Contextual Factors and Cost Profiles Associated with Employee Turnover

Abstract

[Excerpt] Employee turnover has long plagued the hospitality industry. In the lodging segment, turnover rates have been shown to average about 60 percent annually for line-level employees (Woods, Heck, and Sciarini 1998) and about 25 percent for managerial positions (Smith Travel Research, Tracey, and Tews 2002). This concern is even greater in other hospitality contexts, such as quick-service restaurants, where mean employee turnover runs in excess of 120 percent. Employee turnover has been and continues to be a particularly prolific area of research, with many publications on the topic. Evidence suggests that turnover is triggered by dissatisfaction with such factors as relationships with supervisors, job content, working conditions, and pay (Griffeth, Horn, and Gaertner 2000). While other factors may influence an individual's decision to leave, such as the competitive conditions of the local market, it is clear that management has direct control over many of the most important drivers of employee turnover.