This document discusses employment issues in the hospitality industry caused by low compensation and high turnover rates. It explores issues like low wages, long working hours, and high turnover. Numerous studies have shown that high turnover in hospitality is linked to poor job performance, employee dissatisfaction, and resignations. The nature of the industry and economic conditions of some countries contribute to these problems. Strategies are needed to improve compensation, working conditions, and employee satisfaction to reduce turnover in the hospitality sector.

1. 
 KEY WORDS
 High turnover
 Compensation
 Employment issues
 Wage and Salary

2. 1http://www.floridataxwatch.org/2013o
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3. Employment problems in Hospitality
Compensation-Turnover
 Summary: The sharp influx of travelers has made and continues to make the
hospitality/tourism industry an important area of employment for variety groups in labor
market.
 This study discusses and evaluates employment problems in the hospitality industry
caused by low compensation and high turnover rates.
 The purpose of this study is to focus on the major problems and challenges in this
endeavor such as
 The low level of wages- compensation
 The long working hours
 High Turnover
 The low employee satisfaction

4.  This study will be exploring current common employment issues related to
poor compensation and the high turnover rate it causes. Here we will
develop set of strategy to future hospitality leaders in this class.
 As numerous studies have proven the high turnover rate found in the
hospitality industry is the leading cause of poor job performance, employee
dissatisfaction and resignations

5.  As leaders of the hospitality & tourism industry, we should understand that there is a
direct link between fair pay (compensation) and an increase in customer volume
and revenue.
 If hospitality/tourism companies continue to have the reputation of having high
turnover rates and poor compensation, then companies will not be able to get the
most productive employees to work for them.
 If owners feel that they cannot afford to pay their employees fair, competitive, and
reliable wages, they will understand the true cost of turnover. “It is more cost effective
to pay a good employee to stay and to be productive, than to incur turnover costs
when they leave.” (William, 2010)

6.  The nature of hospitality and tourism employment is determined global changes and
conflict, the internal dynamics of the country, and climate. We all know that
hospitality/tourism is a service industry and it is not possible to replace employees with
machinery.
 When we look at the developed countries that have remained attractive destinations, it is
not enough just having museums, being a seasonal or temperate place, or having big
modern buildings and attractions; this industry is definitely going to need professionals, and
educated people who know how to utilize these investments. And of course their
happiness, satisfaction is important factor to providing good service.
Almost all employment opportunities associated
with tourism in developing countries may be
accorded a high status by the local
population.

7.  Low level of wages
 Economic condition of the lesser developed countries is poor. So these countries are
unable to pay high wages.
 Poorer countries’ governments are less willing to have workers rights as it drives off
foreign investments which are looking for cheap labor in order to maximize profit.
 Mostly employers do not recognize true labor.
 There are too many candidates for jobs in the market and this results in low wages or
forces to employees to decide quickly.
 For example, in many ‘non-developed’ cultures, service towards others (especially the
wealthy) and the service industry in general are allocated a high status and
importance in society (Cukier, 1998a).
 Most services of the hotel tip oriented business.
 Cost increase

8. 2011

10. LONG WORKING HOURS
 Nature of the business ( banquet, group check ins functions)
 Call offs
 Holiday shifts
 Extended work hours
 Employers takes advantages of salaried employees
 Schedule changes

11.  Turnover
 The rate at which an employer gains and losses its staff is called
employee turnover.
 How is turnover calculated ?
 The turnover is frequently calculated as the ratio of the number of
employee’s separation during a month to the number of employees on the
payroll at the middle of the month.

12. Reasons of the Turnover
1-Seasonality of the jobs
2- Organizational culture: Lack of
culture
3- Labor Pool: Untrained
4- Customer Service. Judge abusive gsts
5- Pay Rates and Hours of the job

13. 1. Poor
2. Poor fit org. culture
3. Poor Pay
4. Poor Connections SPV
5. Poor opportunities

14.  Low Employee Satisfaction Employee satisfaction or job
satisfaction is simply, how
content or satisfied employees
are with their jobs. Satisfaction
could be measured using the
surveys.

15. Discussions
 How can we satisfy the employees?
 What factors would be using prevent turnover?
 Is pay element good enough to stop turnover?
 What strategies can we set to make employees happier first then enjoy
their Job?

16. Conclusion
 Increasing Job satisfaction
 Good leaders improve the service quality
 Equal wage for equal Job
 Manager has to acknowledge to skills of employees
 Mentoring program