Assessment of the labour turnover and wastage levels in three to five star-rated hotels in Nairobi, Kenya
Kung'u, Samson Kuria
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Labour turnover represents direct cost to organizations. It affects organizational growth, profitability and customer satisfaction. The purpose of this study was therefore to establish internal and external causes labour turnover levels, determine labour turnover levels as well as to determine labour wastage levels in three and five star-rated hotels in Nairobi city. Nairobi city had 7 hotels classified as three star and 9 hotels classified as five star- hotels. The study adopted descriptive survey research design. Simple random sampling method was used to pick respondents for this study. Subjects for this study included 16 Human resource managers and 493 non-management employees working on permanent basis in the selected hotels. This study therefore involved a total of 133 permanently employed staff working in these star-rated hotels. Data from the respondents were collected using both structured and unstructured questionnaires.Descriptive statistical tools such as, means, standard deviations ratios, percentiles and correlations were used to present the study findings. The results indicated that labour turnover was higher (68%) in three star-rated hotels compared to 13% in the five star-rated hotels. The results also indicated that training, experience, age, promotion and the hotel star-rate were key factors in determining the labour turnover. The results indicated that labour wastage due to job transfers and resignations within 12 months had a mean score of 5.0, slightly below the industry'S mean score of 7.0. Subsequentl y, unfavo rable working conditions, long working hours with minimal pays and poor employees training policies were the main causes of labour turnover in both hotel categories under the study. The results also indicated strong positive Pearson product moment correlations among the employment duration, number of years worked, experience and job change which ranged from -.652, .867 where p<.OI. The study therefore recommended that, the management in hotels to initiate employee' retention programmes as human capital is the most valuable ,asset of all organizations. Additionally, the management to review the employees' ,welfare conditions such as giving better salaries, introducing flexible working hours to 'hotel employees in order to balance individual work and personal life; among other incentives. The study further recommended improvement of the working conditions in the hotel sector in order to boost employees' morale as these are the ingredients to employees' commitment to the organization. The study further suggested that a similar study needs to be carried out at a national level to determine labour wastage in all starrated hotels in Kenya.