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Lecture Hotel management and operations (5th Edition): Chapter 9.3 - Michael J. O'Fallon, Denney G. Rutherford

A day in the life of a catering/Convention services manager. The day will not end for the catering director until a few things are completed. The director has just one job, sort of, and is the front person for the operation. Now, please allow me to take you on a journey through a typical day in the life of a catering director. | The Causes and Consequences of Turnover in the Hospitality Industry Carl D. Riegal Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction Turnover is and has been a pervasive problem for the hospitality industry. There is substantial anecdotal evidence to suggest that turnover rates can reach as high as 200 or 300 percents in rank-file positions, and management turnover can approach 100 percent. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction Cont. A low unemployment rate presents a three-pronged challenge for the industry: The number of workers in traditional target markets for hospitality is decreasing. Unless the industry can present opportunities for meaningful advancement in pay and responsibility, it will continue to attract a transient workforce. The industry is frequently perceived as the “employer of last resort” rather than the much-touted “employer of choice.” Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction Cont. Recent research has established a strong link between employee satisfaction and overall profitability. In this article, the concept of turnover is examined in detail – what it is and why we should care. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved What is Turnover and Why Should We be Concerned? In general, turnover refers to either voluntary or involuntary separation from organizations. Hospitality organizations have perceived turnover in two different ways: Many companies are concerned that turnover costs the organization money. The actual costs related to separation. The cost of replacing employees. Learning curve inefficiencies by new employees. Costs associated with the temporary disruption of the work force. Non quantifiable costs. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved What is Turnover and Why Should We be Concerned? Cont. Some hospitality firms take the view that turnover is not necessarily undesirable, because . | The Causes and Consequences of Turnover in the Hospitality Industry Carl D. Riegal Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction Turnover is and has been a pervasive problem for the hospitality industry. There is substantial anecdotal evidence to suggest that turnover rates can reach as high as 200 or 300 percents in rank-file positions, and management turnover can approach 100 percent. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction Cont. A low unemployment rate presents a three-pronged challenge for the industry: The number of workers in traditional target markets for hospitality is decreasing. Unless the industry can present opportunities for meaningful advancement in pay and responsibility, it will continue to attract a transient workforce. The industry is frequently perceived as the “employer of last resort” rather than the much-touted “employer of choice.” Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved