Hourly Employee Retention Factors in the Quick Service Restaurant Industry

Abstract

Hourly employee retention in the quick service restaurant industry has long been a major area of concern for both operators and multi-unit restaurant decision makers. While numerous studies concentrated on managers' perceptions on why employees leave, few have explored the employees' perceptions on employment characteristics that kept them from changing jobs. The study employed a self-administered questionnaire and asked 233 quick service restaurant employees in the Midwestern region of the United States to rate the importance of and their experience with 20 employment characteristics of their job. The findings revealed that the most important employment characteristics were nice people to work with, humane approach to employees, and hourly wages. In addition, the study showed statistically significant differences between the level of importance and the level of experience attached to 18 out of 20 employment characteristics, which could explain the high turnover and low retention of employees in the industry. Implications for management are discussed.     

人力资本、社会资本及心理资本对酒店员工的协同作用

酒店是劳动密集型的工作场所,员工不仅需要一定的人力资本,而且更需要社会资本与心理资本,研究这3种资本对酒店员工绩效与组织承诺的协同作用具有理论与现实意义。文章通过实地调研,运用逐步回归方法实证探讨这一问题,研究结果表明：酒店员工的人力资本、社会资本和心理资本都与员工绩效、组织承诺显著相关,且心理资本与社会资本、人力资本能对员工绩效、组织承诺产生协同作用。因此,酒店应该重视员工的社会资本与心理资本,并协同开发这3种资本,以便提高员工绩效,减少流失率。     

The Perceived Importance of Job Attributes Among Foodservice Employees in Hong Kong Hotel Industry

Abstract

This study explored the perceived importance of fourteen job attributes among foodservice employees in Hong Kong hotels. The study identified that Pay was ranked as the most important job attribute, followed by Fringe Benefits, then Advancement and Promotion, respectively. Status, Job Autonomy, Skill Utilization, and Supervision were the attributes ranked as having the lowest importance. Four factors were derived from the fourteen job attributes: Intangible Job Context, Employee Development and Skill Utilization, Remuneration Packages and Workplace, and Intangible Work Rewards. Results of ANOVA indicated that the four factors varied significantly related to the employees' Education Level, Income Level, Position, and Type of Hotel. Implications for future studies of job attributes were discussed.     

Making Employee Turnover Calculations Useful

ABSTRACT

There seems to be a consensus among industry practitioners regarding the detrimental effects of turnover. However, based on interviews conducted with seven human resource directors of national hospitality brands, it appears that the turnover ratios in current use may not identify employee turnover root causes. Because of the variability and the subjectivity of turnover cost calculations, the research proposed that turnover efforts be focused on resolving root causes rather than on calculating costs. The research provided a turnover ratio calculation process that facilitates corrective action. This process provides sufficient detail so that management may identify core turnover issues. Recommendations included: (1) Differentiate between types of turnover (controllable or uncontrollable), (2) Separate ratio calculations of management from those of hourly employees, (3) Use average number of employees as the ratio calculation denominator, and (4) Break calculations down by department (by division and then further by front and back of the house).     

The Impact of Internal Branding on Employee Engagement and Outcome Variables in the Hotel Industry

The concept of internal branding is well accepted in the service industry. This study examines how internal branding helps service organizations achieve desirable outcomes such as job satisfaction and employee loyalty. The model is developed based on social exchange theory and considers the relationship among internal branding, employee engagement, job satisfaction, and employee loyalty. The model is tested on service employees of hotels in South Korea using a survey method. The study finds internal branding is critical for employees to be engaged with the job and the organization and employee engagement fully mediates the relationship between internal branding and job satisfaction. Several implications are discussed.     

An Examination of the Relationship Between Employee Perception and Hotel Brand Equity

Brand management stresses the importance of satisfying the needs of external customers. Employee branding management shows an evolving trend as employees begin living the brand. It is, therefore, necessary that employees are convinced by the hotel brand prior to having confidence to “sell” the brand to customers. The present study aims to investigate employee perception toward hotel brand equity, particularly in the Hong Kong hotel industry. Factor analysis is used to identify four underlying factors—namely, employee commitment, employee engagement, employee identification, and service quality. The four constitute the perception of the employee on the evaluation of the brand. Correlation analysis is employed to examine relationship among the underlying factors and three dimensions of hotel brand equity—including brand image, brand awareness, and perceived quality. Moderate association is generally noted, and perceived quality has the most significant relationship with employee perception on brand equity. Managerial implications on employee branding management are introduced to hotel management. Topics for future research are also recommended.     

An Empirical Application of Quantitative Derived Importance-Performance Analysis (QDIPA) for Employee Satisfaction

ABSTRACT

Importance-performance analysis (IPA) is a common analytical tool that has been used in a variety of applications. The method has been criticized for a number of reasons. Suggested alternative methods utilize the concept of derived importance (Oliver, 1997; Mount, 1997) and a quantitative interpretation of the traditionally visual results (Mount, 2000). This study illustrates how a method using both of the suggested alternatives is utilized to analyze employee satisfaction issues in a hotel.     

Impact of Guest Reward Programs on the Firms' Performance

ABSTRACT

This study investigates the commonly important variables that characterizes the reward programs of airline and hotel firms and measures the impact of reward programs on the firms' overall performance. This study focuses on examining the reward programs of two service industries, namely, airlines and hotels. The findings of this study are as follows. First, ten significant variables of the reward programs that differentiate their own program from the other and ultimately make consumers choose a particular program among various programs are derived and evaluated. T-test is employed to examine significant differences between the two ROE means for each of the ten variables. The variables that were significant were elite level qualification, affinity credit card, and award threshold were significant at the 0.01, 0.05, and 0.10 level, respectively. Second, the impacts of those influential variables on the firms' performance are measured. The three variables, purchasing miles or point, enrollment bonus, and award threshold are statistically significant at the 0.05 level. Purchase miles or points and enrollment bonus contributed significantly to the firms' return on equity (ROE), while the award threshold seemingly reduced the firms' earned ROE. Both the airline and hotel firms should be sensitive when establishing reasonable and attainable threshold levels for their customers. Customers generally turn away from high barriers and are more likely to select a program with less restrictions and conditions.     

The Impact of Occupational Stress on Employee's Turnover Intention in the Luxury Hotel Segment

This study attempted to identify common characteristics of long-term restaurant employees through employee interviews. The results of this study indicated that certain themes emerged that were found to be common in these long-term employees, such as financial need to work and having friends who work. Incorporating these themes into structured interviews could aid managers in better employee selection.     

Retention of Hourly Hotel Employees

Abstract

The major objective of this study was to explore the reasons behind hourly employee turnover in the hotel industry. Data was collected from 230 hourly employees in ten small and medium-size hotels located in the Southeast U.S. The results empirically confirmed that hourly employees' retention was predicted by self-fulfillment and working conditions rather than monetary rewards. More specifically, employees who were more likely to stay with their current employer: were not interested in finding another job, had a positive experience with their hotel's company policies, were satisfied with their current job, attributed a higher level of importance for paid vacation, had a positive experience with regard to their hotel's humane approach to employees, and did not attribute a high level of importance for having a fun and challenging job.     

Strategy, organization structure and success in the lodging industry

Has Hyatt's success been the result of the way it has structured its organization? Research evidence has accumulated indicating that the way an organization is structured can have profound effects on its performance.Should every lodging organization adopt the same type of structure? Probably not! However, determining the appropriate organizational structure for a lodging organization requires considerable thought and analysis.The results of some of the more compelling research findings relative to the factors that affect the structuring of an organization and the relationship between organizational strategy, structure and effectiveness are examined. Some of these concepts are then applied in an analysis of the structure of three different lodging organizations.     

Performance Analysis of Lodging REITs in Relation to Market Segments

This article examines the financial performance of lodging real estate investment trusts (REITs) in relation to their market focus. Secondary data were collected for from 2004 to 2008 from lodging REITs that were traded on major U.S. stock exchanges. Data envelopment analysis (DEA) was used to assess the efficiencies of market segments to generate financial performance. The results showed that two lodging REITs were consistently efficient during the study period relative to other lodging REITs. In particular, lodging REITs investing and/or operating in one or more relatively similar market segments and those focusing on the upper-upscale segment were more efficient than others. This study could provide managers, owners, and investors of lodging REITs preliminary evidence of the relationship between market segments and firm performance. This article also proposes a framework for future investigations to assess the performance of REITs.     

Cross-Cultural Impact and Learning Needs for Expatriate Hotel Employees in Taiwan Lodging Industry

Abstract

This study investigated specific cross-cultural issues affecting expatriate hotel employees in Taiwan's lodging industry to determine if Cross-Cultural Training (CCT) might help expatriate hotel employees adjust to a new culture and a new business environment. The most formidable task in the human resource area facing many global firms is the development of a cadre of employees and executives who have a deep understanding of the global market environment and the capability to transfer this knowledge into determined action (Pucik, Tichy, & Barnet, 1992). Employees who are expatriates in the hospitality industry are now more important than ever, as more hotel chains are seeking expansion opportunities into overseas markets. However, individuals who are sent overseas without adequate training often fail, and there are significant costs associated with this failure (Li, 1995).

The purpose of CCT is to increase the probability of an individual's adjustment into another culture (Cushner & Brislin, 1995). However, CCT could still be a valuable tool to help expatriates cope with culture shock even though the importance of expatriates being involved in CCT might not be as important as generally thought. Considering the cost, there may be other alternatives to facilitate expatriate adjustment. There does exist an inevitable trend of globalization. Developing coordination, training, and acculturation takes time, effort, and money. Clearly more research is warranted relative to expatriation in the hospitality industry.     

Employee perceptions of well-being and organizational wellness offerings: A study of line-level employees in select-service hotels

ABSTRACT

This research assessed line-level employee perceptions of their own well-being and their awareness of wellness benefits offered by their organizations. Completed questionnaires were collected from 187 employees of select-service hotels in the Midwest. Employees had above average levels of well-being with full-time employees having significantly higher levels of well-being than part-time employees. Employees who are aware of available wellness programs had higher levels of well-being than those who are not aware of these programs. The findings suggest the need for organizations and managers to implement and communicate wellness program offerings to all employees.     

Lodging REIT Performance and Comparison With Other Equity REIT Returns

This study investigated the performance of lodging real estate investment trusts (REITs) over a 13-year period. The study period was highlighted by economic growth, decline, geopolitical, and social events. These conditions and events affected lodging demand, and consequently the performance of the underlying REIT asset, the lodging facility. The results of the study indicated that overall, the performance of lodging REITs was inferior to the market portfolios as a whole. Lodging REITs' performance was also inferior to other equity REITs except for retail and specialty REITs. These findings suggest that the lodging REIT sector might not be as resilient as other equity REIT subsectors.     

How the COVID-19 pandemic affected hotel Employee stress: Employee perceptions of occupational stressors and their consequences

This study sought to examine the impacts of the global coronavirus pandemic on hotel employees’ perceptions of occupational stressors and their consequences. Paired t-tests and structural equation modeling were applied to examine the responses of 758 hotel employees in the United States. The findings showed that occupational stressors after the outbreak of the pandemic consisted of three domains: traditional hotel-work stressors, unstable and more demanding hotel-work-environment stressors, and unethical hotel-labor-practices-borne stressors. The impacts of these stressors differed from the hypothesis that traditional hotel-work stressors positively affect job satisfaction and organizational commitment. The findings showed that job satisfaction and organizational commitment significantly explained job performance, subjective well-being, and prosocial behavior, but they did not significantly influence turnover intention. Hotel employees’ pre-pandemic perceptions of occupational stressors and their consequences also differed significantly from their perceptions after the pandemic had broken out.     

Examining E-Relationship Marketing Features on Hotel Websites

Abstract

This study developed and tested a progressive five-level e-Relationship marketing (e-RM) model. The authors examined e-RM web features of the top 127 hotel companies. The results indicate that the hotel companies in the study did not extensively utilize higher-level (Accountable, Proactive, and Partnership) e-RM features on their websites although they employed many lower-level (Basic and Reactive) features. The study also reveals that the extent to which a hotel company employed e-RM website features was positively associated with the size of the hotel company but negatively associated with the number of brands held by the company. This article provides an in-depth e-RM literature review and discusses practical marketing implications as well.     

Organizational Climate of Food and Beverage Employees

Abstract

Seven dimensions of organizational climate and measures of perceived customer satisfaction were gathered from food and beverage employees of 14 hotels. Regression analysis revealed organizational climate to explain 26.9% of the variance in customer satisfaction with food and beverage and only two organizational climate dimensions, professional and organizational esprit, and conflict and ambiguity, displaying a unique relationship to customer satisfaction with food and beverage. Customer satisfaction with food and beverage was found to explain 18.45% of the variation in RevPAR among the hotels. Recommendations are made as to which dimensions of organizational climate should be targeted for intervention programs attempting to increase hotel financial performance.     

Employee brand love and love behaviors: Perspectives of social exchange and rational choice

The concept of brand love has prompted many marketing scholars to study customers’ love for a brand, but little attention has been paid to understanding employees’ love for their brands. Based on social exchange theory and rational choice theory, this study proposes that forgiveness behavior, supportive voice behavior, and helping behavior are three love behaviors improved through employee brand love. Additionally, organizational culture types are shown to moderate the relationship between brand love and these love behaviors. The findings of this study use 456 responses from hotel employees in the United States and Taiwan to support the impact of employee brand love on these three love behaviors. Moreover, testing the moderating effects of organizational cultures reveal that forgiveness behavior may be strengthened through a hierarchy culture, that supportive voice behavior can be strengthened via clan culture, and that helping behavior can be strengthened under a hierarchy organizational culture.     

Hotel Guest Satisfaction and Brand Performance

ABSTRACT

The value and significance of guest satisfaction, brand management, and franchising in the hotel industry have been well documented and researched as independent topics. While previous research has suggested that franchising has an overall negative effect on hotel quality, it has rarely investigated the important links between hotel brand performance and guest satisfaction, and the role of brand franchising strategy in the relationship between hotel brand performance and guest satisfaction. This study examines the relationships among guest satisfaction, revenue performance and growth, and franchising strategy at the hotel brand level. Results indicate that guest satisfaction is a key to brand growth, while the positive effect of guest satisfaction on brand revenue performance is moderated by the extent of franchising within each brand.