Why Employees Leave

Abstract

In part one of this series on employee turnover in the hospitality industry, the authors presented evidence showing an estimate of $2,500 as the average cost of each incident of employee turnover. ¹ Given typical turnover levels, such costs represent a major loss of revenue that must be controlled to maintain profitability. Developing con trols on turnover costs is an especially timely strategy for offsetting the rising costs of capital goods and energy. It was pointed out that turnover costs could be reduced without large expenditures, because employee turn over is the result of a wide variety of factors that often involve the level of employees' job satisfaction. Manageri al practice, effective supervision, and sensitivity to individual aspirations, all inexpensive to adjust, can greatly improve employee morale.