The Imperial Hotel (IH) is facing severe difficulties about the high staff turnover rate. With the help of some supervision or administration concepts as well as applied changes within the hostel, such a problem can be unraveled. For a hotel of any class to run smoothly and effectively as required, the qualified and conversant staff is a necessity. For the guests to be satisfied with the services offered in the hotel, the staff members are required to perform their duties towards fulfilling the guests' expectations. Any business has to sustain general drift of exertion to deliver unique amenity. In the named situation of the Imperial Hotel, there is an apparent rise in the rate of staff turnover. The current manager Peter Farnsworth has decided to plan for a strategy to resolve the challenges facing the hotel which would be more effective if he were to use particular supplementary measures laterally to the suggested steps. In the following report, detailed answers to the challenge above will be described. The valuation below will comprise of in what manner the constant high staff turnover can be upgraded through essential organization perceptions.
The IH has 500 bedrooms and found in the United Kingdom. The Star hotels manage the IH as well as 25 other hotels. The IH has its premises in London’s West End and offer services to large foreign visitors. It also serves travelers with great expectations regarding the kid of services in the hotel. The report will discourse the second challenge that the hotel is presently facing. The institution experiences an estimated turnover rate of 80%. The trend happens every year which shows that the challenge is very significant for the administration to consider. The reason being the trend shows the employees are not satisfied with the terms of service in the organization.. The hotel hires overseas citizens searching for temporary employment. The employees are usually students in London who the firm hires since they demand low pay.
Evaluation of the high turnover rate (TR)
The high TR at the IH in London is a significant challenge that Peter Farnsworth pursues to confront which is at 80%. This shows that more than 805 staff members the hotel employs exits their jobs yearly. A discussion with the employees that exit the hotel says that their explanations for leaving their work areas of a deprived insight of work culture in the hotel. Furthermore, staffs mention unfriendly working hours and absence of appropriate training as causes for the turnover. Meagrewage ranks that means the staff is incapable of handling the great transport budgets current in Central London and few chances for raise to managerial posts as a reason why they leave their jobs (Bratton and Gold, 2017, p. 75). Similarly, related hotels in London bid advanced wage and improved operating environments as compared to the Imperial Hotel.
Effects of high turnover rates
High TRs in companies is a basis of distress for the undesirable results related to the turnover. The leading reason for high costs in companies is high turnover rates. It is costly for companies to cope with high TRs due to the prices connected with the acquisition of new staff members and preparation the new staff members (The Balance Careers, 2018). All institutions ought to challenge the issue of turnover to reduce the severe influence it has on the productivity of the enterprises. The conscription, collection and engagement procedure is costly for a lot of establishments; also, the company will sustain teaching charges that will improve the overall working costs for the company. Besides, new staff members may appeal for advanced pay ranks in comparison to the preceding staff members. A company that encounters lower TRs fails to experience great expenses of operation contrasted to companies which have possessing high TRs. Also, a company may be asked to employ advisors to remedy the challenge of high TR. An organization having the challenge tends to devote enormous time and funds to alleviate the problem instead of utilizing the resources to branch out the enterprise, capitalizing in new publicizing avenues and advancing execution (Bratton and Gold, 2017, p. 78).
High TRs in companies reduces the motivation of the existing employees. The firm should understand that high motivation is crucial for increasing their productivity (Hokroh, 2014, p. 12-13). The reduction in morale results from their fellow colleagues deserting the institution. They move on and work in other firms leaving a large unfilled gap in their former positions. The remaining employees face the task of orienting the new employees which further lowers their progress. The employees may find other jobs given they receive low wages (Hokroh, 2014, p. 12-13). They tend to be attracted to firms with higher pay to increase their job satisfaction.
An organization with high rates of employee's turnover suffers typically from low productivity and poor performance from the employees. In the long run, only those with low experience level and knowledge remain and hence their output is low (Balentine, Mathis " Jackson, 2013). Great efficiency and effectiveness among staff members are essential for all companies for the reason that it regulates the level of accomplishment and viable gain. There is a low level of staff members’ morale in the Imperial Hotel which consequently influences the functioning of the hotel. Clients are encountering deprived service delivery which is caused by the low morale and lowly functioning of the staff members forcing the clients to fancy other four star hotels in London.
Theories to fix the problem of high turnover
The management of IH can apply the human relations approach to solve the crises at the firm. The theory proposes that the management should evaluate their conduct regarding their relationships to the workers (Iqbal, 2016). The theory posit that the firm can only succeed given it acts through the people. The firm should also apply its aims and objectives with the help of the employees. The pioneer of the assertion was Elton Mayo. The theory gained prominence in the 1990s when it was used to promote managerial performance. It argues against viewing employees as economic-rational beings. However, the managers should evaluate them as emotional beings. Thus, it claims that firms operate under teamwork rather than as a powered system. The human relations approach has three main characteristics. The first tenet claims that the managers should be able to understand human behavior. They should also comprehend association with the employees (Iqbal, 2016). The senior employees need also to strive to increase the production and enthusiasm of the employees. The objective is attainable through adequate human relations.
Also, to tackle the challenge of the high turnover rate in the IH, Peter Farnsworth has to harness the theory of employee equity (EE). This employee equity hypothesis functions on the basis of human associations to upgrade output and morale. The output level denotes the expertise degree, hard work, and competence. Staff members output describes the wages and reimbursements that the staff member acquires from production input. It is very crucial for a company to make sure that the effort of its staff members at the workplace is appropriately remunerated through an appropriate level of wages and incentives. (Hokroh, 2014, p. 10)To ensure the staff does not find work in contending companies, the proprietor should offer an appropriate benefit system that will increase the morale of staff members. The employee equity assertion shows contributions as effort, abilities, litheness, obligation as staff inputs while financial inducements, employment fairness, admiration and work safety as staff outputs.
The grading of wants theory is an instance of a human relations approach that can be applied to lessen the high worker TR. The EE affirms that each staff member has a desire that always endeavors to fulfill (Iqbal, 2016). Disappointment to fulfill all the staff wants will without delay lead the staff to find other employment opportunities. An example of a staff need is career improvement and progress. On the other hand, if proprietor does not meet the need for career improvement and progress of the staff, the staff will eventually find work in contending companies. Instantly, there are meager chances for the staff members to be elevated to managerial ranks of the Imperial Hotel in London. In the contending companies, staff members have confidence in that their need for career improvement and progress will be met in those contending companies (Kimberley and Nielsen, n.d.).
Summary
There are multiple theories that IH management can apply to improve employee retention. The study has discovered that the firm can apply the human relations approach (HRA). The reason being the prevalence of the trend proves that the human resource department has a challenge. The HRA guarantees that a firm will only achieve its goals if it has the support of the people. Therefore, the manager, Peter Farnsworth has a role to play. He should ensure that the firm improves its association with the employees. There should also be frequent meeting with the employees. The gatherings will help the seniors addresses the challenges facing the employees. The failure to solve them will cause them to find employment in better institutions. Presently, London’s Imperial Hotel is facing the challenge of high turnover rates due to staff members being discontented with their wages and remunerations (Long, 2012). Also, staff members describe inadequate work fulfillment because of the scarcity of chances to advance their professions. Peter also ought to use the notions of the HRA to management to unravel the concerns that staff members give an account (Taris, 2016, p. 6).
The Imperial Hotel’s new general manager, Peter Farnsworth, ought to also utilize the thoughts of the EE tactic to take in hand the dispute of high employee TR. The EE assertion makes a case that the degree of staff member contribution should equal the output (Taris, 2016, pp 1-3). The study unearths that the IH employees are unsatisfied with the packages and benefits the firm offers them. The manager should identify that poor reimbursement ails the success of the hotel. It leads to a significant number of the current employees finding jobs elsewhere. There is also need to apply the assumptions of the EE theory. It claims that work performance and motivation will result from ensuring that the firm needs to use adequate inputs to generate optimal outputs. Consequently, Peter should facilitate the revisit on the reimbursement and remunerations policies. He can also implement the grading of needs theory. After that, he can be assured of high retention rate. Make certain that the hotel deal with the wants of the staff members will lead to the company decreasing the high turnover rates (Singh, 2013, p. 93-95).
An additional element that may lead to high rate of employee turnover is a sexual category and the challenges it generates in the company. The gravity of life and employment has given rise to female staff members leaving their jobs more frequent than their male counterparts. It has also been noted that male general managers earn more than female general managers having the same ranks(Singh, 2013, p. 96). This has lowered the morale of female general managers making them exit their present jobs and seek employment in rival companies in which they believe their skills and knowledge will be more appreciated and rewarded.
Conclusion
The Imperial Hotel in London has the main challenge it is facing which is the high staff turnover. The firm has a turnover rate of 80% within the year. The causes for a high turnover yearly are due to deprived fulfillment, little morale levels of the staff members, shortage of chances for progress and guiding. The Imperial Hotel’s new general manager is duty-bound to put into operation the three management theories which are the HRA, the grading of needs and the EE hypothesis. By employing the theories, the high rate of turnover of the employees will be decreased since the staff members will acquire greater wages, reimbursements, guidance, and probability of progression. The hotel will as well decrease the operating expenses and consequently escalate revenue levels by reducing the high turnover of staff members. To reduce the rate of female workers being unenthusiastic to return to their posts after their maternity leave, companies are advised to arrange for essential child care provisions which have intensified the number of female workers leaving their job. When the staff members have little contentment with their jobs, they will seek employment openings in other companies that offer better and fulfilling work. On the other hand, if the staff members experience great contentment with their jobs, the company will have less staff turnover. The employment must offer a workplace with valuable execution and involvement to enjoy the gains of a wholly dedicated staff. The employees are one of the essential elements and prominent aspects that determine the achievement of a company in an economic environment.
References
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Hokroh, M. (2014). A Touch on Employees Motivation. nternational Journal of Human Resource Studies, 4(1), pp.9-13
Iqbal, U. (2016). Financial Performance in Daily Hotel and Business Management. Journal of Hotel " Business Management, 05(02).
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Long, R. (2012). Motivation. Hoboken: Taylor and Francis
Singh, S. (2013). Hospitality management. New Delhi: Random Publications, pp. 93- 98.
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