Proper Measures That Can Be Taken to Reduce of Contain Employees Turnover - Gold Granule Hotel - Research Paper Example

RESEARCH FOR HIGH EMPLOYEE TURNOVER RATE Student name Unit Name Team member 1) A 2) B 3) C 4) D This report is based on materials compiled by members of my team but the written report is all my own work Date EXECUTIVE SUMMARY TABLE OF CONTENTS RESEARCH FOR HIGH EMPLOYEE TURNOVER RATE 1 Student name 1 Unit Name 1 Team member 1 1)A 1 2)B 1 3)C 1 4)D 1 EXECUTIVE SUMMARY 2 INTRODUCTION 1 1.1 Background 1 Statement of the problem 2 Objectives 2 Research questions 2 LITERATURE REVIEW 3 Causes of employee turnover 3 Measure to reduce turnover 4 METHODOLOGY 4 Research design 4 Population and Sampling 5 Data Collection and Instrumentation 5 RESULTS 5 Response Rate 5 Respondents Demographic Profile 5 Age 18-29 Yrs 16% 30-40 Yrs 52% 41 Yrs and above 16% 5 Educational Level College - 22% University- 76% 5 Job experience Less than 2Yrs = 25% 4-8 Yrs = 42% 9-12 Yrs = 21% 13-20Yrs = 12% 6 DISCUSSION 6 Employee Retention Strategies 6 Work place Environment 6 Regression Analysis 7 CONCLUSION 7 REFERENCE 8 INTRODUCTION Employee turnover according to Kakes (2010), refers to the number or percentage of employees who leave an organization and are replaced by new employees over a given period usually on annual basis[htt]. Its impact has sparked concerns to the senior management, human resources professionals, and industrial psychologists. Employee turnover has proved to be the most costly and apparently the biggest human resources challenge facing most organization in the modern world[Ran08]. This loss is felt the most especially if those being replaced were key to the success and continuity of the organization. This research examines the causes, and proper measures that can be taken to reduce of contain employees’ turnover. 1.1 Background A five star hotel, Gold Granule Hotel, which is situated in the central business district of Adelaide, is one of the leading hotels in the region. It boost of serving over 1200 customers per day. The hotel has business facilities which include meeting rooms, secretarial services among other customized facilities. The hotel also has a fully equipped gym, sauna and many other entertainment facilities. The hotel boasts of having made profits of over 19 million Australian dollars in their first half year financial statement and over the years the hotel has recorded a steady profit margin. However, the hotel management is being faced with the worrying high rate of employees’ turnover due to discontent from employees. The high turnover rate in the Hotel’s workforce is causing a serious economic impact in the hotel’s profitability and its survival. The hotel is concerned with the high turnover and is seeking measures to counter this trend. The profits are likely to decline if the customers feel that the hotel is underpaying or neglecting its employees. The general manger has been spending a lot of money in recruitment and training of employees. The hotel hopes that when employee satisfaction has been met, the profits and progress can easily be attained. Statement of the problem The Hotel’s growth in the past years has been progressive according to the country’s economic survey. In the past few years employees have expressed dissatisfaction with the hotel and the hotel has experience increased employees’ turnover. This is costing the hotel huge amount of money in form of new staff training, legal suits and the company’s image has been tainted. The hotel’s management is concern and wants to untangle specific reasons for the high employee turnover through a research on the organization behaviors. Objectives 1. To establish the reasons behind high employee turnover rate at the Gold Granule Hotel over the last two years 2. To establish the influence of work place environment on employee turnover in Gold Granule Hotel 3. To assess ways to reduce high employee turnover rate at Gold Granule Hotel Research questions The research was guided by the following questions: 1. What are the reasons behind high employee turnover rate at the Gold Granule Hotel over the last two years? 2. What employee retention actions are contributing high employee turnover in Gold Granule Hotel 3. Who influence does work place environment have on employee turnover in Gold Granule Hotel 4. Are there ways to reduce high employee turnover rate at Gold Granule Hotel LITERATURE REVIEW Until recently, majority of workers used to work for the same employer for their whole career live. Cases of employees Movement from one employer to another was minimal. In the current modern world that has really changed. According to U.S. statistics on employee turnover for 2010 for instance, suggest that an average person in the U.S changes employers approximately every four years[Joh12], furthermore the same survey indicate that employees over the age of 50 changed employers every 10 years in their entire career lives. In Australia, AIM National Salary Survey 2010 statistics indicate that the average proportion of staff turnover for large companies is 15.5% and this trend has been on the raise[Gab10]. Employee turnover in the organization can be attributed to a number of factors that can be controlled if the management becomes more committed. Major causes of employee turnover include: Causes of employee turnover Organization culture and the existing organizational system such as reward system, abilities of leadership, the organization’s ability to elicit a feeling of commitment on the part of employees among other organizational factors that influence the employees’ satisfaction[Gab10]. The availability of openings for high paying opportunities is also among the major reasons cited by employees for their intention to change jobs[Mae00]. Other economic factor such as the financial position of the organization also spikes a sense of job insecurity and trigger employees to look for better opportunities elsewhere. Some employees place high unrealistic expectation on the job due to lack of general knowledge of what the position entails at the time of receiving the offer. When these idealistic anticipations are not recognized, the employee becomes disappointed and resolves to leave[Law08]. The relationship between the management and other staff has a significant impact on the employee retention. Turnover will depend on the workers satisfaction with the way the supervisors handle them and how their issues are taken care of. Measure to reduce turnover Giving employees’ freedom on the implementation of a given task will greatly improve the employee engagement[CIP12]. This can be enforced through the organization redesign of its policies taking into consideration the metrics for measuring the employee performance among other factors that may infringe into the employee freedom at carrying tasks. Supportive management team that encourage, understand employees and are will to assist employees in dealing with both personal and at work level. This will ensure a happy and satisfied team of employees and consequently reducing the desire to quit. Proper induction in the work place can also assist to give a new employee a clear preview of the job thus spelling out unrealistic expectations. The organization should regular carry out pay survey to establish what other organization offer their employees to avoid under paying their employees. Low payment has been the major cause of employee turnover. Regular upward adjustment of the employees pay may curb the trend. In the organization there exist other factors such as unfavorable policies, poor working environment among other external factors that motivate employees to quit one job for another. METHODOLOGY Research design In this research, a descriptive Research design was adopted. According to Mugenda and Mugenda (1999), descriptive research is used to get facts concerning the prevailing situation with based on a selected variables or conditions. Population and Sampling The study centered on the hotel industry in Adelaide, Australia. The findings of the study will be generalized to a larger population of the hotels in Australia. The select study population was the employees of Gold Granule Hotel. Stratified sampling technique was used to obtain a sample size of 240 employees out of the 675employees in the hotel. Data Collection and Instrumentation To ensure credibility on the facts several data collection instruments were adapts[Gri00]. To collect primary data semi structured questionnaire was administered and the top management and selected supervisors were interviewed. Review of the existing literature such as books, journal was done to collect secondary data. RESULTS Response Rate 87% participated and gave their response, which according to Mugenda and Mugenda (2003) lies within the recommended 70 percentage of responded. Respondents Demographic Profile Age 18-29 Yrs 16% 30-40 Yrs 52% 41 Yrs and above 16% Educational Level College - 22% University- 76% Job experience Less than 2Yrs = 25% 4-8 Yrs = 42% 9-12 Yrs = 21% 13-20Yrs = 12% DISCUSSION Employee Retention Strategies High portion of the respondents (64%) showed the organization was devoid of strategies for effective employee retention while 36% were of the alternative opinion. The 65% were of the opinion that the management did not know retention strategies. This agrees with Ruth (2004) that managers with higher understanding on employee turnover causes, have potential of employing effective employee retention strategies so as to retain most skilled and competent employee. Furthermore, 79% of the respondents were of the opinion that strategies used do not minimize employee turnover. The Likert scale rating used was 4: Very Effective, 3: Effective, 2-Moderate and 1: Not Effective. About (53%) rated the employee retention strategy effectiveness as moderate, 18% not effective 15% Effective, and 14% as very effective. It can be inferred that most employee ratings were average. From the findings of Baker (2004), organizations lacking very effective employee retention strategies have the likelihood of high employee turnover rates that amounts to competent and skilled employee loss. The dismal standard deviation shows that there was inconsequential error during the analysis. The deviation results indicate that respondents provided similar answers as the resulting variation was closer to another. From the findings, it can lack effective employee retention strategies have constituted to high employee turnover rates in the hotel. Work place Environment A larger majority (78%) of the respondents had the feeling that their work environment was not favorable while 22% said it was conducive. About 82% conceded that the work environment resulted to employee turnover. The likert Scale was; 1- not at all 2-small extent 3-moderate extent 4 -great extent 5: very great extent. Majority of the respondents (65%) agreed that work place environment resulted in employee turnover to a very large extent, 15% to a large extent, 12% small extent 8% and moderate extent and not at all respectively. A mean of 1.23 showed that hotel work place environment was not favorable. Likewise, a mean of 1.92 indicated that work place environment amounted to high employee turnover rate as a mean of 4.12 showed work place environment contributing to employee turnover to a greater extent. A small variance and a small standard deviation indicate that results provided by the respondents were precise. Regression Analysis A regression equation was used to establish the relationship between the dependent variables and independent variable was derived X = a + bY1 + bY2 + bY3 + bY4 + e=t2 The corresponding values for b0, b1, b2, b3 and b4 are 0.542, 0.267, 0.082, 0.156 and 0.133 thus the equation X = 0.542+0.267+0.082+0 .156 +.133 This shows that there is a very strong relationship between, employee retention, employee turnover and work place environment. Similarly, a coefficient of .133 shows that favorable workplace environment assists in lowering employee turnover by 0.133. CONCLUSION From the findings of this study it can be deduced that educational level may is a great contributor of the turnover as employees with higher educational level have high intentions of turnover. Age also have a major influence on the employee turnover. The study also shows that the employees of Gold Granule Hotel are dissatisfied with the unfavorable working condition in the hotel which contributed to the employee turnover. RECOMMENDATIONS To prevent workers turnover or minimize its effects on the organizations strategies the management have to consider all causes and inter-relationship to the employee turnover. It’s also recommended for an organization to establish strategies that aim at reducing the employee turnover. REFERENCE htt: , (Sigma, 2005), Ran08: , (Rankin, 2008), Joh12: , (Kammeyer, n.d.), Gab10: , (Granatstein, 2010), Mae00: , (Maertz, 2000), Law08: , (Lawler, 2008), CIP12: , (CIPD, 2012), Gri00: , (Griffeth et al., 2000), Read More