KEY WORDS

High turnover

Compensation

Employment issues

Wage and Salary

1http://www.floridataxwatch.org/2013o

urismFINAL

Employment problems in Hospitality

Compensation-Turnover Summary: The sharp influx of travelers has made and continues to make the

hospitality/tourism industry an important area of employment for variety groups in labor

market.

This study discusses and evaluates employment problems in the hospitality industry caused by low compensation and high turnover rates.

The purpose of this study is to focus on the major problems and challenges in this

endeavor such as

The low level of wages- compensation

The long working hours

High Turnover

The low employee satisfaction

This study will be exploring current common employment issues related to

poor compensation and the high turnover rate it causes. Here we will

develop set of strategy to future hospitality leaders in this class.

As numerous studies have proven the high turnover rate found in the

hospitality industry is the leading cause of poor job performance, employee

dissatisfaction and resignations

As leaders of the hospitality & tourism industry, we should understand that there is a

direct link between fair pay (compensation) and an increase in customer volume

and revenue.

If hospitality/tourism companies continue to have the reputation of having high

turnover rates and poor compensation, then companies will not be able to get the

most productive employees to work for them.

If owners feel that they cannot afford to pay their employees fair, competitive, and

reliable wages, they will understand the true cost of turnover. “It is more cost effective

to pay a good employee to stay and to be productive, than to incur turnover costs

when they leave.” (William, 2010)

The nature of hospitality and tourism employment is determined global changes and

conflict, the internal dynamics of the country, and climate. We all know that

hospitality/tourism is a service industry and it is not possible to replace employees with

machinery.

When we look at the developed countries that have remained attractive destinations, it is

not enough just having museums, being a seasonal or temperate place, or having big

modern buildings and attractions; this industry is definitely going to need professionals, and

educated people who know how to utilize these investments. And of course their

happiness, satisfaction is important factor to providing good service.

Almost all employment opportunities associated

with tourism in developing countries may be

accorded a high status by the local

population.

Low level of wages Economic condition of the lesser developed countries is poor. So these countries are

unable to pay high wages.

Poorer countries’ governments are less willing to have workers rights as it drives off

foreign investments which are looking for cheap labor in order to maximize profit.

Mostly employers do not recognize true labor.

There are too many candidates for jobs in the market and this results in low wages or

forces to employees to decide quickly.

For example, in many ‘non-developed’ cultures, service towards others (especially the

wealthy) and the service industry in general are allocated a high status and

importance in society (Cukier, 1998a).

Most services of the hotel tip oriented business.

Cost increase

2011

Nature of the business ( banquet, group check ins functions)

Call offs

Holiday shifts

Extended work hours

Employers takes advantages of salaried employees

Schedule changes

LONG WORKING HOURS

Turnover

The rate at which an employer gains and losses its staff is called

employee turnover.

How is turnover calculated ?

The turnover is frequently calculated as the ratio of the number of

employee’s separation during a month to the number of employees on the

payroll at the middle of the month.

Reasons of the Turnover

1-Seasonality of the jobs

2- Organizational culture: Lack of

culture

3- Labor Pool: Untrained

4- Customer Service. Judge abusive gsts

5- Pay Rates and Hours of the job

1. Poor

2. Poor fit org. culture

3. Poor Pay

4. Poor Connections SPV

5. Poor opportunities

Low Employee Satisfaction Employee satisfaction or job

satisfaction is simply, how

content or satisfied employees

are with their jobs. Satisfaction

could be measured using the

surveys.

Discussions

How can we satisfy the employees?

What factors would be using prevent turnover?

Is pay element good enough to stop turnover?

What strategies can we set to make employees happier first then enjoy

their Job?

Conclusion

Increasing Job satisfaction

Good leaders improve the service quality

Equal wage for equal Job

Manager has to acknowledge to skills of employees

Mentoring program