A Study On The Cause And Countermeasures Of Employee Turnover In SD Chain Hotel Branches

Employee turnover has been one of the hot issues among various scholars and company managers, and now the society have paid increasingly attention to how to enhance employees’ sense of attachment and their degree of satisfaction.China’s reform and opening-up policy has promoted the economy and tourism to thrive, as a result of which China’s hotel industry is faced with unprecedented fierce competition. However, competition among companies is essentially that of talents. On the one hand, labor intensive industries such as hotels demand more labor than any other industry, on the other hand, it is difficult and common for hotels to recruit and retain talents, and high rate of staff resignation has brought about a chain of problems such as excessively high labor cost, decrease of service quality, and reducing operational efficiency, which have direct impact on a hotel’s competitiveness in its industry. Analyzing turnover of hotel front-line employees can provide China’s service industry, especially labor intensive service industry, with subjective foundation and decision-making references for reducing employee turnover, improving business management level, and sustainable development.SD Chain Hotel, a domestically renowned economical chain hotel founded in 2005, now owns over 3,000 branches that cover more than 300 cities all over China after developing for over a decade. Recent years, affected by its lagging human resource management and short supply of the labor market, problems such as high employee turnover in its branches have severely affect the hotel’s operating cost, management benefits, and service quality, etc.As a result the hotel senior leaders and its personnel support center have both paid particular attention to employee turnover for high turnover rate have been one of the key factors hindering the hotel’s sustainable development.To begin with, this paper introduces the background and significance of studying employee turnover, gives definition to relevant concepts concerning this issue, and refreshes the research status and theories at home and abroad, followed by the introduction to the profile, background and branch organizational structure, corporate culture and employee turnover situation of the hotel. Questionnaires are used to survey the employees of the hotel’s branch in Wuhan as source of sample data, which then goes through descriptive statistical analysis, reliability analysis, validity analysis, and factor analysis by using SPSS software to work out the factors affecting the degree of staff satisfaction in SD Chain Hotel:salary, welfare, career development, labor relation and training. Analysis of these factors suggests that employees’ overall satisfaction is not high. Further analysis on the relationship between employee satisfaction and their turnover intention and regression equation indicate that there is negative correlation between employee satisfaction and turnover intention, namely the lower factor score of employee satisfaction is, the higher their turnover intention will be. To find the concrete reason for employee turnover, the author, by visiting the employees from ten branches of SD Chain Hotel, learns that it is a variety of factors such as underpayment in branch hotels, welfare guarantee far lower than urban minimum level, few promotion opportunities, lack of communication between leaders and employees, and lack of employee career profile, etc. that lead to their dissatisfaction.By drawing the management experience that excellent hotels use in improving employee satisfaction and reducing turnover, combining the actual management situation of SD Chain Hotel, the author puts forward countermeasures to solve the problems above:the company is supposed to build a people-oriented employment ideality, perfect its salary and welfare system, exercise strict control over recruitment quality, offer staff promotion opportunities, strengthen communication with employees, promote employee career development, and do handle employee turnover properly, etc. The research achievement of this paper may play some guiding significance in improving employee satisfaction and reducing turnover rate to SD Chain hotel, providing references for other labor intensive service industries.