TH60116E - Service Industries Dissertation - University of West London

Assignment Task

Introduction

1. Brief overview of the research

This study will examine potential barriers to the hospitality sector's ability to attract and retain potential employees, more specifically in a 4 and 5 -star hotel in Ealing borough (West London). Although in the year 2019, the hospitality sector’s output was £59.3 billion (Hutton et al., 2022). Which contributes towards the 3% UK’s economic output. According to data from the office of national statistics revealed, that accommodation and food services grew by 8.6% in February 2022 (Thatcher, 2022). Moreover, it was also showcased that the hospitality industry was the ninth-largest contributor to GDP growth from February 2020 to 2022. Moreover, the hospitality industry suffers from a lack of workforce at a critical level, which results in reducing trading hours of operations and causing the industry to lose £ 21 billion (Banham, 2022).

This research illustrates an analysis of numerous strategies utilised by employers to reduce and retain employees in the hospitality industry. Furthermore, it also highlights the tactics adopted by the organisation to achieve employee loyalty towards the brand. Moreover, it also explores the potential factors for the shortage of workforce in the industry and the causes for the low retention rate. This study will be focusing on the hotel in Ealing borough (West London).

2. Background Information

Surjit and Kemal, (2014) observed that high employee turnover rates cause business failures in the hospitality sector's enterprises, which in turn causes a shortage of skilled workers and demotivated staff. The hospitality sector is one of many industries that largely depends on the workforce. Additionally, employment within the sector is significantly impacted by its growth (Rehman and Hassan, 2019). Since the leaving of skilled employees will introduce numerous inexperienced workers, the quality of the services will be reduced, which will harm the establishment's profitability and productivity.

Furthermore, it won't provide the consumer with the satisfaction of spending higher monetary value because of the poor service quality and lack of skills in the trade. Moreover, it will lead to slow growth, of the establishment as the receiver will not receive the satisfaction of spending monetary value for the service which is not matching their level of expectation.

According to Gruman and Saks, (2011) one of the leading concerns in business is employee retention. However, it’s also essential to investigate potential factors that lead to employee retention. Furthermore, Sthapit and Shrestha, (2020) highlights employee retention as one of the greater challenges the hospitality sector is known to confront in the 21^st century.

3. Context of research

Employee retention is regarded as a significant difficulty facing the industry in the twenty-first century, particularly in the hospitality sector (Aman-Ullah et al., 2020). Furthermore, Rehman & Hassan, (2019) refers to the hospitality industry's nature as strongly depending on its personnel, this also demonstrates how important that workforce is for industry's development. Dwesini (2019) and Ohunakin et al., (2020) highlight a lack of skill in trade due to a high employee retention rate, which further onwards leads to a decrease in the quality of service.

Moreover, the research presents that human resource management is one among other factors that can contribute to influencing the rate of retention (Kamalanabhan, 2014). Having a poor retention rate also leads to suffering twice the cost in terms of financials, time invested and operational ineffectiveness (Ezeuduji & Mbane, 2017).

4. Aim and Objectives

The aim of the research contributes toward the investigation and understanding of the various strategies implemented by employers to regain the sense of retention among their employees, in contrast to high workforce turnover in the workforce. 

The following are the research questions

• Evaluating the challenges incurred by hospitality industry in recruiting and retaining potential workforce.

• Analysing numerous strategies adopted by employers to reduce and retain the potential workforce in hotels.

• Investigating various aspects that drives employee motivation and loyalty to remain within the organisation.

This research will examine the factors that influence workforce turnover in 4 and 5 star hotels in Ealing Borough.

• What are the major challenges incurred by hospitality industries, while recruiting and retaining employee?

• How can employee turnover affect the organisation and potential strategies to reduce the workforce turnover within the 4–5-star hotels in west London.

• What are the key elements of an effective retention strategy?

5. Rational for Research

One of the major issues the hospitality sector faces is employee retention (Sthapit and Shrestha, 2020). According to Hadj (2020), excessive staff turnover undermines commitment among workers and creates unfavourable opinions of the organisations.

Besides these hurdles, the UK's hospitality sector contributed 3.0% of the UK’s economic output, which is equivalent to £59.3 billion in 2019 (Hutton, 2022) pre-pandemic year.

Moreover, besides the fact of lack of workforce, the hospitality industry has been introduced to 2 major events in past, which had a huge impact on the industry. The industry has been affected by the covid-19 pandemic and Brexit, which not only impacted the industry with a shortage of workforce but also led to face losses worth £114.9 billion to the hospitality industry (Mcallister, 2022). However, this report will illustrate the numerous strategies to reduce the employee turnover rate along with an understanding of motivating the workforce to work within the company. Which in result contributes in transferring of the skill set.

6. Structure of the Dissertation

The following chapters of this research paper, chapter one will contain an introduction, background information, context research, aim and objectives and justification for the study

We'll examine retention tactics used by businesses to lower turnover as well as the literature on the major factors influencing employee turnover. Moreover, analysing the potential aspects which contribute to gaining employee loyalty towards the organisation.

Will be the methodology section of chapter three will look at the several available methodological approaches and select the one that will be used for this study, helping to produce an accurate result.

Will explore, analyse, and critically assess these sources. Performance and role satisfaction varied for the participant. The majority of the data was gathered from the journal, research papers, scholars, books, and notable material

While outlining how the research's findings addressed the study's research goals, this study's limitations are highlighted, and potential future research areas suggested.

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