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Employee Turnover in the Hospitality Industry

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The hospitality industry is one of industries that focus on the quality of human resource. In order to provide the good service, the hospitality industry needs qualified human resources. This is because the hospitality industry fully oriented to customer’s satisfaction. The success of the hospitality industry can be seen from customer’s satisfaction through the services provided by the hotel. However, there is one problems faced by hospitality, there is the employee turnover.

Nowadays, an increasing number of hospitality was greatly influence by the growing number of domestic and international tourists. In another side, the government continues to developing and

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promoting Indonesia’s tourism. In the business sector, the tourism industry is one of the industries that are experiencing an increase. Therefore, the government continues to encourage the program and activities related with tourism, because tourism industry is one of the industry sector that contribute significantly in increase the national income. Hospitality is one part of the tourism business. A lot of hotels compete to improve quality so as to create competition in the sector of hospitality businesses. Because the tight of competition in the hospitality industry, then the hospitality industry must be able to adapt to changing environmental conditions to compete in the hospitality competition.

Employee turnover is an endemic issue in the hospitality industry worldwide. Employee turnover intention acts as a surrogate for actual employee turnover. One of the most challenging issues faced by the hospitality organizations today is to manage the changing employment relationship. Being in customer service business, hospitality industry capitalizes heavily on its human resources to achieve its competitive advantage. Hospitality industry is a high customer service oriented business where interaction between employees and customers determine the competitive advantages and success of the business.

The hospitality industry is a company that often experience employee turnover caused by internal problem that occurred at the company, internal problems it also causes a high rate of employee turnover. Employee turnover may disrupt the company’s performance. The hospitality sector is oriented to customer satisfaction, so the hospitality industry should have qualified human resources to provide excellent service to customer. The success of the hospitality industry can be seen from the customer satisfaction through the service provide by the hotel. High levels of intention turnover has become a serious problem for companies, even some companies experiencing frustration when he learned that the recruitment process has secured the staff finally turned out to be futile because the staff who have been recruited and work at his company has chosen a job in another company.

Employee turnover is very detrimental to the company. Disadvantages are divided into two:

Costs and Indirect Costs. The direct costs associated with the loss of time and money to recruit, hire and train employees. The indirect cost is the decline in production and services because the company has not found a replacement for the employee to perform work that had previously been left behind by employees who resign or hire new employees who do not have experience and should be given training. Recruit, select and train new employees often spend a lot of money, because the higher the turnover rate, the higher the expenditure will occur.

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