HUMAN RESOURCE MANAGEMENT
MGT 201 – ANALYTICAL ESSAY
28/07/2013

TOPIC:

Analysing Staff Turnover, its Cost and Effects on the Business and Developing Strategies to Improve Staff Retention:

Student Name: Fabio De Souza Lima
Student Number: 0053455T
Lecturer: Nathalie Hudson
Sunday, 28 July 2013, 11:55pm
In comparison with other types of industry, excess of labour turnover has become a chronic problem for Tourism related enterprises, especially in the Hospitality sector. It has the potential to cause (directly or indirectly) serious issues and generate a multitude of costs to a business. For example, the whole process of recruitment and training can be very expensive and, even costlier can be the potential decline in the levels of service quality and productivity, which can culminate in customer dissatisfaction and consequential weakening of the business.
This paper seeks to analyse such scenario by investigating staff turnover cases occurred throughout a variety of corporations in the hospitality industry. It discusses how such situation will affect businesses and, at the same time, suggests how Human Resource Departments should approach the issue, in order to help companies retain its most valuable asset, the employees. The difference between staff turnover rates amongst managerial positions and other more peripheral positions became evident after research and so did the notion that staff turnover rates will vary depending on the size of corporations. But, above all, the most influential factor that appear to be affecting staff turnover levels is the quantity and/or quality of training and development that is being made available to new recruits (as well as to the more senior staff members) of an organisation. Training and development can greatly increase motivation.
Wiley J. Sims (2007) states that “turnover rates are reported in the hospitality