a) iii) CURRENT THINKING, FINDINGS AND APPROACHES OF THE TOPIC
In today’s society, most people are in search for the stable job with perfect criteria. Majority of them want jobs that have huge amount of salary, but in the same time, it also provides variety of benefits in addition of good balance between work and life. In the hospitality industry, specifically in hotels, the industry faces an increasing high turnover rate. With jobs position ranging from front desk tellers, customer service agents, housekeeping, maintenance and food and beverage handlers, the result of high turnover can come from many diverse factors. When dealing with the hotel industry, the question arises as to why employees have high turnover? Some can speculate but the facts point to specific issues. With so many options and jobs to choose from, what does it take for someone to find that perfect hospitality job? Better yet, what must hospitality companies do in order to attract and retain high quality workers? These questions have been asked for many years. In a recent academic journal published by Industrial Engineer (2010), they use the Theory of Maslow’s Hierarchy of Needs to answer these challenging questions. Maslow’s theory can be used as a framework to identify the various benefits organizations can offer to satisfy their employees’ needs and in turn, increase revenue and reduce turnover. In this paper we will discover why the hotel industry experiences such high turnover and what specifically can be done to improve this challenging matter.
On 1995, Cheng state the motivation of employees, whether professional, skilled or unskilled, is a major issue in all service organizations. For the hotel industry, employee motivation is a major issue. It is a challenge for the management of the hotel industry to motivate employees to stay on the job and to offer the efficient, good service which customers expect.
According to Petcharak (2002), expanded by Aworemi, Abdul-Azeez and Durowoju (2011), motivation factors for people choose to work at the hotel was based on job security, personal loyalty to employees, interesting work, good working condition, good wages, growth in the organisation and full appreciation of work done. After identifying the motivation factors for motivate and retaining the employees, few rewards and incentives systems have been recognized. There are job enlargement, job enrichment, promotions, internal and external stipends, monetary and non-monetary compensation should be considered.
Most business leaders have seriously underestimated the cost of turnover. Report by the Saratoga Institute which is a leading research firm in the human resource field state losing an employee from a lower level one, often costs the equivalent of from six months to one year’s pay. This cost becomes twice higher to replace highly skilled technicians, professionals and managers. This report is further strengthened with study conducted by the Corporate Advisory Board...