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There are various researches that show that the hospitality industry all over the globe faces a high turnover rate (Dwesini, 2019). It happens due to various causes, basically, it is triggered by dissatisfaction at the job. Dissatisfaction at job happens due to poor working conditions, relationship with the top managers, work timings, salary and fort other benefits. Most importantly, due to excessive stress employees tend to leave this sector. As being a demanding sector, the hospitality industry has high-pressured working conditions, which leaves the employees, feeling stressed out. As a result, the hospitality industry comes among the top industry, which has a high turnover rate.
An effective HRM department of an organisation ensures a positive impact on the employee which increases employee commitment and job satisfaction through various measures (Yawalkar, 2019). Apart from the human resource department, leadership is another aspect that brings out a positive e relationship with the employees inside an organisation. Effective leadership ensure employee well-being, which mitigates the expectation of the employees. As a result, employee turnover can be reduced in a dramatic manner through the human resource department and leadership inside an organisation. The main aim of the essay is to identify the significance of HRM and leadership in decreasing employee turnover inside the hospitality sector. In regard to this, the essay will discuss various theories and models which will be advantageous for the hospitality industry to reduce high employee turnover.
The term high turnover is associated with the aspect that inside an organisation, there are many employees which have quit the organisation over a certain period of time. A high turnover rate impacts organisational productivity negatively and increases recruitment costs and the organisation also faces a loss in sales. Furthermore, a high turnover rate also leads the employee to feel low employee morale and the productivity goes down (Djajasinga et al., 2021). The hospitality industry is among the top industries, which face a high turnover rate. Undoubtedly, this industry is booming and the high demand for this industry leads the employees to feel high work pressure and stress. It is also considered that the hospitality industry is the industry that employs the largest number of workers in the world. As a result, due to having employed a large number of workers., the industry often fails to meet the job expected of them which is a major source of stress for many workers.
Apart from this, employees feel a disconnection with the managers due to the cause of unable to communicate with them and employees tend to quit. As the industry has several departments running through their management and they fail to manage this aspect (Holston-Okae and Mushi, 2018). As a result, employees look for better opportunities outside. Flexibility is among the most important issue faced by employees in the hospitality industry. Due to high work pressure and fluctuation in the demand, employees in the hospitality industry are unsure about their shifts and schedules. Due to excessive work stress the hospitality industry has a high working condition which leads the employee to feel stressed and the industry face a high turnover rate. It is very crucial for the hospitality industry to make this issue a priority as high turnover can cost a company twice due to the cause that they need to recruit, hire and train employees, again. Furthermore, it also decreases employee morale inside the hospitality industry and decreases productivity. Hence mitigating this issue will lead the industry to acquire better results.
The human resource department is significant inside an organisation, which is reppon9iioble for effectively managing an organisation’s human resources, which are the organisation’s employees. The human resource department inside an organisation performs multip0le tasks, which include, recruiting, training and developing the employees etc. Employees are the most crucial asset inside an organisation. As per Stone, Cox and Gavin (2020), the main mission of human resources is to ensure that the organisation’s employees are efficiently managed, appropriately compensated and effectively trained. Along with this department is also responsible for firing and making administrative benefits. In this regard, the employee offers efficient policies and procedures and support to the human resource. Moreover, the department makes sure that the mission, values and vision are part of the organisational culture.
According to Warren Bennis, leadership is the ability to translate the vision into reality. According to Bill Gates: in the next century, leaders will be those who empower others (Mahmood, 2021). Hence, leaders are those who help themselves and others o perform the right things and set a particular direction and develop an inspiring vision and bring out something new. Effective leadership ensure that ideas are communicated effectively with the employees and inspire them to offer high input of them. Effective leaders have b values which guide their behaviours and vision.
Role of HRM
Enhance onboarding and employee Engagement
In order to make thy workers feel valued with a good onboarding procedure, HR can use various engagement tools and practices (Malik, Baig and Manzoor, 2020). Through this, employees will feel valued and welcome through the practices, which include introducing them to the supervisors on the first day. The HR department can keep the employees satisfied and productive worth various engagement tools.
Improve Rewards
The human resource department performs all the practices and improves the human rewards which makes the employees feel valued which impacts the turnover. In order to make the employee values, HR offers various types of rewards that gives a sense of recognition among the employees which further enhances the working relationship and the organisational culture in the hospitality industry (Jarwan and Ibrahim, 2020).
Support to Maintain Work-Life Balance
One of the major issues in the hospitality sector is the lack of work-life balance which is very essential for employee mental wellbeing. In order to maintain employee work-life balance, employees need to communicate and make a schedule ahead of time and vice versa. Long with this, the self-service portal can help employees to take leaves easily and they will get quick approval. An HR here plan all the vents and works accordingly for attaining a better work-life balance which can enhance the morale of the employees and the turnover rate gets reduces (Santhanam et al., 2021).
Implement AI in enhancing employee Retention
Implementation of AI in the recruitment process in the hospitality industry will help HR to recognise employee attitudes, and performance towards their job. This technology will benefit the HRs in the industry to recognise the behavioural patterns of every employee (Yawalkar, 2019). Along with this, the AI algorithm helps the human resource department in the Hospitality industry offer feasible solutions based on the feedback of the employee. Through this implementation, the HR department will be able to increase employee satisfaction and improve the number of employee turnover.
Role of Leadership
Recognise and Acknowledge
This is a very effective approach through which leaders leave a positive impact on employee engagement and performance. In order to reward the employees, leaders must recognise their success and should find out effective ways to make them feel appreciated which is among the top expectation of the employees in the hospitality industry (Alkhateri et al., 2018).
Develop Opportunities
All employees while working in the hospitality industry look for opportunities in order to continuously grow. Various research has shown that a lack of development opportunities is directly interconnected with a high turnover of employees. Leaders in the hospitality industry must ensure they are creating scope for the employees to create new opportunities for career development and education.
Encourage Employee Development
Great leaders know how to bring out value from their teams by offering them the opportunity to enhance their education and skills (Holston-Okae and Mushi, 2018). In this regard leaders associated with the hospitality industry should make an employee development plan for every employee by offering them the required tools to meet the goals and deliver cross-training to develop other types of roles.
Strategic Communication
In addition to this, the hospitality sector must ensure that the larders are communicating effectively with the employees to deliver the messages. Poor communication is the major issue in this industry (Alkhateri et al., 2018). Consistent and clear communication is the priority in order to keep the employees engaged in the hospitality industry.
The HRM function of a particular company or organisation is intimately interconnected with leadership practices. Therefore, both are considered the imperative aspects of an organisation to prosper the organisational performance of a business organisation. In terms of applying suitable leadership and HRM practices, companies are often seen Implementing several theories and models to meritoriously manage the process. In this context, there will be an effective discussion of the effective HRM and leadership model and theories.
Contingency Leadership Theory
This particular theory basically aims at the fact of particular variables which are considered interconnected to the surroundings in an effective manner. As per this contingency leadership theory, no leadership style is suitable in terms of assessing the situation (Abba, Yahaya and Suleiman, 2018). In other words, there might be the availability of the variables and that might impact any type of particular circumstances. In terms of that leaders have to select an appropriate course of action to measure the complexity of the situation. Regarding this fact, this particular theory is quite efficient as it primarily focuses on the fact of different variables within major decisions.
According to the perception of the White and Hodgson state, they have detailed that “Effective leadership is about striking the right balance between needs, context, and behaviour.” It basically indicates that an appropriate leader has the ability to calculate the basic requirements of the followers along with investigating the complexity of the situation quite effectively (Kundu and Mondal, 2019). In this specific way, a leader will be able to understand the major strengths and limitations of the employees in an effective manner. This contingency theory can be applied in the different organisation as it determines that the character and the structure of the organisation might take dissimilar forms.
Transformational Leadership Theory
In terms of the transformational leadership theory, is basically popularised as relationship theory. The ultimate aim of this particular leadership theory is to maintain the association between the followers and the leaders. In the case of the theory, it fundamentally converses about the leaders who can inspire, motivate, and transform their followers in order to perform quite in an operative way (Eliyana and Ma’arif, 2019). It has been observed that transformational leaders tend to be motivated by their aptitude to display to theirfollowers the importance of the task as well as the sophisticated good associated with performing it. This leadership theory proved to be facilitating for the business organisations due to its ability to provide employees the strength to tackle the confronting situation on their own (Brown, Brown and Nandedkar, 2019). On the other hand, the transformational leader does focus on team performance considering the fact of specific training. Therefore, this leadership theory might be able to increase problem-solving ability as well as create an innovative solution.
Trait Theory
As per the consideration of the Trait theory, it basically demonstrates that convinced natural qualities have the ability to form a great leader. In terms of that, consisting of certain potentials does not inescapably indicates that an individual has b leadership ability (Ding, Dong and Prentice, 2022). It is indeed true that some leaders might be outstanding listeners or some might be tremendous communicators, yet leaders have to be specific in other qualities too. In fact, this theory follows the footsteps of the Great Man theory in supposing that leaders are born with personalities that make themmore appropriate for accomplishing their responsibility as a leader compared to others who lack those qualities.
In terms of this leadership theory, principally indicates some detailed qualities which are intelligence, a sense of responsibility, creativity, and accountability. These certain qualities have to be natural-born as per the consideration of the Trait theory. In other words, this particular theory frequently classifies particular personality or behavioural features demonstrated by leaders during the time of accomplishing their tasks (Ding, Dong and Prentice, 2022). It has been observed that there are few people who retain different types of personality traits interconnected within leadership activity. However, according to this trait theory, only a few people are capable of becoming great leaders as they lack the qualities which are considered natural-born.
Maslow’s Hierarchy of Needs Model
With the utilisation of this effective hierarchical model, an organisation will be able to motivate its employees as well as create a productive atmosphere in an effective manner. Abraham Maslow assumed that a person will be interested while all his requirements are fulfilled and this direct impact the organizational performance quite in an effective manner (Poirier and Devraj 2019). In other words, the individual will be empowered as per the level of the needs, and the employee will improve by relying on the fact of how effectively his needs will be lectured. Through the creation of a pyramid, Maslow has been able to demonstrate the level of needs in an effective manner.
In terms of that, these specific needs essentially include social needs, physiological needs, safety needs, self-actualisation needs, and self-esteem needs. The requirements are addressed by making certain that there is safety in the workplace and workforce is approachable and respectful. In fact, Business organisations also should permit bathroom breaks and nourishment breaks and sensible working hours to circumvent extreme tiredness (Hale et al., 2020). In fact, the other two needs, self-actualisation and self-esteem needs can be handled by providing them with challenging assignments. In terms of that, this model of motivation can be extremely accommodating to motivate the employees as well as reduce the employee turnover rate in an extensive manner.
Herzberg’s Two-Factor Theory
In terms of the two-factor theory, there are two major aspects that are interrelated within employee motivation – Hygiene and satisfier. However, these factors are not considered the element of success rather their absence might create disruptions in their accomplishments. Hygiene factors basically indicate the salary, job security, and various organizational guidelines (Kotni and Karumuri, 2018). These hygiene factors are considered necessary for maintaining an optimistic working condition in the workplace and that will directly impact making constructive relationships among the employees. On the other hand, satisfiers refer to as the ultimate motivational factors which might increase the level of satisfaction among the employees as well as decrease the amount of employee tune over rate quite effectively. In terms of that, an HRM requires to determine the factors behind the employee turnover and then apply effective strategies to retain them by increasing their satisfaction.
By assessing the overall concepts and models of leadership and HRM, it can be analysed that there are a range of advantages through an organisation might be competent to increase employee productivity and reduce the amount of employee turnover quite in an effective manner. In terms of that, the critical evaluation of the leadership approaches and HRM strategies can be achieved in an effective manner.
In terms of the contingency leadership theory, basically aims to format a recognised element of the system. It has been observed that this particular leadership theory often converses about the modification of the leadership styles as well as the structural change to react to the environmental eventualities (Abba, Yahaya and Suleiman, 2018). In fact, the contingency leadership theory a range of beneficial sites through which a business organisational might be able to decrease the rate of employee turnover by identifying its primal cause. Therefore, it offers a realistic view of management as well as demonstrates the way of working quite successfully. Moreover, this particular leadership style abandons the traditional validity of principles and helps to form a different leadership strategy depending on the organisational structure of a firm (Kundu and Mondal, 2019). Regarding this fact, it has been considered the imperative leadership approach and also recognised in an international manner. However, for not having any recommendations for any course of action, it can be advantageous for some organisations.
In today’s digital world of business, the transformational leadership theory can bring several advantages in many ways. It is the ultimate leadership strategy to create an engagement among the employees quite commendably. Therefore, this particular leadership approach has the ability to improve communication among the staff and through which leaders will be able to find their gaps (Eliyana and Ma’arif, 2019). On the other hand, transformational leaders are considered the drivers of change and persuade the team members to create innovative ideas. In fact, the application of this leadership theory can be advantageous as it helps the employees to mitigate issues on their own. However, this leadership approach is considered a multifaceted notion and thus it is difficult for various organisations to implement effectively. In terms of the trait theory, it consists of several implications after analysing. This leadership theory does not suit case of situational circumstances.
In terms of reducing the employee turnover rate, the appliance of several strategic approaches might be beneficial for increasing employee productivity in a particular organisation (Holston-Okae and Mushi, 2018). Regarding this fact, the organisation requires to employ accurate people who can make the organisational vision an effective part of their professional life. Therefore, by encouraging generosity and gratitude, a leader will be able to sustain a positive working atmosphere and that will impact employee engagement quite meritoriously. Moreover, the appliance of a flexible working atmosphere is considered extremely accommodating for a particular organisation to stay productive. In case of that, the appliance of Maslow’sHierarchy of Needs Model can be extremely effective to commendably implement the strategies as it is considered as the model of motivation (Poirier and Devraj 2019). In fact, the HRM model illustrates the interpersonal variations in human behaviour and is easy to understand.
This particular essay has identified a major issue the hospitality industry is facing is the high turnover rate. In this regard, the essay has demonstrated the significance and role of human resource management and leadership in decreasing the high employee turnover rate inside the industry. The essay has highlighted some of the approaches the leaders and human resource department can embrace in order to lower the employee turnover rate and enhance employee morale. Along with this, the discussion has put light upon some of the human resource management and leadership theories that can mitigate these issues in the hospitality industry. Lastly, the essay has critically analysed the effectiveness of the frameworks discussed. Hence, it can be concluded that effective human resource practices and an efficient leadership approach along with the proposed activities can mitigate the high employee turnover rate in the hospitality industry.
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