Faculty & Research

The Costs of Employee Turnover: When the Devil Is in the Details

Vol 6 No 15
By: J. Bruce Tracey Ph.D. and Timothy R. Hinkin Ph.D.

Executive Summary:

Employee turnover continues to be a concern for many hospitality firms. To gain insights about the relative costs of different aspects of turnover, we first compared the costs of turnover for different hotel types. Based on data gathered from 33 U.S. hotels, we found that the costs of turnover were generally higher for: (1) higher complexity jobs; (2) independent properties; (3) properties with relatively high room rates; (4) large properties; (5) high- occupancy properties; (6) properties in markets with a high cost-of-living index; and (7) properties in markets with a high unemployment rate.

We also examined the relative effects of actions taken to replace departing staff, and found that the damage to productivity caused by the inexperience of new employees is the greatest contributor to the overall costs of turnover.

Download The Supporting Documents
To view the documents, please click on the link below

• The Costs of Employee Turnover: When the Devil Is in the Details   By: J. Bruce Tracey Ph.D. and Timothy R. Hinkin Ph.D.

Other Reports or Articles You May Find of Interest

• Development and Use of a Web-based Tool to Measure the Costs of Employee Turnover: Preliminary Findings, by Timothy R. Hinkin and J. Bruce Tracey
• Intellectual Capital: A Key Driver of Hotel Performance, by Linda Canina, Cathy A. Enz, and Kate Walsh
• Using Your Pay System to Improve Employees' Performance: How You Pay Makes a Difference, by Michael C. Sturman

About J. Bruce Tracey Ph.D.

About Timothy R. Hinkin Ph.D.

Your Comments Please

If this CHR Report made a positive impact on your management approach or business operations, we welcome your commentary.

• 2006 Reports
• The Costs of Employee Turnover: When the Devil Is in the Details

Rate this article