SEA SALT RESTAURANT

Chapter 1 Introduction:

In Australia there is high staff turnover on the hospitality industry however, the highest staff turnover is in Restaurant/Bar that is 1318 and 25.73%. This indicates that individuals leave this company more often than any other (Davidson, Timo & Wang, 2010, pp. 27). High staff turnover in restaurants can have negative impacts like reduction in productivity, low profit and rise in various costs (Tracey & Hinkin 2008 as cited in Liu, 2014, pp. 1). High Staff Turnover is described as the total number of employees who have resigned during the time taken into consideration divided by the average number of employees in the company during the time (Price, 1977 as cited in Iqbal, 2010, pp. 275). In any organization, business and firm employees are an essential part as well any accomplishment done by the company or a firm in solely based on the hard work of the employees (Samuel & Chipunza, 2009). Staff Turnover is considered a huge loss for the firm because the company have used all their resources on these employees to make them a skillful and talented worker of the workforce only to resign from the company and leave it. A firm who has a lot of high staff turnover are prone to face high risks in the long term (Tracey and Hinkin, 2008, pp. 18). Every firm in the world have the desire to have a rise in the firm’s efficiency and decrease the staff turnover at any point, hence diverting the firm towards profit and success. Although high staff turnover will force the firm to face turmoil in the form of indirect and direct costs (Al-Mamun & Hasan, 2017, pp. 63). There are various reasons for employees to think about leaving their jobs are marriage, gender, age, education and the total amount of time they have worked for in the company (Liu, Li & Li, 2006, pp. 86). Moreover, staff turnover can be in a way beneficial for the company like any employee that is not performing well can be changed which will have an impact on the resources spent on that particular staff member, the costs include external costs like recruitment, training etc., concealed costs like low self-esteem, decrease in the firm’s repute etc. (Liu, Li & Li, 2006, pp. 85). The rise in globalization gives birth to an increase in competition, the firm should definitely make more of physical commodities and offer various services that are on the bases of tactics produced by the staff. The services by the employees are intangible and it’s not easy for every employee to provide the same service with that enthusiasm (Stovel & Bontis, 2002, pp. 304). Heneman and Hugde (2009 as cited in Iqbal, 2010, pp. 275, 276) have introduced types of turnover, there are two kinds of turnovers that are given below:

1. Voluntary Turnover:
Voluntary turnover is further divided into:

• Avoidable Turnover: this type of turnover can be can be barred by few company’s actions like increase in the salary or any new employment task.
• Unavoidable Turnover: A turnover that can not have been protected by the company is any situation like staff member’s death or partner’s transfer.

2. Involuntary Turnover:
Involuntary turnover is divided into two types that are:

• Downsizing Turnover: this type of turnover can be due to restructuring of the firm, reduction in firm’s cost to increase efficiency and to upsurge shareholder worth.
• Discharge Turnover: this type of turnover occurs due to discipline of the employee or employment performance issues.

Thus, there are multiple factors that can be the reason foe high staff turnover and cannot be dealt by the management like the incapability of the employee. Previously, other factors came under involuntary turnover like children care or looking after old family members. Currently, this type of components is not seen as a reason for any employee to leave work because many companies have included policies that allows the employees to resume their work (Ongori, 2007, pp. 50).