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.
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- 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.
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About Timothy R. Hinkin Ph.D.
Tim Hinkin is professor of Management at the School of Hotel Administration, where he has taught since 1992. Hinkin served as the school’s director of Undergraduate Studies for six years. He also teaches in the school’s Professional Development Program. Hinkin’s primary research focus is in leadership, employee retention, supervisor-subordinate relationships and managing service quality. He recently published, “Cases in Hospitality Management: A Critical Incident Approach” (2nd edition, New York: John Wiley , 2006), Hinkin has also written many articles published in journals such as Human Relations, Journal of Applied Psychology, Hospitality Research Journal, and the Cornell Hospitality Quarterly. Hinkin has provided training and consulting for a wide range of enterprises. His clients include IBM Corporation, Israeli Hotel Managers Association, Institute for Hotel Management, Accor of North America and ClubCorp USA, Inc. Hinkin earned his Ph.D. at the University of Florida, and his B.A. and M.B.A. degrees at Michigan State University.
For more information visit http://www.hotelschool.cornell.edu/research/facultybios/faculty.html?id=35
About J. Bruce Tracey Ph.D.
J. Bruce Tracey, associate professor of Management, received his PhD from the School of Business at the State University of New York at Albany in 1992. He has taught courses in human resources management for undergraduate, graduate, and professional audiences throughout North America, Europe and Asia, and he has won several awards for his efforts. He has conducted research on a wide range of strategic and operational-level HR topics, including the impact of training initiatives on firm performance, employee turnover, employment law and leadership. He has presented his work at numerous regional, national and international conferences, and his research has been published in diverse outlets such as the Journal of Applied Psychology, the Cornell Hospitality Quarterly, and the University of Pennsylvania Journal of Labor and Employment Law. Tracey’s recent sponsors for research and consulting include Four Seasons, Hilton, ClubCorp and Uno Chicago Grill, and he has been cited in USA Today and the Orlando Sentinel, among other popular press outlets.
For more information visit http://www.hotelschool.cornell.edu/research/facultybios/faculty.html?id=85
