Australia Hotel Industry Staff Turnover Rate Essay

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How Much Does Labour Turnover Cost? A Study of Australian Four- and Five-Star Hotels
Abstract
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 …show more content…
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

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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
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