A study on the factors of High Labour Turnover within the Hotel Industry in Johor Bahru
The hotel industry in Malaysia was considered the second highest industry that contributed to the national GDP. A report from the Malaysia Insider (2010) stated that 9% of the country’s GDP is contributed by this industry due to the increasing numbers of tourists visiting the nation. This can be seen from a 2010 report by the MTPB which showed 16.4 million tourists arrived in 2005, later the number increased to 23.6 million within 5 years. Thus, an increase in the number of tourist means that there will be more job opportunities for the locals. However according to the report from the ...view middle of the document...
This research will seek to accomplish the following objectives:
1. To identify and assess literature that investigates the characteristics of labour turnover in the hotel industry.
2. To examine the role of HR department regarding strategy formulation and implementation on turnover and retention.
3. To suggest interventions regarding improvements in retaining employees in the hotel industry.
3.0 Literature Review
Salih Kusluvan states that the tourism industry is one of the largest and the fastest growing industries world-wide. According to World Tourism Organisation forecasts, the industry will continue to grow and employ more people in the twenty-first century. With the growth of the tourism and hospitality industry world-wide, consumer expectations and demands for quality are rising while consumer tastes are varying on the one hand, and competition among the firms, both nationally and internationally, is intensifying. In this business environment of heightened consumer expectations, distinct market segments that demand unique products and services, and stiff competition, tourism and hospitality organisations are looking for ways to excel in service quality, customer satisfaction, competition and performance.
Goldsmith et al (1997) discusses the principles of recruitment and selection, equal opportunities, training and development, staff health and welfare, health and safety in the workplace, employee involvement, performance appraisal, productivity, pay and reward systems and disciplinary and grievance procedures. These are all contributing factors to staff retention but nonetheless may result in higher rates of turnover once the labour needs are not met or not properly managed. Michael John Boella (2000) on the other hand discusses labour turnover and termination of employment. He suggests that the major challenge within the hospitality industry is addressing the labour turnover and staff stability rates that maybe tough to cope because the industry consists of many sectors with differences within each sectors. There ar many factors influencing the labour turnover such as the nature of the industry itself; the nature of individuals; the nature of individual managers; and the high proportion of workers.
Traditional factors propping up turnover are job satisfaction (Holdsworth & Cartwright, 2003), organizational commitment or psychological contract, career expectations, work life balance, lack of training and development (Tutuncu & Kozak, 2007; Carbery et al., 2003; Davidson et al., 2010) peer and supervisor relationship (Graen, Dansereau, & Minami, 1972) cultural context (Sheridan, 1992), rewards (Hansen, Smith, & Hansen, 2002), seasonality of business, and nature of jobs (i.e. part time, casual, or seasonal) (Hartman, & Yrle, 1996; Deery, & Shaw, 1997; Ladkin, & Juwaheer, 2000; McCabe & Savery, 2007; Willie, Jayawardena, & Laver, 2008). Control over these factors...