfaction. This is also backed up by stiff
competition and continues analysis of market share and reputational rankings being
published instantly on various digital platforms. (Citron, 2017)

UK hospitality industry has an average of 70% staff retention rate as oppose to 85% on other
UK sectors which would causes disruption to firms’ performance imminently. As part of the
research, it is also essential to explore what industry disrupting approaches has been tried
and what other options are there to recommend to the firm’s. (Sunley, 2018)

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 V. Research aims
To identify current motivational strategies used by hospitality firms, review of the success rates by
analysing the current retention performance. Secondly, to establish the motivation strategies that
doesn’t perceived well by employees and establish a new approach to fit in to current position of
the hospitality firms, employee needs and how firms can use these to increase motivation and
retention levels. Result of the aims will be specified on the Conclusion and recommendations
chapter.

VI. Objectives of the research

i. Undertaking of the critical review of literature on current performance of firms’
employee motivation strategies.
ii. To examine the existing statistical reviews, reports, recommendations published by
government bodies, research companies and firms.
iii. To analyse the reports and secondary surveys to identify areas that can directly contribute
further to staff motivation of firms’ strategies.
iv. To find out, what existing motivational strategies works and what are the new coming
trends that can be benefit to firm’s further.
v. To give new strategic thinking data to firms on improving their employee motivation
strategies and increase staff retention.

Clear focus on above aim and objectives will shed a light to following research questions.

VII. Research questions

i. What are the current barriers of firm approaches on staff motivation methods?
ii. How can the firms change their approach on employee motivation and career progression
plans?
iii. What approached can be changed or amended to increase the appeal to industry for new
candidates?
iv. How can the industry prepare better for the future with motivated team?

VIII. Significance of the study

This study has been aimed to examine the existing approaches of the firms towards employee
motivation in hospitality industry and how these impacts to staff retention levels.

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Further analysis and secondary research will be conducted to establish the current performance and
provide altered methods for the incoming new generations of hospitality professionals.

IX. Structure of the thesis

Structure of the dissertation combines total of five chapters.

First Chapter: Introduction:

This chapter lays out the introduction and structure that will be followed by the research “what
employee motivation strategies can be used by firms in the hospitality sector in London / England
to increase staff retention.

Second Chapter: Literature Review:

This chapter aims to deliver in depth review of the topic chosen by defining the meaning of
motivation, known motivational methods, impact of the motivation on retention, discussion of
relevant motivational theories, leadership style impact to employee motivation and retention as well
as impact of human resource practices to staff performance.

Third Chapter: Research Methodology:

On this chapter, research methods in use will be explained on introductory section which will
followed by research philosophies and chosen philosophy as well as the details. Further details that
will be also covered on this chapter will be research design, data collection and reasons, sampling
methods as well as data analysis methods which will be supported by relevant theories.

Fourth Chapter: Findings:

This chapter will be used for exploring the findings further with the data gathered which will be also
supported by relevant theories to establish new facts, trends as well as the new theoretical findings
and how these will marry with existing methods.

Fifth Chapter: Conclusion and recommendations:

On this final chapter, summary of the research findings will be demonstrated. Summary of the
overall recommendations as well as the limitation/s of the study will be also detailed to shed light
to all future researches that may be carried out on this topic.

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CHAPTER TWO: LITERATURE REVIEW

I. Introduction
Like many industries, hospitality sector firms short and long-term success largely depends on
employee motivation and firms’ employee retention levels.

There are many different motivational components that required to be simultaneously followed by
firms to achieve higher employee retentions. Some of which can be named as job satisfaction level,
financial and non-financial compensation, work-life balance, flexible working hours and career
development opportunities. Due to different needs & wants of individuals, there is no “one fit for
all” method that can be applied hence right mixture of method would be required to be applied to
each employee to achieve a result. (Nabi, 2017)
It has been highlighted that while 2020 forecast predicted to be slow moving, hospitality sector will
continue growing globally over the next decade. (Trunkfield, 2019)

Literature review will be focusing on analysing what employee motivational strategies can be used
by firms in the hospitality sector to increase staff retention. Various motivational methods and
motivational theories will be investigated to understand the subject matter further. Publicized
government and industry expert reports will be examined to establish the peaks and troughs.

This will than assist the researcher to reach a conclusion and recommendation on final chapter.

II. Definition of motivation

The word “Movere” is where the “motivation” word originates from. Movere means “to move” in
Latin. In business world, motivation can be described as; the determination of an individual, who
moves forward with a specific psychological intention to accomplish a task. (Osabiya, 2015)

Motivation has been the centre of focus for centuries however it was established that Greek
philosophers further studied “hedonism” as it had the principle of human motivation studies within.
Late 1900’s seen new developments on exploring the concept, which ultimately resulted with
connecting motivation with the science of psychology. (Richard Steers, 2004)

Motivation has been defined to two major types. These are extrinsic motivation and intrinsic
motivation.
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 III. Motivational methods

(Desi, 2000)
i. Extrinsic motivation comes mainly from external origin. Individual would be
motivated to complete a task due to external constrains being applied. (Sonja
Kleih, 2013) Examples for extrinsic motivation would be a firm paying master’s
degree fee of an employee in return for a further 18 months continues
employment. Objective for employee would be the funding of the master’s
degree fund being paid. He/she will have to complete the job required of them
on steady performance at least until the end of agreement terms. Firm on the other
hand would be achieving higher retention level as well as considerably less
motivational effort made to that specific employee.

ii. On the other hand, intrinsic motivation comes within the person, it can be
described as a task completed with enjoyment / pleasure with no requirement of
reminder or follow up. Employees who are intrinsically motivated would be more
tolerable to develop new skills, understand the firm’s objective better and
voluntarily contribute towards the success of the firm’s performance. (Sonja
Kleih, 2013)

According to Langviniene, N., (2015)’s research findings, success of a hospitality business model
depends on customers and their buying behaviours. (Neringa Langviniene, 2015)

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However, Saloni Devi (2017) clearly defines that employee engagement and motivation are the most
critical two factors that impacts “the most” to the organisation’s business model, performance, and
success. (Devi, 2017)

IV. Motivational theories

i. Maslow’s hierarchy of needs:

First theory of motivation theory that will be used for the research is Maslow’s
motivational theory.

Abraham Harold Maslow was an American psychologist, he was the creator of the
“Hierarchy of Needs” theory where his has been recognised worldwide since. His
theory illustrates the five stages of human needs.

These “needs” start from very basic level to the most complex ones.

1. Physiological needs : Breathing, food, water, sleep

2. Safety Needs : Security of body, employment, resources, health, property
3. Love / Belonging : Family, friendship, intimate relationships
4. Esteem : Confidence, achievement, respect to and from others
5. Self-actualization : Creativity, problem solving, morality

These five stages are laid out in a pyramid like model where people can only move
to next layer once they accomplish the current one.
Physiological needs create the foundation of the pyramid where people need food to
eat, water to drink and place they call home before they are being able to focus on
next layer of the pyramid.

Once Physiological needs accomplished, people can than work to achieve their needs
for safety and security. Whether these are physical, emotional, or mental safeties,
next step of the pyramid can only be priority to achieve, once second step achieved.

Similar progressive methods apply all the way to top of the pyramid to achieve self-
actualization.

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 First four sections are also called “The deficiency needs”. If an employee cannot
achieve the first four stages in their role at the firm they work, they will not be able
to achieve fifth level which the level that impacts to firm’s performance the most.
(D. Martin, 2007) (Maslow, 1987)

Maslow’s Hierarchy of Needs model would work for most type of industries and firms. It is
especially useful to firms to achieve better employee motivation and higher retention levels.

Wahba M, Bridwell L (1976) argues that disadvantage of this method is “not being able to tested
empirical way”, it is not possible to precisely measure the level required to be achieved by subject
matter before moving on to next step to be activated. (Wahba M, 1976)

ii. Vroom’s expectancy theory

Second theory chosen as a base for this research is Vroom Theory. This theory has
been created by Victor H Vroom in 1964 and aimed to establish the correlation
between the persons’ effort and motivation. More specifically the expectation of the
employees over their performance level. This theory argues that employee
performance directly impacted by the level of expectations delivered to employees
by firms. (Parijat, 2014)

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 Vroom’s expectancy theory has 4 main components;

Expectancy : Provides a belief that effort will conclude with an acceptable

performance.
Instrumentality : Possibility of better performance, leading to a reward.
Valance : Measure of the reward attractiveness and / or preference.

This method will allow researcher to understand what the motivational strategies
currently used by hospitality firms and how does employee decision making
impacted by those strategies.

Source: (Scholl, 2002)

While expectancy theory set out to be simple and reward based decision making method by
employees and employers, Redmond (2009) argues that due to layout and objective of the theory, it
completely operates with extrinsic motivational factor and theory is limited, due to reward not being
immediately tie in with the firms performance. (Redmond, 2009)

iii. Herzberg’s two factor theory

Final theory used for the purpose of this research is “Herzberg’s two factor (Motivator-
Hygiene) theory”. The two-factor theory was created by Fredrick Herzberg in 1959. It was
aimed to establish the core employee satisfaction and dissatisfaction factors. (Herzberg,
1959) Two factor theory has two components, hygiene factors and motivator factors.
Hygiene Factors covers the motivational aspects of working conditions, peer relationships,
leadership quality, job security, compensation, and status.

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 Motivator factor on the other hand takes into account for the responsibility, job satisfaction,
recognition, achievements, growth opportunities and advancement. (Herzberg, 1959)
According to Tan, et al. (2013)’s research, he identified that “Herzberg’s two factor theory”
has many similarities to “Maslow’s hierarchy of needs” however two factor theory
introduces further depth to hierarchy of need theory in order to measure employee’s
motivation levels. Two factor theory highlights that employees who meets hygiene factors
would not necessarily excel to motivation levels however it would prevent employees being
unsatisfied. Along with Hygiene / Extrinsic factor, motivator / intrinsic factors must be
applied, this is specially required to increase the employee motivation and satisfaction level
at workplace. (Tan, 2013)

Source: (Tan, 2013)

According to Spector (1997), definition of job satisfaction described as “the extent to which people
like or dislike their jobs”. (Spector, 1997)

V. Analysis of the other motivational theories

i. McClelland’s Need Theory

Source: (Royle, 2012)

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As stated by Royle, M., and Hall, A.,(2012) McClelland’s need theory focuses on three areas;
achievement, power and affiliation. Peoples needs are learnt by people at work environment /
culture. People with the knowledge of need behaves different than those who do not. (Royle, 2012)
ii. Alderfer's ERG Theory

Source: (Chun-hui, 2016)

According to Dunlop, M., (2018), ERG theory simplifies the “Maslow’s Hierarchy of Needs
Theory”. It is described that employees seek three basic needs. These are existence, relatedness, and
growth. Like Maslow’s theory, as each need is accomplished, another can need would be satisfied.

iii. Adams' equity theory

Source: (Newstom, 2002)

As noted by Al-Zawahreh, A., and Al-Madi, F., (2012) equity theory focus point described as “The
theory that is based on exchange relationship, individuals give something and expects something in
return.” Great job performance by employee would be rewarded by the employer. (Al-Zawahreh,
2012)
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 VI. Impact of low employee retention levels
Importance of employee retention levels achieved by the firms can demonstrate by analysing how
successful is the firm on the area of profession. Due to this very reason, every firm has developed
some form of employee motivation strategy. Especially due to performance of motivated employees
being directly impacting to firms’ financial performances and market share of the business on area
they operate, it has become increasingly important for firms to have high employee retention level.
(Erceg A, 2016)

According to Ghosh et. al. (2012), when an employee departs from a firm, not only it impacts to
employee, it directly adds pressure to social life within the firm. Remaining employee’s
performance would be disrupted, dynamics of the team would be unbalanced, in fact losing a
specific skilled employee would directly put more pressure to the firm and how it performs. This is
simply due to loss of a skill set and knowledge. It is also potentially damaging to firm as in many
scenarios, exiting employee moves to a competitor with the knowledge and skills gained while
employed by the first firm. Impact of such an activity has been recognised by the firms which results
with increased focus on employee motivation piece for higher retention level. (Ghosh P, 2012)

On ever growing hospitality industry, it became a norm for employees to have an expectation from
their firms for the delivery of motivational incidentals.

Green Jr. P et al. (2017) argues that employees have three expectation of the firm they work for and
how firms would fulfil these will determine the performance of both the employee and the firm.
Firstly, “positive emotional state/experience”. It is argued by the researcher that employees would
compare their state of emotion expectation with their actual emotional work experience which then
delivers the positive or negative work attitude within the employee.
Second point highlighted by the same researcher was “feeling of energy force”. It has been argued
that if a state of emotion of an employee is negative, that individual would require to use more
energy to do their job / task. Due to that psychological demand of using more energy, it is likely
that his/her motivation level will dropp. It is also noted that same employee not only reduce the
motivation of him/herself, but it would also impact the other employees around them.
Last point argued was “authentic self-expression”. In other words; each employee can potentially
add a different colour to the firms identity while opening the gates for significant increase on
employee motivation however this point has a deeper impact on continuity of expected standard of

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service promised by the firm to their customers hence it is significantly harder to get firms to agree
and accept. It is understood from researchers’ in depth explanation that; if an employee being told
“the company standard procedures” from the moment they start to work on their / induction day; it
is very likely that employee will automatically try to adopt in to the standards he/she being tough
both physically and psychologically which eliminates the opportunity for firms to harvest the
individuality of that employee and how they could add a unique value to firms business. While not
all employees may have this flair, for those who would have been happy to demonstrate “authentic
self-expression” would keep silent too which impacts negatively for firms to achieve higher
employee retention levels. (Green Jr. P, 2017)

VII.Different management styles and how these management styles impact to employee
motivation
Numerous researchers cover the direct correlation between the different management styles and how
these styles impact to employee motivation and retention levels at the organisations.
Eisenberger R, et al (1990) argues that relationship created by management / firm creates a view
from employee point, which impacts to level of motivation demonstrated by employees. He also
adds that it is managements / firm’s responsibility to understand the behaviour of employees to
maximize their motivation, in fact by understanding the behaviour and adjusting the management
approach accordingly can increase employee motivation level significantly. (Eisenberger, 1990)

Jordan-Evans S. and Kaye S. (2002) points out the exact emphasis as Eisenberger R, et al (1990)
by quoting; “If you manage others, you have phenomenal influence over their decisions to stay or
go”. (Jordan-Evans S, 2002)

Dinh J, et al (2014) pointed out that there are different management styles widely used across the
industries. He established that “autocratic, charismatic, servant, bureaucratic, authentic,
transformational and laissez faire” are most known ones. (Jessica E. Dinh, 2014) Academic
evidence-based explanation of these management styles are as follow:

Autocratic: Defined as a manager who makes all the decision alone, then delegates in
commanding, organising, and directing manner. (Mahmood Z, 2012)

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 Charismatic: Explained as engaging with employees on individual emotional level, risk
taking, sharing own emotions, demonstrating exemplary behaviour, working as a team,
influencing, showing self-confidence. (Yukl Gary, 1999)

Servant: According to Hale & Fields, (2007) Servant leader is the one whom there to
support employee’s needs, their learning and development. Servant leader shares the fruit of
the achievement with the team. (Hale, 2007)

Bureaucratic: This style works by dividing firm to hierarchies, set up direct authority and
control measures / standards. (Mahmood Z, 2012)

Authentic: Developing a natural leadership; applying value, being able aspire and convince
others by matching heart to mind actions as a leader to employees. (Toor Shamas-ur-
Rehman, 2007)

Transformational: A leader / manager that can create a clear direction of journey,

continuously draws attention to company aims, demonstrates ethic and value aspects very
strongly. (Tracey J. Bruce, 1994)

Laissez faire: Essentially, this style best described as a leader that does not respond as well
as demonstrates very little or no concern to his/her employees concerns. (Agotnes K, 2018)

Ologbo Andrew C, et al. (2012) explains that, if management embodies a certain style; employee
motivation, productivity and retention level directly impacted as a result. (Ologbo Andrew C, 2012)

Human Resource teams also plays an important role within above parameters to balance the work-
life both from firms and employees’ point of view. According to Mansaray H, (2019) success of any
firm will heavily rely on motivated employees and HR teams has significant contribution to it.
(Mansaray Hassan E, 2019)
Process starts with the creating the job description, job advertising, shortlisting of employees,
interview process & selection, followed by job offer, contracting, conducting induction process,
arranging online / face to face company procedures training. Once these steps completed than
manager takes over from HR team for mentoring and on job training which highlights the
importance of an efficient human resources team. (Cakar K, 2018)

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 VIII. Work-Life Balance Factors
Due to nature of the hospitality industry, on some occasions, 24 hours are not enough time in a day
to complete workload. While management style has direct impact to employee motivation strategies
and retention levels of the firm; more and more employees raises the importance of their work-life
balance. This is becoming more apparent within-in the millennials. To this extend; employment has
seen a shift towards flexible working hours and zero-hour contracts which allows employees to
balance their work-life as well as private life. (Ellenbecker, 2013)

IX. Summary of theories

To conclude the best fit for the employee motivational theory for the firms in hospitality sector, as
every employee varies due to nature, firms require to understand the individuals’ needs. While there
would be many common traits that may emerge from employee motivation point of view, it has
been established that much of the firms’ motivational approach followed by assuming that extrinsic
factor-based methods (i.e.: bonus, rewards) would deliver better result which established to be partly
untrue. Theories researched, highlights the importance of intrinsic factors and how internally
motivated employees can achieve significantly more than those motivated externally.

Three theories that has been chosen for the research are “Maslow’s Hierarchy of needs”,
“Herzberg’s two factor theory” and “Vroom’s expectancy theory”. Reason of choosing these three
theories are due to having the employee motivational methods being analysed from different angles
as well as all theories interlink to achieve same or very similar result.
As referenced previously; “Maslow’s hierarchy of need” model suggests that motivation starts with
psychological needs and has the aim of employees to progress through the steps to reach self-
actualization. Similarly, “Vroom’s expectancy theory” directly correlates to same ideology, where
dependence of the employee’s performance will be based on efforts made with rewards that would
be received. In parallel to both theories, “Herzberg’s two factor theory” highlights that employees
would not fulfil the motivational needs by only delivering hygiene factors but potential to excel and
exceed the motivational needs are also deliverable by achieving the motivator factors.

While all three theories will be utilised on the research, focus and contributor to this study will be
via “Herzberg’s two factor theory”. Researcher believes that this model would work best to establish
various employee motivational factors, how and what influences the employees at work as well as

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the correlation of these with the firm’s performance both from effectiveness, performance and
employee retention levels.

X. Outcome of the literature review

MOTIVATIONAL THEORY VARIABLES BY AUTHOR

Management Style (Alghazo, 2016)
Work-life balance (Karatepe, 2014) , (Ellenbecker, 2013)
Career Development (Birkin, 2019)
Culture (Daft, 2013)
Reward / Bonus (Redmond, 2009), (Newstom, 2002)

Alghazo (2016) emphasis that correctly set management style and employee connections influences
motivation of staff. (Alghazo, 2016)

According to Karatepe (2014) and Ellenbecker (2013), offering employees an emotional support via
work-life balance contributes toward higher motivation which would result with higher levels of
retention. (Karatepe, 2014) , (Ellenbecker, 2013)

Birkin, (2019) explains that sufficient career development plans set out for employees will support
the increase of staff retention. (Birkin, 2019)

Daft, (2013) quoted “culture has a significant impact on performance”. He went further explaining
that firms who purposely arranges cultural values would perform better than other firms both for
employee performance and motivation as well as the firm’s financial performance. (Daft, 2013)
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Redmond (2019) highlighted that employee reward / bonus schemes can be beneficial when used as
an extrinsic motivational approach to target increase of staff motivation for those employees, he
argues that this approach would work to some degree with positive outcome. (Redmond, 2009)

Above findings collectively has a direct contribution to increase employee duty of care, better
working experience, support between employees and managers. By being positively encouraged /
engaged, employees are more likely to create cohesive working environment. Once the bridge
between multiple employees are established and conquered with the care elements; natural increase
on employee motivation would be evident. When employees are motivated, it would result with
increase on staff retention levels.

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CHAPTER THREE: RESEARCH METHODOLOGY

I. Introduction
Research methodology plays a crucial role in enhancing the knowledge and methods used on this
dissertation. This chapter will cover the suitable methods such as research philosophy, research
approach, research design and data sampling, to name a few of the topics. All useful methods will
be drilled down to provide better understanding to what employee motivation strategies can be used
by firms in the hospitality sector in London to increase staff retention. Reliability, validity, and
limitations of the research will be also outlined at the end of this chapter.

II. Research philosophy

Research philosophy defined to be fundamental 1st step of the research method. According to
Saunders, (2019) “research philosophy refers to a system of beliefs and assumptions about the
development of knowledge”. (Saunders, 2019) While not a single philosophy may be a perfect fit;
there are clear distinction between the main elements that distinguishing the possible choices to
identify the best fit.

If main characteristics of positivism analysed in simple terms; it looks at the objectives positively
and only by taking truth and with the attitude of applying rules and regulations. It relies on social
facts in a systematic and scientific way. This is very much in line with how the natural science
research would be conducted hence while positivism may contribute towards many of employee
motivation research elements, not all firms and employees behave (nor expected to act) in same
manner whether it is physical or emotional. Due to these factors alone, positivism would not be the
best fit philosophy for the chosen topic.

Similar to positivism; realism, objectivism, subjectivism and pragmatism research philosophies all
have certain elements that can positively contribute to this study, whether researchers approach on
realism by trying to understand the impact of the chosen topic on wider audience or instinctive plea
to adopt the methods on pragmatism but due to the research point being sociological behaviour of
humans and aim of the outcome being varied from person to person, Interpretivism research
philosophy seems to be most suitable philosophy.

Furthermore, Interpretivism is a method that is different than positivism and other methods as it
examines the individual explanations people have about their social behaviour. It is based upon
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trying to understand the meanings people give as well as motivational patterns people must act in
specific manner in different context. Interpretivism focuses on trying to access the insight of the
experiences of a person. While other philosophies would approach the issue positively,
interpretivism require to develop an empathy with the research subject to maximize the
understanding and provide better research outcome.

Adopted research philosophy

Due to fact that human behaviour varies from one to another for the same event, this study cannot
be conducted scientifically, hence interpretivism would be the best fit for the research.

VI. Research Approach

Research approaches has been categorised to three major segments.

iv. Deductive approach is based on “top to bottom” approach with creating a proposed
explanation to an existing theory. This approach closely follows the reality (logic).

Due to nature of this research approach, it has a general theory approach. It is also
associated with use of quantitative survey method and ends up with specific hypothesis.
According to Saunders (2019) Deductive approach has been defined as “Identifying an
approach, hypothesis, observe and confirm”. (Saunders, 2019)

v. On the other hand, inductive approach represents, specific observation, approached

from “bottom to top” with the goal of theory building, due to this very reason qualitative
research method and generalised theories are used with this approach.

vi. Abductive approach though; interchanges between deductive and inductive

approaches. While this approach still relies on both qualitative and quantitate data and
theory. Execution of this method understood to be using both approaches while still
leaving space for the undiscovered elements of the research to be found.

According to Van Maanen et al. (2007) “Deduction and induction approaches complement the
abductive approach as a logic for testing plausible theories”.

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As quoted by Bogdan & Biklen, (1997) “bottom-up approach” would assist on formulating a more
fitting approach and outcome. (Bogdan, 2007)

Adopted research approach

Inductive approach has been selected for the benefit of this research, this is due to method fitting
better to objective of analysing data and building a theory based on findings.

VII. Research design

Research design’s ability is to make sure relevant evidence gathered to successfully solve the
research problems raised. (Kirshenblatt-Gimblett, 2006)

Exploratory and descriptive are the two most used designs in researches. (Saunders, 2019)

i. Descriptive design mainly used to gain accurate profile of a person, an organisation, a

sector, or a situation. As understood from the name; it describes the outcome of a
descriptive nature of a research hence it can be hard to filter a clear result. This design
can be beneficial for researches conducted in science and psychology as it provides an
overview to the research subject. Results generated with use of descriptive design
generally cannot be used as a definitive answer or end the hypothesis raised.

Main advantage of descriptive design would be to observe the research topic on

completely on its natural environment. Drawback of descriptive design would be, not
being able to statistically analyse the outcomes. As results concluded based on
observational analysis, it is not repeatable either. Due to these factors; many researchers
consider this design as in consistent. (Shuttleworth, 2008) (Saunders, 2019)

ii. Exploratory designs’ main characteristic which separates it from descriptive design
would be allowing opportunity for researcher to explore it further, predicting an outcome
based on findings. Main aim of the exploratory design would be to gain insight, getting
to know the research topic for later exploration. It is also beneficial to use this design to
understand how best to proceed further. Exploratory design does not have the limitations
on how and which questions that needs to be addressed. It can produce a new point of
view or a new angle to look at to an existing method.

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 Advantages of using Exploratory design would be the being able to create hypothesis and
develop exact research problem/s.
Main disadvantage though, not being able to precisely pinpoint the results, in fact having
a limited value on method changes due to flexibility of the study and being able to provide
insight but not a conclusive definition to research question. (Witt, 2020)

Adopted research design

Due to multiple limitations of the descriptive design, exploratory design will be used on this
research. Main factors for the decision are exploratory design being more flexible unlike descriptive
design where it only describes certain methods, attitudes or behaviours, therefore exploratory
method would provide better understanding as well as provide more insight to multiple point of
view to research question.

VIII. Research method

According to Kothari (2004); various types of research methods exist, such as descriptive versus
analytical, conceptual versus empirical etc however from the basic point of research, it starts with
separation of quantitative method and qualitative method. (Kothari, 2004)

i. Quantitative method is used on number-based data which then converted to statistics.

It is a deductive approach which experiments the pre determent concept. This than feeds
in to providing possible impacts which than guided to problem examination. Statistical
data usually concluded from large sample population of analysis. As a result, this method
generally has higher reliability and validity.

Major weakness of the quantitative method can be that researcher would be more
observing from outside which does not enable for researcher to see the phenomena in its
natural settings.

ii. In contrary, the Qualitative method gathers information on “text or word” based format.
While quantitative method has deductive approach, qualitative method has inductive
approach which used for developing a concept or theory. Qualitative method is objective,
abstract, positivist, and universalistic. It also imposes sociological theories.

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There are many differences or opposite characteristics between qualitative method and quantitative
method. Below chart summaries some of them. (Halfpenny, 1979)

Qualitative Quantitative
Soft Hard
Dry Wet
Flexible / fluid Fixed
Grounded abstract
descriptive / exploratory exploratory
Case study survey
Holistic atomistic
exposes actors' meanings imposes sociological theory
Relativistic Universalistic

Halfpenny, (1979) emphasizes that, “given the variety of referents, it is essential to begin by making
clear how the terms qualitative and quantitative will be used”. (Halfpenny, 1979)

Berg and Howard (2017) describes qualitative research as “A concept, a definition, metaphors,
symbols and a description of a thing”. (Berg, 2017) Such a definition clearly proves that qualitative
method has all required instruments to provide aid to solving the research problem.

Adopted research method

Based on above and all textbook details analysed by the researcher, qualitative research method will
be used on this research. There will be areas where quantitative data will be also analysed & used
however to conclude an employee motivation-based conclusion / recommendation, it would be
paramount to focus more on qualitative data.

IX. Data collection method

Technical meaning of data collection method is to be collecting and measuring of a relevant
information that will add value and deeper understanding of the research question. It would enable
researcher to create hypothesis’s while looking for answers to question/s raised.

Conducting an accurate and appropriate data collection creates a crucial role on any research, this
is especially important for researchers to be able to identify evidences, understand the deeper laying
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problems and find explanations to research questions. It is also possible to conclude an outcome via
perfectly executed data collection method. There are two main data collection method. These are
primary data and secondary data.

i. Primary Data
Primary data is a new information that is collected directly from original sources for the
purpose of the research conducted. (Rabianski, 2002)

Primary data can be collected by conduction in-depth interviews where significantly

detailed information can be collected from firms, employees or management which will
directly provide a clear accountable information. Surveys can also an excellent way of
collecting data, but it is generally preferred to be used for large population. While depth of
the information may not be as deep as interviews, this method can provide more general
information such as what motivates individuals etc. Focus groups can also be used to collect
primary data. This method works best with smaller groups to establish characteristics,
preferences, behaviours, and satisfaction levels. On modern days, social media monitoring
also can be considered as a primary data source. This can be adopted by analysing
conversations, throwing in a conversation topic, and reviewing the feedback of qualifying
participants.

ii. Secondary Data

Secondary data defined as the information that is collected by others and available to public.
These data’s may be readily available for analysis however it may be raw data or un collided
where researcher require to identify and use the ones best fits for the research topic and
problems. (Saunders, 2019)

Majority of the organisations / firms continuously collects data and various variety of these
data would be collected in high volumes to support operation of the business. With rapid
expansion of the internet over the past decade with more and more people becoming a
routine visitor of certain social media or portals, which allows firms to identify more details
of their customers, colleagues, employees, or competitors.

Secondary data field can be considered as a “very crowded market” where finding exact
solution to research question may not be possible. This alone can be considered as a

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 disadvantage of using secondary data. On the other hand, if research question of this
dissertation looked at again “What employee motivational strategies used by Firms in
London to increase staff turnover”. Due to impact of this topic to social life of many people,
industries, and government; official government bodies and large private firms seemed to be
carried out many and regular data collection from various angles of the industry.

According to Saunders M, (2019) “For many research questions and objectives the main
advantage of using secondary data is the enormous saving in resources, in particular the time
and money”. Another advantage of secondary data would be data being readily available to
download for analysis which creates more time to think and interpret the data. (Saunders,
2019)

Main and biggest disadvantage of using secondary data would be not being able to tailor
made the questioner / survey / interviews. Existing available data must be analysed to
establish if it fits to question raised on the research. All secondary data would have been
collected for a specific research question which would be very likely not to meet exact needs
of the other research questions.

Adopted data collection method

For this dissertation, secondary data will be used. This is due to research question being a point of
interest to many firms, non-official and official bodies within government and private firms to find
sustainable solution to firms’ employee motivation strategies and increasing the staff retention for
a sustainable economy.

X. Sampling method
Sampling methods in research is a key compartment, it allows researchers to pre determent the
population who would be taking part in surveys, which ultimately facilitates the required data to be
extracted. Two key research sample sizes widely used are probability and non-probability sampling.
(Taherdoost, 2016)

According to Taherdoost H, (2016), there are two major sampling methods which also has various
types of sampling techniques. (Taherdoost, 2016)

i. Probability sampling

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This sampling method means that all relevant people would have equal chance of being
included in sampling process. For this method to be unbiased, generally, computer program
used for selecting the sample from the sampling frame. (Zikmund, 2010)

Probability sampling has five sampling techniques that could be applied which would be
better fit to purpose.
These are.
a) Simple random sampling: Like probability sampling definition, all population
would have an equal probability on being included to sampling process. Main
disadvantage of this technique would be to have a need of completed list of all
population, cost of conducting the survey.

b) Systematic sampling: Unlike other techniques; systematic sampling works by

selecting pre determent pattern form entire population. i.e.: Every 3rd, 6th, or 8th, 16th,
24th survey etc.

c) Stratified random sampling: Main difference of this technique would be separating

entire population to subgroups follows by conducting sampling from each group.

d) Cluster sampling: Dividing entire population to clusters followed by taking random

samples is how this technique works.

e) Multi-stage sampling is used in a manner where moving away from broad sampling
to towards narrow sampling. According to Ackoff, R., (1953) “Step by step process”
is best description of this technique. (Ackoff, 1953)

ii. Non probibility sampling

Mainly associated with qualitative researches and case study reserch design. Main
purpose of using non probibility sampling method would be due to looking at real life
events. Sampling does not have to be random nor needs to representatition of a group,
cluster or section of the population. Clear, reasonable and logical connection must be
visable on samples in order for it to be included.

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 Non probability sampling has four tecniques which can be used according to need of
researcher;

a) Quota sampling ; is a non random sampling tecnique which pre determenined

samples choosen based on their caracteristics. This selection process will have the
same distrubution chracter as the larger population. (Davis, 2005)

b) Snowball sampling; is also a non random sampling method which uses couple of
cases to help infuluence others participate on study, by this method it increases the
sample size. This tecnique is generally works well with small closed populations
where accesing may be difficult due to nature of the business. (Breweton P, 2001)

c) Conventional sampling is researcher selectiong the sample population.. Researcher

can use friends and family as oppose to unknown populations (Ackoff, 1953)

d) Purposive or judgemental sampling is another non random sampling method that

require no pre determent selecton process. Instead; researcher would be looking at
deliberatly selecting certain inofrmants because of a certain chracteristics / qualities.
(Ma. Dolores, 2007)

Adopted sampling method

For the purpose of this research, non-probability sampling method will be used. Research analysis
will mainly focus on Gov.uk and government backed associations’ research documents as well as
various other hospitality industry body surveys. Techiques that wll be used will associate more
closely towards quata and conventional sampling methods. As noted by Harvey J et al (2019)
sample, many research and surveying completed on the research question which researcher will be
analysing in depth. (Harvey J, 2019)

Main reason for choosing non-probability sampling on this research is due to following points:
a) Time Scale: Probability sampling and Major primary data collection within the deadline of
the dissertation wont be realistic nor would reflect the experience of majority of firms or
employees.
b) Funding : Lack of funding would slow researcher to carry out probabiliyt sampling method

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 c) Current working conditions: Due to Covid-19 pandemia, up to 95% hospitality employees
ade forloughed which means face to face interviews or reaschibility to thoese employees
will be further limited.
d) Data availability: It has been discoverred that there are significant primary data available
for the use of this research which some are very similar to aim of the research question.

XI. Data analysis methods

According to Patton (1990) “Data analysis is the process of reducing large amounts of collected data
to make sense of them”. (Patton, 1990)

Researcher will be obtaining qualitative data via literature reviews from existing hospitality industry
surveys, statistics, social media tools and published articles of industry professionals. Due to
expected high volume of qualitative data, removal of all non-required sections will be a priority to
distinguish “to make sense” of the data collected.

Adopted sampling method

Overall, thematic analysis method will be used on majority of the research to understand the natural
phenomena of the research question however other techniques such as “Narrative”, “Coding”,
Interpretation”, “Confirmation” and “ Presentation” will be used in harmonious method to maximise
the depth of the answer to research question. (Kawulich, 2009)

XII. Validity
Heale (2015) defines validity as “the extent to which a concept is accurately measured in a
quantitative study”. (Heale R, 2015). In principle, research would be valid and reliable only if
research measures set in place result to validate the original research aim / objective.

XIII. Reliability
Reliability concerns the stability and consistency of repeated process resulting with same or very
near identical result. (Carmines E, 1979) Similarly, on this research, it is also defined as a precise
and consistent delivery of the factual findings from available data.

XIV. Ethical issues

All data gathered, analysed, and used on the research will be via utilising secondary data. Most will
be gathered through academic journals, industry professionals, social media platforms, online video

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interviews as well as UK national statistical office and existing survey reports published by large
firms that relates to research question.

XV. Limitations
Research heavily depends on existing data available to analyse.
Researcher had to be made a change of decision from primary data to secondary due to Covid-19
pandemic hence major limitation of the research was, not being able to conduct primary survey on
current situation in London firms’ motivational methods in use and how current employees
perceives these methods to be effective.

However due to scale of the industry and consistent annual researches conducted by government
and industry bodies, enough historical secondary data available to analyse / identify answers to
research question.

Furthermore, use of exploratory research design will assist the researcher on exploring, predicting,
and constructing an outcome as a recommendation.

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CHAPTER FOUR: ANALYSIS, FINDINGS AND DISCUSSION ON THE
FINDINGS

I. Introduction

This chapter will cover the analysis of the findings of the motivational factors that effects retention
levels as well as answers to problems, research questions, objectives noted, and significance of the
study, as notes on Chapter one.

II. Motivational factors

Khan A, et al (2017) suggest that strong relationship, Kotera Y., et al (2018) highlights that work-
life balance, courteous customers, employees’ mental health status and financial gains contribute
towards increase of motivation. (Khan A., 2017) (Kotera, 2018)

Rezapouraghdam, H., (2019) further adds that management style, creating spiritual workplace
atmosphere, will increase employee motivation. (Rezapouraghdam, 2019)

According to “Qualtrics Employee XM survey 2020” which was carried out in 12 different
geographical locations, with 13,551 participants, of which 84% full-time and 16% part-time
employees; geographically USA and France have the highest employee engagement. Surveys
completed at UK reflected only 50% employee engagement. (EmployeeXM, 2019)

Source: (Deloitte, 2019)

Similarly, “Deloitte: Global Human Capital trends 2019 UK Report” affirms the motivational level
published by Qualtrics Employee XM survey.

According to Deloitte’s findings: only 50% of the UK survey subjects of hospitality employees
agreed that their firms considered to be making effective or very effective act to create positive
environment to provide meaningful work for their employees. (Deloitte, 2019)

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Deloitte also covers an area that directly correlates with the Rezapouraghdam, H., (2019) where
leadership has been flagged to be the most important area for employees when it comes to
motivation trigger, importance of leadership clearly defined as an area of opportunity for firms to
explore even further. (Deloitte, 2019)

Source: (Birkin, 2019)

If focussed further to England and London; Birkin H, ( 2019) published a blog that covers “
Retaining Britain’s Hospitality Workers” which, contains in depth data from Office for National
Statistics (ONS), British Hotel Association, ( BHA), YouGov Plc, Department for Work and
Pension ( DwP), which provided significant qualitative and quantitative data to analyse.

Birkin H, (2019) highlighted the main reasons why hospitality sector was a choice of employment
for people. Survey conducted by YouGov Plc. with a sample size of 1006 adults, provides an answer,
according to findings of the survey, 40% of those who chosen to work in hospitality was due to “it
being the only job available” where people who has chosen hospitality due to career prospects was
only 3%. (Birkin, 2019)

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While, secondary data collected and discussed so far covers the UK Hospitality sector in general,
employee behaviour in London firms are very similar to rest of the England if not worse.

As refereed on previous chapters, management team / firm plays a significant role on employee
motivation levels. Whether employees are motivated intrinsically or extrinsically, management
must orchestrate the right balanced approach for maximum motivation which would naturally
increase the end retention levels.

According to Amabile (1993), employee work performance depends on extrinsic motivation

however it is argued by Hackman and Oldman (1976) that increasing extrinsic factors will not
deliver higher motivation and retention levels. (Amabile, 1993) (Hackman, 1976)

III. Retention factors

Hughes, J. and Rog, E. (2008) argues that the best strategy on achieving higher retention level start
with; “Recruitment strategy, talent management, firms’ vision, mission, values, clearly defined
responsibility of hierarchy of the line managers, recruitment & selection as well as evidence based
best practice standards”. (Hughes & Rog, 2008)

Generational needs also have been identified to be having influence on the level of retention &
motivation of employees. Frye, et al (2020)’s research argues that differed needs of different
generations directly impacts to stability of the firms from the employee motivation and retention
point. Researchers identified that “work environment followed by empowerment, pay and
relationship with management” for generation Y (people who born between 1981-1996) are the
most important factors on retention. (Frye, et al., 2020)

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On the other hand, Generation X (born between 1965 and 1979) happy and willing to sacrifice their
professional careers over family and/or leisure time. (Tolbize, 2008)

Overall, creating a work-life balance, treating employees individually to understand their mental
state, adopting a management style that is inclusive, leading rather than managing, making the work
environment “a-spiritual place” by believing and demonstrating firms’ mission-vision-values,
balancing the motivation methods for both intrinsic and extrinsically motivated employees, correct
strategic recruitment and selection process, fair pay policy, empowering employees and creating a
relationship between the employees and management will directly increase staff motivation which
will drive higher staff retention as well as loyalty.

IV. Analysis of the research problems

Ganta, V. C (2014) emphasises the importance of firms focus on staff motivation. His journal notes
highlights that regardless of the position held within the company, if firm / management provides
the right motivational approach, employee performance will increase. Motivated employees will
voluntarily perform better, on the other hand; lack of firms focus on employee motivation is likely
to result with a dip on employee effort, performance as well as low retention levels. (Ganta, 2014)

Importance of the management style, leadership methods and how these impacts to employee
motivation and retention levels cannot be denied. According to research of Alghazo, Ali., Al-Anazi,
A, (2016)’s journal article; closely set management & employee relationship will deliver positive
outcome on employee motivation. (Alghazo, 2016)

Rosie, (2020) also highlighted that effective management starts with communication, a clear
communication filter though the hierarchy on a acceptable tone adjusted by firm senior team to
boast the motivation, morale and to define the target all employees should be aiming to deliver.
(Rosie, 2020)

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Recent years, example where effective communication, leadership and management style that
required for firms to pay extra attention was Brexit. How firms would be addressing / handling the
additional employee shortages as well as exit strategy post-Brexit created a direct impact to both
EU or UK citizen employees as well as the firms itself.

According to Boella, J., and Goss-Turner, S. (2020), Hospitality industry historically dependent on
EU workers, especially for the roles that required low or no previous experience which had a
minimum wage pay-out. Many of the UK hospitality industry leaders raised serious concerns due
to long period uncertainty which resulted with less and less EU workers entering UK. (Michael J.
Boella, 2020)

Birkin, H. (2019) published an analytical report via Deputy, which also emphasises the fear on
resource shortages due to Brexit. She noted that since 2016 referendum, more EU workers leaving
UK than entering. She has predicted that EU worker volume would be reduced by 60% post Brexit.
Her research indicated that current UK hospitality sector retention level trending at 70% as oppose
to 85% across all other sectors which has been identified as a growing concern already without
Brexit impact. (Birkin, 2019)

According to KPMG (2017) UK Hospitality, sector as a whole, requires 200,000 employees per
year which is already significantly higher than other sectors in England, however more concerning
matter would be a further 20,000 additional employees that would be required to fill the gap left
open by returning EU workers. (KPMG, 2017)

Hospitality industry retention level trending at average 70%, does create further pressure on firms,
employees, and customers. Birkin, H (2019) highlighted that according to survey carried out by
YouGov which was completed by 1000 GB hospitality employees; less than average pay, lack of
benefits, lack of social hour work patterns, lack of training and development puts significant
pressure on employee motivation. Once Brexit phrase completed; due to bigger recruitment gap of
the industry, further stress would be put on to firms and employees. (Birkin, 2019)

Objectives:

Critical review of secondary data analysis on employee motivation and retention level performance
indicates that current motivational strategies of the hospitality firms are not consistent nor up to the
level on national average level.

Birkin, (2019) ‘s hospitality industry report highlights the most important seven areas that can
directly increase employee retention. While financial gain is at the top of the list, work-life balance

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/ shift patterns, guaranteed hours to stabilize the regular income, better career prospects also
dominates the areas of improvement to achieve higher retention levels. While financial benefits are
harder to achieve / fulfil at all firms, other six areas are completely dominated by firms’ leaders /
managers who has higher level of control at workplace. (Birkin, 2019)

Source: (Birkin, 2019)

As emphasised by Theodorou L., et al (2019) training and development plays a crucial role on
employee motivation as well as higher staff retention levels. While some firms invest heavily on
training and development, Theodorou L., (2019) identified the importance of offerings put in place
for training and development and how employees responding or level of interest shown to achieve
better outcome on retention levels. (Theodorou L., 2019)

Research conducted by People1st (2015) adds further approval to above paragraphs’ findings.

30% of the hotel employees lacks the skill required for the jobs they do. Study also highlights that
63% of those employees with skill gap are new employees who has not received the sufficient
induction and on job training needs. Throughout the research it has been identified that core problem
in hospitality sectors lower staff retention, (especially in hotels) are due to poor / insufficient training
& development structure. (People1st, 2015)

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Source: (People1st, 2015)

Various researches, surveys, industry analysers identified and published that core of the employee
motivation starts with structured motivational approach, followed by strategic delivery of
motivational approach, allowing management to deliver the chosen methods. It is also picked on
that major contributor to higher employee retention is efficient training & development methods
and how this gets delivered to employees effectively. (People1st, 2015), (Birkin, 2019), (KPMG,
2017)

V. Analysis of the research questions

Human autonomy constantly seeks more challenges, create new areas / knowledge / information
when mastered / achieved the existing responsibilities continuously. Aleksic-Glisovic, M., et al
(2019) highlighted this factor on her publication.

She explains that staff motivation should continue evolving and constantly reviewed to adopt the
current time, whether it is technological advancements or change on dynamics of the management
team. She explains that it is essential for managers to constantly monitors employee needs and what
works to motivate employees rather than having a blanket approach that has been drawn up by firms’
executive teams. Managers contribution on establishing what works and what plays crucial role on
establishing motivational methods / strategies that naturally would work far mor efficient. (Aleksic-
Glisovic, 2019)

From demographics published, it is noted that employee who is on their role less than a year who
responded the survey conducted ranked their engagement at 50%, which than dropped to 48% for
those who were on their role between 1 to 2 years. Over the following 3-4 years employee

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motivation seemed to gradually increased, as high as 61% when employee on same organisation for
4 to 5 years.

Source: (EmployeeXM, 2019)

This finding alone establishes that employees who joins a new firm / new role perceive / expect a
firms’ motivational approach however by end of year 1, delivery of actual motivation strategy versus
expectation are most likely not to match hence employees with up to 2 years’ service has been
identified to be less motivated than all other length of service employees.

These same findings explains that firms do not delivery consistent motivational approach from
beginning of the employment of employee, which can only be justified by assuming that firms do
not prioritise employee motivation over other priorities. (EmployeeXM, 2019)

VI. Motivational approaches

Many traditional employee motivational approaches do need to be amended, revised, or completely
changed to fulfil new generation employees while to make industry more attractive to new breed of
workforce. According to CEO of UK Hospitality Kate Nicholls (2018), who commissioned “UK
Hospitality Commission 2030 report”; through examination of the industry has concluded with 9
distinct recommendations for Hospitality sector to be viable for employees and employers. These
recommendations merged under 3 subgroups. (Nicholls, 2018)

i. Recruitment & retention

This subgroup specifically set to start a domestic campaign to abolish the negative
perception of hospitality sector career options. Furthermore, it is recommended that
collaboration between Department for Work and Pension and industry leading firms to

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 showcase the “best faces of the industry” and if hospitality chosen as an industry, how
potential employees career path would go. To tap into future generations by directly
engaging with the schools. (Nicholls, 2018)

ii. Skills & Workplace learning

Industry to “attract and retain employees by providing set of training & development or
lifelong learning as well as on the job training”. Commission also noted that government
should actively participate on promoting the transferable soft skills of hospitality industry
employees as well as review the Apprenticeship levy effectiveness. Lastly it also
recommends for “government to review the cost of off-the-job training to promote new
candidates for the hospitality jobs”. (Nicholls, 2018)

iii. Diversity
Clear plan for post-Brexit to be established both by “government and firms” to provide
clarity for the existing EU workers. Employment contracts to “fulfil the diversity needs” and
flexibility need of some of the current candidates who are not able to take on hospitality
jobs. Last recommendation was made for government to “support workforce upskilling
scheme to encourage older aged people into the sector.” (Nicholls, 2018)

VII. 2020 Global pandemic (Covid-19) impact

While majority of the secondary data analysed indicates that hospitality sector will continue
thriving over the next decade, due to global pandemic impact, outlook of hospitality sector has
been completely evolved over the past few months. Due to negative impact of the pandemic to
employee’s motivation, this section of the dissertation has been revised to reflect the same.

According to data & survey details published on Statista.com by Luty, J. (2020), Covid-19
significantly changed the hospitality sector and priorities within. Firms focus has been shifted
from enhancing their strategy to yield further to 2019 results; to being able to maintain the
businesses a float. Her financial statistics demonstrates that it would take over 3 years for firms
to level up the financial aspects as well as stabilising the business impact and move towards
growth as an industry. (Luty, 2020) (Statista, 2020)

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Source: Source: (People1st, 2020)

Enback, S. (2020) provided similar findings on survey that was published via Poeple1st. She
identified that post furlough pay-out period, firms having significant uncertainty and globally
business traveller being forced to adopt digital communication or encouraged to carry out their work
remotely, this alone created a direct negative impact to future of hospitality. (People1st, 2020)

Major concern was also highlighted on redundancy, restructuring which looked to be coming in near
future. As firms fights on for survival; current employee motivation has been reduced significantly.

As majority of the firms put almost all their employees on to furlough pay since March 2020;
communication, engagement, development of employees also has been put on hold. She identified
two step method that would assist industry to gradually build on stability from employees’ point of
view.
i. Immediate actions: Focus on existing employee engagement strategies along
with returning business post Covid-19, planning of the workforce return to work,
learning and development of the existing employees.

ii. Long term actions: Revision of recruitment and human resource support,
implementation of performance management system followed by learning and
development of the team.

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Above findings clearly defines that regardless of the global impact of Covid-19 on hospitality
industry, employees must be one of the focus areas for firms to bounce back on coming months /
years. (Enback, 2020)

VIII. Conclusion of findings

Positive work environment, firms actively and regularly engaging / communicating with employees,
leading from front, adopting new technologies, creating work place culture, effective and
consistently fair decision making, applying the correct leadership skills, regular job chats, drawing
development plans & following up, providing regular constructive feedback, working collectively
as an industry to change people’s perception of hospitality industry, jobs & career opportunities,
understanding and amending the management approach to different generations and treating
employees individually; will increase employee motivation which would result with higher staff
retention levels.

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CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS

I. Summary of the research findings / conclusion

Comprehensive amount of secondary data analysis collected via government commissioned
researches, independent studies, surveys, and sector analyses, indicates that hospitality industry
employee motivation is a key element for firm’s performance. It is also established that hospitality
sector provides approx. 10% of the UK employment with 3.2million employees. (Nicholls, 2018)

Firms ability to provide adequate recruitment, selection, induction, on job training, mentoring, job
chats, routine performance reviews, clear training and development plan would contribute to
employee motivation level. Lack of some or all these elements will result with reduced employee
motivation which ultimately will impact the retention levels of the firms negatively. (Hughes &
Rog, 2008)

While motivated employees contribute more to firms’ performance, achieving higher staff retention
will require further expansion of strategies from firms’ point of view. Some of these are; workplace
relationship management, work-life balance, financial and non-financial reward factors ( these are
especially important for extrinsic motivated employees), career progression plans, demonstrating
leadership style that captures the maximum imagination of the employees and individualized
approach. (Ellenbecker, 2013) (Karatepe, 2014)

As noted on chapter 4, three sub-group recommendations published by UK Hospitality to

government is a crucial finding that will support the existing and future hospitality industry
employees, both from career path as well as hospitality sector to increase retention levels to match
or pass the other UK sectors retention levels. (Nicholls, 2018) (Muller-Heyndyk, 2018)

It has been established that majority of the hospitality firms has some degree of employee
motivational activities however analysis on findings chapter indicates that firms speed of
evolvement on methods used does not meet the evolvement on the employee’s needs hence on
international level, UK only achieved 50% employee motivation as an overall. Another area
identified was the motivational needs of different generations, firms operate with set standard
operational procedures which hardly get revised unless there are significant changes to local law,
regulations or compliance of the brand represented. Employees feedback and / or suggestions does
not seem to be influencing a major change.

46 | P a g e
While autocratic management style might be acceptable in army, navy etc. it certainly does not fit
to hospitality industry. Researchers’ past own experience provides samples of such a management
style still being present in hospitality industry, new generations’ motivation method better suited to
charismatic or authentic management styles. Aim in hospitality industry for staff to delivery is not
just what is required of them but to exceed guest expectation while maximizing firm’s financial
performance as well as being motivated by the management team at their maximum level.

Northouse (2015) referred that previous US President Harry S. Truman quoted that “Leadership is
the ability to get men to do what they don’t want to do and like it.” (Northouse, 2015)

It has been also noted by the researcher that new employee induction and impact of the new recruits’
first impression of the firm was not covered much by previous researchers. Similarly, motivational
theories do not cover much (if any) of the importance of the induction / orientation methods for a
new starter.

II. How the objectives have been met

i. Undertaking of the critical review of literature on current performance of

firms’ employee motivation strategies.
It was established that most firms have some level of motivational tools however current
retention level of 70% indicated that these motivational tools are not sufficient nor in line
with the other industry retention levels in the country.

ii. To examine the existing statistical reviews, reports, recommendations published

by government bodies, research companies and firms.
UK Hospitality 2030 Commission report which was submitted on September 2018 provided
in depth qualitative and quantitative data, based on those country wise gained data,
distinctive recommendations were identified. These recommendations were put forward to
firms and government for actioning.

iii. To analyse the reports and secondary surveys to identify areas that can directly
contribute further to staff motivation of firms’ strategies.
Throughout the analysis of the data gained via secondary data, it was identified that quality
of employee induction programs and consistent, clear employee communication was not

47 | P a g e
 covered in depth. Considering the high impact of these two areas, researchers’
recommendation will provide further expansion and explanation to these areas.

iv. To find out, what existing motivational strategies works and what are the new
coming trends that can be benefit to firm’s further.
Charismatic and authentic management styles have been identified to contribute positively
to employee motivation as well as lower absenteeism and higher retention levels.

v. To give new strategic thinking data to firms on improving their employee

motivation strategies and increase staff retention.
Creating flexible and making concise decision to support employee work-life balance was
identified to be new trend as well as recognising the priorities of different generations should
be taken into account by firms to achieve better outcome on motivation and retention of
employees.

III. Recommendations
Researcher concluded that two major recommendations can be proposed to firms.

i. Revised “360 degrees” induction program for all new starters

Throughout the research, it has been established that there are many factors that impacts to
employee motivation however researcher believes that employees first impression of the
firm should be the starting point for motivation and loyalty. Within the various London
firms, the researcher worked, historically task of welcoming a new employee given to HR
Manager on their 1st day who then delivers the basic induction steps. (these are such as tour
of the property, showing facilities and introduce employee to existing team who are at that
point at work. Day generally continue with HR Manager organising uniform and locker
followed by seating new starter to a PC for them to complete all their compulsory online
trainings. At the end of day one, HR manager generally hands over the employee to
department manager / supervisor who starts briefing on shift patterns, followed by attaching
the person to one of the experienced employees for them to learn the task / job details.)

Recommendation would be; While HR Managers follow required processes, induction

process must be taken away from HR Managers/administrators and given to Head of
Department (HOD). Naturally, HOD would have in-depth knowledge of operations and the

48 | P a g e
department, relevant experience as well as the ability to provide immediate connection with
his/her new employee to start building empathy and relationship. It is essential that HOD
also provides real life examples of company success, vision, mission, and values. Share some
degree of property performance and team dynamic. This process should follow by
departmental “buddy system” for new starter to have continues support from HOD induction
to on job training.

Other “motivational/engaging acts” should be also encouraged. Such as welcome to team

card (signed by the team) and a symbolic present (rather than leaving card/present) to be
posted to employees’ home address week prior to start date along with uniform, name badge
and locker key. Lunch / dinner with a different manager or supervisor every day on week
one.
Rather than 30 days -90 days -180 days catch ups. Part of the induction period should include
weekly catch ups on first four weeks of the employment to establish level of adaptation and
how employee is settling. This would allow for HOD & buddy to amend training methods
accordingly then and there.

This recommendation support by publishing of Butler (2008) who suggested that efficient
induction process impacts positively to employee motivation, higher retention levels as well
as reduction of absenteeism and job satisfaction of employees. (Butler, 2008)

ii. Consistent clear, in-depth communication and employee empowerments

Communication: Over the past 20 years in hospitality, researcher observed many different
management / firms approaches on communication and authentication of it. Common errors
observed was, management team generally would only provide certain elements of the
information. i.e.: CEO sets up a new company mission, vision, and value. Rather than simply
delegating these via managers; inclusivity of creating and announcing directly to all layer of
employees by utilising technological advancements would make all layer of employees feel
part of “something bigger”. Creating an inclusivity can trigger far deeper positive impact on
loyalty, engagement, and motivation. Those who dismisses the idea of communication due
to being busy with day to day running of the firm, tend to focus more on business
performance than employees, who are the ones that makes the firms thrive or suffer.

49 | P a g e
 According to Nebo, C., et al (2015) Communication within organisation can take place
consciously or unconsciously. Form of communication can be physical movement, facial
impressions, listening, talking, writing as well as tone of voice. It is noted that firms should
fully understand the importance of poor communication results with lack of motivation.
(Nebo, 2015)

Empowerment of employees: Encouraging the team members to be thoughtful and creative

in determining how to best handle each situation would unlock the motivational route,
whether empowerment to deal with guest dissatisfaction or to hear employee opinion on an
internal matter & following up accordingly will also contribute to employee work life, job
ownership and performance.

Kruja, D., et. al. (2015) research verifies that empowering employees results with higher
performance as by empowering employees, firms would make employees feel useful, better
for the firm and themselves. (Kruja, 2015)

IV. Recommendations for further research

During to course of secondary data research, it has been established that motivation is a significant
size topic hence further researches should include trigger point for employee resignations. Precise
survey that can be conducted to leavers from various firms could shed further light to how firms can
increase retention as well as where the firms are failing on motivating employees.

Technological advancements and how these impacts to employee motivation should be also a topic
that should be considered for future studies.

V. Limitations

Initially, researcher planned to conduct a survey and based the research around the primary data
however due to Covid-19 outbreak and majority of hospitality employees being on furlough,
researcher had no option but to continue with secondary data findings. Another reason for not
conducting survey was due to temporary psychological impact of Covid-19 on hospitality
employees where their answers to survey questions may vary due to current circumstances.

50 | P a g e
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