A study on the factors of High Labour Turnover within the Hotel Industry in Johor Bahru
1.0 Introduction
The hotel industry in Malaysia was considered the second highest industry that contributed to the national GDP. A report from the Malaysia Insider (2010) stated that 9% of the country’s GDP is contributed by this industry due to the increasing numbers of tourists visiting the nation. This can be seen from a 2010 report by the MTPB which showed 16.4 million tourists arrived in 2005, later the number increased to 23.6 million within 5 years. Thus, an increase in the number of tourist means that there will be more job opportunities for the locals. However according to the report from the Ministry of Human Resource in 2009 it mentioned that the Tourism employee turnover in Malaysia is relatively high at 16% and 8% was contributed by hotel employee turnover.
Manpower is crucial to any industry but to the service industry manpower shortage would be the biggest challenge faced by the hotel industry when compounded by the issues of staff retention and job satisfaction. In an increasingly competitive landscape, the hospitality industry must endure upon restructuring especially in aspects of career progression opportunities and matching the industry growth with the talent and service levels as well as monetary and non-monetary reward structures. It has become a necessity to look at the context of labour turnover within the hotel industry and decide on benchmark practices to battle the operational and administrative challenges that the high levels of turnover posed.
This paper is proposed to analyse and evaluate the impact of labour turnover in two key establishments in the hotel industry. The information that this research could provide shall enable the two establishments in promoting strategies that will minimise the high rate of turnover and optimize the levels of