CHAPTER 1
1.0 INTRODUCTION
1.1 Background of the problem

Attracting and retaining employees is a topic of in numerous articles, conference sessions, books and Websites, as well as the basis for numerous product launches to cub the concern of many organizations (Klepinger, 2007). Smith, (2007) notes that there is difficulty in finding and keeping talented people is having a catastrophic impact on many businesses and industries throughout the world. Money and benefits are important, but studies show most employees leave for other reasons. Employers have the need to retain the talents they have to attain the desired organizational goals which could include quality, customer satisfaction and the bottom line. Earle (2003) observes that workers today are demanding more from their employers than they ever have in the past, not just in terms of salaries and perks, but also in terms of the work experience itself and the cultural context in which it occurs. Many companies are finding that providing a productive, flexible and dynamic work environment can be a critical asset in attracting and retaining valuable employees.

The hotel industry experiences high turnover if compared against a benchmark of Best Practice Forum's Benchmark Index of 26.5% by Horwath Consulting. Caterersearch, (2009) first benchmarking exercise reported an average annual staff turnover of 33.4%. That compared with an average of just over 26% on the Best Practice Forum's Benchmark Index, which surveys 2,000 hospitality businesses is relatively high. Gautam (2005) states that world wide research has suggested that employee turnover is among the highest in the hospitality industry. Studies by American Hotel and Motel Association (2001) have shown that the average turnover level; among non- management hotel employees in the US is about 50% and about 25% for management staff. Estimates of average annual