“An Analysis of the Factors Affecting Employee Retention and Employee Turnover in the British Hospitality Industry”
Purpose The purpose of this dissertation is to investigate retention strategies that should be implemented in the hospitality industry to improve the high levels of turnover. The main aim of this study is to analyse the factors affecting employee retention and employee turnover in the British hospitality industry, specifically focusing on nine key themes: compensation and remuneration;; reward and recognition;; opportunity for growth;; participation in decision making;; work-life balance;; good work environment;; training and development;; job security and effective management. During this study, it discovers whether the use of these specific factors are successful in terms of enhancing retention and if the perceptions of each individual vary. Furthermore, understanding how each factor is valued and whether or not intrinsic and extrinsic factors are preferred. Design/Approach A literature review was conducted through the use of secondary research which provides a deeper understanding of the literature existing on this chosen topic. The study was directed in the form of a survey, with data being gathered on a social media platform following a quantitative approach. A total of 200 hospitality employees participated in the survey which captured employees’ perceptions on the factors that attract employees to stay in an organisation and what factors led to dissatisfaction. Findings The research reveals that all factors do significantly impact employee retention in some way, shape or form. This was evident as each factor was considered important which demonstrates the significance of these factors to different individuals and their preferences as employees. However, one significant finding presented was that intrinsic factors motivate, retain and enhance job satisfaction considerably more than extrinsic, beside remuneration for basic needs. Evidence suggests that ‘work-life balance’ and ‘relationships with co-workers’ were among the most important factors for retaining employees and the most significant cause of dissatisfaction was when employees felt their hard work was not recognised by management. This highlights the importance of implementing intrinsic factors in the work place and emphasises the significance of understanding the relationship that extrinsic and intrinsic motivators have over the increase in retention and reduction of turnover. Research Limitations/Implications Recommendations for the hospitality industry are suggested in relation to retention and how employee turnover can be prevented. Furthermore, to improve validity of this investigation, it is recommended to conduct further research focusing on a larger data sample. Validity may also be increased by conducting a mixed method approach, whereby interviews with managers were presented in order to gain a deeper perception of retention and turnover.