INTRODUCTION TO THE PROBLEM OF EMPLOYEE TURNOVER
Earlier it was considered that retaining customers is very important for the organizations and their business. But in recent years it has been found that retaining employees is equally important for the companies. In the present business environment where there is stiff competition between the industry rivals, the problem of employee turnover is faced by most of the firms as every company is ready to acquire talented individual, thus further stimulating the rate of employee turnover. The problem is more serious in the hospitality sector, especially in the hotels and restaurants. Globalization has provided many opportunities to the talented individuals to select the firm with which they want to work with. In addition to this, long working hours in the hospitality sector has further worsened the condition (Red Carnation blooms through management training: Morale improves and employee turnover falls at boutique hotel group, 2006). Working in hospitality industry demands lot of physical and mental efforts. Therefore, employees demand higher wages against the long and tough working condition. If the management is not able to provide all the required benefits, it has to experience high employee turnover.
The present report is about Four Square Hotel which is currently facing the problem of high employee turnover. The current work will make use of system theory for conducting the research and identify the root causes behind the same. Four Square Hotel is one of the renowned hotel chain in the world, still the giant is facing the problem in retaining its employees. Through this study, system approach will be applied to identify the factors that are responsible for high employee turnover (Davidson and et. al., 2010). Finally, this report will also provide some recommendations to the management of the company which may assist them in overcoming from this problem.
There is as such no specific definition of system research. It is a model that reflects overlap and interrelationships between various disciplines of an organization. System theory states that it is not possible to effective solve any problem if it is considered isolated and not as a part of interrelated components.
Causes of Employee Turnover in Four Square
From the system’s theory of research it has been found that there are many reasons that are responsible for high employee turnover in Four Square, these are:
Job Satisfaction: Most of the employees are not satisfied with their job. The main reason behind this is employees are not satisfied with their profile. Most of the time the work provided to them is not as per their skill level. They are bound to perform activities inferior to their job role and responsibilities. Because of this, most of the employees quickly switch to the other organizations.
Long working hours: Another reason for the high employee turnover is long working hours. Employees are forced to work continuously for 14 hours (Sheraton Skyline reaches for the stars: Recruitment and training practices help hotel to win prize for excellence, 2006). In addition to this, there is no shift rotation, that is, person working in the night shift has to work in nights and are not shifted to day shift.
Poor working conditions: Although the hotel provide excellent ambiance for its customers, but a far as employees are concerned, working condition at the workplace is far below standards. Rooms allotted to the residential staffs are not clean, in addition to this, hygienic and nutritious meal is not provided to them. Further, in food and beverage department, no standard safety measures are adopted by the organization (Kuballa, 2007).
Limited growth opportunities: One of the major reasons for high staff turnover is limited growth opportunity. Promotional schemes of the hotel are not very attractive, in addition to this, organizations has not adopted any kind of reorganization activities through which they can motivate the employees. Finally, there are no monetary and non-monetary rewards for the staff.
Here are some of the recommendations which if adopted by the organization may help it in lowering the employee turnover.
Better reward schemes: The best way to retain an employee is to give timely rewards for his or her excellent work. If the management will provide rewards to the staff, it will develop an environment of healthy competition among the employees and monetary and non-monetary reward schemes will keep the employees stick to the company (Kusluvan, 2003).
Timely promotional schemes: Another method for employee retention is the introduction of promotional scheme. As per the performance of the employees, management must promote the staff higher in the hierarchy. This will motivate an individual to remain loyal to the company and will result in lower turnover rate (Crook and et. al., 2011).
Healthy working condition: By creating healthy working condition also organization can retain its talented employees with the company. Further, this will also enable the organization to achieve competitive edge over the competitors and may even provide an opportunity to the company to attract talented employees of other firms also.
Work as per the skill level: Finally, management of Four Square Hotel can also reduce the employee turnover rate by providing appropriate work as per the skill sets of an individual (Crook and et. al., 2011). If an employee possesses managerial skills, organization must promote this and should groom the managerial skills of the individual by delegating certain authorities to him or her.
From the above discussion it can be concluded that employee retention is major problem faced by the organizations in the competitive business environment. Even hotel giants like Four Square, due to poor working conditions, unattractive promotional schemes, lack of reward schemes, limited growth opportunities is facing the problem of higher employee turnover. To overcome from this situation management must create healthy working environment, introduce monetary and non monetary reward schemes, provide promotional opportunities and delegate work as per the skills of the employees (Kuballa, 2007). All these techniques will help it in lowering the employee turnover rate.
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- Crook, T. R. and et.al. (2011). Does human capital matter? A meta-analysis of the relationship between human capital and firm performance. Journal of Applied Psychology. 96(3), pp.443-456.
- Davidson, G. C. M. and et. al. (2010). How much does labour turnover cost?: A case study of Australian four- and five-star hotels. International Journal of Contemporary Hospitality Management. 22(4). pp.451-466.
- Kuballa, J. (2007). Employee Satisfaction - A Precondition for Economical Success of Service Companies. GRIN Verlag.
- Kusluvan, S. (2003). Managing Employee Attitudes and Behaviors in the Tourism and Hospitality Industry. Nova Publishers.
- Red Carnation blooms through management training: Morale improves and employee turnover falls at boutique hotel group. (2006). Human Resource Management International Digest. 14(6). pp.11-14.