Employee Attrition in Hospitality Industry
A dive into employee attrition
Attrition may lead to a leadership gap in your organization if your senior leaders are the ones leaving or it can affect the diversity at your workplace if the minority groups are the ones leaving. Employee attrition can differ among organizations based on the kinds of people leaving but the definition of attrition remains the same.
Types of employee attrition
- Retirement – It will not drastically impact if one or two people retire from the organization in a year. Based on the attrition definition, you have a problem only if they retire in large numbers around the same period.
- Voluntary attrition – This means the employees are the ones that quit voluntarily. This can lead to a reduction in the level of productivity in your organization.
- Involuntary attrition – This attrition type is not totally depend on employees. In this case, the employers or organization are the ones who initiate the attrition. It might be that they sack a number of employees because of misconduct at their work.
- Internal attrition - This is a case where employees quit one department for another within an organization. You can use this to determine the best job placement for employees in your company. However, you also have to be watchful. It calls for investigation if the attrition rates of a department are very high in one year.
- Demographic attrition - This is
the type of attrition that is specific to a particular group. It could be
people living with disabilities, ethnic minorities, veterans and old
professionals, or even women.
Though there are many types of attritions. Staff attrition factor deals predominantly with Voluntary attrition where the employees leave the organization by themselves. Here are some of the factors that cause or affect employee attrition.
- Personal Motivation - This is when there is a change in the personal life or goals of the employees which will compel them to change their jobs.
- Professional Motivation - employees exit a company because they do not feel like your company offers them opportunities for them to progress in their careers
- Work place challenges - It is important that the leadership of a company pays attention to the needs of the employees. You should give them everything that they need to be happy at work.
- Job not being right for an employee - This also refers to a bad employee-to-job placement
Employee Attrition in Hospitality Industry Context
Hospitality Industry is
growing on fast pace and hotels are the major components of these industry.
Human Resource is the biggest asset of all the hotels, and the skills and
efficiency of its human resource can lead to the success of the hotels.
This is one of the biggest emerging HR challenge in the hospitality industry
worthy of consideration. This employment gap directly impacts the customer
experience, leading to longer wait times and a shortage of expected amenities.
It can even lead people to take their business elsewhere. When there are
unfilled positions in the organization, eventually work load of other staff
would be comparatively high and which will lead increasing staff turnover.
The staff attrition rate in the
hospitality industry alone runs as a higher percentage. Therefore, why exactly is
staff attrition such an issue in the hospitality industry?
- Unclear job expectations
- Inefficient communication
- Minimal growth opportunities in career
- Disconnect with managers
Most hospitality industry employees are on hourly which makes it even more
challenging to find the right people. The hours are long and include nights,
weekends, and holidays. The hospitality industry is also on seasonal basis
which means new hires are brought in during peak times of the year and let go
during off-peak periods. Usually non-management hospitality workers turnover
rate is high due to the low wages and the requirement to deal with large volume
of customers. All these factors all lead to higher attrition in the hospitality
industry.
At a glance, when we talk about staff attrition, we tend to have more thoughts
about negative impact to the organization. Can attrition be beneficial? There
are such things as positive attrition and negative attrition. This
implies that attrition can have a positive effect on the organization. So,
attrition can be beneficial too.
Positive impact of
employee attrition
- It reduces organizational costs and cuts the expenses down if the company is facing any financial distress
- Negative influence on the work culture and ethic of the organization can be minimize
- Underperforming employees can also choose to leave by themselves and this will lead to more productivity
- It can refresh an organization and offer current employees new opportunities
- There might be a radical reduction in the strength of the workforce . The employees might lose interest and sincerity
- The remaining employees might face an increase in the workload and feel stressed about it
References :
Automatic payroll systems. (2021) Biggest challenges of HRM in the hospitality industry. HR Challenges in The Hospitality Industry [Online]. Available at https://apspayroll.com/ . Accessed on 17th May 2021.
Tech Funnel. (2020) The ultimate guide on employee attrition. HR Tech [Online]. Available at https://www.techfunnel.com/ . Accessed on 17th May 2021.
According to your article, you have mentioned five types of employee attrition, What have causes for that?
ReplyDeleteThere are many factors will affect the employee attrition. Apart from the factors mentioned in the article, let me do a brief explanation about what other factors causing the attrition for you to get an idea.
Delete- Low unemployment: If your area or industry has low unemployment rates, you may not be able to replace employees who leave, even if you wanted to. You can either leave the positions vacant (attrition) or reduce your hiring standards or expand your search.
- Workforce demographics: If your company is filled with Baby Boomers, their upcoming retirements may result in a loss of staff that you cannot easily replace.
- Toxic workplace: If your business is not a good place to work, you may find it challenging to keep positions filled. You may wish to lower your attrition rate but find it challenging to do so because people leave quickly, and your company’s reputation as a toxic employer spreads. If you’re experiencing a high level of attrition, this is one of the first areas you should investigate. Listen to employees in exit interviews and pay attention to your online reviews. If your Glassdoor reviews are negative, take them to heart and work to correct them.
- Business relocation: Even if you offer to pay full relocation costs for all employees, many will choose not to come with you. It will take you time to hire replacements.
- Covid-19 shutdowns: This has been a unique problem to 2020 (and hopefully will resolve shortly in 2021), but many companies needed to terminate employees when there are no income to pay employee salaries. Even businesses that remained open may have lost business and, therefore, needed to let employees go.
This is a good article and for this my opinion is;
ReplyDeleteThe hospitality industry needs to meet guests expectations to earn their trust. When guests are satisfied with the services and products provided by the hotel, they talk about it favourably and this influences the creation of a positive image of the company. Having a good image allows the hotel to get more advantages. If something went wrong with their employee with customers the hotel can be lost all of the earnings.
Outstanding human-relations skills, good staff cooperation, creative problem-solving, good decision-making, Communication skills and Social awareness skills significantly affect the success of hospitality establishments. An effective implementation of these allows hospitality organisations to reduce employee turnover, increase respect among workers, increase staff morale, employee confidence, and productivity, which drives more sales. Neglecting staff involvement in decision-making can affect both workers and customers.
Thank you for your valuable feedback about the article. I agree with the points that are mentioned in your comment. In addition, please note that people are the main workforce in hospitality industry. Hence the success or the failure of the business depends on customer service. There should be proper human resource strategies in accordance with organizational structure and the culture. Then only there will be a proper work and personal life balance within the employees and also there will be a healthier environment in the organization which leads to decrease employee turnover. According to Taylor (1998) Providing a stimulating workplace environment in which fosters happy, motivated and empowered individuals, lowers employee turnover and absentee rates. However, though we see attrition has more negative impact. Sometimes it can be beneficial to the organization, it is depending on the organizational financial status.
DeleteIn fact, employee retention is without a doubt one of the most intense challenges faces by Hospitality industry. With the improving economy and the coming talent crunches due to retiring boomers, retention rates promise to get worse.
ReplyDeleteFurther I wish to mention few dozen tips that can slow down employee turnover
- Recruit right people
- Fire people who don't fit
- Maintain compensation & benefits competitively
- Encourage generosity & gratitude
- Recognize & reward employees
- Offer flexibility
- Pay attention to engagement
- Prioritize employee happiness
- Make opportunities for development & growth
- Clean up performance reviews
- Provide an inclusive vision
- Demonstrate & cultivate respect
Thank you for your feedback. The facts that you have mentioned to overcome from the attrition is true. That is why HR department needs to implement a strategic plan from hiring process itself in order to retain the employees in the organization.
Delete