Employee Turnover and Its Effect on Performance of a Hospitality Industry Essay

Hospitality industry is an industry that provide the servives of food, drink and lodging facilities. The hospitality industry comprise of commercial and welfare sector. The commercial sector includes the hotel, restaurant, inn, guest house, vending services etc and the welfare sector are the hospitals, aged and welfare homes, etc. in the cause of this research, we will be looking in the commercial sector narrowing it down to the hotel sector. According to ( )the ratio of the number of workers that had to be replaced in a given time period to the average number of workers Employee turnover is the process of replacing one worker with another for any reason. A turnover rate is the percentage of employees that a company must replace within a given time period. When employees leave a company and have to be replaced, that’s called turnover. Some employees will always retire, move away, go back to school, or leave the workforce. This level of turnover is not only unavoidable, it can be beneficial. It brings new people into the organization with new ideas and a fresh perspective. Employees’ turnover is a well-recognized issue of critical importance to the organizations. Lack of employees’ continuity involves high costs in the induction and training of new staff. Organizational productivity is also one of the challenges that arise as a consequence of turnover (Siong et al, 2006). Employee’s turnover is a widely researched phenomenon. A huge amount of theoretical and empirical literature identified various factors/reasons responsible for employees’ turnover. However, there is no standard reason why people leave organization (Ongori, 2007).