A Comprehensive Analysis of Human Resource Policies and Their Impact on Employee Turnover in the Hotel Industry in Delhi NCR

Abstract

The hotel industry especially in the Delhi National Capital Region (NCR) is struggling with a substantial challenge—high turnover—significantly affecting organisational performance. The turnover rate has gone to around 30–35%, presenting a significant difficulty for labour-intensive organisations in the hospitality sector. This dilemma underscores the need for an inclusive review of present policies to improve employee retention. Several factors contribute to the mounting turnover rates, including the perception of hotel jobs as ‘blue-collar,’ the prevailing issue of competitive low remuneration, unconventional working hours and familial strains. A significant 60% of newly hired employees choose to leave the organisation within the first two years, further worsening the problem. Skilled and knowledgeable manpower, crucial for the industry, exit due to marginal compensation, with some opting to migrate abroad for better career and financial gain. These studies constantly create attention to management about shortage of skilled manpower, highlighting the urgency of taking this challenge. The employee retention concern for recruiters, given the hotel industry’s highest turnover rate compared to other industries. Certain hotel chains, like OBEROI, TAJ and MARRIOTTS had taken tremendous efforts for employee retention, earning recognition in the prestigious “best employer” category.

Keywords: Employee Retention, Remuneration, Job Satisfaction, Human Resources Practices and Policy

View PDF