Developed hotels in the United States, especially those situated in the largest tourism capitals provide quality hotel services to tourists who visit there at different times. As such, they prefer to hire qualified hoteliers who can provide all the required services appropriately. However, a problem has arisen whereby a large percentage of hotel employees in the large hotels in the USA quit their jobs every year due to different 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% while that for management staff is 25%. As well, the association confirmed that the average annual employee turnover range varies between 60 and 300%. Besides, several reasons have been confirmed as to while hotel employees quit their jobs at such a high rate in the United States. Firstly, hoteliers who possess extra hotel management skills do so because they desire to find better jobs with high pay that can enable them to change their lifestyle. More so, others quit their jobs as hoteliers so that they can go for well-paying jobs outside the hotel industry. In short, about 50% of all hotel employees quit their jobs within one year.
As a hiring manager in one of the major hotels in the tourist capitals in the USA, I have realized that the high turnover levels are affecting the functions of my hotel of concern and others of the same rank. For instance, the hotel is spending high costs to train newly hired employees. Besides, the new employees do not perform to the required expectations. In that case, I have decided to design an analytical report which includes findings and recommendations concerning the situation. My fellow employees at the hotel have actively taken part in the research which aims to identify employees’ perceptions of hotel services and programs that already exist. I involved 20 of them so as to improve the quality of findings. Also, the suggestions on how to improve employees’ stay at the hotel are included. Lastly, the analytical report includes a comparison of the hotel of my services to other hotels of the same rank.
As shown earlier, my team consisted of 20 employees at the hotel were responsible for collecting the required information for the report. Among the 20 employees, 8 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. Besides, 6 team members reported that they were not satisfied with the salaries given to them every month. According to them, the salary does not correspond to the services provided daily at the hotel, and it does on match their qualifications in hospitality and hotel management. Furthermore, 4 members reported that they do not like their jobs as hoteliers and so they can as well quit it if they get other jobs outside the hotel industry. Only 2 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 large percentage (40%) of the employees at the hotel quit their jobs because they are not satisfied with the policies that govern them, especially the policy of 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 that they are dissatisfied the monthly salaries and so they can as well quit the job in case 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 job any time they want.
While assessing the employee retention trends in the hotel, we had to use secondary sources which could help us 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, thirty employed had already resigned from working in the company. Even after replacing them, twenty more workers quitted their job by September without putting it clear why they were doing so. 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 on the festive month. As such, the company was forced to hire other employees and train them at a higher cost so as to keep the hotel active, as tourists visit there frequently during the festive season.
A similar case was witnessed back in 2017 whereby out of 80 employees employed that year, only 45 employees worked up to the end of that year. All the others abandoned their jobs due to several reasons such as tough policies, poor payment, 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:
|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 high enough to raise the alarm in 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 get lower, the hotel will find a problem in running its business as it will have to spend much income on hiring and training new employees. Besides, it might some of its customers due to the poor services from new employees who might 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, we compared employees’ services at our hotel with those of other large hotels in the tourism capitals and realized that the other hotels motivated their workers by giving awards to those who performed in a year. Besides, other hotels ensured that their employees are given enough time to undertake their tasks so that they can embark on work while in a position to work perfectly (Guchait, Paşamehmetoğlu, & Madera, 2016). I think incorporating such approaches in our hotel will enable us to retain most of the employees.
According to the findings of the studies, our hotel has a problem with retaining its employees. The percentage of retained employees reduced by 16% in 2018, showing that something should be done to retain more employees. Also, 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 higher than us and even get the best of our employees to work for them. In short, our hotel is at the worst of its performance, and immediate actions should be taken to ensure employee retention.
As a hiring manager in the hotel, I found it important to research and write 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 given a look to help improve employee retention this year and even in the future.
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.
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).