Saudi Journal of Business and Management Studies (SJBMS)
Volume-4 | Issue-06 | 548-555
Review Article
Staff Turnover Crisis in Hotel Industry of Saudi Arabia: Challenges and Projections of Employees and Employers
Qamrul Islam, Shafeeq M. Assiri
Published : June 30, 2019
Abstract
The revolving door policy has become a bottleneck for the Hotel Managers. Be it the lower level staff or the top management staff, they leave the organization once they are trained and groomed as per the hotel standards. This crisis leaves the hotel at catch 22 situations. They have no option other than to hire a new staff and train them. “The Bureau of Labor Statistics [1] estimates an annualized employee turnover rate of 73.8% in the hotel and motel industry. This figure is striking consider most HR experts agree a healthy turnover rate should actually be somewhere in the 10-15% range”. Considering the high rate of attrition, training a new staff as per the standard policies becomes a costlier challenge for Hotel Industry. There are various reasons behind turnover i.e. Job dissatisfaction, better career growth/opportunities etc. There are a variety of reasons why an employee would consider quitting his or her job within the hospitality industry. These have been identified and researched significantly in the past 60 years (Brown et al., 2015; Huselid, 1995; Kang et al., 2015; Mobley, 1982; Poulston, 2008; Smith and Watkins, 1978) [2]. Yet, organizations are continually trying to identify areas for improvement regarding turnover as turnover costs can be extremely expensive. In fact, they are sometimes considered the highest cost an organization has to endure (Tracey and Hinkin, 2008; Woods, 2002).