Labour turnover in hospitality

Authored by: Steven Goss-Turner

The Routledge Handbook of Hospitality Management

Print publication date:  March  2014
Online publication date:  March  2014

Print ISBN: 9780415671774
eBook ISBN: 9781315814353
Adobe ISBN: 9781317804246

10.4324/9781315814353.ch9

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Abstract

Workforce stability is a critical factor in ensuring the development of a cohesive workplace. The more effective and committed employees and work groups are, the more they contribute to the fulfilment of organisational performance aims. Instability of the workforce in service industries inevitably leads to unacceptably high labour turnover and threatens to affect detrimentally the provision of consistent customer service standards. The hospitality industry is reported by successive employment surveys as experiencing the highest labour turnover levels across all economic sectors. A recent national survey report by the Chartered Institute of Personnel and Development (CIPD, 2009) calculates the annual employee turnover rate across the hotel, catering and leisure sector at 41 per cent, compared to a figure of 17 per cent for the entire economy. Labour turnover is seen by many hospitality managers and organisations as a key measure or index for the success of human resource management (HRM) practices (Davidson, Timo and Wang, 2010). Given the potential impact of retention problems on organisational effectiveness and customer service, it is not surprising that there has been a substantial amount of hospitality-oriented research into this phenomenon over the last several decades, as confirmed by Christensen Hughes and Rog (2008) and Deery (2008).

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