The possible ways to minimize the high employee turnover rate in Sofitel Hotel
Employee turnover is a business concept in which it is described on the employee leaving percentage on an annual basis. It is necessary for the management of the companies to maintain this rate for developing the overall productivity (Mathieu et al., 2016).
Sofitel is a luxurious hotel that is originated from France. The overall study has been developed by focusing on employee turnover rate regarding the specific hotel in New Zealand.
The country has made an overall expenditure of 17.5 billion NZ dollars on the tourism sector and it accounts for around 9% of the country’s Gross Domestic Product. The hospitality sector has been hiring 10% of the overall workforce within the country. It has been found that the country has a shortage in the availability of skilled workforce. As per the report, New Zealand has an overall turnover rate of employees of 29.2% recently.
Plan of the project
The project has been designed as reflection and analysis regarding the growth of employee turnover rate with respect to Sofitel, New Zealand. The study has been conducted by making proper aims and objectives. After that, the literature review has been covered by the researcher related to the topic. Apart from that, proper data collection and analysis have been done along with ethical considerations. In the end, conclusion and recommendations have been created as well.
Aim and objectives
The aim of the research project is to emphasize the points of issue regarding the employee turnover rate of Sofitel Auckland Viaduct Harbour Hotel.
The objectives are:
- To evaluate the effects of employee turnover in the sector of hospitality and tourism with regards to Sofitel, New Zealand
- To identify the reason for uprising challenges related to the employee turnover rate
Concept of turnover rate in organizations
Turnover rate is the concept that depicts the overall ratio regarding the number of persons leaving from the organisations (Gupta & Sharma, 2016). The country, New Zealand has seen the high turnover rate as it has been reported that the rate of employee turnover was 60% in the past few years. Employee turnover ensures productivity and profitability. The organisations are responsible to maintain the rate for delivering the high market advantages.
Challenges faced by organizations in obtaining high turnover rate
There are a few challenges that are faced by the organisations as various employees have shown their tendency to leave their jobs due to low job satisfaction level. Often the issues have been raised as the employees feel demotivated in the workplace as they were not properly valued and respected within the business functions.
Benefits of overcoming high employability turnover rate
The organisation can have various benefits by overcoming the high employee turnover rate. It could give the opportunity in developing the sustainable business and high profit margin (Cloutier et al., 2015). If organisations get success to maintain the employee turnover rate the overall productivity can be increased as well.
Theories related to employee turnover
The theory of turnover intention reflects the employees’ attitude within the organisations. It is a complex concept that is based on various fundamental components. It can be said that attitude is one of the main things that are needed to be analysed by the managers of the companies for upgrading their production level.
Vroom’s Expectancy is another concept that also relies on the attitude of the workers that are shown by them in making efforts in the work (Miner, 2015). It is based on the expectancy level of the employees as well.
Problem solving tools (The Fishbone Diagram, Brainstorming)
There are few problem solving tools that are used to identify the issues and develop planning for mitigating those. Fishbone diagram and brainstorming is one of those tools. Fishbone diagram is made on the basis of root cause analysis (Coccia, 2018).
It helps to understand the source of issues and further develops the ideal solutions. Brainstorming is also used for identifying the best solution for overcoming the organisational issues.
The Primary research method
Interview, survey and observation methods have been taken for this project.
The secondary research method
Literature review and social media have been used in the research.
Data collection and analysis (Interviews, Surveys,Questionnaires of Sofitel Staff)
Survey has been conducted among the employee of Sofitel hotel. The collected data has shown that the working culture of the organisation has not been satisfactory at all as many of them have shared their view that the company has been failing to maintain the work life balance.
They do not provide proper value and respect to their workers which creates an issue of low motivation level. Team leaders are not effective as well. The workers have to take high workload on a daily basis.
Further it has been agreed with the fact that high communication would certainly bring the high work level in the workplace. Apart from that, training is also mandatory that would allow the employees to develop their skills and abilities.
Proper salary structure and other benefits would also provide the high satisfaction level. As per the managers’ point of view, lack of communication and future growth possibilities are the biggest challenges of the concerned organisation.
Appropriate theories have been discussed in relation to poor labour turnover rates for the Sofitel hotel. The working culture is not transparent enough and moreover the team leads are mostly ineffective.
The motivation of the employees can be augmented by using the theory of Abraham Maslow. The salary and the stability of employment is something that corresponds to the lowest level of hierarchies as per Maslow’s Hierarchy of Needs.
Bureaucracy and red tape activities have diminished the morale of the workforce by a great level that has been expressed. The recognition of job title is therefore required for the morale of the employees to be boosted so that the rate of turnover comes down.
All the data that have been collected are authentic and relevant. It is absolutely free from any type of bias. No personal information has been used in this study and lastly, all information has been gathered for academic purposes.
Importance and limitations of data collected processes
Secondary data collection process has improved the validity and reliability of the research project. The data have not been manipulated at the time of making the research. Primary collected data has analysed all the possibilities of employee retention.
Findings, Conclusions and Recommendations
Summary of findings
From the findings, it can be said that the working culture of the respective organisation has not been up to the mark. This is the reason why the employees do not want to stay in that organisation. They do not feel valued and respected. Proper leadership strategies have not been applied at all.
Vroom’s expectancy theory has stated that it is necessary to develop the skills and attitude of the workers to maintain the employee retention. Thus, it can be said that proper training, salary and benefits and good communication system would help the management to improve the employee turnover rate in the future.
The present study has depicted that the hotel industry has been facing different issues regarding the employee turnover. The respective organisation has been failing as well to maintain the rate due to lack of communication, improper management practices and ineffective team coordinating. In the study proper survey and interviews have been conducted and it has been identified that various workers are leaving the organisation because of poor work environment.
Hence, it can be recommended that the organisation must provide proper salary and other benefits to the employees. Apart from that, they must be trained properly so that they can do their tasks by their own. Besides this, team leaders should also identify the workers’ difficulties and try to mitigate further.
Cloutier, O., Felusiak, L., Hill, C., & Pemberton-Jones, E. J. (2015). The Importance of Developing Strategies for Employee Retention. Journal of Leadership, Accountability & Ethics, 12(2).
Coccia, M. (2018). The Fishbone diagram to identify, systematize and analyze the sources of general purpose Technologies. Journal of Social and Administrative Sciences, 4(4), 291-303.
Gupta, N., & Sharma, V. (2016). Exploring employee engagement—A way to better business performance. Global Business Review, 17(3_suppl), 45S-63S.
Mathieu, C., Fabi, B., Lacoursière, R., & Raymond, L. (2016). The role of supervisory behavior, job satisfaction and organizational commitment on employee turnover. Journal of Management & Organization, 22(1), 113-129.
Miner, J. B. (2015). Expectancy theories: Victor Vroom, and Lyman Porter and Edward Lawler. In Organizational Behavior 1 (pp. 110-129). Routledge.