Reason for High Turnover Rate of Hospitality Industry in China
Reason for High Turnover Rate of Hospitality Industry in China
Abstract
The hospitality industry in China is gradually developing and being matured increasingly. It is the rapid increase in the number of hotels resulted in growing demand for qualified employees. However, China’s hotels are facing serious human resources challenge including shortage of qualified staff, high-staff turnover, and the unwillingness of university graduates to enter the industry. Specially, the high turnover rate of the hotel is playing a huge role to obstruct the hotel’s growing. The reason of high turnover rate in the hospitality industry will be researched and both qualitative and quantitative data sets will be created. Personal interviews, extended observations and questionnaires will generate the final results and conclusion of the study. The purpose of this research is to look for the key factor of causing the high rate of turnover in hospitality of China so that hotel supervisors could make strategies relatively to reduce employee turnover and maintain employee retention. It is hope that the paper could provide a fresh perspective on human resources management for hotel supervisor in China.
Definitions
The term “turnover” is defined by Price (1997) as: … the ratio of the number of organizational members who have left during the period being considered divided by the average number of people in that organization during the period.
Frequently, managers refer to turnover as the entire process associated with filling a vacancy: Each time a position is vacated, either voluntarily or involuntarily, a new employee must be hired and trained. This replacement cycle is known as turnover (Woods, 1995)
For the purpose of this study, this term is utilized in efforts to measure relationships of employees in an organization as they leave, regardless of reason.
Background
Over the last two decades, hotel development in China has been impressive, especially considering the modern era
Abstract
The hospitality industry in China is gradually developing and being matured increasingly. It is the rapid increase in the number of hotels resulted in growing demand for qualified employees. However, China’s hotels are facing serious human resources challenge including shortage of qualified staff, high-staff turnover, and the unwillingness of university graduates to enter the industry. Specially, the high turnover rate of the hotel is playing a huge role to obstruct the hotel’s growing. The reason of high turnover rate in the hospitality industry will be researched and both qualitative and quantitative data sets will be created. Personal interviews, extended observations and questionnaires will generate the final results and conclusion of the study. The purpose of this research is to look for the key factor of causing the high rate of turnover in hospitality of China so that hotel supervisors could make strategies relatively to reduce employee turnover and maintain employee retention. It is hope that the paper could provide a fresh perspective on human resources management for hotel supervisor in China.
Definitions
The term “turnover” is defined by Price (1997) as: … the ratio of the number of organizational members who have left during the period being considered divided by the average number of people in that organization during the period.
Frequently, managers refer to turnover as the entire process associated with filling a vacancy: Each time a position is vacated, either voluntarily or involuntarily, a new employee must be hired and trained. This replacement cycle is known as turnover (Woods, 1995)
For the purpose of this study, this term is utilized in efforts to measure relationships of employees in an organization as they leave, regardless of reason.
Background
Over the last two decades, hotel development in China has been impressive, especially considering the modern era
References: Hom, P.W. and Kinicki, A.J. (2001), “Towards a greater understanding of how dissatisfaction drives employee turnover”, Academy of Management Journal, Vol. 44 No. 5, pp. 975-87. Hom, P.W., Caranikas, F., Prussia, G.E. and Griffeth, R.W. (1992), “A meta-analytic structural equations analysis of a model of employee turnover”, Journal of Applied Psychology, Vol. 77, pp. 890-909. Hotel Online (1998), “EI-AH&MA/KPMG study finds hotel industry turnover rates continue to climb”, available at www.hotelonline.com/Neo/News/PressReleases1998_2nd/EITurnoverRatesClimb_May98.html Koys, D.J Lee, T.W., Mitchell, T.R., Wise, L. and Fireman, S. (1996), “An unfolding model of voluntary employee turnover”, Academy of Management Journal, Vol. 39 No. 1, pp. 5-36. Lee, T.W., Mitchell, T.R., Holton, B.C., McDaniel, L.S. and Hill, J.W. (1999), “The unfolding model of voluntary turnover: a replication and extension”, Academy of Management Journal, Vol. 42 No. 4, pp. 450-62. Stalcup, L. and Pearson, T. (2001), “A model of the causes of management turnover in hotels”, Journal of Hospitality & Tourism Research, Vol. 25, pp. 17-30. Tutuncu, O. and Kozak, M. (2007), “An investigation of factors affecting job satisfaction”, International Journal of Hospitality & Tourism Administration, Vol. 8 No. 1, pp. 1-19. Walmsley, A. (2004), “Assessing staff turnover: a view from the English Riviera”, International Journal of Tourism Research, Vol. 6, pp. 275-87. Wang, P. and Walumbwa, F. (2007), “Family-friendly programs, organizational commitment, and work withdrawal: the moderating role of transformational leadership”, Personnel Psychology, Vol. 60, pp. 397-427. Wildes, V. and Parks, S. (2005), “‘Internal service quality’ marketing strategies can help to reduce employees turnover for food servers”, International Journal of Hospitality & Tourism Administration, Vol. 6 No. 2, pp. 1-27. American Hotel and Lodging Association (2005), 2005 Directory of Hotel & Lodging Companies, 74th ed., American Hotel Association Directory Corporation, Washington, DC. American Hotel and Motel Association (2000), 2000 Hospitality Compensation and Benefits Survey, American Hotel Foundation, Washington, DC. Arnett, D., Laverie, D.A. and McLane, C. (2002), “Using job satisfaction and pride as internal-marketing tools”, Cornell Hotel and Restaurant Administration Quarterly, Vol. 43 No. 2, pp. 87-96. Baird, M. (2006), “Hiring and retaining employees”, International Gaming & Wagering, Vol. 27 No. 2, p. 32. Becker, B. and Huselid, M. (1999), “An interview with Mike Losey, Tony Rucci, and Dave Ulrich: three experts respond to HRMJ’s special issue on HR strategy in five leading firms”, Human Resource Management, Vol. 38 No. 4, pp. 353-65. Cabot, S. and Steiner, J. (2006), “Making a great place to work”, Casino Journal, Vol. 19 No. 2, pp. 16-17. Cafaro, D. (2001), “When the honeymoon ends: thinking in long-term solutions”, Workspan, Vol. 44 No. 2, pp. 42-6. Chew, J., Girardi, A. and Entrekin, L. (2005), “Retaining core staff: the impact of human resource practices of organization commitment”, Journal of Comparative International Management, Vol. 8 No. 2, pp. 23-42. Cho, S., Woods, R., Jang, S. and Erdem, M. (2006), “Measuring the impact of human resource management practices on hospitality firms’ performances”, International Journal of Hospitality Management, Vol. 25 No. 2, pp. 262-77.