Choice and Personality: Leadership in Turbulent Times on Way to New Vision of Organization

*Evgeny Rudnev*

#### **Abstract**

The chapter discusses the problem of leadership and its understanding in various theories, and studies of technological changes in organization. On the basis of longitudinal case studies and applied analysis of HR practices, the changes in the personnel composition, products, and differences in the strategies of external communications with consumer of three Russian organizations—business school, consulting company, and dental clinic are investigated. It is shown that the strategy of reducing and hiring staff with inclusion in new social channels is the most effective. The image of new vision of organization and promising practices in managing people is described, taking into account the results obtained and the analysis of the history of business development, which are based on choice and development of both leader and staff in an informal structure and ability to self-renaissance of organization.

**Keywords:** human resource management, technological changes, choice, strategy of ambassadors, through career, self-renaissance, efficiency of organizations

#### **1. Introduction**

The real problems faced by the world in recent times such as the development of network forms of organization and the folding of international companies, dependence on energy resources and their impact on pricing, falling incomes in a crisis and the supply of payment for rental of premises, protest movements and vandalism, and high level of inflation have become a political factor and an unstable situation.

The turbulence caused by the pandemic has led to new phenomena and an organization practices—from a stable team membership to a dynamic membership; clear borders to blurred borders; from inner focus to inner and outer; from one team to some teams; from individual people and machines to the unity of people and machines; from the organization as a context to a flexible context—hybridity; decontextual socialization and centrifugal forces [1].

In connection with it instability, uncertainty and fragility are pushing to search for new vision and views on the organization, to understand and disseminate new ideas in the management as an everyday practice.

#### **1.1 Leadership and organization in theories of engagement, mindfulness, identity, and highlight of technological changes**

The modern interpretation of leadership is constructed on its existence as a phenomenon based on the diversity of strategy for compatibility with the flexibility and volatility of the market, effective interaction, and collective desired real change [2].

It has been proven that in order to adapt to a new and rapidly changing environment, to remain competitive, organizations need change and co-leadership. Teams with shared leadership have less conflict, more consensus, and greater intra-group trust than teams without shared leadership [3].

Collaborative leadership is when team members share excellent knowledge and build behavior based on each other's ideas, define a collective mission, create a favorable climate, comprehend and structure the team task, provide feedback, provide resources, and encourage team self-management and internal informal leadership [4], which encourages innovation.

In addition, the leaders of modern organizations operate in a situation of paradoxes—inconsistencies and dynamics that provoke a conflict. In this regard, cognitive complexity is required, encouraging the exchange of opposing ideas, which causes understanding and promotes synergy—extracting value with creativity, not with anxiety, pushing yourself and others to question the existing order and search for new opportunities [5].

Simultaneously, in twenty-first century studies, leadership is a bidirectional action—distributed power structures and many people [6], and its analysis does not include the search for the most appropriate characteristics of the first person, but dyads, groups, and organizations. This is because leader effects often affect time and people, and looking back and looking forward are completely different processes.

However, the pronounced high formal leadership increases the importance of general leadership when the role of uncertainty is high [7]. At the same time, high role uncertainty enhances the indirect influence of the appointed formal leader on the team and innovation through overall leadership.

In this regard, at the stage of organizations' transition to a hybrid model of the working environment, managers who are able to conduct personnel audits and competency assessments, as well as who are able to integrate IT into the daily work of the organization and various specialists in collaboration, are highly significant. Today, the job market is dominated by either digital transformation-oriented managers or people-oriented managers. Currently, there are very few leaders who are able to integrate digital processes into the practice of organizations and involve people in the use of information technology in the workplace. The future is theirs.

One of the key drivers of innovation is the recombination of ideas in new ways that solve some new problems [8]. In the post-pandemic period, the hybridization of the economy is a way out for organizations stabilizing, developing under conditions of uncertainty, and new solutions to overcome the crisis. This will take place in different countries of the world regardless of cultural differences and will be based on the inventory of developments, technologies, and achievements.

In this connection, mindfulness becomes more meaningful in the future. On the one hand, it prevents inadequate reactions to subordinates, social threats, or stressful situations that arise in a crisis, and is important for creating a positive vision for the future [9], and leaders with a high level of its development affect the organization less destructively and more transformative. On the other hand, it determines the choice of personnel for future changes. In the twenty-first century, with the development of

#### *Choice and Personality: Leadership in Turbulent Times on Way to New Vision of Organization DOI: http://dx.doi.org/10.5772/intechopen.107769*

information technology, e-Leadership is gaining more and more popularity. Virtual leaders use a variety of communication tools—email and voice mail for individual and group communication, as well as instant messaging and chats, and hands-free calls on smartphones in remote mode for group decision making. Ideally, project management for virtual teams involves institutional planning, regular meetings, and a well-defined communication process that all team members understand and follow for timely and effective communication. There are three types of behavior in virtual teams: virtual interaction, virtual socialization, and virtual communication skills [10]. Despite the fact that many people have experience using IT and various software in the workplace, building effective procedures and the feasibility of using information technology in the daily work of companies with the simultaneous participation of several people are a challenge for organizations. This is because differences in experience and inclusion in processes using different software require digital socialization and cause cognitive dissonance. Software is used for virtual (monthly or weekly) staff meetings. This allows staff to share ideas with colleagues, define common goals, and create a sense of community and generate excitement. Principles have been developed that can be used in virtual leadership: trusting relationships with each team member—re-defining expectations, and then achieving results that meet or exceed these expectations; establishing a norm of "presence" so that team members perceive leadership—responsibility for creating a virtual presence; striving for the socialemotional aspects of the team, personalization of interaction, a sense of connectedness between the leader and individual team members, a concerted effort to recognize individual achievements, a sincere expression of appreciation, team progress and accomplishment of assigned tasks, the leader's personal responsibility for mistakes and transparency; looking for opportunities to promote a healthy team with every interaction—using coaching to develop and educate followers, regularly communicating with team members about the status of an issue or project—weekly emails with a report, a computer "chat room" to encourage group member interactions, and, when possible, face-to-face communication, efficiency discussions using videoconferencing, telephones, or personal data at regular intervals (weekly, biweekly, monthly); responsibility for setting communication standards and determining how communication tools are used (e.g., not just an acknowledgment of receipt of a message, but a quality response to e-mail); communication of contextual information electronically that is relevant to the problem under consideration (team members must distinguish between what is important and what cannot be); using technology tools to communicate in a timely manner to solve problems, provide feedback and recognition, and address performance issues; and sensitivity to improve conflict management (understand culture, group demographics, skill range, work intensity level, and team work time).

With the information technology development, there is research on the integration of IT and work processes. In particular, workplace controls or "reverse transparency" [11]. It is assumed that an individual should be able to control the collection, access, and further use of data about himself, as well as consent for decision making, in order to have a holistic view of organization and his\her daily tasks—to improve processes and work more self-organized and efficient. However, the proximity camera is unlikely to be a motivator or an effective monitoring tool. Rather, technology-enabled processes can be viewed from the perspective of operational management, accountability, and distribution of control in an organization and provide information about the inclusion of a person in technical processes at the hiring stage. Perhaps "reverse transparency" is more about business ethics, and ethical leadership with the results

of the work of followers is an affective and normative obligation regardless of cultural differences [12]. However, the future lies in the rise of high trust organizations, where people take action and exercise mutual control, can offer solutions to mistakes, and offer solutions and better ways to achieve results that are implemented "here and now", and thus organizational effectiveness achieve.

Despite the fact that there are two different understandings of leadership in the world that define the distribution of power and the order of work in different ways—transformational leadership, explained by processes in the West (globalization, democratization, complexity of the world) [13] and paternalistic type of management, dominant in Asian countries (goodwill, morality and authoritarianism) [14], none of them can be considered more effective. In Western companies, effective management is associated with the creation and management of teams. Nevertheless, on the way to achieving results, teams tend to autonomy (develop their own slang, rules of conduct), and management's attempts to delve into their work cause resistance from the staff, which makes it difficult to manage the organization. In addition, it is possible to use the resource of teams only if there is an excess of all types of resources—material and human. In a crisis, there are no resources, so strict authoritarian management becomes the most effective. A key weakness of the Asian (Chinese) model is cohesiveness, which is negatively associated with moral leadership and team effectiveness [15], and workers spend more time building internal connections, getting more information and help from team members, which does not rule out hiring more educated, more open, and cosmopolitan people in high-tech Asian companies. In recent years, management theory has changed its views on the problem of leadership as an alternative to the understanding of transactional and transpharmacy concepts—servant leadership [16], distributed leadership [17], authentic leadership and followership [18], leadership and role modeling [19], neocharismatic leadership [20].

However, these theories are not related. Research on leader-follower dyads in North America and the United States showed that although there was evidence of differential association (performance of the subordinate on a role basis and ethics of the subordinate as assessed by the leader; virtuous leadership and happiness of the leader based on self-esteem; the relationship between happiness and life satisfaction as leaders, and followers in transformational leadership), many hypotheses remained unconfirmed [21].

There is likely to be more evidence in the future for the hypothesis that democratic leadership should produce more "leadership" organizations [22].

#### **2. Human resources management case studies: methodology and research results**

#### **2.1 Sample and methods**

Three companies were studied—business school, consulting company, and dental clinic—leaders in their market segment. Companies are selected on the basis of public ratings, recognition of professional communities, the number of clients served. The choice was based on the number of employees—up to one hundred people, which allows comparative research between two companies providing similar services, as well as comparing personnel management strategies with an organization from a different professional field. As the third organization for comparison, a dental clinic

*Choice and Personality: Leadership in Turbulent Times on Way to New Vision of Organization DOI: http://dx.doi.org/10.5772/intechopen.107769*

with the history of 8 years, a staff of up to 15 people and a constantly developing one, was chosen.

Longitudinal observation was made of changes in personnel, products, and external communication strategies. Changes in the period before the pandemic, during the pandemic, and after the pandemic were recorded and analyzed using the standard case study method.

Changes in the quantity and quality of the staff were recorded every 6 months based on open information on the company's websites. The role repertoire and competencies of the personnel were fixed—responsibility, as well as changes in a career—movement and dismissal from the company personally for each person.

The age, gender of hired employees, connection with the emergence of new products, people's involvement in external communications, and interaction with customers were analyzed. Waves of changes were also recorded—the points of company development is associated with an renewal of personnel in the organization, on the basis of which conclusions were drawn about organizational problems and the position of company in market, management decisions, and the reasons for which they could be taken.

The nature of information on products and the ways of its presentation in time were studied—representation on the company's website, professional exhibitions, social networks, frequency of appearance in the media with professional publications, or articles-consultations. The information obtained was compared with each other.

#### **2.2 Results and discussion**

For 15 years, the business school has seen the change in staff, but it was mainly associated with the search for specialists with the highest quality teaching and new emerging topics as well as the development of a specific teaching model that included scientists, practicing scientists, and business professionals without scientific degree. Separate specialists were hired to create new programs, which is associated with consumer dissatisfaction with the programs and the creation of new products that correspond to time. During the pandemic and after the pandemic, the number of young male professionals teaching technical and networking disciplines has increased, that is, associated with the development and wider dissemination of information technology, while the young female professionals hired are more related to human relations and control in organizations.

Furthermore, a small proportion of young professionals quit due to mismatch of expectations with the career trajectory offered by the organization. Despite staff turnover of more than 15% over the past 5 years, overall the business school is seeing staff aging. This is due to the specifics of management—a combination of state institution management, salaries, and tuition fees for public money, with the management of a commercial organization and the client fully pays for his studies at business school.

Unlike the business school, consulting company and dental clinic were set up as a small group.

Over the 15 years of its existence, consulting company has gone through three waves of personnel changes. The second wave is the expansion of the organization with new experts, the introduction of the position of director of customer service, and an employee responsible for conducting an external competition to determine the best business training practices. During the pandemic and after, several new specialists appeared in the organization. Moreover, the pandemic has led to the dismissal of key employees behind the creation of the company.

At the same time, a small number of young professionals have changed positions, either related to the direct mission of the organization or related to gaining new experience. While the number of people in the department working with clients increased and the department stood out as a separate unit, all other employees had the status of experts and trainers. Thus, at the stage of transition to the pandemic period, consulting company experienced an expansion in the number of personnel, followed by a contraction.

It is known that one of the options for business development is staff reduction. But cost cutting without strategic decisions is not effective [23].

One of the options for a strategic solution is the replacement of personnel for new tasks. Annie Mckee noted that the key to success in modern companies is smart people, learning and leadership oriented, motivated, and engaged, and for this companies need a common vision of individual needs and an atmosphere of enthusiasm, passion for learning, hope, respect, caring for others, honesty, and accountability. In these companies, people do not talk about empowerment; they do it—learn, unite, and win together [24].

Changes in personnel turnover were also observed in dental clinic. During the pandemic, due to a decline in consumption and the impossibility of deferring rent payments, dental clinic abandoned one of the offices. Key specialists have been replaced by new ones with more prestigious education and younger age, as well as different specializations. This group formed the new core of company. The assistants and the staff implementing the main mission of the organization retained their positions. One member of rank and file entered the new core.

With the change in the qualitative composition of the staff at the business school, new programs appeared, and the site posted interviews with the leader in prestigious publications, both on an external order and on their own initiative. Business school demonstrated international accreditations and leading positions in domestic rankings, strengthening its positions, while consulting company and dental clinic promoted services and communicated more through specialized exhibitions.

Over time, consulting company retained this strategy of communication with a client, but began to package and present products on the site more and came out with a larger offer by the end of the pandemic, while dental clinic used social networks more actively during the pandemic and post-pandemic period. At the same time, with change in staff, more expensive services appeared in dental clinic. However, while business school was more about international recognition and network of partners as a competitive advantage, dental clinic was shaping a new face.

But if business school retained the number of clients, then dental clinic increased their number, changing the range and quality of services, which made possible to hire several more highly qualified specialists in the post-pandemic period, which may lead to creation of a network of clinics in future.

To be considered a reliable cooperation partner, a company must have a "face" that identifies it as such [25]. In the twenty-first century, the channels of interaction with the client are changing. It is known that organizational effectiveness is associated with the type of culture, and cultural norms are associated with the type of leadership [26].

In contrast to business school and consulting company, a new norm of behavior was adopted at the stage of personnel change, when, along with the usual professional role, medical specialists were required to provide services in social networks. Thus, instead of usual narrow role of the performer, employees were required to have social skills as a representative of company, which increased openness, allowed the

*Choice and Personality: Leadership in Turbulent Times on Way to New Vision of Organization DOI: http://dx.doi.org/10.5772/intechopen.107769*

promotion of additional services, and strengthened the status of a medical organization in market that cares about smile of customers. Thus, social networks are replacing the usual advertising and public relations.

In this regard, the usual role culture is being replaced by a culture where employees act as ambassadors of the organization in which they work. Together with the leader in his profile or a special channel, employees demonstrate in shifts the services or goods that they develop or create market value—demonstrating to the consumer the quality, competitive advantages, attitude toward work and the client, the work process, and results—are creating the face of the organization. This approach is based on a collective identity that facilitates the process of joint leadership, and leaders create alliances using knowledge across borders and activities. On the one hand, a strong collective identity facilitates the process of social construction, underpins leadership in complexity, and encourages coordinating exchanges among group members. This leads to a more adaptable organization by adjusting the organizational culture according to changes in the dynamic system [27]. It can also be a recruiting tool, as potential employees of the organization can observe the process and values demonstrated by employees in behavior through social channels. Thus, the recruitment process is also changing. Previously, potential employees could learn about the company from the site, in informal communication, as a client. Now, they can watch their future workplace in real time.

Thereby, the combination of staff reduction strategy with change in personnel policy and communication channels had a greater effect in dental clinic. The strategy of reducing staff with replacement by new experts in consulting company cannot be considered erroneous. However, the transition from a key account manager to the creation of department and an increase in the number of client managers with a change in number of experts and strategy for increasing the number of products did not indicate the development of company, but rather miscalculations in working with clients. However, the strategy of the business school rather indicates its flourishing. But, in the long term, the aging of company and the continued trend of young staff turnover may lead to the loss of its position in market. The success strategies of dental clinic compared to consulting company and business school can also be associated with the number of staff—its greater dynamics and involvement of staff in new social channels of interaction with the client.

Thus, a comparison of the behavior of leaders and HR practices allows to draw conclusions about a dynamic strategy in managing people in turbulent time and shows that the strategy of dismissing personnel with the involvement and focusing on the strategy of ambassadors are more productive in a crisis and changing channels of interaction compared to a role-based culture.

#### **3. New vision of organization**

Leadership in turbulent times is about creating networks of connections, where the choice of partners affects not only the company's income, but also influences the distribution of power and the creation of new connections in organization and at the same time becomes the basis for new experience for leader of organization. An analysis of business development history shows that at the dawn of its formation mono enterprises with a limited circle of partnerships dominated. As the level of uncertainty increased, organizations acquired the image of holding companies consisting of different types of business or organizations focused on different categories of customers, where a lack or failure in one type of business was compensated by the income of another type of business, or a customized product. Over time, to increase business profitability, network forms began to develop, close to the social organization in India—with nodes in the center and links to smaller nodes on the periphery, as well as multinational companies. Moreover, violations in logistics supplies lead to instability in this form of business organization. With an even greater degree of uncertainty, business began to acquire a more flexible type of organization—an ecosystem. This type of organization for existence is trying to cover an increasing number of businesses. The main risk in creating a flexible structure is that in fact it may turn out to be a rigid structure for the distribution of limited resources between management, loyal staff, and scarce resources for new blood supplying new ideas to enrich the ruling elite. In addition, the biological approach to understanding social systems erases all previous knowledge associated with understanding human behavior in the workplace with motives, interests, and needs. The simplest example of an ecosystem is mosquitoes-frogs-herons, where the violation of the ecological balance leads to disruption of system. Today, it is impossible to consider organizations as systems where some people eat other people. Leadership that lacks ethical behavior can be dangerous, destructive, and even toxic [28] and leaders can take action to establish ethical standards within organizations not only through the development of formal documents on ethical behavior, but also demonstrate ethical leadership in daily behavior, decisions, and actions, caring for the overall results. Research shows that psychological empowerment partially mediates the effect of job characteristics on affective commitment, and leadership complexity moderates the effect on job characteristics, while empowerment on affective commitment [29].

One of the strategies for personnel selecting for the highly intelligent types of business and medicine in the future is a review of documents or a list of training events. At the same time, it is not so much the documents and the list that are important, but the direction of professional development. Based on the analysis of the content of training, one can understand both the ambitions and motivation, and the professional level of a potential employee. The surplus of professionals with various combinations of advanced training or participation in continuing education programs makes it possible to form groups to solve new problems in the organization. This approach to personnel selection requires discernment, that is, the ability to not only see the value of an employee to the organization, but how, with his\her participation in the processes, the organization will gain competitive advantages and become more profitable compared to other organizations in the industry. This approach is based on the fact that leaders throughout the history of the organization are able to take its development to a new level and create a new image—with a new quality of services and new interaction with the client—to receive benefits—to save time and resources.

According to various studies, people capable of leadership are no more than 5% of the total population. They are called self-actualized [30] or passionate [31]. These are people who make revolutions in history, science, and business—lead to new goals, make discoveries, and create new products. And they are the ones who create new jobs. In the twenty-first century, the psychology of the staff is changing. A through career is becoming more and more common, when the next round of the economic crisis leads to a redistribution of people between organizations and gaining new experience, realizing potential and abilities—personnel circulation. For leadership, as for broader concepts of career and life stages, transitions are critical [32]. People learn from experience and learn different things from the same experience, and previous experience influences what can be learned from current experience. Nevertheless,

#### *Choice and Personality: Leadership in Turbulent Times on Way to New Vision of Organization DOI: http://dx.doi.org/10.5772/intechopen.107769*

how deep learning becomes in different cases depends on the learning person. This experience serves as the basis for development and is explained by the readiness for change in one organization and the rejection of change in another. However, leadership experience differs from personal experience in that leaders need to understand and correct cognitive and behavioral responses to uncertainty and stress in a crisis, to have more effective responses. In this regard, the experience of collective thinking in teams and organizations [33] is useful for top management—indirect learning, simulations with an unusually high level of ambiguity, and requiring creative problem solving, as well as experience in interpersonal communication learning.

On the other hand, in conditions of uncertainty and overcoming the crisis, the leaders of organizations act as social entrepreneurs and responsible leaders: they initiate social innovation, for example, change social channels of interaction with the client, take the role of a change producer in the organization, use vision, influence and creativity to promote their ideas, and receive support [34]. In this case, leadership with a noticeable influence has an impact on the creation of a new organizational culture, as well as material results, thus capitalizing their knowledge. In addition, leaders who seek specific help use the tactic of asking for further development under a reasonable future commitment. Followers who are responsible for receiving assistance earn "chips," future benefits—a positive assessment of performance and increased career opportunities [35].

This is also due to the fact that the leader's active contribution to the development of social implementation includes the social climate, in that autonomy, social support, and feedback exchange cover, and the thoroughness of the performance of employees. However, a shared identity with high visual scoring can reduce organizational performance despite high levels of employee engagement—disabling innovation and creativity. Thus, it is necessary to take into account the diversity of social affiliation in the organization [36].

The idea of champions [34] has been discussed previously. It appears to be relevant in project-oriented adhocracy cultures as well as in organizations with high levels of autonomy in the workplace. Moreover, in the twenty-first century, the idea of breaking down bureaucratic barriers that impede the development of human potential is becoming more important, as organizations have their own set of rules and organizational context. The organization of the future is rather a community with strong horizontal ties and a pronounced informal structure, where it is not so much the status that counts, but the ability, rather than an organization where a person needs to collect the signatures of six bosses to perform an action or his\her human capital is exploited. One of motivators in the organization of future is more likely the product or service itself, the creation or support that works and realize the abilities in the workplace, and potential employees choose what the company offers them, consistent with their personal values and beliefs, and what kind of experience they purchase in this case.

On the other hand, the impact of the external environment becomes a test of loyalty and devotion. Among the reasons why people leave organizations—management style, lack of recognition of merit (identified by F. Herzberg in the twentieth century), two new ones are added in the twenty-first century—fatigue caused by technological stress, and the impossibility of potential realizing. As a result, the way out for a person is a change in the working environment, and organizations offer special conditions—trips abroad, a wider range of social contacts, payment for dental services, and other privileges that create competitive advantages of the workplace and attract certain workers categories. Organizations creating with such privileges and

norms that allow a person to express himself is one of the tasks of HR service, since the resources of traditional methods have been exhausted. In this regard, not so much social intelligence and communication, which ensure success in business, come to the fore as much as the leader's choice of his\her staff, the company's staff for work, solutions for improving productivity, changing the strategy of working with personnel, partners for inclusion in business networks.

Thus, choice becomes a key skill of leadership in the twenty-first century—maintaining connections and strategic partnerships, as it determines the sustainability of a business—a self-renaissance organization based on insightful leadership, the potential and abilities of people and information technologies that allow connections building in real time—leader in the workplace and remote workers, workers in the workplace and remote leader, face-to-face and remote communication of groups led by a leader, solving one or more tasks, several people at a distance, several people and a leader at the workplace, several people and a leader in removal, and several people at the workplace.

In this regard, in the twenty-first century, organizations will become increasingly important, where an increasing number of people realize their potential and abilities; that is, healthy organizations will arise based on horizontal connections and informal communication—the informal structure of the organization. On the one hand, this will reduce the time for making managerial decisions, and on the other hand, it will become a preventive measure in the prevention of heart attacks, strokes, and cancer.

#### **4. Conclusion**

In the post-pandemic period, the importance of clarity and the involvement of people in organizational processes using information technologies and tools are increasing, which will subsequently lead to a new culture and demand for specialists focused on both people and IT. Moreover, the future lies in the rise of high trust organizations, where people take action and exercise mutual control, and organizational effectiveness achieve. An applied analysis of HR practices showed that during the transition period, the strategy of dismissal of staff and hiring with a change in the channels of interaction with customers are quite effective. For the first time, using longitudinal case studies, the study shows that when studying personnel management strategies, it is important to study how changes in the qualitative composition of an organization affect the quality of its work.

In other words, to understand the change of strategies based on the analysis of changes in the qualitative change in personnel, changes in products and services, as well as changes in communication channels with the client. Thus, a step has been taken toward studying the HR strategy during the crisis period based on the behavioral analysis of the leaders of organizations. The choice determines both the development of personnel, as a result of which employees build a cross-cutting career and gain new social experience, and leaders who create new products and networks of partners or customers. The vitality of an organization in the twentyfirst century becomes dependent on its ability to self-renaissance—reaching a new level, realizing the potential of employees in an informal structure and thus, a health of workers.

The three compared companies results described can be used to compare with the changes taking place in relevant professional areas in other countries and to design a human resource management strategy to improve the efficiency of organizations.

*Choice and Personality: Leadership in Turbulent Times on Way to New Vision of Organization DOI: http://dx.doi.org/10.5772/intechopen.107769*

#### **Author details**

Evgeny Rudnev Private Institution of Higher Education "Moscow Economic Institute", Russia

\*Address all correspondence to: leadershiprudnev@yahoo.com

© 2022 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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#### **Chapter 2**

## Factors Contributing to Staff Turnover in the Hotel Industry: A Literature Review

*Shaniekay Codling, Jheanelle Pinnock, Eyonisha Barrett, Shanoya Gayle, Nataki Stephenson, Nikima Sibblies and Gaunette Sinclair-Maragh*

#### **Abstract**

The purpose of this chapter is to analyze the factors that are contributing to staff turnover in the hotel industry. Staff turnover rate usually affects an organization's performance, productivity and profitability, and can contribute to the loss of assets and resources. This sector of the hospitality and tourism economy was selected for the study as it is deemed to be very demanding and oftentimes overwhelming. In general, the sector is believed to be very stressful especially since the employees have to deal with satisfying the needs and wants of customers and uncertain working conditions. Literature review was used as the methodology for ascertaining the factors that are contributing to staff turnover in hotels. From this review, the chapter identifies that these are both push and pull factors. Push factors are dissatisfactions with the current job which cause employees to seek alternative employment and pull factors are the reasons that attract employees to a new workplace. The chapter concludes that it is important for hotel managers to establish an employee-centric environment with deliberate and effective workplace practices to retain employees. The findings of this study will be very useful in advancing the literature as well as informing hotel practitioners.

**Keywords:** staff turnover, hotel industry, staff retention, productivity, hygiene factors, employee-centric environment

#### **1. Introduction**

The global economy in the 21st century is driven by three major industries; technology, telecommunication and tourism [1]. Tourism is one of the world's largest and rapidly growing industries [2] and the hospitality industry is a major segment of this global economy [3]. Tourism and in particular, the hospitality industry and sectors are centred on service and according to O'Cass and Sok [4], the employees who are the providers of the service are essential to the overall success of tourism. However, the turnover of employees within this global economic activity is a concern.

Staff turnover is defined as the number of workers who leave an organization and are replaced or rotated with new employees [5]. Zhang [6] further explains that staff turnover refers to the number of persons who voluntarily or involuntarily leave an organization within a specific period. It has been well documented that the level of turnover or in other words the staff turnover rate usually has an impact on organizations. It can in fact contribute to the loss of a company's assets and resources [7].

Ronra and Chaisawat [8] postulate that turnover is one of the key issues in the world's hospitality industry. Narkhede, [9] advances the discourse by stating that staff turnover in the hospitality industry is having an effect on performance, productivity, and profitability. In fact, the turnover rate in the hospitality industry usually averages around 20 to 300 percent annually [10]. It is posited that employee turnover in the hospitality industry is triggered by dissatisfaction, which includes relationships with supervisors, working conditions, work schedules, workload, job content, and salary and benefits [9].

Yazinski [11] posits that staff turnover rate in the industry can be broadly divided into three groups; external factors (e.g. perception of both employment and unemployment rate, and presence of trade union), internal factors (e.g. tenure, education, and gender) and thirdly, work-related factors (e.g. wage, job satisfaction and organizational commitment). Other contributing factors could be narrowed down to employees' expectations of the job, the discrepancy between the job and person, not enough coaching and feedback, minimal growth and career opportunities, stress from being overworked, poor working conditions and job status, whether the individual is fully employed, contracted or seasonally employed [12]. This justifies the claim by Chalkiti and Sigala [13] that there are a plethora of reasons leading to staff turnover in the hospitality industry. It is pointed out that the industry is a very complex one to steer due to its various sub-industries or sectors [14]. In addition, the working environment can be very stressful and overbearing to the staff who have to deal with satisfying the needs and wants of customers as well as dealing with uncertain working conditions [15]. It is therefore imperative to identify the factors that impede staff retention in the industry and subsequently cause staff turnover.

This chapter focuses on staff turnover in the hospitality industry but specific to the hotel category which according to Slattery [16] is one of the free standing hospitality businesses. For the purpose of this study, the term hotel industry will be used throughout the chapter to describe the hotel business which according to Roa and Sahu [17], provides accommodation, meals and other types of services to guests. The hotel industry is chosen for this deductive analysis because it is reported to be a major challenge in this hospitality business [18]. This matter is of great concern in many countries such as in the United Kingdom and Australia [18] as well as small developing island states such as Jamaica [19]. Furthermore, turnover rate in the hotel industry is a worldwide endemic as it is not country-specific [20].

The importance of staffing issues in the hotel industry is driven by the fact that it is service-oriented and highly dependent on the employees [18]. There are several challenges that are encountered when working in the hotel industry to include hard deadlines, long working hours, unexpected interactions with guests and high emotional demands that are accompanied by poor working conditions and low wages [21]. Further study on staff turnover in the hotel industry is imperative in advancing the literature on the matter and informing hotel practitioners of workable and feasible practices to achieve staff retention. According to Davis [22] employee retention is important to the economic advancement of an organization. Replacing employees in the hotel industry can be very costly and is an unhelpful expense due to the fact that it can result in loss

*Factors Contributing to Staff Turnover in the Hotel Industry: A Literature Review DOI: http://dx.doi.org/10.5772/intechopen.107025*

of productivity particularly because employers have to train new employees [23]. It is therefore essential that managers seek to grasp a better understanding of staff retention in the hotel industry [22]. Likewise, managers and leaders should strengthen and improve the factors that stimulate employees to stay at the hotel. Having knowledge of these factors; organisational and personal, and instituting appropriate strategies to appreciate employees and stimulate them have the propensity to retain their engagement with the workplace [24] as well as increase their abilities to improve productivity [22]. The purpose of this chapter, therefore, is to analyze the factors contributing to staff turnover in the hotel industry and the subsequent impacts of staff turnover on productivity. The chapter will also propose some strategies that can be implemented by managers to reduce staff turnover in hotels. A review of extant literature will be used as the methodology. This is a plausible approach as according to Xiao and Watson [25], literature review establishes the foundation of academic enquiries.

#### **2. Literature review**

This review of the literature highlights the factors contributing to staff turnover in the hotel industry as well as the subsequent impact on productivity. This section will also present some strategies to mitigate staff turnover in hotels.

#### **2.1 Factors contributing to staff turnover in the hotel industry**

Hotels typically regard high turnover as part of the work-group norm and employees tend to believe that they are entering jobs with limited career development opportunities [26]. Aside from the three groups of staff turnover posited by Yazinski [11]; external factors, internal factors and work-related factors, Faz et al., [14] propose that the main contributing factors of staff turnover in the hotel industry are categorized into two subgroups; push factors and pull factors. Push factors are dissatisfactions with the current job and employees then seek alternative employment [27]. Pull factors are those reasons that attract employees to a new workplace [8] The literature will focus on these two categories as indicated in **Table 1**.

The following information will expand on the factors:

#### **2.2 Push factors contributing to staff turnover in hotels**

#### *2.2.1 Poor relationship*

Poor relationships are deemed to be the main factor of high staff turnover in the hotel industry [14]. This matter is of significant importance as relationships are discerned as a direct element of an employee's intention to stay at an organization.


#### **Table 1.** *Factors contributing to staff turnover in hotels.*

This is supported by Musa et al., [28] that poor relationships with management and colleagues can result in staff turnover in hotels. In a diverse work setting like the hotel environment where persons travel across the world with the need for accommodation, it is pertinent that employees develop a healthy working relationship as this can be the make or break point for the business [14]. Any strained relationship and discomfort at work can encourage a dissatisfied employee to seek alternative employment in another organization [14].

Employers should show interest in employees' growth so that they create a surrounding where the employees will be enthusiastic and one that will motivate them to remain employed at the organization [14]. It is found that there is a strong dissatisfaction with limited growth opportunities in hotels [29]. The fairness of the promotion process is of significant concern for hotel employees and this can negatively impact employee productivity [30] as well as deter prospective employees [31].

From a gender perspective, it is posited that men tend to have more access to career opportunities than their counterpart [32]. It is also postulated that if women believe that they are unable to move up the ranks in the hotel, then they may leave the organization [33] and this can also impact productivity. Narkhede [9] emphasized that the lack of opportunity for growth in the hotel industry for staff members in their present role is the primary rationale for seeking employment in another organization.

#### *2.2.2 Job insecurity*

Etehadi and Karatepe [34] define job insecurity as an employee's concern regarding the stability of their job at an organization. Job insecurity is identified as one of the main contributors to staff turnover [35]. Employees normally feel threatened about their jobs when there is a lack of communication within the organization, particularly during seasonality periods [35]. Akbiyik [36] shares a similar view which suggests that if a hotel decides to reduce the size of its staff based on the uncertainty of its occupancy without informing their employees ahead of time, then this can create a level of mistrust that can lead to high turnover rates.

Job insecurity is crucial because of work-related stress as it activates several emotional reactions among staff members [34]. They further explain that job insecurity can initiate deceitful employees, demotivated staff, decreased productivity as a result of staff demotivation, reduction in employees' emotional wellbeing while on the job, and low job satisfaction that can eventually lead to burnout. Akbiyik [36] adds that job insecurity in the hotel industry influences absenteeism among employees as they are under the impression that they can lose their job at any time. Once an employee displays high rates of absenteeism then the employer will be forced to terminate the staff member for poor work performance which ultimately contributes to staff turnover within the hotel industry [36].

#### *2.2.3 Limited amount of interaction among staff in the hotel*

Employee engagement helps to cement organizational culture that promotes unity within the organization [37]. When employees see that there is a positive magnitude of organizational interaction within the business, they are more propelled to display a higher level of interest [38]. Minimal employee interaction could lead to high turnover rates because employees tend to be uninformed of what is taking place within the organization [37].

*Factors Contributing to Staff Turnover in the Hotel Industry: A Literature Review DOI: http://dx.doi.org/10.5772/intechopen.107025*

Kuria et al., [20] highlight that low interaction in the hotel industry can be developed from inadequate transparency among employers and employees or staff and staff. They further indicate that it is a crucial factor for interaction among employees because it helps to influence their decision as to whether they want to stay at the hotel and further their career or leave the organization to seek more suitable development. Fathy [37] posits that a lack of motivation and interaction from an early stage between employers and employees is one of the key factors that lead to staff turnover in the hotel industry. This is because employers failed to develop a strong interaction relationship between employees and as such they are not driven to grow as one within the organization.

#### **2.3 Pull factors contributing to staff turnover in hotels**

#### *2.3.1 Career advancement*

According to Chalkiti & Sigala [13], one of the main factors that lead to high staff turnover rate in several different industries is the lack of career advancement. There is no difference with the hotel industry as McGinley et al. [39] assert that career advancement opportunities in the hotel industry are a conspicuous concern. The opportunity for career development encourages job satisfaction, ensures that employees are successful and enhances their employability (Jugan [40]. If employers do not provide employees with these opportunities there is a high propensity that this will result in great staff turnover [41].

Faz et al., [14], however, caution that the hotel industry is a severely high labour intensive sector that creates numerous competitions between staff members, which decreases the possibilities for career development for other staff members. It is also found that when employees enter the hotel industry they view their employment as short-term and are often of the belief that it is a temporary job opportunity. Subsequently, they are hopeless of any advancement [42]. However, Mwilu [43] on the other hand explains that people seek employment locally and internationally in the hotel industry because of the perceived employment opportunities. Mwilu [43] concludes that people will gravitate more to organizations where they will gain more benefits, thus, the urge of leaving the current organization is very high. Another important point as explained by Narkhede [9] is that, if employees feel that an entity is not fully invested in their career advancement, they will not display any interest in the business development. This is with the view that their efforts will be preoccupied to seek opportunities for growth elsewhere.

#### *2.3.2 Job satisfaction*

Rok & Mulej [44] note that job satisfaction is a delightful and positive state of an individual's career advancement which results from a person's job or experience at work. Albattat & Som [12] add that job satisfaction will influence an employee's decision as to whether or not they are to leave their job. Hence, it is likely that job satisfaction will have an impact on employee turnover rates [12].

Several studies have been conducted regarding the relationship between workrelated variables and job satisfaction which will ultimately result in employee turnover. For example, a study by Zopiatis et al., [42] in Cyprus highlights that there is a negative relationship between organizational commitment and job satisfaction and this can result in turnover intention.

Davis [22] believes that job satisfaction concentrates mostly on Herzberg's Hygiene Factors. These factors are elements that are correlated to a job that may or may not create satisfaction for employees [45]. The Hygiene Factors take into consideration the environment in which employees do their job and enhance the satisfaction and commitment of the employees. This is supported by Holston-Okae [46] who contends that organizational leaders should meet their employees' hygiene factors to avoid dissatisfactions. This may not immediately lead to job satisfaction or motivation but is a stepping stone.

#### *2.3.3 Higher salaries*

Mwilu [43] highlights higher payment packages and technical challenges as pull factors that captivate employees. Dwesini [47] concludes that compensation and rewards are factors that could influence staff turnover in the industry. AlBatta and Som [12] further emphasize that unsatisfactory salaries among intolerant working conditions and poor training could lead to staff turnover. Whenever employers fail to provide employees with favorable salaries, wages or even service charges that are linked to their job function, it is likely to contribute to job turnover. This is supported by [20] who conclude that if organizations do not compensate their workers beneficially it is possible they may encounter high levels of staff turnover by way of the staff leaving for alternate jobs that are higher paying.

#### *2.3.4 Benefits and rewards*

Reward systems entail various policies and procedures that are arranged and governed like one [40]. Whenever employees are rewarded it gives them a sense of belonging and makes them feel appreciated by relevant authorities [40]. Rewarding employees allows them to have a better relationship with the organization [48]. This is supported by Jehanzeb et al., [49] who indicate that rewards play a critical role in the retention of employees; it makes them feel wanted and motivates them to continue doing an excellent job. Sageer et al., [50] believes that employees should be rewarded appropriately for their contribution. Rewards are a stepping stone to job satisfaction which leads to a greater probability of the employees remaining within the organization. Jugan [40] suggests that organizations must focus on the extent to which rewards contribute to employee motivation and engagement with the organization and that the factors which determine this degree should be understood. Happy employees represent the organization in the public sphere [50].

Jehanzeb et al., [49] state that rewards have a lasting impression on employees as it communicates how much they are valued within the organization. A survey carried out in hotels in Kisii, Kenya concludes that the lack of fringe benefits encourages persons to leave the organization and this increases the rate of employee turnover [41]. This suggests that whenever an employer is not offering benefits such as sick leave, and education and retirement facilities to the employees, it will result in an increase in the rate of staff turnover [41].

#### **2.4 Impacts of staff turnover on productivity**

Productivity refers to how effectively and efficiently goods and tasks are carried out. It is further explained as the efficiency in production and is simply measured by the amount of output obtained from a given set of inputs [51]. According to Haenisch

#### *Factors Contributing to Staff Turnover in the Hotel Industry: A Literature Review DOI: http://dx.doi.org/10.5772/intechopen.107025*

[52], productivity in the workplace is detrimental to the success of every organization. Ugoani [53] shares a similar view whilst focusing on the aspect of manpower and determining that employee productivity is a critical factor for the organization to survive financially. Consequently, employers must put specific measures in place for employee performance as it is vital to the success of their business [54]. They should strengthen the work environment to improve employees' performance and productivity as this will ultimately lead to higher profits as well as customer satisfaction and retention [50].

Productivity is used to determine the level of performance of an organization and that decreases with high employee turnover [53]. This was underscored in a study conducted by Ahmad and Scott [18] to determine the issues in managing staff in the front office department. The results were obtained through interviews with managers which showed that staff turnover results in a shortage of staff which causes difficulty in delivering excellent service. The respondents further elaborated that insufficient staff resulted in limited time to interact with staff or complete tasks effectively. These findings reinforce the claim by Siddiqui [54] that the success of a company is ultimately dependent on employees.

Additionally, time must be allocated to train new employees. Fathy [37] elaborates that when hotels replace experienced staff with inexperienced employees, it disrupts the flow of production as time must be allocated on schedules to train the staff on how to properly carry out services and tasks. This also interrupts the time that should be spent catering to the requirements of the guests and this may lead to dissatisfied customers and thus, a decrease in customer retention and ultimately reduced profitability. Hinkin, and Tracey [55] conclude that the hiring and training processes are costs that are associated with turnover.

The hotel industry is service-oriented, therefore, the productivity of the business as it relates to output is measured by the service received by guests. The quality of service conveyed to the guest is a competitive tool and since employees are the ones that deliver the service, it is imperative that they are satisfied and motivated [56]. This is even more important due to the characteristic of service. Service is simultaneous as it is created and consumed at the same time. By way of being perishable, productivity is determined by the number of rooms occupied on a daily basis with the role of the hotel staff being very integral to this matter. For example, the functions of the housekeeping staff or room attendant are critical to the profitability of the hotel [57]. The level of service provided is an indication of guests' satisfaction and whether or not they will stay as well as return the next time.

Using data from 527 hotels within the same chain, Hesford et al., [58] examine how housekeepers and front desk attendants impact revenue and productivity through customer satisfaction. The findings reveal that the tasks carried out by the housekeepers and front desk attendants have significant effect on guest experience. Additional findings reveal that the majority of customer in the budget hotel segment complained about the cleanliness of the rooms. This is the direct responsibility of the housekeeping staff. Poor hospitality and service was also found to be a frequent driver of complaints. This generally refers to guest interactions with the front desk staff. The results indicate that turnover in both positions negatively impacts the customer's experience and satisfaction, and these are some of the main determinants of productivity among hotels.

Notably, hospitality service operations evolve around branded and standardized offerings to customers, therefore, consistent employee performance is a very important element of business strategy [59]. In addition, high staff turnover will

lead to higher complaints because of the time it takes to train new employees as well as the loss of key employees. Customer satisfaction, therefore, becomes synonymous with productivity levels in hotels [60]. Hence, if staff turnover is frequent and high, it will disrupt the quality of service [61]. In support, Singh and Amandeep [56] conclude that staff turnover harms the steadiness in the standardization of hotel services.

Moreover, the service will be further impacted as new employees will require time to become as efficient as the previous ones. This was supported by Faz et al., [14] who articulate that a new employee can take up to two years to accomplish the same level of productivity as the previous staff since they have to become knowledgeable of all the necessary skills required to complete their tasks. In addition, the loss of key employees can result in a reduction in both the quality of the service provided and the experience attained by the guest as well as productivity [62]. From a financial perspective, Fathy [37] points out that employee turnover represents 60 percent of the cost of loss productivity.

High staff turnover can also result in disruption of service for other employees and managers resulting in reduced productivity. The disruption in operations redirects managers away from their usual duties of planning, controlling and sales to now training and monitoring new employees. According to Hesford et al., [58], the time that the head housekeeper spends on training new employees pulls them away from inspecting rooms, monitoring the remaining workers and responding to special cleaning requests. Similarly, general managers typically "shadow" a new front desk attendant for the first few shifts. This diverts the manager's effort and attention away from strategic functions such as marketing the property and networking.

#### **3. Methodology**

This study carefully and systematically reviewed the literature on the factors contributing to staff turnover in the hotel industry; both push and pull, and their consequent impacts on the productivity of hotels. The literature was also reviewed for recommended strategies that are used to mitigate staff turnover in hotels. Literature review is used as the methodology for this study in order to provide a comprehensive review of the literature related to staff turnover in the hotel industry. This is a plausible research technique and is supported by Paul and Criado [63] who postulate that literature review is useful in synthesizing prior studies to strengthen the foundation of knowledge. In addition, Xiao and Watson [25] point out that literature review establishes the foundation of academic enquiries.

Although literature review is usually used as an assessment procedure in nursing settings [64], Snyder [65] proposes that its use as a research method has become more relevant than before, especially in the area of business research. This technique was used by Aziri [66] to examine the subject of job satisfaction and by Ngai [67] to relate on customer service management. It was also used by Brodeur et al., [68] to synthesize insights emerging from a number of studies on the economics of COVID-19. These are all studies in the area of business.

This chapter therefore, examined staff turnover in the hotel industry which is a business research. It was carried out by reviewing research papers in journal articles and book chapters among other sources, for extant literature on the matter. This approach is further recommended by [64]) who posit that effective literature searching is a crucial stage in the process of writing a literature review and that a systematic organized search of the literature that uses available resources is more likely to

produce quality work. The review of literature is intended to provide current stance on the subject as well as rationale, positions and discussed ideas [69].

#### **4. Strategies to mitigate against employee turnover in hotels**

Many hotels face the challenge of high turnover in their organization whether voluntary or otherwise. Hartman and Yrle [70] explains that employees will leave their job even if they are satisfied and conceptualized this voluntary departure as the hobo phenomenon. It is therefore imperative for managers to identify the factors that affect employee turnover and implement appropriate strategies to attain stability in the organization. They need to be aware of their employees' feelings regarding their job functions as well as their satisfaction levels with their working conditions, superiors and peers [71]. Being aware of these factors will allow employers to implement sustainable strategies so as to improve the productivity and efficiency of employees and subsequently influence a reduction in staff turnover. Emphasis and focus should be placed on adequately managing these factors in order to create satisfaction for employees and maintain their interest in working at the organization.

It is important for hotels to conduct an audit of their situation to determine where they are at so that the appropriate strategies can be employed. If they do not have the internal resources to do so, then Ferry [72] recommends that they procure the services of a consulting company to assist them in this regard. As indicated earlier in the chapter by Holtom and Burch [62], the loss of important employees is detrimental to productivity and work quality. Managers need to be cognizant of this matter and implement suitable retention strategies for employees. Some of these strategies include implementing job enrichment plans, promoting job satisfaction, managing hygiene factors, incorporating job embeddedness, including career development and advancement factors, instituting appropriate remuneration, recognition and reward programmes in addition to good training and management. Furthermore, Long and Perumal [73] contend that employees who have little to no intentions to leave an organization have a positive relationship with staff training, compensation or benefits, development of careers in specific areas, performance management, and employee relationships. The following are some of the strategies that can be implemented in large hotels to directly or indirectly reduce staff turnover.

#### **4.1 Implement job enrichment plans**

The hotel industry leaders need to understand the factors that encourage employees to display high potential in staying with the organization in comparison to them leaving [74]. Managers need to consider job enrichment to avoid high turnover in their organization. This involves designating employees with different types of work without increasing the workload level. Job enlargement can also improve intrinsic motivation for employees and give them more reasons to stay. Onimole [75] contends that when managers provide job enrichment then employees will grasp a deeper interest in doing the work, thus a greater responsibility will be acquired by employees resulting in higher levels of productivity.

#### **4.2 Promote job satisfaction**

Milman and Dickson [74] proffer that employers should view employees as internal customers of the organization. This can provide important value and create awareness for managers as well as influence the implementation of appropriate strategies to reduce staff turnover. In support, Kim [76] points out that in order to realize a reduction in employee turnover, the human resource management team should conduct internal marketing on employees, focusing on their traits and designing effective programmes for new employees with multiple backgrounds. In addition, Onimole [75] finds that both effective training programs and job satisfaction have a very good relationship. Providing an effective training programme could therefore be a response to reducing the high turnover rate by way of employees being satisfied with their job. Training has proven to be vital in the retention process and in helping to reduce turnover. This is supported by Chen [77] who notes that training of employees influences their retention. When an organization invests in training and development activities it shows that they have placed high importance on employee capacity building. Not only will employees have a sense of being valued but training opportunities will create an emotional tie between employee and employer [78]. Therefore, employees are less likely to leave the organization when they receive the chance to acquire training on the job. Therefore, having a dedicated training procedure to improve employee skills and capabilities have the potential to reduce their intentions to leave.

Stress management is also of importance. McGinley et al. [39] state that there are various ways to deal with stress in the workplaces, which is likely to impact staff turnover intentions. The implementation of task-oriented strategies can cause a reduction in turnover intent and in turn improve on job satisfaction [39]. It is likewise imperative for managers to understand the intentions of their exceptional employees and implement solutions that will increase their desire to stay in the organizations [74]. Lapointe and Vandenberghe [79] summarize that it would be beneficial for managers to put strategies in place to strengthen employee's commitment to the organization and their subsequent satisfaction can possibly reduce turnover rates.

#### **4.3 Manage hygiene factors**

As indicated earlier in the chapter, job satisfaction concentrates mostly on Herzberg Hygiene Factors and are used to determine employee satisfaction with their job. Examples of such factors are fair pay rate, respect from other workers, salary, incentives and good conditions for work. Other hygiene factors include company policies, supervision, interpersonal relationship and job security. Zhu et al., [80] postulate that the hygiene factors when compared to the motivation factors in the Hertzberg two-factor model (motivation factors and hygiene factors) are more effective in predicting turnover intentions. This means that that will contribute to employee satisfaction which in turn, will reduce high turnover rates.

In essence, the hygiene factors are used to determine employee satisfaction with their job; a high rate of job satisfaction will reduce job turnover intentions. The underlying premise of hygiene factors is that, as long as employees become satisfied, then managers will need to maintain these factors so that they will not resort to dissatisfaction which reduces productivity. In terms of the influence of hygiene factors on productivity, Ogbo et al., [81] find that good working conditions improve employees' productivity. They posit that if working conditions are poor it will create negative impact on employees and as such managers should aim to maintain factors that aid in the increase of productivity. Deri et al., [82] conclude that the hygiene factors of job satisfaction are paramount and managers are to pay attention to them.

#### **4.4 Incorporate job embeddedness**

Ehrler [83] explains that job embeddedness consists of a range of influences that contribute to an employee's decision to continue with their job. Onimole [75] shares the notion that job embeddedness indirectly reduces high staff turnover costs incurred by the organization. It is therefore important for the hotel organizations to implement activities that can improve job embeddedness and reduce staff turnover.

Embeddedness in the job can create a positive relationship or connection with co-workers. It is determined by the level of co-worker dependency and a sense of belongingness and as such employees will more likely have a long tenure in a company where there is a positive relationship among employees [84]. Employees have a less likely tendency to leave the organization when they are embedded in their job. Ehrler [83] posits that the diversification of employee job embeddedness positively impacts their retention by reducing turnover.

#### **4.5 Include career development and advancement factors**

Career development as well as advancement opportunities are vital in improving employees' loyalty and retention in the hotel industry [79]. Akyüz et al. [85] assert that if employers desire to reduce the staff turnover rate then they will need to improve the organizational climate and the human resource activities being carried out. The process of molding each employee's career is therefore imperative [86]. This strategy can be a cost saving measure for hotels to save money that would have otherwise been spent on continuously recruiting and training new employees because of turnover.

Offering mentorship to hospitality employees is another great way to mold their careers and keep them empowered and motivated [87]. Mentorship can provide several benefits and opportunities for the personal and professional growth of employees. It is found to be a vital tool in bridging the generation gap and promoting diversity in the workplace as well as transform the organization into a learning one [88]. Mentorship in the workplace is usually carried out by experienced professionals who help in the process of molding other employee's careers and providing the opportunities for them to grow and develop their potential. These mentees will now feel a sense of connection and commitment to the business and its overall success. Hence, managers are to be able to identify opportunities and implement mentorship and training programmes to help and retain young employees. This is despite the claim by Gursoy and Dhar [89], that younger persons will stay in the organization in more cases than the older ones.

Having a formal and structured mentorship programme is recommended [88]. It will facilitate high-quality leader-member relationships. This type of relationship according to Davis [22] will not only engage and inspire employees but will also lead to organizational commitment and lower turnover rates. In essence, hotel managers should be concerned about the growth and development of all employees [29] despite age and gender. As per the latter, they are to remove gender bias perceptions and ensure that programmes are in place to coach female employees in advancing their careers [90]. Overall, managers should provide all employees with opportunities to develop and improve key internal relationships, career advancements and job performance. Employees are comfortable when opportunities to improve themselves arise [89]. Akyüz et al., [85] studied the influences that academic development and organizational climate provides in having healthier organizational commitment which

reduces employees' desire to leave the organization. They find that employers that pay special attention to academic development, tasks, and the promotion of improved commitment to the organization recognize that it improves job performance and increases retention rates.

#### **4.6 Implement remuneration, recognition and reward programmes**

Adequately and fairly remunerating, recognizing and rewarding the efforts and accomplishments of employees are important in staff retention. According to [91] employees tend to develop an emotional bond with the organization and remain an employee when they perceive that the work they have done is appreciated and valued. Long and Perumal [73] point out that employees that are placed on the front-line in the hotel operations are more likely to proportionately receive low salary or rewards, and therefore will be the ones to switch jobs. Rewarding and recognizing these among other employees would make them feel respected, desired and appreciated, resulting in reduced staff turnover rate. However, employees expect to receive recognition and rewards that are established from a fair performance appraisal review [91].

#### **4.7 Implement best hiring practices**

In order to understand the reasons why employees leave their organization, the human resource management team should hire smartly and implement exit and stay interviews to practice and maintain the communication process [79]. Selecting the right people for the right jobs is one of the most incremental solutions to reducing staff turnover as according to Bin [92] they will be more satisfied and engaged with their jobs. Employees who are not the right fit for a position will be more likely to quit as they may not possess the right skill set, knowledge or even mental ability to tackle that role.

The screening of employees who enter the organization will help employers make better decisions when hiring [39]. Hotel managers should identify the abilities of each employee through the hiring process and according to Sinclair-Maragh et al.; [93], they should foster talent management through coaching, mentorship, motivation and empowerment. Managers should employ effective sourcing strategies as well as maintain, retain and train these employees as it is imperative in the process of improving guest services in the industry. This is supported by Long and Perumal [73] who find that training is vital to the success of any modern organization. They posit that training is the backbone of strategy implementation and the lack of training in critical areas will lead to increased complaints. In providing the necessary conditions to develop the professionalism of employees, managers should consider training them on the job which results in job satisfaction and a reduction in turnover levels [94].

#### **4.8 Encouraging communication**

Communication between the two parties; managers and employees is paramount. The philosophy and intentions of the hotel should be communicated to the employees to guide them in carrying out their respective tasks [95]. Likewise, employees should be allowed to communicate their potential career path so that they can purposefully envisage their future with the hotel.

Employees should be allowed to identify specific milestones for their achievement and ways in which the employers can use supporting resources to assist them in achieving their goals. The relationship between employees and employers will make

#### *Factors Contributing to Staff Turnover in the Hotel Industry: A Literature Review DOI: http://dx.doi.org/10.5772/intechopen.107025*

it easier for both parties to have a clear, consistent and direct communication about career advancement steps. This will help employees feel more engaged in the organization and increase their job satisfaction, thus, staff turnover rate will be reduced. Sandhya and Kumar [96] conclude that communication between the employee and employer will lead to high levels of employee retention. Communication can also be achieved by way of conducting employee attitudes surveys. This should be aimed at identifying how each employee feel about their role, their intention to stay within the organization and also the goals that they want to achieve in the organization. Care should be taken not to generalize the data collected for human resource management and development strategy implementation [97].

#### **5. Conclusion**

The purpose of this chapter is to analyze the factors contributing to staff turnover in the hotel industry and the subsequent impacts of staff turnover on productivity. Additionally, the chapter proposed some strategies that can be implemented by management to reduce staff turnover. The review of literature finds that employee turnover has been a major concern in the hotel industry in several countries despite location. The literature distinguishes two main categories of factors that cause job turnover. The push factors are job-related dissatisfiers such as poor relationships, lack of growth opportunity, job insecurity and limited amount of interaction among staff. Pull factors are those opportunities that attract employees to a new workplace such as career advancements, job satisfaction, higher salaries and benefits and rewards.

Staff turnover needs to be addressed as it can negatively impact productivity. It is important for hotel managers / employers to generate unique and creative solutions to retain employees in the hotels despite the size and location. These include the implementation of job enrichment plans, promotion of job satisfaction, management of hygiene factors, incorporating job embeddedness, including career development and advancement factors, instituting appropriate remuneration, recognition and reward programmes, implementing best hiring practices and encouraging employeeemployer communication channel.

Based on the literature review conducted, it is evident that high staff turnover rate is prominent in the hotel industry. It is essential that these managers select the right persons for the respective jobs, foster their abilities and talents, and motivate them in an employee-centric environment. Deliberate and effective workplace practices are therefore recommended.

The findings of this study will be very useful in advancing the literature in the area of staff turnover in the hotel industry and providing relevant information pertaining to people management in that environment. From a practical standpoint, the chapter will be able to inform hotel practitioners of these factors as well as how staff turnover can impact the productivity levels of the hotel. Further studies can be done to empirically assess the factors that are contributing to staff turnover in the hotel industry and the impact of staff turnover on hotel productivity. Future studies can also empirically examine the relationship between hotel productivity and hotel performance.

*People Management - Highlighting Futures*

### **Author details**

Shaniekay Codling, Jheanelle Pinnock, Eyonisha Barrett, Shanoya Gayle, Nataki Stephenson, Nikima Sibblies and Gaunette Sinclair-Maragh\* University of Technology, Jamaica

\*Address all correspondence to: gmaragh@utech.edu.jm

© 2022 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

*Factors Contributing to Staff Turnover in the Hotel Industry: A Literature Review DOI: http://dx.doi.org/10.5772/intechopen.107025*

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#### **Chapter 3**
