Chapter 1 Introduction:

In Australia there is high staff turnover on the hospitality industry however, the highest staff turnover is in Restaurant/Bar that is 1318 and 25.73%. This indicates that individuals leave this company more often than any other (Davidson, Timo & Wang, 2010, pp. 27). High staff turnover in restaurants can have negative impacts like reduction in productivity, low profit and rise in various costs (Tracey & Hinkin 2008 as cited in Liu, 2014, pp. 1). High Staff Turnover is described as the total number of employees who have resigned during the time taken into consideration divided by the average number of employees in the company during the time (Price, 1977 as cited in Iqbal, 2010, pp. 275). In any organization, business and firm employees are an essential part as well any accomplishment done by the company or a firm in solely based on the hard work of the employees (Samuel & Chipunza, 2009). Staff Turnover is considered a huge loss for the firm because the company have used all their resources on these employees to make them a skillful and talented worker of the workforce only to resign from the company and leave it. A firm who has a lot of high staff turnover are prone to face high risks in the long term (Tracey and Hinkin, 2008, pp. 18). Every firm in the world have the desire to have a rise in the firm’s efficiency and decrease the staff turnover at any point, hence diverting the firm towards profit and success. Although high staff turnover will force the firm to face turmoil in the form of indirect and direct costs (Al-Mamun & Hasan, 2017, pp. 63). There are various reasons for employees to think about leaving their jobs are marriage, gender, age, education and the total amount of time they have worked for in the company (Liu, Li & Li, 2006, pp. 86). Moreover, staff turnover can be in a way beneficial for the company like any employee that is not performing well can be changed which will have an impact on the resources spent on that particular staff member, the costs include external costs like recruitment, training etc., concealed costs like low self-esteem, decrease in the firm’s repute etc. (Liu, Li & Li, 2006, pp. 85). The rise in globalization gives birth to an increase in competition, the firm should definitely make more of physical commodities and offer various services that are on the bases of tactics produced by the staff. The services by the employees are intangible and it’s not easy for every employee to provide the same service with that enthusiasm (Stovel & Bontis, 2002, pp. 304). Heneman and Hugde (2009 as cited in Iqbal, 2010, pp. 275, 276) have introduced types of turnover, there are two kinds of turnovers that are given below:

1. Voluntary Turnover:

Voluntary turnover is further divided into:

• Avoidable Turnover: this type of turnover can be can be barred by few company’s actions like increase in the salary or any new employment task.
• Unavoidable Turnover: A turnover that can not have been protected by the company is any situation like staff member’s death or partner’s transfer.

2. Involuntary Turnover:

Involuntary turnover is divided into two types that are:

• Downsizing Turnover: this type of turnover can be due to restructuring of the firm, reduction in firm’s cost to increase efficiency and to upsurge shareholder worth.
• Discharge Turnover: this type of turnover occurs due to discipline of the employee or employment performance issues.

Thus, there are multiple factors that can be the reason foe high staff turnover and cannot be dealt by the management like the incapability of the employee. Previously, other factors came under involuntary turnover like children care or looking after old family members. Currently, this type of components is not seen as a reason for any employee to leave work because many companies have included policies that allows the employees to resume their work (Ongori, 2007, pp. 50).

There are few organizational and employment factors that forces the employee to leave their current job. Organizational factors can include when the tasks in any workplace can be forecasted, instability of the firms that make the employees think about their position in the organization in terms of career development (Ongori, 2007, pp. 50). Costly et al (1987 as cited in Das and Baruah, 2013, p. 13) stated that the reasons for an increase in employee turnover in any company are poor Human Resource management skills like no proper employees’ policies, no proper recruitment policies, no proper training, no proper methods or poor motivation and encouragement. This means that staff members are not appointed cleverly, they are communicated properly with any essential promotion policy and there are no proper policies on how can an employee leave the organization. Job Factors that forces an employee to resign from h/her position are stress that have been triggered by their employment, the elements that can indirectly cause the employment stress like not proper commitment in the firm and no employment satisfaction to continue working in the organization. There are other elements that forces the employee to quit his job like no sense of power or control; this means that any explicit factors or other individuals that can control their lives (Firth, Mellor, Moore & Loquet, 2004, pp.171). There are also economic reasons due to which the employees are forced to leave their employment that can forced workforce turnover in the industry (Manu et al., 2004 as cited in Ongari, 2007, pp.50). According to Trevor (2001) domestic unemployment rates links with employment satisfaction to forecast in the industry. Role uncertainty means the difference between what people assume how will we do the job and what we are actually supposed to do that causes doubt among the employees that how they should do their job. Ongari (2007, pp.50) also states that lack of information provided to the employees on how they should do their job, not clear expectations from managers and colleagues, uncertainty of feedback procedures, extreme employment pressures, some responsibilities due to which the employees’ feel left out and lack of motivation increases the chance of employees to quit.

The industry upon which the research paper wants to search for high staff turnover is the food and beverage industry. The company that we will focus upon is the Sea Salt Restaurant. Sea Salt is located in the Terrigal Pacific, this restaurant provides services of fine dining that is quite famous for their seasonal dishes that has an impact of the coastal area alongside the restaurant.

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1.1 Problem Statement:

The problem focused in this research paper is the high staff turnover in the Sea Salt restaurant in the area of Terrigal. The paper will try to find employee satisfaction with environment of the restaurant and the relationship between the management and the staff.  Different instruments will be used to find the answer for this problem.

1.1.1 Research Questions:

1. What are the reasons for the high staff turnover in Sea Salt Restaurant?
2. How has high staff turnover affected the operation of Sea Salt Restaurant?

1.1.2 Research Objectives:

1. To evaluate reasons for high staff turnover in Sea Salt Restaurant
2. To assess the effect of turnover on the operations of Sea Salt Restaurant

1.2 Significance of the Study:

Fine dine restaurant are not like fast food chains, the former requires precision, quality of food and ambiance. The quality of the goods and services can be temperamental to retain if the staff is resigning than the average speed as this industry requires immense skill and knowledge. Supervisors have the knowledge of the significance for maintaining the employees working in the restaurant currently so they want try hard to evaluate why employees leave the organization. The majority of the restaurants invest in their staff not monetary wise but also their time and exertion however, the staff chooses to leave the restaurant regardless (Yiu, 2014, pp. 2).

The outline for the research paper is the first chapter involves the introduction that have introduced the topic and the company. The second chapter includes the Literature Review that involves the overview of multiple peer reviewed articles that are based upon high staff turnover, the third chapter includes the methodology that entails the research design that is how the data will be collected. The fourth chapter includes the finding and results section that will provide what method has been used in the paper and graphical representation of the findings. The next chapter includes discussion that will link the current research with the previous researches and will provide answers to the current paper’s research questions. The recommendations chapter will discuss how can the problem be amended or remedied if there is any after reviewing the questionnaire. The last chapter entails the limitation and conclusion that will update the readers of the limitations that the writer encountered and an overview of the whole report. In the last there will be list of references and appendix.

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Chapter 2 Literature Review

Staff turnover is defined in a circumstance in which work members leave the company for multiple reasons that can have a negative influence on the firm like the overall expenses and the capabilities to divided the minimal obligatory services (Yankeelov et. al., 2008 as cited in Al Mamun & Hasan, 2017, pp.63).  The increase in productivity and the quality of product in a restaurant gives rise to positive customer behavior of the restaurant. Staff’s skill is the utmost significant brand connection in fine dining (Kwun & Oh, 2007).

2.1 Working Environment:

Work environment is often defined as the working situations in which the labors have to deliver their services. These kinds of circumstances entails time table of the job, attendance, how are the managers behaving with you, the type of work and litheness among the colleagues (Lee, Back and Chan 2015). This is connected to job satisfaction as job satisfaction comes under working environment. The staff’s satisfaction with the work environment impacts themselves in a good way and ensure them to not leave the firm. The staff is encouraging and productive as they are happy with their working environment. However, hospitality industry has the most unreliable work conditions and the most appropriate work environment for the staff is that in which the employees upheld private and pr0ofessional relationship in the same time accommodate unusual desires (Timothy and Teye, 2009, p. 33).

2.1.1 Trustworthiness:

Trust among the management and the staff or any perceived trust from the manager can increase the chances for the employee to stay put with in the firm along side where there is no particular existent relationship between the management and the employees due to which the probability of employees leaving the firm increasing overtime (Paille, Grima, and Bernardeau, 2013).

2.1.2 Job satisfaction

Job satisfaction is the limit to which an employee feels something either is it positive or negative about h/her employment (Odom, Boy & Dunn, 1990). Normally, job satisfaction is referred to an employee’s efficient feedback of their employment. In the hospitality industry this concept guarantees the staff that they will handle clients with the utmost respect (Arnett, Laverie & McLane, 2002). Due to the significance of client contact in evolving connections with customers, an employee’s job satisfaction is a key issue for the firms operating under this industry that are reliant on good and loyal customers. Generally, job satisfaction in turn increases good performance that motivates the employees not to leave and work hard during their jobs (Arnett et al., 2002). According to Herome and Kleiner (1995) firms that displayed high assurance, advantages of firms’ success in the long run, devotion and self esteem might comprehend job satisfaction. This concept has a direct relationship with organizational commitment (Kim, Leong & Lee, 2005, pp. 176).

2.2 Relationship of Management and Supervisor

The hospitality industry has a chunk of labour working in the companies that entails good internal relationships between the supervisors and employees to achieve the main target of the firm in any way possible. If there are no interaction between them it can create conflicts in the organization. This relationship is crucial for the firm as both the parties have to work hand in hand to achieve the firm’s target in the long run (West, 2007 as cited in Im, 2011, pp. 20,21). If the relationship between the two is great and both of them are communicating properly that it can affect the working situation of the labours, their professional development within the firm and improvement in the quality of routinely working conditions. The increase in communication from the management side can actually increase safe working environment and can motivate the employee to stay put in the firm especially in the public sector (Brunetto and Farr-Wharton 2002). The reasons for small conflicts between the two parties are due to no proper supervision style, lack of resources, unfair working environment and the employees are not instructed properly about the employment. Partiality and justice play a vital role from the employees perspective to overview the operations of the firm (Eatough 2010 as cited in Im, 2011, pp.20).

2.3 Organizational culture

Kerr and Slocum (1987 as cited in Sheridan, 1992, pp. 1038) advised that organizational culture values might restrain turnover rates of strong and weak employees. The authors stated that few of the organization have embedded culture that focuses on values such as working as a team, privacy, respect and care for the colleagues. Due to these values there occur honesty, loyalty and commitment of the employees in the long run whatever the job performance of the staff is. Many firms have culture that focuses on private creativity, innovation and different benefits for achieving any particular workplace aim. Thereby these values substitute an organizational standard therefore the firm does not provide safety in the long run and in turn loyalty is not promised by the employees. Furthermore, the authors also advised that the employees performing poorly than others would resign from the work soon where as employees with strong performance might stay put in the organization for benefits until other firms does not provide any other rewards.

 

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