Background and Rationale
This research proposal seeks to explore the factors affecting the high employee turnover rate in the UK hospitality sector: A case study of the Savoy Hotel, London. The hospitality industry is one of the emerging industries that is facing high employee turnover rate due to its complex work structure, lack of progression and recognition (UK Hospitality, 2018). This paper is going to analyse the reasons for the increasing rate of employee turnover of the London based Savoy Hotel.
Previous studies based on factors affecting high employee turnover in the hospitality sector have been critically analysed. These studies have helped in gathering information and knowledge about employee turnover rates in the UK hospitality sector. Moreover, to analyse the employee turnover in the Savoy Hotel, this paper will follow a mixed approach by collecting and analysing both quantitative and qualitative data. Therefore, Online Survey will be conducted using employees of Savoy Hotel and an interview will be done with manager of the Hotel.
Background and rationale
The concept of employee turnover can be explained in two ways; firstly, when an employee leaves the organisation voluntarily and secondly when the existing employee gets replaced by new employees (Williams and Horodnic 2017). The UK hospitality sector has been the third-largest private-sector employer in the UK, with more than 3.2 million employees (Hubspot, 2018). However, it has been facing issues related to employee turnover. Various employees have been leaving organisations at a low interval of time. As compared to any other industry, at the current stage the hospitality industry is evidencing significant number of employees in the world. Covering several different segments along with employee sectors, this industry has gathered higher popularity. Starting from providing stays, food and beverage, this industry is emerging as one important industry in the market (Ineson et al., 2013).
Overview of the organisation
Started in the year 1889, the luxurious Savoy hotel is located in the city of Westminster of London. Encompassing about 267 rooms and 7 bars and restaurants, and more than 200 employees, the Savoy has become a well-recognised hotel in the hotel management industry of the United Kingdom (The Savoy London, 2019). The Hotel also holds initiatives to have a positive environmental benefit. For example, it recognises utilisation of carbon as a measure of environmental performance. The mission statement of the hotel is to follow principles that will work for enhancing the experience of their guests and colleagues for promoting rich cultural exchange within communities for operating and ensuring positive benefits to long-term relationships with customers (Pavia, 2019). Since many years the discussed hotel is providing satisfactory customer service and by delivering senior customer satisfactory service, this hotel was able to enhance its annual profit and revenue successfully. However, due to the presence of several unfavourable factors inside its workplace, the particular hotel is evidencing voluntary termination of several employees, which is hindering its business.
Overview of the Organisation
Employee turnover has been one of the major issues for business organisations in the market. Various researches have highlighted this major issue among employing staff. In this context, employee turnover in the Savoy Hotel has been critically analysed. As per the preliminary interview conducted with the Manager of the Savoy Hotel, it can be mentioned that their hotel has been facing 50% of the employee turnover (See Appendix 1: Preliminary Interview). This compared to the average employee turnover in the UK which is 30% is considerably high (Ionel, 2016).
Additionally, Stanley et al. (2013), argues that the hospitality industry comprises with both production and service aspect so can create and provide a high quality of service to the customers by employing efficient employees. Therefore, it can be said that experienced employees are the primary factor in providing superior service and gaining profit.
Research aim, objectives and questions
This research aims to explore the factors that are responsible for increasing the employee turnover rate in the Savoy Hotel. Additionally, the objectives of this research are as follows:
Firstly, to understand the present situation of the Savoy hotel which is responsible for increasing the employee turnover rate. Secondly, to discuss the significant challenges faced by the management of the discussed hotel due to increasing employee turnover. And finally, to recommend some strategies to the management of Savoy hotel for avoiding the challenges caused by higher turnover rate.
Furthermore, based on the aim of the discussed research, the research questions based on which the investigation will be carried out are as follows:
How the current situation that is driving the Savoy hotel towards facing higher employee turnover rate?
What challenges are currently faced by the management of the Savoy hotel due to the discussed issue?
What recommendations can be given to the management to decrease the employee turnover rate by enhancing the organisational environment?
Present situations of Savoy hotel affecting the employee turnover rate
As per the findings of Memon et al. (2014), increasing employee turnover rate can cause great damage to the stability as well as the profitability of any industry. As discussed above, due to the occurrence of two situations, employee turnover happens, first when the employees leave their job voluntarily and secondly, when due to decreasing productivity, the employees get replaced by some new employees. Moreover, Ozolina-Ozola (2014), argues that replacing the old employees with new personnel can also slow down the business process.
Additionally, the hospitality industry always considered as a highly competitive industry; hence, serving the customers satisfactorily is mandatory for ensuring stability and sustainability. Despite gathering high success in the market, as explained in the case study, the Savoy Hotel is facing hurdles due to increasing employee turnover (See Appendix 1: Preliminary interview). The complex work structure of the discussed industry sometimes provides several unpleasant factors that are pushing the employees to leave their jobs. In current days, the employee turnover rate is getting higher in the hospitality industry of the UK and causing higher vulnerabilities for the particular industry (Lopez-Andreu et. al., 2019). Following are some factors or ongoing situations that are responsible for hiking of the employee turnover rate
Lack of flexibility
As the main focus of this Hotel is to provide qualitative service to the customers round the clock; therefore, the employees working in this Hotel have irregular working schedules. Thus, due to the miss-match of the working hours with the daily agenda of the employees. Additionally, Balouch and Hassan (2014), state that sometimes night shifts and overtimes also create difficulties for the employees in continuing their job.
Insufficient workplace communication
Gustavo (2013), argues that regardless of the type of industry, communication can be considered as a key factor in maintaining interest and the motivation of the employees, thereby creating a healthy and friendly working environment. Sometimes, the employees of the hotel face unprofessional behaviour of the higher authorities such as leaders and managers can demotivate and discourage the staffs. This, on other hands, creates higher conflict and unpleasant workplace environment; thus, pushing employees to quit the job.
Minimum growth opportunities
Similar to other hotel management industry, growth rate or opportunity for higher growth of the employees in the Hotel is also limited. According to the findings of Amin and Akbar (2013), mainly the younger generations are attracted towards the job openings of the hospitality industry. Therefore, continuing the same job throughout their carrier becomes complex. Hence, the high ambition for carrier growth ultimately pushes the employees to quit their current job. According to the findings of Hausknecht and Holwerda (2013), the main reason for employee turnover is demotivation and dissatisfaction in the workplace. However, discussing the chosen case scenario of the Savoy Hotel; with increasing customer demand, this hotel sometime pressurises its employee to go beyond their potential capacity to provide a better service to the customers. This, however, creates unpleasant workplace and ideas among the employees to leave their job.
Lack of recognition
Due to increased customer and the intention of providing high-quality customer service, Savoy Hotel always demands hard work and sometimes irregular or long working hours, regardless of the position (Lopez-Andreu et al., 2019). Therefore, in some cases, the employees feel that the higher authorities ignore their investment. This on flip creates demotivation and dissatisfaction within the employees and hinders their working capabilities.