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Analyze your previous submissions, and make changes as necessary to the final paper to be prepared this week. Continue development of the project or research with an abstract and proposed implementation strategy. This is the last and final section of the Key Assignment and should bring together all aspects of the project or research in one cohesive paper. Revise previous sections so that the entire document flows and has a strong introduction and conclusion.
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Update the research document’s title page with a new date and project name.
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Management Research Analysis and Synthesis document
New content
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Addressing High Staff Turnover in InterContinental Hotels Group (IHG) UK Properties
Sarah Bramble
CTU
5/19/2024
2
Addressing High Staff Turnover in InterContinental Hotels Group (IHG) UK Properties
Restating the Purpose of the Research
The major objective of this project is to discover and offer the best remedies for high staff
turnover in UK hotels that belong to InterContinental Hotels Group (IHG) owners. A high
turnover rate significantly lowers operational efficiency by increasing the costs of recruiting and
training new employees and drops the quality of service. Therefore, this influences the overall
service quality of the company and could lead to a negative decrease in its image and brand
value. Yet, the constant recruitment and training of new staff can burden existing employees,
lowering their morale and decreasing productivity. This discussion explores how the data and
insights collected from the literature review lead to and direct the development of practical
solutions to tackle this pressing issue. By investigating the reasons for high turnover and using
the methods employed in employee retention, the study offers an all-round strategy to help
turnover reduce and stabilize the organization.
Linking Literature Review to the Problem
This Literature review has identified a few critical factors that influence high labor
turnover in the hospitality industry and, specifically, in the UK outlets of IHG: lack of career
advancement, stressful work environment, seasonality in the hospitality job, and lack of
recognition of employee contributions. Lack of career advancement usually prompts employees
to leave for better prospects somewhere else, and the nature of the work does not make it any
less stressful. Seasonality in hospitality makes it a precarious business with ample opportunities
for employees to look for jobs elsewhere. A lack of recognition and appreciation of employees’
efforts would decrease morale and encourage turnover. Therefore, a comprehensive approach
would be sought to neutralize these impacts and raise retention levels.
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Career Advancement and Work Environment
Zvaigzne et al. (2022) highlighted how hospitality is seasonal. This fluctuates the nature
of work and introduces insecurity within the job due to the irregular working schedules. Many
employees feel the harsh challenge and are forced to seek alternative opportunities that provide
stable opportunities. IHG can address this challenge by cross-training the employees to perform
diverse roles. This can balance the workload throughout the year, making it possible. More
importantly, Batanero et al. (2020) argued that career development programs may delineate a
pathway for moving forward; this helps in enhancing the organizational commitment to
employees. The supportive atmosphere at work is another vital aspect; the lack of
acknowledgment of hard work, as Rajan (2021) has analyzed, was another cause of the high
turnover. This could be achieved by IHG’s developing solid programs around employee
recognition for achievements and successes. Regular recognition through rewards,
acknowledgments, and formal ceremonies will foster a sense of belonging and loyalty toward the
company.
Employee Engagement and Organizational Practices
Engaging employees effectively in the organization will be critical in improving retention
rates and will also contribute to job satisfaction. As Vokic et al. (2020) highlighted, open
communication channels are necessary for building trust and promoting a work environment
where employees can raise their issues and voluntarily give suggestions. Introducing the team to
feedback discussions, team building activities, and sharing the responsibility for decision-making
with employees can increase their motivation to work for the organization. IHG can establish
strategies that tend to balance the workloads and staff levels. Indicating that the disorder is
related to uneven workload distribution and low staffing levels, Abdelazim (2023) described
4
burnout and dissatisfaction. IHG can ensure employees are not overburdened and perform their
duties effectively by frequently assessing the staffing requirements with the schedule adjustment.
This is one of the many ways it encourages a cohesive team spirit and improves the product.
Addressing the Problem from Multiple Perspectives
Financial and Operational Impact
High staff turnover costs IHG financially and operationally in terms of recruitment
expenditure, training of a new hire, and loss of potential revenue due to a decrease in guest
experience. According to Morandini et al. (2023), staff turnover disrupts operations and may lead
to coordination failures. Besides, new employees usually take time to adapt to their roles; hence,
service quality and operational efficiency will decrease temporarily. Internally, these types of
disruptions would create inconsistencies in service delivery, which might lead to guest
dissatisfaction and low loyalty. Besides putting a strain on the current staff, recurring turnover
can also lead to burnout, further increasing the matter. By focusing on retention strategies, such
as competitive compensation, career development, and a positive working environment, IHG can
minimize these disruptions. A highly stable and experienced workforce will increase the
efficiency of operations and offer quality and consistent service that will translate into better
financial performance and organizational stability.
Team Dynamics and Leadership
A high turnover has the greatest impact on team dynamics and organizational cohesion.
According to Jyoti and Dimple (2021), high turnover rates tend to lower the rate of team
cooperation and escalate conflicts that arise in operations. With high frequency in the
employment of new workers, such an organization will disrupt most workflows and team
synergy as employees are constantly forced to cope with new colleagues. Effective leadership
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helps to buffer these problems. Leaders who are empathetic, good at communication, and
supportive of their employees often create a working environment that elicits employee loyalty.
Leaders can build trust and maintain employee morale by listening to subordinates’ concerns and
offering constructive feedback. Kohntopp and McCann (2020) also added that through leadership
development and mentorship programs, an organization can slowly create a skilled pipeline of
leaders who will ensure that continuity is not disrupted, which will, in the.
Employee Well-Being and Satisfaction
Engaging employees effectively in the organization will be critical in improving retention
rates and will also contribute to job satisfaction. As Vokić et al. (2020) suggested, open
communication channels are the first pillar for developing trust and forthrightness of employees.
Incorporating feedback discussions, team-building activities, and sharing the responsibility for
decision-making with employees can increase their motivation to work for the organization. IHG
can establish strategies that tend to balance the workloads and staff levels. Indicating that the
disorder is related to uneven workload distribution and low staffing levels, Abdelazim (2023)
highlighted an instance of burnout and job dissatisfaction. IHG can ensure employees are not
overtasked and perform their duties satisfactorily by frequently assessing the staffing
requirements with the schedule adjustment. This strategy not only lifts the personnel’s standard
of living but also develops the overall service.
Conclusion
Coping with the declining staff retention rate at IHG’s UK branches requires a multipronged and well-thought-out strategy. The literature review points out some critical factors for
turnover, including restricted career advancement chances, stressful working conditions, and
inadequate recognition of workers’ performance. In the future, implementing actionable
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strategies such as developing career development programs, improving employee recognition,
balancing the workloads, and building good leadership among the employees is a must.
Furthermore, providing a comprehensive package of benefits that enables the workers to have
good body and mental health and financial security occurs the next retention stage. Through the
implementation of this approach, IHG may build up a work environment that is supportive and
engaging. This, in turn, will help reduce turnover, improve service quality, and boost the
organization’s success. A competent, stable, and experienced work staff improves operational
efficiency and guarantees consistently high-quality services; hence, the business can register
good financial returns and stability in the organization. The positioning of IHG can be reinforced
through these key interventions, which is the only way of ensuring its competitiveness, thus
driving its long-term success and sustainability.
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References
Abdelazim, A. (2023). Causes of High Employee Turnover in the Jobs of the Hospitality
Industry. Proceedings International Conference on Business, Economics & Management,
1, 690–714. https://doi.org/10.47747/icbem.v1i1.1234
Batanero, J. M. F., Rueda, M. M., Fernández‐Cerero, J., & García‐Martínez, I. (2020). Digital
competences for teacher professional development. Systematic review. European Journal
of Teacher Education, 45(4), 513–531. https://doi.org/10.1080/02619768.2020.1827389
IHG Hotels & Resorts – Book hotels online at 6,000+ destinations worldwide. (n.d.). IHG.
https://www.ihg.com/hotels/us/en/reservation
Jyoti, J., & Dimple, D. (2021). Fun at workplace and intention to leave: role of work
engagement and group cohesion. International Journal of Contemporary Hospitality
Management, 34(2), 782–807. https://doi.org/10.1108/ijchm-06-2021-0704
Kohntopp, T., & McCann, J. (2020). Leadership in Virtual Organizations: Influence on
Workplace Engagement. In Springer eBooks (pp. 1–26). https://doi.org/10.1007/978-3030-02470-3_12-1
Rajan, D. (2021). Organization Structure and Management Practice Related Factors Causing
Employee Turnover: An Empirical Study Among Nurses. Eurasian Journal of Higher
Education, 2(3), 36–65. https://doi.org/10.31039/ejohe.2021.3.34
Vokić, N. P., Bilušić, M. R., & Najjar, D. (2020). Building organizational trust through internal
communication. Corporate Communications, 26(1), 70–83. https://doi.org/10.1108/ccij01-2020-0023
Sarah Bramble
CTU
5/5/2024
Topic: I propose to develop recommendations to help the senior management team at
InterContinental Hotels Group (IHG) solve the problem of high staff turnover in their UK
properties because high turnover rates can lead to increased operational costs, reduced service
quality, and diminished guest satisfaction, ultimately impacting the overall profitability and
brand reputation of IHG
Introduction
InterContinental Hotels Group (IHG), a primary international hospitality corporation, is
struggling with higher-than-usual staff turnover at its UK outlets. This problem not only makes
service quality uneven but also costs for hiring and training new staff. The high turnover rate can
potentially erode IHG’s satisfaction with the guests, which is critical for this company to remain
competitive (Al-Suraihi et al., 2021). Our target audience for this research is the senior
management team of IHG, which has the authority and the power to execute strategic changes
within the organization. Through this initiative, the management will see higher employee
retention rates, better quality of service, and maintain the brand’s stand of excellence.
The aim of the project is to tackle the issue of high staff turnover, which still persists,
determine its root causes, and offer practical recommendations. These will include some of the
strategic human resource initiatives, the best employee engagement practices, and better career
development opportunities tailored to the IHG employees. If the issue isn’t tackled, IHG may
face a range of serious consequences. The operating costs will increase as the repeated hiring and
training of new personnel use more resources. Furthermore, constant turnover of staff can result
in reduced service quality as newcomers might not be up to the level of acceptable performance
in guests’ eyes. To sum up, if the turnover problem continues, IHG will most probably face
dissatisfaction among the guests, which might result in lower occupancy rates and, hence, reduce
profitability.
References
Al-Suraihi, W. A., Samikon, S. A., Al-Suraihi, A.-H. A., & Ibrahim, I. (2021). Employee
turnover: Causes, importance and retention strategies. European Journal of Business and
Management Research, 6(3), 1–10. https://doi.org/10.24018/ejbmr.2021.6.3.893
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Addressing High Staff Turnover in InterContinental Hotels Group (IHG) UK Properties
Sarah Bramble
CTU
5/13/2024
2
Addressing High Staff Turnover in InterContinental Hotels Group (IHG) UK Properties
InterContinental Hotels Group (IHG), one of the world’s most famous leading companies
in the hospitality sector, has to deal with the complex and multiplex labor market issue in the UK
nowadays – the high employee turnover rate. Whether in customer service or the challenging
balancing act of efficiency and financial security, IHG strives to overcome this fundamental
challenge every day. The high turnover rates not only create operational problems but also pose a
direct threat to the reputation IHG has earned over the years (IHG Hotels & Resorts., n.d.). All
wall-ins will inevitably bring about the loss of institutional knowledge, team dynamics shifting,
and a possible quality gap in the provision. Yet, turnover affects not only the single unit but may
also have financial effects throughout the whole organization, resulting in additional recruitment
and training costs and a revenue loss due to decreasing guest satisfaction and loyalty. The IHG’s
senior management team is responsible for conducting a thorough analysis of the reasons for
staff turnover and developing strategic solutions to solve the problems. IHG can build a brandsafe space, implement best practices, and provide a financially stable place for the worldwide
community throughout this health crisis. This paper shows how IHG Hotel’s central management
team can improve staff retention and service quality to reduce UK property turnover.
Understanding the Problem
The staff turnover rates of IHG generate significant difficulties, not limited to financial
losses. Besides the evident recruiting and training costs, which involve advertising job vacancies
and conducting interviews, there are hidden costs affecting the onboarding process that may
result in loss of productivity and potential effect on guest satisfaction by inexperienced staff.
Besides, the regular change of employees interrupts the team dynamics, which leads to a lack of
cohesion and inconsistency in service delivery, directly affecting guest satisfaction and loyalty. It
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is not only IHG’s profitability that is on the line but also its brand reputation, as the guests now
perceive IHG as inept in maintaining quality service standards.
The Importance of Employee Retention
Employee retention is one of the main factors in the success of an organization, especially in the
hospitality industry, where the quality of service is directly related to the satisfaction and loyalty
of the guests. There is strong evidence that high staff turnover strains financial resources and
affects employee morale and productivity. Employees who see an extremely high turnover may
have feelings of uncertainty and instability that could result in decreased motivation and
engagement in their work (Frye et al., 2020). Besides, turnover also affects the quality of service
given to the guests because inexperienced staff may need help to meet the guests’ expectations.
Consequently, customer satisfaction will be decreased, and damage to IHG’s brand image will be
possible.
Strategic Human Resource Initiatives
In overcoming the issue of high staff turnover, IHG should employ a multi-pronged
approach that encompasses strategic human resource initiatives tailored to the specific needs and
challenges of its UK properties. IHG offers competitive income and benefits, but work-life
balance, career advancement, and a favorable corporate culture are crucial. Systematic training
and development are necessary for employee happiness, professional advancement, and skill
development (Batanero et al., 2020). Flexible work options, employee recognition, and
mentorship programs may help IHG retain staff. Through active and holistic gestures in human
resource management, IHG will be able to create a working atmosphere that speaks to and
retains top talent (Clack, 2021). As alt, it will beat the challenges of high staff turnover and pave
the way for sustained success in the competitive hospitality industry.
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Employee Engagement Practices
Employee involvement must be effective today to reduce turnover and promote a strong
IHG workplace culture. Open communication channels foster trust and encourage employees to
voice their opinions and ideas (Vokić et al., 2020). Creating the above discussion takes frequent
team, feedback, and supervisor meetings. However, identifying and awarding employees for
their work will help increase their motivation and morale. IHG can use various recognition
programs, from simple gestures of appreciation to formal award ceremonies, to thank and reward
individuals and teams for their achievements (Li et al., 2020). Equally important, promoting
independence and decision-making encourages employees to invest in their jobs and develop a
strong feeling of ownership.
Career Development Opportunities
Properly developing a solid career path is crucial for retaining elite team members within
IHG’s workforce and creating a culture focused on learning and advancing. IHG can provide
employees with various professional development resources, such as mentorship programs, skills
training workshops, and leadership development courses customized to their career aspirations
and goals. Besides, from within the organization, it appreciates and rewards dedicated workers
for their hard work and commitment (Teodorovicz et al., 2023). Also, it shows that the hotel is
committed to developing talents and offering advancement opportunities. Through investing in
employees’ career development, IHG feeds the enterprise with fresh talents and creates loyalty
among employees, reducing the turnover rate and thus granting the organization long-term
prosperity and sustainability in the hospitality world.
Literature Review
Factors Contributing to High Turnover
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The little chance for career advancement and the stressful working environment are the
reasons for the high turnover in the hospitality industry, as well as the seasonal nature of the
business, besides the low wages. According to Zvaigzne et al. (2022) most hospitality jobs are
vulnerable to changes in the seasons; thus, the positions to be filled during the peak periods are
abundant, and, as a result, the workload is hefty, while at other times, the demand could be more
robust. This inconsistency can make the employees, especially those with irregular office hours
or temporary contracts, feel uncertain, forcing them to look for another job. IHG could solve this
problem by balancing the variations of the workload, for example, by training the employees to
do more stuff or adding extra benefits during the slow time to encourage the employees to stay.
Moreover, the hospitality workforce mainly comprises temporary or part-time workers,
which is a reason for the high turnover rate in the hospitality industry. IHG can look for ways to
make the former employees’ lives more stable and secure, for example, by having them work on
long-term contracts or opportunities for permanent positions. Rajan (2021), informs that he
ignorance of and denial of the employee’s contribution is the leading cause of turnover in the
hospitality industry. Most of the employees in this profession work day and night to guarantee
the guests have a good time, but their hard work must be noticed and appreciated. IHG could
develop employee recognition programs that are strong enough to celebrate achievements,
milestones, and exceptional service services. This may include the awards ceremonies, the
employee of the month recognition, or even the small but essential gestures like personalized
notes of thanks from the management. The IHG can create a culture of appreciation, which the
employees will appreciate, which will make the employees very satisfied, and their retention will
increase.
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Abdelazim (2023) argues that the low staffing levels and the uneven workload
distribution are also the causes of the turnover in the hospitality industry. Employees
overwhelmed by the workload or the short-staffed shifts may become disenchanted with their
jobs and look for other opportunities. IHG could cope with this issue by regularly evaluating the
staffing requirements and modifying the schedules and the number of staff according to them.
Besides, letting employees give their ideas and opinions on workload distribution can assist in
the fact that workload is distributed evenly and that the employees feel supported in managing
their responsibilities. By confronting these factors, which are the causes of employee turnover,
IHG can create a more positive and friendly work environment that will motivate employees to
stay and develop within the organization.
Impact on Organizational Performance
Morandini et al. (2023) suggest that turns disrupt operations, because knowledge transfer
and coordination gaps, and raise recruitment and training costs. Production and efficiency may
drop. High turnover hurts costs and performance. Turns cause operations disruptions, knowledge
transfer, coordination gaps, and recruitment and training expenditures. New hires may take
longer to acquire their duties and institutional knowledge, reducing productivity. Additionally,
turnover can be of great importance for team relations and cohesion within the group of IHG
staff. High turnover rates can spoil team dynamics. Thus, team members become less
cooperative, so they do not work as a team (Jyoti & Dimple, 2021). Therefore, the problem can
lead to a decline in morale, communication disruption, and conflicts between the teams, which,
in turn, will cause capacity loss for the organization. Besides, the turnover may result in gaps in
the leadership and management, as the experienced employees go away and the new hires may
take some time to get used to their new jobs. This can be why the weakened efficiency in
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decision-making, coordination, and strategic planning will aggravate operational problems, and
the IHG’s burden to reach its business goals will be even more difficult.
Strategies for Retaining Talent
Monteiro et al. (2020) informs that there are a lot of ways that organizations can keep
their top people. Providing competitive compensation packages is the essential ingredient of
talent retention. However, IHG stands out because it cares for its employees’ lives. Besides the
financial rewards, IHG can consider benefits like the flexibility of working hours, the employee
discount on their hotel stays, and the total health and wellness benefits to get the best employees
and keep them for a long time. Furthermore, clear paths for promotions and skill enhancement
are the main factors in motivating and keeping hardworking employees. IHG could offer career
planning sessions, skills training workshops, and mentorship programs to help its employees
reach their long-term career goals within the organization (Monteiro et al., 2020). Moreover, the
creation of a healthy work atmosphere with the features of accessible communication,
encouraging the leaders, and the community feeling is the key to the assistance of the worker’s
emotions in the work and loyalty to the job. IHG could develop a culture of appreciation and
recognition by celebrating employee accomplishments, milestones, and contributions via regular
recognition events, employee appreciation awards, and personalized notes of gratitude from the
management.
Best Practices in Employee Engagement
Effective employee engagement practices are the key elements for decreasing turnover
and increasing job satisfaction, which is the condition of IHG’s workforce (Zhang & Li, 2020).
Creating an environment of open communication is essential for developing trust and
transparency among employees. Zhang and Li (2020) eel that employees can freely express their
8
opinions, concerns, and ideas through regular feedback sessions, team-building activities, and
employee recognition programs are great value tools for promoting engagement and motivation.
Besides, the organization gives chances for skill enhancement and development, which shows its
dedication to the betterment of its employees (Chanana & Sangeeta, 2020). The same makes the
workers feel that they are the owners of their work and are proud of what they do. IHG could
create cross-functional teams or task forces to deal with certain difficulties or projects. Thus, the
employees could cooperate and contribute to the essential results. Also, promoting a feeling of
being part of a team and a community is the key to the engagement and retention of employees.
Social events, group activities, and community service may unify IHG employees. Employee
involvement and a pleasant atmosphere may help IHG reduce attrition, promote job satisfaction,
and improve organizational performance.
The Role of Leadership
Leadership drives worker engagement and retention at IHG’s UK properties. Supervisors
must communicate, empathize, and motivate. Leaders may drive and value others by defining
clear standards, providing feedback and assistance, and developing trust and accountability
(Fayayola & Olorunfemi, 2023). Leadership development and mentorship may teach future
leaders and retain employees. IHG may offer leadership training, mentorship, and coaching to
develop leaders and maintain teams. Kohntopp and McCann (2020) Further explores that
modeling the expected behaviors and values are the key to earning the trust and credibility of the
employees. The bosses at all levels of the organization should be the IHG’s core values and show
their commitment to the team’s support and development. Through effective leadership practices,
IHG will be able to create a positive work environment where the employees will feel that they
9
are essential, they will be motivated, and will work with their best; thus, the success of the
organization will be achieved, and the company will be sustainable in the hospitality industry.
Conclusion
In conclusion, the problem of high staff turnover in IHG’s UK properties needs to be
addressed by the senior management team with proactive and strategic interventions in the most
appropriate way. Besides the direct financial problems that are related to the recruitment and
training costs, turnover is also a threat to the basic structure of IHG’s operations, and thus, it can
affect the service quality and, hence, it will be guest satisfaction. Considering this problem is
very complex, the IHG must find a solution to the leading causes of turnover. At the same time,
it must develop a system conducive to employee growth and engagement. This means that, in
addition to providing competitive salary and benefits packages, it is also imperative to give the
employees a clear road map for further career advancement and professional growth. Besides,
IHG has to set the goal of making a workplace where the staff members can easily talk to each
other, where the leadership is helpful and compassionate, and where the team feels like a big
family. By contributing to its employees’ well-being and growth, IHG will have a loyal,
enthusiastic workforce that can provide top-quality customers. Besides, leadership is also a
critical factor in motivating and retaining employees in the organization. Managers and
supervisors have to be an example of empathy, effective communication, and an honest, truthful
commitment to the success of their teams.
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References
Abdelazim, A. (2023). Causes of High Employee Turnover in the Jobs of the Hospitality
Industry. Proceedings International Conference on Business, Economics & Management,
1, 690–714. https://doi.org/10.47747/icbem.v1i1.1234
Batanero, J. M. F., Rueda, M. M., Fernández‐Cerero, J., & García‐Martínez, I. (2020). Digital
competences for teacher professional development. Systematic review. European Journal
of Teacher Education, 45(4), 513–531. https://doi.org/10.1080/02619768.2020.1827389
Chanana, N., & Sangeeta. (2020). Employee engagement practices during COVID‐19 lockdown.
Journal of Public Affairs, 21(4). https://doi.org/10.1002/pa.2508
Clack, L. (2021). Employee engagement: keys to organizational success. In Springer eBooks (pp.
1001–1028). https://doi.org/10.1007/978-3-030-30025-8_77
Fayayola, O. A., & Olorunfemi, O. L. (2023). Ethical decision-making in IT governance: A
review of models and frameworks. International Journal of Science and Research
Archive, 11(2), 130–138. https://doi.org/10.30574/ijsra.2024.11.2.0373
Frye, W. D., Kang, S., Huh, C. H., & Lee, M. J. (2020). What factors influence Generation Y’s
employee retention in the hospitality industry?: An internal marketing approach.
International Journal of Hospitality Management, 85, 102352.
https://doi.org/10.1016/j.ijhm.2019.102352
IHG Hotels & Resorts – Book hotels online at 6,000+ destinations worldwide. (n.d.). IHG.
https://www.ihg.com/hotels/us/en/reservation
Jyoti, J., & Dimple, D. (2021). Fun at workplace and intention to leave: role of work engagement
and group cohesion. International Journal of Contemporary Hospitality Management,
34(2), 782–807. https://doi.org/10.1108/ijchm-06-2021-0704
11
Kohntopp, T., & McCann, J. (2020). Leadership in Virtual Organizations: Influence on
workplace engagement. In Springer eBooks (pp. 1–26). https://doi.org/10.1007/978-3030-02470-3_12-1
Li, J., Jia, L., Cai, Y., Kwan, H. K., & You, S. (2020). Employee–Organization relationships and
team performance: Role of team collective efficacy. Frontiers in Psychology, 11.
https://doi.org/10.3389/fpsyg.2020.00206
Monteiro, B., Santos, V., Reis, I., Sampaio, M. C., Sousa, B., Martinho, F., Sousa, M. J., & Au‐
Yong‐Oliveira, M. (2020). Employer Branding Applied to SMEs: A Pioneering model
proposal for attracting and Retaining talent. Information, 11(12), 574.
https://doi.org/10.3390/info11120574
Morandini, S., Fraboni, F., De Angelis, M., Puzzo, G., Giusino, D., & Pietrantoni, L. (2023). The
impact of artificial intelligence on workers’ skills: upskilling and reskilling in
organisations. Informing Science, 26, 039–068. https://doi.org/10.28945/5078
Rajan, D. (2021). Organization Structure and Management Practice Related Factors Causing
Employee Turnover: An Empirical Study Among Nurses. Eurasian Journal of Higher
Education, 2(3), 36–65. https://doi.org/10.31039/ejohe.2021.3.34
Teodorovicz, T., Lazzarini, S. G., Cabral, S., & McGahan, A. M. (2023). Investing in general
human capital as a relational strategy: Evidence on flexible arrangements with contract
workers. Strategic Management Journal, 45(5), 902–938.
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Tian, A. Y., Ahammad, M. F., Tarba, S., Pereira, V., Arslan, A., & Khan, Z. (2021).
Investigating employee and organizational performance in a cross‐border acquisition—A
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case of withdrawal behavior. Human Resource Management, 60(5), 753–769.
https://doi.org/10.1002/hrm.22058
Vokić, N. P., Bilušić, M. R., & Najjar, D. (2020). Building organizational trust through internal
communication. Corporate Communications, 26(1), 70–83. https://doi.org/10.1108/ccij01-2020-0023
Zhang, T., & Li, B. (2020). Job crafting and turnover intention: The mediating role of work
engagement and job satisfaction. Social Behavior and Personality, 48(2), 1–9.
https://doi.org/10.2224/sbp.8759
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https://doi.org/10.1108/whatt-07-2022-0080
1
Addressing High Staff Turnover in InterContinental Hotels Group (IHG) UK Properties
Research Report
Sarah Bramble
CTU
5/26/2024
2
Introduction
The high turnover rate is a crucial challenge for the InterContinental Hotels Group (IHG)
UK properties, causing the company to experience operational inefficiencies caused by increased
costs for constantly hiring and training newly hired employees (Song, 2023). It also affects group
dynamics and service delivery quality, reducing employee motivation and morale. The low
quality of service and reduced employee motivation may earn IHG a bad reputation, reducing the
number of customers who seek their services. If not solved, high employee turnover may cause
adverse effects on IHG, including reduced service quality, because it may take time to effectively
train new employees to ensure they maintain the organization’s high service quality. This may
lead to losing customers because guests may go to alternative hotels that provide them with highquality services. High turnover may also lead to increased training and onboarding costs,
employee burnout, and the derailment of the company’s long-term goals.
This research aims to single out the causes of high turnover and provide
recommendations to IHG UK senior management on strategies to meet their needs by increasing
employee retention and improving the performance and profitability of IHG UK properties. The
research on high turnover rate and its impact on IHG UK properties was conducted through a
literature review analyzing existing academic articles on high employee turnover rates in the
hospitality industry. The IHG website also provided valuable information on how the high
turnover rate has affected operations in IHG UK properties. The databases used to help find the
peer-reviewed articles include the CTU library and Google Scholar, which had several articles
that provided valuable insights on the topic.
Literature Review
3
Causes of High Turnover Rate
The hospitality industry is significantly affected by high turnover rates, which affect the
performance of hospitality organizations; an understanding of the causes of the high turnover
rate is required to develop effective solutions. Zvaigzne et al. (2022) highlight that job instability
and inconsistency in the hospitality industry caused by seasonality significantly contribute to
high employee turnover. Those with temporary contracts and irregular working hours are at high
risk of high turnover due to the uncertainty of job security, which leads to them looking for more
permanent jobs elsewhere. Another reason is a lack of acknowledgment of the employees for the
work they are doing, which may lead to reduced morale and motivation (Rajan, 2021). In the
hospitality industry, employees are expected to provide outstanding services day and night to
ensure customer satisfaction; however, their hard work is rarely appreciated, leading to them
resigning from their jobs for better ones.
Unequal workload distribution is another reason for high turnover, where some employees
are given more workloads than others, leading to burnout for those with overwhelming
workloads (Abdelazim, 2023). Burnout is a significant issue for employees, especially during
peak seasons when one may have a heavier workload than usual, making them unsatisfied with
their work and looking for other jobs. An employee’s lack of organizational commitment also
increases their chance of resigning from their job shortly after being employed. High
organizational commitment is brought by an emotional commitment by an employee, which is
fostered through career development opportunities, effective employee management, training,
strong communication, and trust between employees and management (Guzeller & Celiker,
2020).
4
Consequences on Organizational Performance
A high turnover rate has significant consequences for an organization, leading to
operation inefficiencies through increased hiring and onboarding costs, lack of knowledge
transfer, talent gaps, and inefficient team cohesion. Morandini et al. (2023) highlight that high
turnover interferes with operations through work cooperation, management and leadership gaps,
and lack of knowledge transfer. As experienced employees leave an organization, they leave a
management and leadership gap, which they hold, leaving it to new employees who still do not
understand the dynamics of the job. This may lead to ineffective decisions and planning
processes that may negatively influence organizational operations and interfere with the
company’s efforts to achieve its strategic goals. Experienced employees leaving also leads to a
lack of knowledge transfer where there will be no employees with extensive knowledge about
the organization’s workings, affecting efficient planning and problem-solving. Turnovers affect
team dynamics because constantly working with new hires may take time to get the right fit and
get used to working together, leading to morale and motivation decline, conflicts, and
communication disconnects, leading to reduced productivity (Jyoti & Dimple, 2021).
Strategies To Solve High Turnover Rate
There are several strategies that IHG UK can utilize to help address the issue of high
turnover, ensuring employees stay for longer and increasing company performance, productivity,
and profitability. Monteiro et al. (2020) suggest that competitive pay can help reduce high
turnovers since pay is relatively low in the hospitality industry, contributing to the turnover rate.
Higher pay compared to IHG UK competitors can help to attract and retain employees since they
are well compensated for their jobs. Heimerl et al. (2020) recommend flexible and reasonable
5
working hours, which promotes work-life balance, giving the employees time to socialize and be
with their families. Unsatisfactory working hours may lead to stress, physical and mental
exhaustion, and time pressures, increasing the risk of burnout by the employees.
Competency development is another suggestion where IHG should offer skills training
opportunities, mentorship programs, and career development assessments, helping employees to
decide on their next career opportunity and goals within the organization, especially for
millennial employees (Younas & Waseem Bari, 2020). IHG should assess individual employee’s
areas for improvement and provide them with training opportunities to work on their
improvement areas, ensuring they achieve their personal and organizational goals. Skill training
and development can help increase employee engagement since this shows the organization’s
dedication to the advancement and success of its employees (Chanana & Sangeeta, 2020).
According to Koo et al. (2020), emotional and material rewards are necessary to help celebrate
employees’ achievements and contributions to the organization’s success. Emotional rewards
include recognition, compliments, and empowerment, while material rewards include monetary
incentives and promotions (Koo et al., 2020). This can be conducted through employee
appreciation and recognition awards, where the employees can receive various rewards for their
hard work.
Ghani et al. (2022) and Zhang & Li (2020) suggest that sustainable and effective
communication is a vital strategy in helping ensure open communication, giving employees
opportunities to share their ideas, and providing honest feedback. Effective communication
promotes a healthy work environment, increases job satisfaction, and gives employees the
opportunity to contribute to the organization’s growth. Ohunakin et al. (2020) recommend that
6
management support is essential since it will help improve the employee and management
relationship because employees feel valuable to the organization. Another strategy is providing
employees with informal coworker socialization and fun, especially for young adult employees
(Tews et al., 2020). This can be through organizing social events and community service where
the employees can be themselves, relax, and interact informally with their coworkers, helping to
strengthen work relationships and trust and increasing team cohesion.
Leadership plays a crucial role in reducing turnover rate because leadership is responsible
for motivating employees, communicating company goals and direction, fostering career growth
through mentorship and training opportunities, and controlling and fostering trust and
accountability (Fayayola & Olorunfemi, 2023). Gom et al. (2021) highlight that transformational
leadership traits in hotel managers and supervisors increase the chance of developing positive
employee-leader relationships and reducing turnover rate since they inspire and motivate
employees, fostering a positive work environment. Offering leadership training and workshops
for hotel managers and supervisors can help develop positive leadership skills, which are
necessary to help foster positive manager-employee relationships and work environments,
increasing employee retention (Zia et al., 2022). This would help in the development of ethical
behaviors and values in the leaders, helping to promote trust and credibility among employees
(Kohntopp & McCann, 2020).
Discussion
The high turnover rate is a significant issue facing the hospitality industry, and it has been
normalized with many employees moving from hotel to hotel after working for a short
while. The reasons for a high turnover rate in this industry include job instability and
7
inconsistency, lack of employee acknowledgment and appreciation, unequal workload
distribution leading to burnout, and lack of organizational commitment by employees. The high
turnover rate adversely affects organizational performance, customer satisfaction, and company
profitability. The impacts include operation inefficiencies through increased hiring and
onboarding costs, lack of knowledge transfer, talent gaps, and inefficient team cohesion. To
solve this issue, IHG should consider implementing the following remediating strategies:
competitive pay, flexible and reasonable working hours, competency development, emotional
and material rewards, sustainable and effective communication, management support, and
informal coworker socialization and fun. Leadership plays a crucial role in helping reduce
turnover rate since they are responsible for ensuring the employees’ success. Transformational
leadership traits like motivating and positively influencing employees help to create a positive
work environment, promoting employee retention. Leadership training should help provide
leaders with practical leadership skills and ensure they develop ethical behaviors and values.
Conclusion and Recommendations
Senior management should consider implementing several of the above recommendations,
if not all, to help address the issue of the high turnover rate in IHG UK properties and ensure
they promote employee satisfaction and reduce the turnover rate. More research should be done
on handling the turnover rate in the hospitality industry since new causes and solutions for high
turnover rates are emerging with the development of technology and a diverse workforce. The
recommendations to IHG UK properties senior management include:
•
Competitive pay.
•
Flexible and reasonable working hours
8
•
·Competency development
•
Emotional and material rewards.
•
Sustainable and effective communication.
•
Management support
•
Informal coworker socialization and fun.
•
Implementation of transformational leadership traits
•
Leadership training
9
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