Australia Hotel Industry Staff Turnover Rate Essay

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Pages: 28

How Much Does Labour Turnover Cost? A Study of Australian Four- and Five-Star Hotels
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
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Turnover is aggravated by a shrinking labour force (Coy, 2006). As noted in Iverson and Deery (1997), a turnover culture has been created and reinforced within the hospitality industry. Hotels generally regard high turnover as part of the work-group norm and employees frequently hold the belief that they are entering jobs with limited career development opportunities.

A number of attempts have been made to understand management turnover; career advancement, organisational culture and commitment, the intrinsic and extrinsic job satisfaction and work-life balance are found to be among the key motivators for mangers to quit. Management turnover intentions are affected to a greater extent by psychological, perceptual and affective factors rather than by the characteristics of the employees or hotels although age is a factor that is significantly associated with longterm management turnover (Carbery et al., 2003; Ghiselli et al., 2001; Stalcup & Pearson, 2001). Management turnover has been reported as being lower than that of the operational employees and this may be attributable to the relatively higher level of


dedication among hotel managers and the high investment made by hotels in their managers (Carbery et al., 2003).

Hotels are also facing a changing labour market as gradually, Generation Ys form a larger proportion of their employee groups, especially those who work in the