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Retention in Hospitality Industry

In: Business and Management

Submitted By dvaryani
Words 293
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Allin (1999) claims the UK hotel business is growing. He states that in 1998, there were 22,100 hotel in the UK whereas the Prospects website, UK (2007) claims that to date there are around 48,000 hotels in the UK including small, medium and big hotels employing 250,000 employees. The Prospects website, UK (2007) confirms that the hospitality industry has high labour turnover mainly because of students and there is a high proportion of part time staff. It further suggests that recruiting, training and retaining of quality staff is the current priority.
According to Ogbonna (2002), the hospitality industry is a dull and low skilled sector which prevents the entry of fresh talent and specialized employees. He further comments that only young people and women are being attracted to the industry. Deery and Iverson (1997) and Wildes (2007) have claimed that the employee turnover has become a critical issue in the hospitality industry because of the other job opportunities in the market. However replacements and retention of the current employees are the two big challenges the industry is currently facing. Wildes (2007) further argues that the hospitality industry has become unattractive to many employees, because of long working hours, low pay, instability, seasonal employment and low job status. The associated costs of replacement and retention, turnover can create severe managerial problems such as managing customers and maintaining quality in the customer service.
According to the CIPD survey (2007) average employee turnover in UK is 18.1% where hotel Industry has the highest employee turnover rate of 32.6% annually. In the article on employee turnover CIPD (2007) states that employee turnover costs £ 8,200 to replace a junior level employee and it costs £ 12,000 to replace a senior...

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