Human Resource Management Mgt 201 – Analytical Essay

2427 Words Dec 8th, 2013 10 Pages
HUMAN RESOURCE MANAGEMENT
MGT 201 – ANALYTICAL ESSAY
28/07/2013

TOPIC:

Analysing Staff Turnover, its Cost and Effects on the Business and Developing Strategies to Improve Staff Retention:

Student Name: Fabio De Souza Lima
Student Number: 0053455T
Lecturer: Nathalie Hudson
Sunday, 28 July 2013, 11:55pm
In comparison with other types of industry, excess of labour turnover has become a chronic problem for Tourism related enterprises, especially in the Hospitality sector. It has the potential to cause (directly or indirectly) serious issues and generate a multitude of costs to a business. For example, the whole process of recruitment and training can be very expensive and, even costlier can be the potential decline in the levels
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It is hard to know with a high degree of certainty (and no studies have been totally conclusive) why there is such a high rate of employee turnover in this sector but it is believed that the characteristics of the hospitality industry’s labour market (poorly paid, poorly skilled, possessing a negative image, offering a great deal of temporary (seasonal) or part time work, not offering a clear career path) play an important role in these statistics (Walmsley A. 2004). Also, the research conducted by Thomas et al. in 1988 (cited in Walmsley A. 2004) describes that: “the most commonly used recruitment method of small tourism firms was word of mouth”. This, although not exactly an evidence, is a sign of unclear and unprofessional employment standards, which could easily lead to increased levels of staff turnover.
On acknowledging what has been said, it is also important to identify that, for the hospitality industry, there is a clearly visible variation on the levels of staff turnover, which has a direct relationship with the size of corporations. For this reason, it would be inaccurate and inappropriate to generalize the measurements of staff turnover for the industry as a whole. Bigger companies, which possess designated departments to administer their staff, will typically pay more attention and show more interest in developing methods and systems to attack turnover issues, whereas small businesses seem to be less structured, more informal and

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