Effect of Turnover on Performance and Effectiveness of Human Resource Practices and Polices in Retention: A Case Study of Hotel Industry

Abstract

The incidence of high turnover rates in the hotel industry has been the subject of substantial number of studies. Much of the research has been focused on identifying the causes of turnover and formulating strategies. Little attention however, has been given to identify the actual effect of turnover on the performance of the organisation and also the effectiveness of human resource practices and policies in retaining employees. This study attempts to address the deficiency of research in this area by exploring the effect of employee turnover on different aspects of performance of the organisation and also by reviewing, how effective is the employee retention strategies followed in the industry. These aims were met through an extensive study of relevant literature and a case study. Considering the nature of the research a qualitative approach has been employed. The data was collected from both operational employees and managerial employees of a 3 star luxury hotel located in the heart of England. Which was then analysed using coding and context analysis. Finally the findings from the literature review and the case study has been discussed. Key words: Employee turnover, Human resource practices and polices, Retention, Organisational performance

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