Impact of attrition rates on the hotel industry
Transcript of Impact of attrition rates on the hotel industry
Analyzing the Impact of Attrition Rates on the Hotel Industry
- Surekha ChousalkarMBA (Sync.)
1276451
Introduction
Hotel Industry in India has witnessed tremendous
boom in recent years.
Indian hotel industry is growing at a rate of 15 %
annually.
In Hotel industry the staff turnover is very high due
to the low pay scale and long working hours.
The major challenge of hotel industry is to retain its
employees.
Introduction
The intangible asset of any organization is the
manpower resource, which often provides the
competitive edge over adversaries.
A very high attrition rate can therefore adversely
effect the organizational productivity &
efficiency.
The average attrition rate at ITC Grand Central
till March 2012 was 51%,whichis very high.
Types of Turnover
Turnover has been defined by Price
(1979) as the physical movement of
employees across the boundaries of a
business or organisation.
Objectives
To Understand Employee Turnover and its
Causes
To Study the Impact of Staff or Employee
Turnover on Hotel Industry
An Attempt to recommend ways for
Employee Retention
Justification of the Industry Selected
Research Methodology
Sample Selection: The sample consisted of
167 employees or associates of ITC Grand
Central who left the organization.
Sample Design: Purposive sampling
Data was collected from the following
sources:
The historic data collected by HR
Exit Interview Forms
Feedback Forms
Attrition Rates 2011-2012
50%51%
55%56%
52%
50% 50%49%
48%49%
50%51%
44%
46%
48%
50%
52%
54%
56%
58%
Perc
en
t
2011-12
Tenure Wise Analysis of Associates leaving the organization
61
71
81
90
98100
0
20
40
60
80
100
120
0
10
20
30
40
50
60
70
1 year 2 years 4 years 3 years 5 years 6 years
Frequency percentage Cumulative Frequency
Department Wise Attrition
46
43
25
22
12
8
54
27.9
53.9
69.1
82.4
89.7
94.597.6
100.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
0
5
10
15
20
25
30
35
40
45
50
F&B Service Front Office Housekeeping F&BProduction
LossPrevention
Finance Health SPA Sales &Marketing
Total Numbers Cumulative Frequency
Causes
Demographic –Age and Tenure
Job Security
Labour Markets/External Influences
Engagement Continuum
Employment Conditions/Contribution
Valuing
Affective State
Congruence
Remuneration
Impact of High Turnover:
The Cost of Turnover
Loss of Company Knowledge
Interruption of Customer Service
Turnover leads to more turnovers
Goodwill of the company
Regaining efficiency
Recommendations
Exit interviews need to be conducted and they need to be
reviewed by upper management to ensure that supervisors
are not the reason why this is happening.
Working conditions may be the cause of turnover and upper
management are the only ones to make changes of that
magnitude.
Understand how to motivate and treat people with respect.
Employers should not hire multi skilled people in order to
delegate the work that is normally assigned to three or four
positions.
Realistic Job Previews.
Conclusion
The Hotel Industry is experiencing employee
shortage and all employees need to be treated with
the same care and diligence as the most precious
of resources.
An engaged and satisfied workforce will provide
the competitive advantage needed to survive the
full effects of the developing demographic shift.
The time is now for industry to do what it can to
moderate the effects of this employee crisis.