Assessment On The Causes Of Labor Turnover: The Case Of Four And Five Star Category Independent Hotels Of Addis Ababa
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Date
2015-05
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Addis Ababa University
Abstract
Studies done regarding labor turnover in the service industry across the world indicate that, the hospitality sector leads with many employees’ changing jobs from time to time. Subsequently, some causes of labor turnover are believed to be industry-specific. Both the internal and external causes of labor turnover affect the growth, profitability and customer satisfaction whenever it occurs in the workplace. Employers see the process of staff leaving and being replaced as a natural and inevitable feature of the industry. In Addis Ababa, very little has been documented on the causes of labor turnover in the hotel industry. The main purpose of this study was therefore to establish the internal and external causes of labor turnover in four and five star rated independent hotels of Addis Ababa. Addis Ababa city has ten hotels which are classified as four star and one hotel which is classified as five star (which are independently owned hotels) according to the data obtained from Ministry of Culture and Tourism (2014). The study adopted descriptive survey research design. This study involved a total of 315 permanently employed staff working in these star-rated hotels. The entire four and five star independent hotels have been taken for the study. Simple random sampling method was used to pick the respondents for this study. The Employee Attitude Survey revealed that; Non-competitive compensation package, Non-conducive Working Environment and competing organizations provide better working conditions are the three main reasons why employees of four and five star independent hotels of Addis Ababa hotels leave their job. The study therefore recommended that, the management should improve the pay scale, working condition for the employees as well as should minimize Intervention of owners in their job in professional operations
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Star-Rated Hotels, Independent Hotels, Employee Turnover