Human Resource Management Reassessment Work
The hospitality sector is one of the world's fastest growing industries. However, huge problems still exist in attracting and retaining a skilled workforce; DiPietro (2007) stated that 'Two enduring things in the industry are: high staff turnover, which affects the ability to deliver a consistent brand experience, harming businesses and the fact that not enough people see our growing industry as somewhere to build their careers.' The industry for many years has suffered with the overhanging reputation for a very high level of labour turnover. In 1993 the Hotel and Catering
Training Board (HCITB) published its report Manpower Flows in the Hotel and Catering Industry. It found the following gross turnover rates: managers 19%, supervisors 94%, craftspeople 55% and operatives 65%. Cafe's and public houses had the highest rates of losses, caused largely by young people using the sector as an interval between school and full time work (Boella and Goss-Turner, 2013). Goss-Turner (2002) Wrote in his Managing People guide that the estimated costs of labour turnover are a graphic illustration of the hidden financial burden of having to replace an employee. The Chartered Institute of Personnel and Development (CIPD), in its report on labour turnover published in 2007, has fixed this at a minimum of £1000 for an unskilled manual worker, up to £5000 for a qualified, experienced managerial employee. One of the main determinants predicted to have a significant role in an individual's decision to leave an organisation is that of the turnover culture. This variable has often been alluded to in the literature on labour turnover, but has been largely untested. This is quite surprising given that the hospitality industry has been characterised in terms of high turnover rates, a part-time and casual workforce, an absence of an internal labour market - i.e. low job security, promotional opportunity and career development, plus low wages and low skills levels. Turnover culture is best characterised as the acceptance of turnover as part of the work- group norm. That is, it is a normative belief held by employees that turnover behaviour is quite appropriate. The concept is grounded in both the absence culture literature (Ilgen and Hollenbeck, 1977; Martocchio, 1994) and the organisational culture research (Cooke and Rousseau, 1988). Turnover culture can have an impact on the organisation in a negative way by acting as a counterculture to the organisation's main objectives (Cooke and Rousseau, 1988). This is especially true when objectives such as quality of service and reduced costs are used as sources of competitive advantage (Iverson, 2007). Many smaller employers cannot offer careers or career progression so employees naturally move from one job to the next although they generally remain within the industry, which can be described as 'transient workers'. Some refer to this as 'Circulation' as opposed to 'Turnover', due to the employees not being lost to the industry (Boella and Goss-Turner, 2013). There has been a significant amount of research into the causes and impacts of high levels of labour turnover, much of the discussion debating the advantages as well as the disadvantages or dysfunctionality of such levels. In many cases, employers recruit directly from the secondary labour market, i.e. workers who are not committed to a particular industry. Many workers such as school leavers, students and 'long-term tourists' are seeking short-term employment, or sometimes just to earn holiday money or to learn the language, before starting their studies or returning home. Among some employers, particularly in the fast food sector, there is very high level of turnover, often attracting candidates experiencing their first entry into the job market, but labour turnover is anticipated and can be managed (People 1st, 2011). It is important to note that there can be some advantages of a healthy...
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