How much does labour turnover cost? A case study of Australian four- and five-star hotels

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Title How much does labour turnover cost? A case study of Australian four- and five-star hotels
Author Davidson, Michael Cameron; Timo, Nils; Wang, Ying
Journal Name International journal of contemporary hospitality management
Year Published 2010
Place of publication United Kingdom
Publisher Emerald
Abstract Purpose – Employee turnover is a significant challenge for human resource management (HRM) strategies and organisational performance. This study seeks to present findings drawn from an extensive survey of labour turnover in the Australian accommodation sector. A particular focus is placed on turnover rates and costs. Design/methodology/approach – Based on labour turnover literature and an industry panel, an online survey was designed and distributed to four- and five-star hotels across Australia. Human resource managers from 64 hotels participated in the survey, providing a representative sample and a response rate of 29 percent. Findings – The research shows that the major costs are attributed to labour turnover. These are costs that both the industry and individual operators should examine closely, as they impact substantially on hotel operating costs and profitability. It also indicates that the levels of service, consumer experience and value may be impacted. Research limitations/implications – A limitation of the study is its main focus on tangible labour turnover costs. Additionally, findings based on four- and five-star hotels may not apply to other accommodation sectors. Originality/value – The literature on hotel labour and turnover costs is limited and the paper provides the first major study in the Australian context, adding new knowledge to one's understanding of labour turnover and cost impact on hotels. It also suggests areas where hotels may better address the turnover issue.
Peer Reviewed Yes
Published Yes
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Copyright Statement Copyright 2010 Emerald. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Volume 22
Issue Number 4
Page from 451
Page to 466
ISSN 0959 6119
Date Accessioned 2010-06-21
Language en_AU
Research Centre Griffith Institute For Tourism
Faculty Griffith Business School
Subject Hospitality Management
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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