A high turnover rate impacts profitability of any company due to the expenses for new employee recruitment, adaptation and training. Besides, it impedes to the formation of a permanent and well-coordinated team and the corporate spirit in the company. Facing this problem, the employer needs to analyse the causes of its occurrence and find effective ways to prevent resignations.
All points affecting employees’ intentions fall under push factors, pull factors and external factors. This article deals with push factors which are manageable, and the company is able to analyse and influence them.
Poor Relationships
Poor relations with line managers or colleagues are one of the most popular reasons for workers’ dissatisfaction and demotivation. Whereas strong relationships between colleagues form a positive regard and inspire them to keep on working.
In such a polyethnic society as the UAE workers come from all corners of the world. In the UAE’s thriving hospitality industry it’s a common practice that many staff members not only work together – they also share accommodation. If their interaction at work leaves much to be desired, the necessity of living together strengthens their annoyance and embarrassment. Their living arrangements become very strained. This tension can stimulate a dissatisfied staff member to search some other job.
Absence of Career Opportunities
Absence of growth opportunities is the leading reason for job change in many business areas. The hospitality industry is labour-intensive by its nature. There is strong competition among colleagues and small opportunity for career development.
Employees realise that career development takes a lot of time. Conflicts may occur if the employer disappoints their career expectations. In this case staff can prefer alternative employment.
The employers should try to provide all staff members with adequate promotion opportunities. The main concern is to find out the best talent to keep.
L&D team should look for appropriate methods and instruments to bring up talents. The hotel operator should provide training and development opportunities for all hotel employees to improve their skills and knowledge.
Poor Employee Engagement
Engagement is a strong factor determining an employee’s career choices. Roots of engagement lie in company core values. High level of engagement stimulates an organisational culture.
Employees need to have complete work transparency. They expect the employer to announce and explain operational changes and to provide key data. For most workers it’s hard to agree with any operational changes if they do not understand their benefits.
It is necessary to keep employees aware of various changes in the company, even if these developments do not impact their roles.
A transparent corporate culture increases the degree of engagement in managers’ and workers’ interaction. To develop an engagement culture, hoteliers should encourage communications in different ways. Management should make sure that the hotel operator sticks the same path.
Job Insecurity
One more important driving motive for turnover is an insufficient job security. Lack of communication between management and staff members results in fear and mistrust. This is especially important in the context of volatile economic environment.
Workforce reduction influences the whole enterprise. Unclear communication from management can decrease loyalty. The reasons should be communicated in advance. In this case staff will appreciate the transparency of the process. They have a chance to prepare and to accept an offered redundancy package.
Job insecurity is very stressful and raises serious tension among employees. It results in lower job satisfaction, demotivation and decreased well-being. Lack of security decreases productivity and enhances personal stress. It undermines management’s reputation among staff, leads to burnout and causes employees to leave the company.
To avoid job insecurity, the company should develop a strategic plan and communicate it to the workers. This plays a critical role in questions of reducing headcounts.
Methods to combat staff turnover can be very individual. The main thing is a clear definition of the root cause and its prompt elimination. To understand the causes and consequences of turnover is vital for the company. Constant monitoring and analysis of the reasons, the search and implementation of methods to overcome them will bring huge benefits to the business. The financial result will not be long in coming.
