Paper Example on Employee Turnover

ABSTRACT

Employee turnover has been linked to the inability of business to grow or increase their profitability. Consequently, it is necessary to investigate the factors that are associated with employees' intention to leave his or her current workplace. Therefore, the proposed explorational study is aimed at examining the relationship between job satisfaction and turnover of Swiss hotels. The current research pillars will be on these questions: a) What is the impact of Herzberg's Two Factor Theory on employee satisfaction in Swiss five star hotels? b) Does Herzberg's Two Factor Theory Motivators mediate the association between organizational commitment and employee turnover? The sample for this study will comprise of 100 employees (50 male participants and 50 female participants) working in Swiss hospitality industry recruited into the study through simple random sampling technique. Data collection will be done using the Minnesota Satisfaction Questionnaire-Short Version, Turnover Intention Scale, and Organizational Commitment Questionnaire.

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CHAPTER 1: INTRODUCTION

In chapter 1, the researcher examines the background of the study. Secondly, the research problem is explained and justified. Additionally, chapter one of this study discusses the research questions, the purpose of the study, and the research objectives.

1.1 Background of the Study.

Tourism plays a significant role in the creation of employment globally. It has been estimated that 260 million jobs are directly linked to tourism. At the national level, tourism is a primary source of foreign exchange earnings for a country. Noteworthy tourism industry surpasses oil industry in revenue generation (Sangaran and Jeetesh 2015).

The present organizations try to benefit as much as possible from their human cash-flow to enhance execution. Impartial award of wages and rewards, fair by minorities and equivalent open doors for all will grow positive sentiments for work and help them to settle. These emotions are a bit much for a human at work just but rather are fundamental for his own bliss also. So, real investment is investing in the human element, because gives higher returns than output, and is the key that controls other resources.

As the demand for hospitality products and services increase, there is a subsequent increase in the demand for labour. However, despite attracting millions of employees, turnover is one of the significant difficulties confronting the industry. Consequently, it has become a challenge to maintain and employ a new workforce to deal with the requirements of the service industry (Sangaran and Jeetesh 2015).

1.2 Problem Statement

The hospitality industry loses millions of dollars in lost revenues in their replacement of employees who have exited their current organisations or companies for others (CHA International 2009). Because of this, it is vital to investigate the factors that can help alleviate the problem of high turnover in the tourism sector.

The research problem can be translated through the following:

• What is the impact of Herzberg's Two Factor Theory on employee satisfaction in Swiss five star hotels?
• Does Herzberg's Two Factor Theory Motivators mediate the association between organizational commitment and employee turnover?

1.3 Purpose of the Study

The proposed study is aimed at determining the factors that affect Herzberg's Two Factor Theory on employee satisfaction in Swiss five star hotels and whether Herzberg's Two Factor Theory Motivators mediate the association between organizational commitment and employee turnover.

1.4 Research Objective

This research addresses the most important problems by linking the level of job satisfaction and turnover. The possibility of decision-makers in the hotel industry to benefit from the results, solutions and recommendations reached by the researcher through his study of job satisfaction and its impact on turnover because of increased interest of the hotel sector in the issue of labor turnover.

CHAPTER 2: REVIEW OF LITERATURE

2.1 Introduction

Chapter 2, the literature review, involves the discussion of past studies related to the current study. The chapter is divided into two sub-sections: the theoretical framework and review of past studies on the topic. The first part, the theoretical framework describes the relationship between job satisfaction and employee turnover in the tourism industry. On the other hand, the second part examines past studies related to the current study.

The issue of employee turnover has, over the years, progressed from a minor problem toward becoming a major challenge for the tourism sector. The companies involved in hospitality have found it difficult to retain and maximize the potential of its workforce (Sangaran and Jeetesh 2015). A past study has revealed that the normal turnover rate among tourism employees in non-administrative capacity is around 50% while in the administrative staff, the turnover rates are about 25%. A study conducted by Gazioglu and Tansel (2006) revealed that employees in the health and education sector are less happy with remuneration, however, are happier with their feeling of achievement. Employee job satisfaction was also predicted by the opportunity for training.

As a result of the negative effects of employee turnover, the maintenance of employees is one of the most important ways to develop the organization and increase its income. (Cloutier et al. 2015). Consequently, understanding the elements connected to worker expectation to leave an organization is basic to limiting the potential monetary and social expenses to an organization (Qazi, Khaleed, and Shafique 2015). Hunt (2014) connected an absence of satisfaction with fulfillment to staff turnover aim. On the other hand, Gordon, Harrison and Roston (2014) noted that using proof-based data is essential to creating maintenance systems that decrease turnover aim.

2.2 Job Satisfaction

Despite its common usage in both research and daily practice, the concept of job satisfaction is not yet clearly defined. Also, there is no specific definition of job satisfaction. Thus, before describing the term job satisfaction, it is essential to consider the nature and significance of work as an all-inclusive human movement (Aziri, 2011). The term job satisfaction has been variously defined by different authors. For instance, according to cited Aziri (2011 p. 77) "job satisfaction as any combination of psychological, physiological, and natural conditions that enhance employees" happiness in their work. On the other hand, he cited by another definition; job satisfaction is a set of beautiful senses (acceptance, happiness, enjoyment) that the employee feels about himself, his job and the organization which he works. A meaning of job satisfaction by Spector (1997) characterized job satisfaction in view of how people feel about their action and its distinctive edges. That is how much people like or turn away their actions.

Employee job satisfaction will be assessed using the MSQ. The questionnaire evaluates employees' job satisfaction and job dissatisfaction. According to University of Minnesota (2018), the MSQ is a paper-and-pencil inventory that assesses the extent to which employees' job-related needs and values are satisfied on a job. This questionnaire can either be administered to an individual or groups capable of reading at the 5th-grade level or higher. The MSQ short form will take 5 minutes to complete. The MSQ evaluates three classifications of satisfaction: intrinsic, extrinsic, and general. The MSQ is a 5-Likert-type scale instrument with scores per item ranging from 1 (being not satisfied) to 5 (being extremely satisfied). The number of items in MSQ is 20. Other ratings on each of the items on the scale include 2 "dissatisfied with this aspect of my job", 3 "can't decide if I'm satisfied or dissatisfied with this aspect of my job", 4 "satisfied with this aspect of my job." The participant's responses response to each item will be summed to create a composite score (Martins and Proenca 2012). Therefore, the participant's composite score will range from 20 to 100. The lower the total score, the lower the participant's job satisfaction level.

2.2.1 The Importance of Job Satisfaction

Employee satisfaction is essential to the achievement of any business. So that the higher the rate of job satisfaction, the lower the turnover rate. Therefore, keeping workers happy with their professions ought to be taken as a priority in every organization (Gregory 2011). Job satisfaction has positive effects on the work environment, for example, expanded proficiency and preparation to work harder to accomplish the organizational goals. According to Branham (2005), high employee job satisfaction is linked to increased profitability, higher customer ratings decreased turnover, and improved safety records. Other benefits of employee satisfaction include reduced absenteeism, pride in work performed, and ability to handle work pressure and provide better customer service. Finally, satisfied employees are regularly more faithful and willing to go up against extra work amid testing times. They assistance make the workplace more enjoyable and guarantee the district continues running efficiently (Los Angeles Community College 2017).

2.2.2 Factors of Job Satisfaction for Hotel Employees

Job satisfaction is reliant on an assortment of factors, a large number of which are inside your control. With a little exertion, you can either discover the activity that is most appropriate to meet your individual needs or figure out how to discover satisfaction in the one you as of now have. Such as, according (Malone 2017):

Work environment: A decent workplace and positive associations with colleagues are noteworthy factors in work fulfillment. And because of individual cultural differences in the work environment, therefore, the organization should create a working environment in which staff are mutually supportive and serve as a team.

Recognition and Reward: Because of the importance of individual recognition, it may include financial reward, incentives or even public atten...