Australia Hotel Industry Staff Turnover Rate Essay

How Much Does Labour Turnover Cost? A Study of Australian Four- and Five-Star Hotels Abstract Purpose: Employee turnover is a significant challenge for Human Resource Management (HRM) strategies and organisational performance. This study presents findings drawn from an extensive survey of labour turnover in the Australian accommodation sector. A particular focus is placed on turnover rates and costs. Design/methodology/approach: Based on labour turnover literature and an industry panel, an online survey was designed and distributed to four- and five-star hotels across Australia. Human Resource Managers from 64 hotels participated in the survey, providing a representative sample and a response rate of 29 percent. Findings and†¦show more content†¦The study represents a timely investigation into the issues surrounding turnover and identifies the ameliorating role that HRM might play. Labour Turnover ‘Culture’ in the Hospitality Industry Employee turnover as a research stream can be traced back to the work of March and Simon (1958) that was primarily based upon the level of job satisfaction and organisational commitment. Other theorists such as Mobley (1977), Price (1977) and Price and Mueller (1986) identified a range of other variables such as pay, communication, social integration, routinisation, role overload, promotional opportunity, training, supervisor and co-worker support, and distributive justice as having a significant impact upon turnover. 4 How does the hotel and hospitality industry envisage labour turnover? It is the voluntary or involuntary exiting of staff from the employment in a hotel. A prominent feature of the hospitality industry is that it is labour intensive but experiences high levels of labour turnover (Birdir, 2002; Brien, 2004). For instance, data from the United States suggest a voluntary turnover rate in the leisure and hospitality industry of 52.2%, with accommodation and food being the highest in the hospitality sector, compared to an average of 23.4% across all industries (The US Bureau of Labor Statistics, 2006). Though debate varies, suggested reasons for this high turnoverShow MoreRelatedThe Role of HR Functions in Strategy Formulation1532 Words   |  7 Pagesthe hospitality industry. Gautam (2005) explained that the hospitality industry worldwide is the industry with the highest employee turnover. Narrowing down this industry, the hotel industry within hospitality has one of the highest turno ver rates and because strategic human resource management is focused on the efficiency of human capital, the industry must find a way to hire, train and retain skilled employees. 2. 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