Editorial Board

A Refereed Monthly International Journal of Management

Factors Influencing Employee Attrition in Gujarat’s Hotel Industry: An Insights from Empirical Analysis

Satish Kumar Jha
Research Scholar,

Faculty of Hotel Management and Catering Technology
Parul University, Vadodara 391760, Gujarat, India
satish.jha144400@paruluniversity.ac.in

Dr Ajay Trivedi
Dean, Faculty of Commerce,

Parul University,

Vadodara 391760, Gujarat, India
ajay.trivedi90729@paruluniversity.ac.in

Abstract

This research aims to identify and analyze the key factors contributing to employee attrition within the hotel industry in Gujarat. To establish a comprehensive framework for assessing job satisfaction, an extensive review of existing literature was conducted. Based on this review, several critical variables were selected, including pay scale, salary, compensation, rewards and recognition, leadership and participation in decision-making, work-life balance, job satisfaction, training for skill and knowledge development, interaction with co-workers, job security, employee engagement, communication and motivation, organizational brand image, and organizational commitment. Data was collected through online surveys completed by hotel staff across Gujarat. Employing both exploratory and descriptive research methods, the study seeks to provide meaningful insights into the factors influencing hotel employees’ decisions to remain with or leave their organizations. The findings are expected to contribute to the development of effective strategies for employee retention, thereby supporting the sustainability and growth of the hotel industry in the region.

Keywords: Employee Attrition, Employee Retention, Hotel Industry, Job Satisfaction, Compensation, Sustainable growth 

Introduction

The utilisation and standardisation of “human resource management strategies” have a direct impact on the behaviour & productivity of employees working in the tourism industry, which is a service business that relies heavily on human labour. India is home to a sizable domestic tourism industry. Over the course of the past several years, the tourism industry in India has developed into a substantial contributor to the economy. Currently, it is a rapidly expanding sector of the economy that has the potential to provide enormous money for the nation as well as to encourage significant employment development. It is important to note that India's foreign currency reserves are significantly impacted by the expanding tourist industry in the nation. There has been a considerable influence on the hotel business as a result of the growing tourist industry, which has led to greater occupancy rates and average room prices. As a result, safeguarding the safety of workers is of the utmost importance in an environment that is extremely competitive in terms of service delivery. In 1984, Logan and Maccoby identified a number of important aspects that have an effect on attrition and should be addressed consistently. These factors include: Over a period of five years, the compensation and perks offered by Bell System have been found to have a considerable impact on the level of job satisfaction experienced by both managers and employees. As established by Spector (1997), job satisfaction is a highly subjective experience that is impacted by variables such as salary, working conditions, and the general work environment. However, there are a number of elements that might influence job satisfaction. At this moment, it is absolutely necessary to make a distinction between employee attrition and employee turnover.

Cardy & Lengnick-Hall (2011) contend that it is essential to make a distinction between the attrition of talent and the turnover of talent. The author puts out the hypothesis that there is a negative link between ineffective tactics for staff attrition and employee turnover. According to their point of view, the necessity to limit and save expenditures is the driving force behind the incentive for businesses to make efforts to reduce employee turnover......When it comes to retaining employees, the objective of maximising attrition is congruent with the desire of developing a working environment that is very appealing and engaging for employees, with the purpose of encouraging them to remain with the company. According to the findings of Steel et al. (2002), employees had different reasons for quitting their jobs compared to the reasons they maintained their employment.

Chew & Chan (2008), on the other hand, made the observation that the implementation of systems that offer incentives and recognition to workers may effectively increase the employees' level of devotion and willingness to continue working for the business. After taking into account these and other criteria, Fitch (1990) came to the conclusion that male and female workers demonstrated comparable levels of satisfaction with their jobs. It has been shown via research that a number of important aspects have a big effect in the attrition of employees and that these issues should be addressed regularly. According to Logan (2000), these characteristics include the company's culture, strategy, communication, compensation and benefits, the flexibility of the work schedule, and the opportunities for professional advancement across the organisation. There are a number of important characteristics that have a substantial influence on attrition rates, according to research.

The corporate culture, strategy, communication, salary and benefits, work schedule flexibility, and opportunities for professional advancement are all included in these elements (Logan, 2000).According to Logan (2000), businesses that devote resources to the professional development of their employees have a tendency to see higher rates of employee attrition. Furthermore, Deery and Jago (2015) contend that obtaining a promotion is necessary in order to feel content in one's current position. According to Schyns (2004), one of the most important factors that encourage individuals to contemplate changing jobs is the possibility of getting a promotion in their current position. Leadership activities such as these are vital for both the current status of the workforce and the future state of the workforce, as stated by Willie et al. (2008). According to the findings of Breevaart et al. (2014), increasing employee engagement may be accomplished by involving both leaders and workers in the decision-making process.

It has been shown via research on employee attrition that it is more cost-effective to retain current personnel through talent management or employee development programmes as opposed to hiring new talent. In their study, Lub et al. (2012) came to the conclusion that a lack of work-life balance has a detrimental effect on employee engagement, particularly among younger workers. As stated by Karatepe (2013), achieving and maintaining a healthy balance between work and personal life is beneficial to both job performance and employee attrition. It was demonstrated by Jenkins and Thomlinson (1992) that the degree of dedication and contentment that an individual has with their employment has a considerable impact on the rate at which they remain employed.

According to studies conducted on the topic of employee attrition, workers who experience a sense of fulfilment from their work are more likely to be committed to doing their duties to a sufficient level. According to the findings of Hausknecht et al. (2009), the key factor that has been thoroughly investigated as a cause for considerably boosting employee attrition is levels of contentment with one's place of employment. Willie et al. (2008) draw attention to the need of making investments in personnel, both in the short term and in the long run. If an organisation focuses a significant priority on its employees' professional development and progress, then those employees will have a higher level of dedication and engagement in their work situation. According to the findings of Kundu & Lata (2017), improved intercommunication among co-workers is a crucial factor in determining employee attrition. Brunetto et al. (2013) found that employees who have favourable interpersonal connections with their co-workers are more likely to remain in their present employment. This was found to be the case. Ramlall (2003) found that there is a connection between the desire to join and remain with an organisation and the level of job security that an individual has.

It has been said by Timo (2001) that enhanced job security leads to increased staff attrition rates as well as a better dedication to the organisation. Feldman (2000) asserts that diversity and lengthy service tenure are two significant factors that have a significant influence on the level of employee engagement. A study that was carried out by Juhdi and colleagues (2013) discovered that particular human resource management techniques had an impact on the level of engagement within a business. The practices in question involve a variety of characteristics, including but not limited to salary, incentives, growth opportunities, career planning, alignment between persons and their jobs, and autonomy in the performance of work tasks. Furthermore, Mehrzi and Singh (2016) state that the level of employee engagement and job satisfaction is highly influenced by both the dynamics of the team as well as the physical environment of the workplace.

According to the findings of Lockwood (2007), there is a favourable correlation between effective communication and employee engagement. According to Savery (1989), the provision of awards for outstanding performance may have the potential to boost job satisfaction. Gallardo et al. (2010) performed a research that explores the level of satisfaction experienced by employees working in the hotel industry in Andalusia (Spain) and the Algarve (Portugal), both of which are located in the Iberian area. Brownell (1994) conducted research and published a paper with the title "Creating Strong Listening Environments".

Significance of the Study

Studies on hotel employees have been conducted by a number of academics in order to gain an understanding of the behaviour and motivation of those who remain employed. These factors have a significant impact on the decision-making processes of employees, which are in turn influenced by a number of independent variables that are under the control of each individual employee and are ranked in order of significance. Since this is the case, the purpose of this study is to acquire additional insights about the employee attrition in Hotel Industry with special reference to Gujarat State. The structured engagement initiatives undertaken by human resources (HR) are beneficial to businesses because they help them to keep qualified employees. A combination of artistic and scientific approaches is considered to be the most effective way to keep valuable employees. In order to successfully execute a merger or acquisition, it is helpful to develop a plan especially for this goal, which helps to identify the essential talents. At this moment, it is absolutely necessary to make a distinction between employee attrition and employee turnover. There is a need to differentiate between talent attrition and talent churn, according to “Cardy and LengnickHall (2011)”, who claim that this distinction is essential. Moreover, a vast majority of models relevant to employee behaviour have previously been established, put into practice, and assessed. On the other hand, the purpose of this study is to provide a contribution to the existing body of knowledge concerning the topic of employee attrition policies at hotels in Gujarat. In addition, a more in-depth comprehension of the ways in which environmental consciousness affects the strategies and efficiency of organisations has the potential to improve the precision with which intentions are predicted. It is prudent to place an emphasis on environmental care in order to enhance the capacity of hotel enterprises to make use of people as a resource for the purpose of achieving sustainability and competitiveness. However, the implementation of HR policy measures could have a substantial impact on improving the length of time that employees remain with the company. There are a number of reasons that lead to employees quitting their roles. It is expected that the findings of this study will give hotel management of Gujarat with significant insight regarding the influence of environmental concerns and self-identity on the intentions and behaviours of employees. As a result of this insight, they will be able to make the required adjustments and raise the percentage of employees who remain with the company.

Literature Review

Based on the findings of a study that Chew and Chan (2008) conducted, age was determined to be a key factor in determining employee attrition and subsequent compensation. The research that was carried out by Chang, Lee, and Way (2010) found that the Compensation component, which includes income, perks, and workload, can be used to evaluate the level of job satisfaction that an individual has. High performers are more likely to leave an organisation if they are not treated appropriately, as stated by Gberevbie (2010). Gberevbie's findings were published in 2010. Companies face a considerable difficulty when it comes to the establishment of a compensation plan that is capable of properly supporting an employee development programme. There are a number of companies that, contrary to the widespread notion, do not attach compensation increases to the success of their employees. There are a number of companies who, despite their claims that they promote collaboration, yet pay their staff based on their individual accomplishments.

According to Deery and Jago (2015), gaining a promotion is not just necessary but also necessary in order to achieve job satisfaction. According to Schyns (2004), the desire to advance one's career is one of the internal motivations that are associated with the desire to shift work. Di Pietro et al. (2004) discovered that there is a clear association between work satisfaction and the tendency to remain in a position, which is influenced by factors such as career achievements. There is also a correlation between employment stability and job satisfaction. According to the findings of research carried out by Lam and Zhang (2003), the implementation of training and development programmes in the workplace has a beneficial effect on the level of pleasure experienced by employees. In their 2016 study, Presbitero et al. investigated the impact that employee attrition has on the factors of training, development, and promotion. Based on their findings, Moncarz et al. (2009) discovered that promotions have an impact on the capacity of a firm to keep its employees. According to Ghosh et al. (2013), promotion is recognised as one of the key elements that greatly influences employee attrition. This is the conclusion reached by the researchers. Employee development programmes that include career planning have two basic goals: the first is to demonstrate that companies care about their workers as individuals, and the second is to assist employees in efficiently managing their various responsibilities while navigating the absence of a clearly defined path for promotion. Despite the fact that companies are unable to guarantee employment, they are able to assist individuals in acquiring skills that are valued (Moses, 1999). Sthapit and Shrestha carried out a study project in the year 2018. The findings of the research project titled "Employee Attrition Practices in the Nepalese Hospitality Industry: Investigating the Moderating Effect of Management Hierarchy, Age Group, and Gender" indicate that the most effective strategy for retaining employees in the older age group is to provide them with possibilities for career progression.

Research Objectives

The objective of this research was to accomplish the following aims:

• To examine the relationship between pay scale, salary, compensation, rewards and recognition, and overall work satisfaction among hotel employees in Gujarat.
• To analyze the influence of promotion opportunities, leadership, decision-making authority, and professional development on work satisfaction among hotel employees in Gujarat.

Research Hypothesis

1. H₀: Pay scale, salary, compensation, Rewards and recognition do not significantly correlate with work satisfaction.
2. H₀: Promotion, leadership, decision-making, and professional development do not significantly correlate with work satisfaction.
3. H₀: The null hypothesis states that there is no correlation between WLB, work happiness, organisational loyalty, and attrition.

Working Methodology

Choosing an appropriate research strategy is something that will determine whether or not the research venture is successful. In order to carry out an exhaustive analytical investigation, it is essential to pick a methodology that is in accordance with the objectives of the study (De Vaus, 2002). Although the option between qualitative and quantitative techniques is fluid, it is essential to select a methodology that fits with the study objectives. The purpose of a research design is to act as an all-encompassing strategy that outlines the methods and processes that will be utilised in order to carry out an investigation. This document serves as a guide for the processes of data collection, management, and analysis pertaining to the procedures. A combination of exploratory and descriptive research methods was utilised in order to collect the data that was ultimately used for this study.

Sampling

The hotels featured in this study are situated in the cities of “Ahmedabad, Anand, Ankleshwar, Bhavnagar, Bhuj, Dwarka, Gandhidham, Gandhinagar, Kandla, Mehsana, Mundra, Nadiad, Rajkot, Saputara, Sasangir, Somnath, Surat, and Vadodara”. It is necessary for the researcher to analyse each of the eighteen locations for this study since each of these locations contains many hotels, and the number of hotel employees as well as their quality varies greatly from city to city. Many researchers believe that the probability sampling technique is a challenging method. As a result, the individuals who took part in this research were chosen by a process known as convenience sampling. At addition to being required to be at least 18 years old, each of them worked at hotels located in eighteen different locations around the state of Gujarat.

Data Analysis

1. H₀: Pay scale, salary, compensation, Rewards and recognition do not significantly correlate with work satisfaction.

H₁: Salary, pay scale, compensation, Rewards and recognition and overall work satisfaction are significantly related.

Table 1: Reliability of Variables

The fact that the Alpha coefficient for the items is 0.719 demonstrates that the items have a high degree of internal consistency among themselves. We would like to bring to your attention that in the majority of instances involving social scientific research, a reliability coefficient of 0.70 or above is deemed to be "acceptable”. In order for a scale to be considered suitable for determining the extent to which Salary, pay scale, compensation, Rewards & recognition have an impact on job satisfaction, it must be comprised of items that exhibit internal consistency and be constructed particularly for the purpose of evaluating these aspects. Therefore, it has been demonstrated that the reliability of the satisfaction scale has been demonstrated.

2. H₀: Promotion, leadership, decision-making, and professional development do not significantly correlate with work satisfaction.

H₁: Job happiness is significantly related to advancement opportunities, leadership roles, decision-making authority, and professional development opportunities.

Table 2: Reliability of Variables

Considering that the Alpha score for the items is 0.803, it is clear that the items have a high level of internal consistency. We would like to bring to your attention that in the majority of instances involving social scientific research, a reliability coefficient of 0.70 or above is deemed to be "acceptable." It is suggested that the individual items on the scale as well as the scale as a whole display internal consistency if it is determined that a scale is suitable for measuring the influence of Promotion and Career Development, Advancement opportunities, leadership roles, decision-making authority, and professional development opportunities on the level of satisfaction people experience in their work. It has been demonstrated that the dependability of the satisfaction scale has been established.

3. H₀: The null hypothesis states that there is no correlation between WLB, work happiness, organisational loyalty, and attrition.

H₁: A healthy work-life balance is associated with higher levels of job satisfaction and organisational commitment, which in turn lead to higher rates of attrition.

Table 3: Reliability of Variables

The items have an alpha score of 0.811, which indicates that they may be considered to have a considerable amount of internal consistency. We would like to bring to your attention that in the majority of instances involving social scientific research, WLB, work happiness, organisational loyalty, and attrition a reliability coefficient of 0.70 or above is deemed to be "acceptable." The constructed scale is appropriate for determining the degree of work satisfaction in connection to attrition, and the individual items on the scale exhibit internal consistency. This is the most important feature that contributes to the scale's acceptability. It has been demonstrated that the dependability of the satisfaction scale has been established.

Results and Discussion

Findings

The key findings of this research are as follows:

• Thirty-eight percent of the total participants are working in the food and beverage (service) industry, which accounts for 121 persons out of the total participants. Among the total number of responses, 183 persons, that constitutes 60.2% of the total, are from various departments. These departments include food production, front office, cleaning, as well as sales, human resources, and administration.
• The biggest proportion of replies came from the lowest level of the hierarchy, which had 160 out of a total of 260, which is equivalent to 52.6% of the total. Seventy-two percent of the total number of respondents is at the highest level, which is comprised of 22 persons. This is the highest level of respondents. Forty-one percent of the total respondents are in the medium category, which includes the remaining 122 respondents.
• The wage scale, salary, and remuneration are all equitable and in accordance with the expected levels of compensation for the workers. There is a correlation between the availability of both monetary and non-monetary rewards and an increase in job satisfaction.
• Despite the fact that prizes and recognition have the potential to be powerful motivators, they may also have unintended repercussions if there are significant inequities, particularly with regard to the manner in which they are given. As a consequence of these disparities, persons who do exceptionally well and others who do not achieve the same standards may find themselves in emotional conflict with one another. In the event that this circumstance is not re-evaluated, it may have a detrimental effect on the job performance, productivity, and minority attrition rates inside the organization.
• There is a positive impact on job satisfaction that may be attributed to the utilization of the career progression curve.
• The ability of leadership to revitalize knowledge and provide general moral support to employees through their participation in decision-making efforts is a significant factor that influences the level of job satisfaction experienced by workers.
• Modifications to an individual's social and psychological well-being, such as shift changes and irregular work schedules, have the potential to have an impact on the degree to which they are satisfied with their employment.
• Employees who report feeling satisfied in their jobs are more likely to have a positive attitude on the possibility of sticking with their present employer over the long run. It is recommended that methods that attempt to reduce attrition rates be focused on those who are interested in participating in the activity.
• Learning new things not only makes a person more competent, but it also prepares them for any challenges they may encounter on the job, which in turn affects their level of job satisfaction.
• Job performance & work culture are impacted by co-worker contact, which involves exchanging ideas to complete tasks and learning from each other along the way.

Conclusion

Our sample hotels have received positive feedback from those who participated in our survey on the quality of their rooms and the services they provide, as indicated by the statistics. A great number of individuals have voiced their contentment with their place of employment and asserted that they would strongly suggest their hotel to others. In order to improve employee attrition in the hotel business in Gujarat, we conducted a study to determine the factors that impact employees' propensity to remain in their existing employment. This was done within the context of enhancing employee attrition. According to the findings of our analysis, there is a significant connection between the level of satisfaction gained from one's work and the likelihood of an employee remaining in their current employment. According to the findings of this study, there is a clear connection between levels of work satisfaction, devotion to the company, and staff attrition. It is true that both attrition and organizational commitment have an impact, but it is organizational commitment that has a more significant influence. The hospitality business suggests the establishment of individualized methods for the attrition of staff members, which are meant to cater to the specific requirements of each unique hotel. A number of factors, including the workplace, the culture of the company, the resources available for training, the compensation that is based on performance, the promotions that are based on performance, and other relevant considerations, are included in these strategies. A working environment that encourages employees to take initiative, think creatively, and share rewards for their successes should be created via the implementation of these tactics within the workplace. Causes that have an impact on the operations and procedures of the hotel industry: Maslow's hierarchy of needs classifies monetary compensation and bonuses as "physiological needs" in the hierarchy of needs. According to the results of a survey, having open conversations about salaries and incomes can boost employee happiness and improve staff attrition strategies. When a culture of performance metrics is established, it leads to increased employee engagement, which in turn leads to improved outcomes. This culture is reinforced by incentives and recognition. A typical career path in the hospitality industry typically involves moving to higher wage levels and taking on additional responsibilities within one's existing job. This is because the hospitality industry is always evolving. The department of human resources is the only one that can reap the benefits of training and development programs that are carried out effectively, and this is true for both the short-term and the long-term. The Human Resources department is responsible for developing and implementing work-life balance initiatives and policies, which can be beneficial not just too individual employees but also to the whole organization it serves. Satisfaction with one's job is positively correlated with the likelihood of an employee remaining with the company. Programs that aim to reduce performance conflicts in the workplace are now the duty of professionals working in the training and development industry. These professionals are responsible for developing, implementing, and evaluating these programs. Individuals may experience feelings of uncertainty regarding their value in the workplace as a consequence of encounters with coworkers that might lead to long-lasting ethical dilemmas. When the economy is in a downturn, when there are fewer employment opportunities available, work security plays a more significant role in boosting job satisfaction and reducing employee turnover. This is in contrast to times of economic boom, when there are a greater number of job possibilities available. According to existing research, a single worker who is extremely motivated can outperform a group of ten workers who are dissatisfied with their jobs. When workers evade their responsibilities or exhibit a tendency to dominate the entire process, it may be difficult for them to achieve their full potential in terms of both performance and productivity.

Recommendation

1. Although it is feasible to extend the scope of this study to include a greater number of hotels in Gujarat, the scope of this study was circumscribed to a specific set of hotels within the state that were chosen with great importance.
2. There is the possibility that the research might be expanded to include a comparative investigation of the elements that influence hotel workers in conventional hotels as well as other types of lodgings, such as condos.
3. The research may provide an opportunity to compare the perspectives of the primary and auxiliary departments of the hotel, notably the front desk and the sections that are located behind it.

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