Factors Contributing to Staff Turnover in the Hotel Industry: A Literature Review

Abstract

The purpose of this chapter is to analyze the factors that are contributing to staff turnover in the hotel industry. Staff turnover rate usually affects an organization’s performance, productivity and profitability, and can contribute to the loss of assets and resources. This sector of the hospitality and tourism economy was selected for the study as it is deemed to be very demanding and oftentimes overwhelming. In general, the sector is believed to be very stressful especially since the employees have to deal with satisfying the needs and wants of customers and uncertain working conditions. Literature review was used as the methodology for ascertaining the factors that are contributing to staff turnover in hotels. From this review, the chapter identifies that these are both push and pull factors. Push factors are dissatisfactions with the current job which cause employees to seek alternative employment and pull factors are the reasons that attract employees to a new workplace. The chapter concludes that it is important for hotel managers to establish an employee-centric environment with deliberate and effective workplace practices to retain employees. The findings of this study will be very useful in advancing the literature as well as informing hotel practitioners.