Faculty & Research
Development and Use of a Web-based Tool to Measure the Costs of Employee Turnover: Preliminary Findings
Vol 6 No 6
By: Timothy R. Hinkin Ph.D. and J. Bruce Tracey Ph.D.
Executive Summary: Employee turnover continues to be one of the most vexing and costly challenges in the hospitality industry. Despite the obvious expense of turnover, few studies have attempted to account for the diverse costs associated with replacing staff. Rather than estimate the cost of turnover, the web-based tool described in this report compiles the specific costs of turnover in the following five categories: pre-departure costs, recruiting costs, selection costs, orientation and training costs, and the cost of lost productivity. Looking specifically at turnover among front-desk associates, recruiting constitutes a substantial portion of turnover costs. The greatest expense, however, that of lost front-desk productivity, may also be the most overlooked. A case study that examines one hotel company's fast-track management-training program for college graduates found that training costs are a substantial portion of the hiring process-an expense that is magnified by a 25-percent attrition of trainees. Both with the web-based data and the case study, the effects of turnover on existing employees and supervisors appear to be given shorter shrift than they deserve. Further participants in the web-based study would be instrumental in solidifying the costs of turnover for the lodging industry.
Your Comments Please
If this CHR Report made a positive impact on your management approach or business operations, we welcome your commentary. We would like to post your comments on our website. Please submit your comments to js372@sha.cornell.edu and dss18@sha.cornell.edu.
Download The Report
To view the whole report, please click on the link below
- Development and Use of a Web-based Tool to Measure the Costs of Employee Turnover: Preliminary Findings By: Timothy R. Hinkin Ph.D. and J. Bruce Tracey Ph.D.
| If you have trouble downloading a report, and are able to install software on your computer, try upgrading to the latest version of Adobe Acrobat Reader to see if that allows you to read it. |
Other Reports or Articles You May Find of Interest
- Retaining Management Talent: What Hospitality Professionals Want from Their Jobs (PDF 1 MB) by Masako S. Taylor and Kate Walsh, Ph.D.
- Why Discounting Still Doesn't Work: A Hotel Pricing Update (PDF 1 MB) By Linda Canina, Ph.D. and Cathy A. Enz, Ph.D.
- Closing the GAPPP: Increasing Your Internal Influence with Confident Communication by Judi Brownell, Ph.D. and Daphne Jameson, Ph.D.
About Timothy R. Hinkin Ph.D.
Timothy R. Hinkin is Professor of Management at the School of Hotel Administration, Cornell University. Prior to coming to Cornell in 1992, he spent six years on the faculty at the McIntire School of Commerce, University of Virginia. He has been a Visiting Scholar at the University of Bath, England, Griffiths University in Brisbane, Australia, and the Chinese University of Hong Kong. He was awarded a Fulbright Scholarship in 1995. He received his BA in Hotel, Restaurant and Institutional Management (1974) and MBA (1982) from Michigan State University, and his Ph.D. (1985) in Organizational Behavior from the University of Florida. Before pursuing his graduate studies, Professor Hinkin had several years of managerial experience with the Hyatt Hotel Corporation and Sysco Corporation.
Professor Hinkin's research focuses primarily on leadership, managing service quality, employee turnover, and research methods. He is co-editor of Journal of Quality Assurance in Hospitality & Tourism and a member of the editorial board of Organization Research Methods. He has authored the book Cases in Hospitality: A Critical Incident Approach. 2nd ed., and he has published over 50 articles in journals such as the Academy of Management Journal, Journal of Applied Psychology, Organization Research Methods, Cornell Hotel and Restaurant Quarterly, and Hospitality Research Journal, as well as several book chapters. He is an active member of the North American Case Research Association, the Southern Management Association, and the Academy of Management.
About J. Bruce Tracey Ph.D.
J. Bruce Tracey is an Associate Professor of Management at Cornell University’s School of Hotel Administration. He received his Ph.D. in Organizational Studies from the State University of New York at Albany in 1992. Professor Tracey has taught courses in strategic and human resources management for undergraduate, graduate, and professional audiences, and he has won several awards for his efforts. His current research focuses on the effectiveness of human capital investments, particularly the relationship between training and development initiatives and firm performance. He has also conducted research on leadership, employee turnover, and labor and employment law. He has presented his work at numerous regional, national, and international conferences, and his work has appeared in diverse outlets such as the Journal of Applied Psychology, the Cornell Quarterly, and the University of Pennsylvania Journal of Labor and Employment Law. Recent sponsors for Professor Tracey’s research and consulting include the American Hotel and Lodging Association, Four Seasons, Le Parker Meridien, and Uno Restaurant Co.
