Evaluating Causes Of High Employee Turnover And Absenteeism In The Hospitality Industry: An Essay.

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This research study has enriched the knowledge about the current prevailing problem of the companies. But the research would not have been possible without the help and support of certain people. Firstly I would like to thank my supervisor for giving me an opportunity to conduct a research work. Then I would like to thank the mangers and the employees of the different organizations who have helped me by giving the interview and their views about the current problem. I am also grateful to my friends for the help and the support they have provided in the process of data collection. The project would not have been completed without the help and the support of the above mentioned people.

Thanking you

Yours sincerely

1. 1. Research project outline
2. 1.2. Factors that contribute to the selection of the project 5
3. 1.3 Critical review of key references (M1) 6
4. 1.4. Research project specification 6
5. 1.5 Appropriate plan structure for the research work (D1) 7

1. 2.1. Introduction
2. 2.2. Research objective
3. 2.3. Research design(M2)
4. 2.4 Research Methodology (D2)
5. 2.4.1 Data collection methods
6. 2.4.2 Research methods
7. 2.4.3 Sampling technique
8. 2.6 Data analysis (M3)
9. 2.7 Findings of the study 172.8 Recommendations and conclusions (D3)

Management of the human labor is the main task of any organization. The employees are the backbone of a company hence the, main concern of the company should be to increase the level of job satisfaction in the organization. In the present scenario it is noticed that the major problem faced by the industries is the high employee turnover rate and absenteeism. The employers are unable to understand the logical reasons behind this situation (Lodico and Spaulding, 2010). The researcher in this context had taken the option of considering various topics relating to the human resource management like the employee satisfaction study, effective recruitment and selection process, the overall human resource management etc. but the most relevant topic in this scenario was to evaluate the reasons being the high employee turnover and absenteeism. The researcher for this purpose considered the hospitality industry to analyze the present situation. It is seen that the employee in the hospitality industry tend to change their jobs very frequently (Kimungu and Maringa, 2010). There is no job consistency in this respect hence it is important to conduct a detail analysis to ascertain the key problems in this context.

Both the factors - the employee turnover and the absenteeism equally affects the smooth working conditions of the organization. Alan et al. (2009) said that absenteeism may be defined as the rate of absence from the organization. This is a critical factor which will hamper the growth of the organization. If the employee doesn’t follow the norms and regulations thus set by the organization then it would create a hindrance in the internal environment of the organization. Again when the problem of employee turnover is considered it is seen that if a company loses its employees very frequently then it will create a bad image for the company in the market. Hence employee retention is the most important factor in an organization. This project is undertaken so as to identify the probable problems which the employees face in an organization and also to analysis the satisfaction level of the employees in the company (Cameron, 2009).

Topic	Name of the author	Name of the book / journal	Critical evaluation
Employee turnover	Kimungu, S.I.	International Research Symposium in Service Management	From this source the researcher could get information about the reasons behind employee turnover
Research methodology	Cooper, D.	Business Research Methods	This source gave information about the types of research techniques and methods to be used
Hospitality industry	Alan, S.Z.R.	Journal of Tourism, Hospitality & Culinary Arts	This source gave the information regarding the employability issues of hospitability sector.

Evaluation Methodology

The scope of this research is limited because the researcher has selected only one problem from the whole human resource management to ascertain the possibilities of the problem. To analyze the project the researcher will collect a sample data in form of both primary and secondary data and then with the help of the proposed methods and sampling techniques the researcher will analyze the data. Then finally the researcher will arrive at certain conclusions and can provide certain recommendations to the employers.

 

The Gantt chart here shows the approximate duration that would be taken by the researcher to complete the different stages of the research project. The researcher will take at least two weeks to get a complete knowledge about the topic from the journals and the books. And the data collection and evaluation will take at least five weeks to complete. The final project will this get completed within the 6^th week.

Absenteeism is referred as the continuous absence of the employee from the general work schedule (Toloie-Eshlaghy,2011). The employers of the hospitability industry have reported that there are no valid reasons on the part of the employees for absenteeism. The reports say that the casual attitude of the employees towards their job is the reason for the growing rate of absenteeism. Another factor which is seen in the hospitality industries are the high employee turnover. Magilvy and Thomas (2009) defines in simple may be defined as the rate at which the company gains and looses employee every year. The study here aimed at shading light upon the problems which the employees face regarding their job retention. The researcher made the project from the view point of the employee because in most of the cases it is seen that the employees are not satisfied and they leave the job rather than employer firing the employee.

• To analyze the reason behind the high rates of absenteeism among the employees in different hotels
• To analyze the high rate of employee turnover in the hotel industry
• To ascertain the losses which the company has to suffer due to absenteeism and high turnover
• To identify the alternate solutions to the problem of absenteeism and employee turnover

The research design signifies the type of research that the researcher is willing to conduct. There are three types of research designs namely the exploratory research, the descriptive research and the experimental research ( Ohly and Fritz ,2010) . The exploratory research is adopted in case if the research objective is not certain if the researcher has a vague idea about what the research should be about. Where as in case of the descriptive research the researcher will have identified the objectives and aims clearly. Crouch and Pearce (2012) states that the experimental design is concerned with the testing of a statement making a relation between the dependent and the independent variables. The researcher here has already identified the objectives of the researcher hence the design chosen is the descriptive design (Lancaster, 2012).

The researcher for the convenience of the study collected primary data by taking the interviews of the hotel mangers and the employees (https://www.hear.ac.uk 2014). For the secondary data collected in formations from the academic journals and books and websites. The primary data were collected by the researcher by taking the interviews through the process of questionnaire. For the secondary data the researcher not only visited the company’s but also studied the whole scenario of the hospitality industry in the context of the topic form the published journals and the books of other renowned authors (Harrison and Reilly, 2011) .

Findings and Analysis

The researcher for the purpose of a clear analysis has adopted both qualitative and quantitative methods of research. The quantitative technique is used to ascertain the rates of absenteeism and the rates of employment turnover (Sean, 2011). The statistical tools are used to determine the loss incurred by the companies for these two factors. The qualitative techniques are used on the other hand to record the problems of the employees, the views of the managers as to what precautions can be taken in this respect.

Kolsaker and Drakatos ( 2009) says that the sampling technique in case of a research projects are generally of two types namely the probability sampling and the non probability sampling. The probability sampling is the process of selecting the respondents randomly. That is the selection of the respondents is not based on any specific criteria. The only fact that the researcher should maintain is that the respondents should be selected from the total sample population. The non probability sampling is the technique where the researcher selects the respondents based on some judgment (Cooper and Schindler,2010). Here the researcher will take the non probability sampling technique to choose the respondents. This is because the researcher will get a clear view of the situation from the employees and the mangers of the hotel industry. Among the different services provide by the hospitality industry the researcher has selected to interview the employees of the hotel industry. And the non probability technique is used in case of the mangers (Crowther and Lancaster, 2012).

2.4.4 Questionnaire justification

The researcher in this study has conducted the research with the help of some questionnaires which included both qualitative and quantitative questions. The questionnaire thus contains the questions relevant to the topic of the research. The researcher included the questions like what can be the reasons behind the dissatisfaction of the employees in respect of their jobs. The researcher also tried to incorporate the questions to the mangers about the rate of loss that they suffer due to the high rates of employee turnover and absenteeism. The researcher also wanted to analyze the solutions to the persisting problems and hence he introduced the question to the mangers about the steps that can be taken by the organization to avoid this (Brannen,2009). The employees in this respect were asked to give their views about the improvements that the employers should bring about in their system.

2.5 Field survey

Personal details:

Name of the organisation: _________________________

Name of the employee     : _________

Age                                   : ____

Sex                                   : _____

Designation                       : ________

Department                       : _________________

Questionnaire for the employees

1. What were your expectations when you decided to join the organization?
2. What are the problems you are facing or you faced in the past in your job?
3. What would you like to change about the organization?

Questionnaire for the employers

1. What are the probable reasons behind the high rate of absenteeism and employee turnover?
2. What steps can you take to prevent this problem?

This part includes the analysis of the primary data thus collected by the researcher. The researchers by using the different techniques of analysis tried to analyze the data thus collected and tried to clarify the problems relating to the research process. For the purpose of the analysis the researcher here has taken a total sample size of 30 people including the mangers as well as the employees. The researcher took the interview of 25 employees and 5 managers for the ease of analysis.

Conclusions and Recommendations

Analysis of the answers given by the employees

Factors of expectations	Responses
Salary and benefits	40%
Psychological satisfaction	22%
Creative work	10%
Job security	14%
Efficient working hours	14%

When asked about the expectations of the employees different answers were received. The researcher combined all the factors into five collective subheadings. The above figure depicts the percentage of each factor that the employees expected before joining the organization majority of the respondents are pf the opinion that they expected the basic factors like the salary, incentives, bonuses, perquisites to be good and sufficient. 22% of the employees are of the opinion that they expected to get good behavior from the employer, respect from the other employees irrespective of the position and cordial relationships with the other employees present in the organization. Job security as well as good working hours was expected by only 14% employees. And rest 10% expected that the job would not be boring and repetitive rather they wanted to start off their career with some creative work.

Problems	Responses
Negative organisational culture	13%
Pay rate and work hours	20%
Lack of proper performance appraisal	24%
Relation with the manger	15%
Lack of motivation	18%
Pscychological pressure	10%

Table 2: problems faced by the employees

 

The employees informed that they face the above problems in respect of their jobs. This interview was taken for the existing employees of an organization and also for the old employees of an organization. 24 % of the employees are of the opinion that there is lack of performance appraisal in the company. Hence there is no growth in this respect. 20 % have reported that they are not satisfied with the long working hours and the low pay rate. Especially the female employees are not comfortable with late working hours.18% of the employees are of the opinion that the company lacks motivation. The top management is very casual in his attitude hence the work is not done in time and the employees have to suffer from the excessive work load. 15 % said that the relationship of the employee with the employer is not cordial. They companies tend to follow autocratic style of leadership and the employers don’t consult with the employees before taking any important decision. Hence they feel neglected. Rest of the employees said that they are facing problems like the job stress and the high job pressure due to which they tend to mix their personal life with the career. They are also suffering from various heath disorders. They also suggested that the internal culture of the company is not suitable enough to continue the work.

On being asked what the employees would like to change about the organization they gave the following opinions. The mentioned the factors like the organizational culture, increase the pay scale and reduce the working hours. Some of them even commented that they want a change in the management structure. The human resource department should be more efficient. The management should recruit the employee with the correct qualification for the correct posts.

Changes in the organisation	Responses
Organisation culture	22%
Efficient HRM	14%
Reduce working hours	16%
Increase pay rates	20%
Correct job specification	18%
Reduce work pressure	10%

Table 3: changes in the organization

 

The employees as suggestions suggested that the organizations should take care of the following issues so as to provide them with congenial working environment.

The researcher interviewed 2 mangers of different companies to understand what in their opinion the reasons behind this problem are and what can be done to prevent it. Since the questionnaire thus prepared for the employers was a qualitative questionnaire hence the answers were recorded and then analyzed.

Q1.What is the probable reasons behind the high rate of absenteeism and employee turnover?

responses
The first manger pointed out the reason of absenteeism is mainly the casual attitude of the worker, better opportunity in other companies.	The second manger said that the reason is labour pool, and also added lack of organisational culture, seasonality employment; he also informed that at times the employee may not get the reasonable payment as per his performance.

The first manger very rightly pointed out that the main reason behind absenteeism is the casual attitude of the employee towards his job. The researcher is of the opinion that the in some organization there are some employees who consistently breach the agreement which was made between the employer and the employee. They are least bothered about the rules of the company. The manger also said that employee turnover can occur in a positive way when the employees gets a better job opportunity with a higher pay then also the company suffers a human loss as well as a financial loss. The second manger pointed out that the majority of the recruit in the hospitality industry are either fresher with limited knowledge or unskilled workers who are using this job as a pastime hence the number of turnovers may be high in this case. The organization culture is also of concern. He also suggested that at times the seasonal employment factor increases the rate of employee turnover. The employee may not get the right amount of salary in respect to the job hence he may leave the job.

What steps can you take to prevent this problem?

Responses
The first manger says that the recruitment system should be more efficient , he also mentions that the faulty employees should not be retained in the organisation	The second manger says that the salary, incentives, other perks should be made attractive so that the employee doesn’t switch over.

Interpretation

The mangers are certain about the fact the company should improve some of the pay scale structures especially in case of top level employees. The job should be made as attractive as possible to the employees so that they should give a second though before changing the job.

The research analysis has helped to find the problems in the organization. The major problems are the employee retention in terms of salary, performance etc the researcher was able to analyze the reasons behind employee turnover. The main reasons are the seasonality of the employment, lack of performance appraisal, the long working hours and also the inefficient recruitment.

The researcher after conducting the research work has reached certain conclusions and has also given certain recommendations .the researcher has suggested that the companies should review their HR policies. They should prepare a correct job specification to employ the correct talent for the correct job. The employers should change the organizational culture and make it comfortable for everyone. They should also reduce the working hours and should include certain entertainment quotient for the employees. This will reduce their boredom. Hence it can be conclude that the research project showcases the different reasons behind the high rate3 of absenteeism and employee turnover and it also points out the solutions that can be taken to solve the problem.