Introduction
Well-established hotels in the United States, especially in the tourism capitals provide quality services. To stay competitive, they prefer to hire qualified hoteliers who can provide all the required services appropriately. However, a significant percentage of hotel employees in large hotels in the USA quit their jobs every year due to varied reasons. According to the research done by the American Hotel and Motel Association in 2009, the average turnover level for non-management hotel employees is approximately 50%. On the other hand, for management staff is 25%. The Association also confirmed that the average annual employee turnover range varies between 60% and 300% (Sharma, 2015). About 50% of hotel employees quit their jobs every year (Noe, Hollenbeck, Gerhart, & Wright, 2017). Several reasons explain why hotel employees quit their jobs at such an alarming rate in the United States. Above all, hoteliers who possess special hotel management skills do so in their desire to find better jobs with high pay that would enable them to improved lifestyles. More so, others quit their jobs as hoteliers to go for well-paying jobs outside the hotel industry.
Following the identified negative perceptions of hotel employees towards the services and programs offered in the hotel, it is necessary to carry out a stand to find out the exact perceptions of hotel employees so as to come with exact approaches to cope with the situation. More so, understanding the employee retention rate in the hotel can help determine the extent to which the issue is likely to affect the functioning of the hotel. Lastly, a comparison between the hotel and others of the same rank can as well enable the hotel to find appropriate strategies to apply for better improvement. In that case, 20 employees have been involved in the study whereby the statistics attained from their responses have been collected and presented in pie charts. Furthermore, recommendations for this particular study are presented so that they can bring out some light on what can be done to cope with the situation
Findings
As shown earlier, the survey team consisted of 20 employees at the hotel who were to provide the required information for the report. Among the 20 employees, eight reported that they were they are barely satisfied with the policies set for them at the hotel. Such policies include reporting time, the time allowed for rest, and time for leaving from the job premises. Besides, six team members reported that they were not satisfied with the salaries given to them every month. According to them, the remunerations do not correspond to the services provided daily at the hotel and does not match their qualifications in hospitality and hotel management. Furthermore, four members reported that they do not like their jobs as hoteliers and would leave their current jobs if they got other jobs outside the hotel industry. Only two members reported a positive perception of their jobs as hoteliers. The Pie chart below shows the percentages of employees’ perceptions towards services and programs at the hotel;
A Pie Chart Showing Employees’ Perceptions concerning Hotel Services and Programs
Based on the information on the pie chart above, a significant percentage (40%) of the employees at the hotel quit their jobs because they are not satisfied with the policies that govern them, especially time management. Such an issue has been confirmed to affect workers in the whole working industry, and it has resulted in less retention of workers (Nor, Ahmad, Khalid, & Ibrahim, 2017). Secondly, 30% of the selected team members claimed to have been dissatisfied with the monthly salaries and would resign from the job if they get a well-paying one. Furthermore, 20% disliked their job as hoteliers, and they could quit at any time. Only 10% were satisfied with the hotel job. Therefore, it is clear that almost 90% of workers at the hotel have a reason as to why they should quit their jobs at any time.
While assessing the employee retention trends in the hotel, secondary sources are used to find a clue on the employee retention trends in the hotel industry. Unlike other job industries, the hotel industry has experienced a fluctuating trend in retaining its employees. In each year, about 50% of hotel employees quit their jobs in the United States for various reasons (Noe, Hollenbeck, Gerhart, & Wright, 2017). For example, in our hotel, a hundred employees were employed in January 2018. By June of the same year, 30 employees had already resigned from working in the company. Even after replacing them, 22 workers had left their jobs by September the same year without giving reasons for taking these decisions. To make it worse, ten other workers left their jobs deliberately in December claiming that the hotel had denied them time to spend with their families during the festive month. As such, the company was forced to hire other employees and train them at a higher cost to keep the hotel active, as tourists visit there frequently during the festive season.
A similar case was witnessed back in 2017 where out of 80 employees employed that year, only 45 employees worked up to the end of that year. The remaining 35 workers abandoned their jobs due to several reasons such as strict policies, reduced payment terms, and unfavorable working conditions among others. The table below shows the number of employees hired in 2017 and 2018, including those who retained their jobs:
Year | 2017 | 2018 |
Total Number of Hired Employees | 80 | 100 |
Number of Employees Retained | 45 | 40 |
Percentage of Retained Employees | 56% | 40% |
Pie chart Showing a Comparison between those who Abandoned and Retained the Job in the Hotel in 2017
Pie chart Showing a Comparison between those who Abandoned and Retained the Job in the Hotel in 2017
Based on the separate pie charts above, it is clear the percentage of employees who retained their jobs reduced from 56% in 2017 to 40% in 2018. Such a decrease is alarming to an organization as it shows that the employees’ perception towards the hotel’s services and programs is turning to negative every year. The trend does not differ much from that reached upon by the American Hotels and Motels Association which showed that only 50% of employees are retained every year (Sharma, 2015). However, the number of retained employees dropped sharply in 2018.
c.) Statistics that May Affect the Running of the Hotel in Future
Based on the collected information, it is likely that the hotel will be negatively affected regarding the hiring of employees in the future in case necessary actions are not taken. Firstly, 90% of the current employees have at least one reason that can trigger them to quit the job anytime. Secondly, the percentage of retained employees is likely to get lower in 2019 following the trend from 2017 to 2018. In 2017 the percentage of retained employees was 56% which then reduced to 40% in 2018. In case the retention rate continues to lower, the hotel will find a problem in running its business as it will have to spend on hiring and training new employees. Besides, it might lose some of its customers due to the poor services they get from the new employees who might not be aware of all procedures in the hotel (Kim, Choi, Borchgrevink, Knutson, & Cha, 2018).
d.) Comparison of the Hotel with Others of the Same Rank
During the study, a comparison of employees’ services at our hotel with other large hotels in the tourism capitals was performed. From this, it is evident that other hotels’ management motivated their workers by giving awards to their best performers of the year. Besides, they ensured that their employees are given enough time to work on their tasks so that they can embark on work while in a position to work correctly (Guchait, Paşamehmetoğlu, & Madera, 2016). I think incorporating such approaches in our hotel will enable us to retain most of the employees.
Conclusion
From the findings above, our hotel has a problem with employee retention. The percentage of retained employees reduced by 16% in 2018, showing that something should be done to retain more employees. In addition, opinions from current employees show that they are not satisfied with the services and programs at the hotel and they might quit at any time. Moreover, a comparison of our hotel with others in the same location showed that they treat their employees better than our hotel. As such, they are likely to develop more and get the best of our employees to work for them. In essence, the hotel is at the worst of its performance, and immediate actions should be taken to ensure employee retention.
Recommendations
Report Closing
As a hiring manager in the hotel, I found it crucial to research and develop an analytical report concerning the increasing annual turnovers in the company since they have affected the functioning of the hotel. I hope the recommendations listed above will be addressed to help improve employee retention this year and even in the future.
References
Guchait, P., Paşamehmetoğlu, A., & Madera, J. (2016). Error management culture: impact on cohesion, stress, and turnover intentions. The Service Industries Journal, 36(3-4), 124-141.
Kim, M., Choi, L., Borchgrevink, C. P., Knutson, B., & Cha, J. (2018). Effects of Gen Y hotel employee’s voice and team-member exchange on satisfaction and affective commitment between the US and China. International Journal of Contemporary Hospitality Management, 30(5), 2230-2248.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human Resource Management: Gaining a Competitive Advantage. New York, NY: McGraw-Hill Education.
Nor, M. N. M., Nor, A. N. M., Ahmad, Z., Khalid, S. A., & Ibrahim, I. I. (2017). Factors Affecting Turnover Intention among Gen Y in the Hotel Industry. Journal Intelek, 12(1), 1-5.
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Sharma, N. (2015). Hotel Revenue Management and Its advantages and Disadvantages to Organization, its Employees and Customers. International Journal of Scientific and Research Publications, 5(2).