A Review of Antecedents of Employee Turnover in The Hospitality Industry On Individual, Team and Organizational Levels
A Review of Antecedents of Employee Turnover in The Hospitality Industry On Individual, Team and Organizational Levels
https://www.emerald.com/insight/2516-8142.htm
IHR
36,1 A review of antecedents of
employee turnover in the
hospitality industry on individual,
156 team and organizational levels
Received 10 September 2020 Jung Woo Han
Revised 15 October 2020
24 November 2020 RMIT University, Ho Chi Minh City, Vietnam
Accepted 25 November 2020
Abstract
Purpose – The article is to review recent literature studies of employee turnover to identify antecedents of
employee turnover in the hospitality sector to reduce the literature gaps and present a wider scope of turnover
factor and understanding of employee motivational factors in their job decision.
Design/methodology/approach – The recent literature studies published over the last two decades were
reviewed and structured into the three levels of employee turnover factors, including individual, team and
organizational level.
Findings – The antecedents on organizational levels were frequently studied and suggested as strong
predictors to employee turnover in the hospitality sectors. The team and organizational factors also influence
employee turnover, yet the factors on the team level may not have a significant direct impact but rather an
indirect impact through the organizational or individual level. The factors of the individual level may not
explain the fundamental reasons behind the turnover. Yet, it might be a more reliable predictor of employee
turnover as factors on the other levels are often mediated by individual factors.
Originality/value – The article contributes to the knowledge base by articulating a wide range of updated
employee turnover factors in the hospitality that brings an updated insight into employee motivational factors
in the hospitality sector.
Keywords Employee turnover, Hospitality, Employee motivation, Human resource management, Human
resource development
Paper type Research paper
1. Introduction
According to the US Bureau of Labor Statistics, approximately one-third of employees are
estimated to quit their jobs in 2020 in the United States voluntarily. As the turnover rate in
hospitality is commonly higher than in other sectors, ranging from 60 to 120% annually
(Agovino, 2019), the cost of losing employees is significant, and the causes of turnover have
been studied over the last decades.
Maertz and Campion (1998) defined employee turnover as voluntary job terminations by
employees where “voluntariness” is defined as “instances wherein management agrees that
the employee had the physical opportunity to continue employment with the company at the
time of termination” (p. 50). This term is commonly agreed in a wide range of studies,
although the definition might not apply to some employee turnover studies because
involuntary turnover might be included in the data (Maertz and Campion, 1998).
The effect of employee turnover on organizations has been discussed widely in the
existing literature (e.g. Shaw, 2011), and employee turnover has been proved to affect
© Jung Woo Han. Published in International Hospitality Review. Published by Emerald Publishing
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International Hospitality Review may reproduce, distribute, translate and create derivative works of this article (for both commercial and
Vol. 36 No. 1, 2022
pp. 156-173 non-commercial purposes), subject to full attribution to the original publication and authors. The full
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2516-8142
DOI 10.1108/IHR-09-2020-0050 There was no funding for the submitted research paper.
organizational performance negatively. However, the findings were somewhat mixed, Antecedents of
according to Shaw (2011). Various measures were used to examine how organizational employee
performance was influenced by employee turnover, including sales growth (e.g. Batt, 2002),
return on equity (e.g. Hambrick et al., 1993), quality of customer service (e.g. Hausknecht et al.,
turnover
2009; Michele Kacmar et al., 2006) and profitability (e.g. Koslowksy and Locke, 1989; Michele
Kacmar et al., 2006; Mcelroy et al., 2001). Although some studies have rejected the significant
effect of employee turnover on organizational performance (e.g. Koys, 2001; Koslowksy and
Locke, 1989), most of the previous studies have agreed on the negative relationship between 157
employee turnover and organizational performance (e.g. Morrow and Mcelroy, 2007; Shen
and Cannella, 2002).
In addition to the linear negative relationship, De Winne et al. (2018) concluded that
employee turnover and organizational performance tend to have a nonlinear relationship
(inverse U-shape) that moderates the effect of the employee turnover level. This is because
employee turnover can increase productivity due to highly motivated new employees and
better creativity and innovation. This was also confirmed by the studies of Shaw (2011) and
Glebbeek and Bax (2004). Nonetheless, the effect of a high level of turnover was generally
agreed to be a negative sign of organizational effectiveness in the previous literature.
A recent study conducted in North Macedonia estimated that the cost of turnover is 7% of
the total service export and up to $21,700 per senior staff (Sanja and Eftimov, 2016).
Particularly, in the hospitality sector, the cost could be significantly high due to lower
productivity and lost sales and could cost up to $5,000 per person, according to the National
Restaurant Association, (Gustafson, 2002) or nearly $10,000 for a complex job (Tracey and
Hinkin, 2006). Furthermore, Branham (2005) added the cost of disengaged employees before
they left their jobs. Therefore, the cost of turnover to a single hospitality business could be
$37,000 annually (Kaak et al., 1998) and $5 trillion nationwide (Frank et al., 2004), as a typical
turnover rate. Accordingly, identifying the reasons for employee turnover in the hospitality
industry is a critical and strategic issue for long-term business success.
The ground-breaking employee turnover model was introduced by scholars Mobley
(1977) and Price and Mueller (1981). Mobley (1977) initially developed a simple model to
explain how employee turnover decisions progressed through multiple stages of decisions,
ranging from evaluating the current job to quitting the job. The job search process mentioned
in Mobley’s initial model was further explained in detail by Steel (2002). Mobley later
developed a significant conceptual model that included organizational, individual and
economic-labor market factors that passed through other intermediate factors influencing
employee turnover (Mobley et al., 1979). Mobley focused on the process of employee turnover
decisions, while Price and Mueller (1981) and Price (2001) research expanded the turnover
determinants to broader areas, such as kinship responsibility and professionalism.
In later studies, new insight was introduced by Lee and Mitchell (1994), who stated that
multiple paths could explain employee turnover decisions, according to the unfolding model.
This model was later confirmed by Lee et al. (1996) in a qualitative study. The study findings
revealed that most of the reasons people quit their jobs could be explained by one of the
four paths.
In a more recent study, Mitchell et al. (2001) introduced a new job embeddedness theory,
which explained why people stayed in their jobs. Mitchell et al. (2001, p. 7) argued that people
with high levels of “fit,” “link” and “sacrifice” stay in their jobs longer, which affects employee
turnover. This concept was confirmed by other researchers, such as Robinson et al. (2014),
and was expanded into a new construct of job embeddedness with family embeddedness
(Ramesh and Gelfand, 2010).
Contextual factors that influence employee turnover decisions and the hospitality sector
highly rely on human resources (HR) as a key strategic resource (D’Annunzio-Green et al.,
2008) because the employees often play critical roles in the frontlines that possibly cause
IHR adverse side effects, such as turnover behavior and lower customer satisfaction (Alola et al.,
36,1 2019). Accordingly, it is essential to understand the antecedents of employee turnover in the
hospitality sector from recent studies to determine the turnover factors, synthesize the
findings and suggest new studies. The article aims to present an overview of recent studies on
employee turnover factors in the hospitality sector based on three categories: individual, team
and organizational levels. In addition, an initial model is developed based on the review to
synthesize the key findings to identify research gaps and opportunities for future research.
158
2. Methodology
Recently published articles were selected based on the following criteria to fill the literature
gap and present a broader scope of employee turnover factors from employee turnover
studies in the hospitality sector. First, the current review focused on the recency of
knowledge. Thus, only peer-reviewed journal articles published in the last two decades were
searched using online databases, such as Emerald, Taylor & Francis and SAGE Journal.
Although an article by Iverson and Deery (1997) was on the recency criterion border, it was
included because it has been influential in the knowledge base (Q2 in the Scimago Journal
Ranking).
The current review only selected empirical research based on quantitative, qualitative
analyses or a mixed approach. In terms of the quality standard, the Scimago Journal and
Country Ranking was applied to select only high-quality journal articles (Q2 or higher rate
only), and other types of publications were excluded, such as Ph.D. theses (e.g. Brown, 2011)
and conference papers (e.g. Zhou and He, 2014). For instance, work by Upchurch et al. (2010)
was initially discovered in the search but was excluded because the rating was Q3. The
keywords used for searching the literature were employee turnover antecedent (or factors and
reasons), hospitality sector, hotel and restaurant.
As the current review focuses on the reasons for employee turnover, only the literature
that highly focused on the antecedents of employee turnover was selected. After the
screening based on the above criteria, 35 articles were selected for the following review (60
articles were excluded based on the above criteria). The literature review was categorized by
the three levels of turnover factors: individual, team and organizational level. After the
review, an integrated model is developed to synthesize the key findings and propose new
research directions.
3. Literature review
3.1 Factors on the individual level
3.1.1 Job satisfaction and organizational commitment. Overall, job satisfaction was concluded
to be a strong predictor of turnover intention (Park and Min, 2020; Stamolampros et al., 2019).
For instance, job satisfaction influenced turnover intentions directly and indirectly but had a
more significant effect via organizational commitment (Choi, 2006). In a later study, Yang
(2010) confirmed the direct and indirect path to turnover intention, but affective commitment
showed a stronger correlation with job satisfaction and turnover intention. Various studies,
such as those by Jang and George (2012), also confirmed the correlation between job
satisfaction and turnover. However, Jang and George (2012) determined the connection
between job satisfaction and turnover to be direct, whereas Lee and Way (2010) and Choi
(2006) determined that it was indirect via organizational commitment.
In addition to the effect of job satisfaction on turnover, the factors predicting job
satisfaction were widely mentioned, ranging from relationship quality, job accuracy, effects
of the need–reward match on relationship quality and comparison to others (Choi, 2006) to
training (Chiang et al., 2005) and polychronicity (Jang and George, 2012). Yang (2010) added
role conflict and autonomy as contributors to job satisfaction that indirectly affect Antecedents of
organizational commitment, yet role ambiguity was rejected. employee
In contrast, several studies rejected the influence of job satisfaction on employee turnover.
For instance, according to Lee et al. (2011), overall job satisfaction did not influence turnover
turnover
intentions, although satisfaction with schedule flexibility was negatively correlated.
Hospitality work requires employees to adapt to flexible working schedules, and those
with greater emotional intelligence (EQ) were more likely to adapt to flexible schedules, which
affect their turnover decisions but not their overall satisfaction from other factors. 159
Nonetheless, the strength of the correlation with schedule flexibility was somewhat weak
( 0.26 of the standardized coefficient).
In addition, Kim and Jogaratnam (2010) and Lam et al. (2002) also confirmed that job
satisfaction did not predict employee turnover but only organizational commitment (Lam
et al., 2002). Kim and Jogaratnam (2010) mentioned a possible sampling error that caused the
contradictory finding of the effect of job satisfaction on turnover. Organizational commitment
was often mentioned concerning job satisfaction, but, in some other studies, it was also
considered to be a strong predictor of turnover derived from the quality of the job and the
work environment (Blomme et al., 2010a).
3.1.2 Intrinsic motivation. According to Kim and Jogaratnam (2010), intrinsic motivation is
a predictor of turnover intention, together with supervisory leadership. The strength of the
correlation with turnover intentions was relatively weak compared to the relationship to
supervisory leadership. However, the causes of variations in intrinsic motivation were not
clearly mentioned or tested.
Several other studies expounded on possible predictors of intrinsic motivation to
understand its effects further. For instance, Dipietro and Condly (2007) applied Clark’s
commitment and necessary effort model to measure motivation and how it affects turnover
intentions. The research confirmed that support was the most influential factor for explaining
turnover intentions, followed by self-efficacy and utility. In other words, employees who felt
more supported were less likely to leave their jobs and had more confidence in their work
capabilities, thus decreasing turnover (Dipietro and Condly, 2007). In addition, how employees
perceived the usefulness of the tasks they performed contributed in achieving their goals, which
mattered in terms of their motivation and turnover intentions (Dipietro and Condly, 2007).
Moreover, Choi (2006) proved that unmet expectations changed employee turnover
decisions because unmet expectations concerning rewards indirectly increased employee
turnover. Furthermore, Lam et al. (2002) added that individual values (subjective norms) are
an important factor, particularly for Chinese employees. However, the study did not specify
the types of subjective norms that influence employee turnover.
3.1.3 Personal competency. Job performance contributed to employee turnover, but no
specific measure of job performance was suggested (Pizam and Thornburg, 2000). A possible
explanation for the correlation between polychronicity and turnover intentions was the
nature of hospitality work. Hospitality workers were generally required to multitask at work;
thus, those with higher levels of polychronicity could perform better, resulting in greater job
satisfaction levels and lower turnover (Jang and George, 2012). However, this did not
necessarily mean that only polychronic staff members could perform better in hospitality
jobs because most jobs involve various skill sets from simple work to multitasking jobs (Jang
and George, 2012). The study highlighted the importance of the HR role in selecting and
assigning the right people for the right job (Jang and George, 2012).
To further understand the role of personal competency, some researchers have focused on
EQ, which proved to be a driving factor that mitigated turnover intentions (e.g. Wolfe and
Kim, 2013; Lee et al., 2011). The term EQ is defined as “the ability to monitor one’s own and
others’ feelings and emotions, to discriminate among them and to use this information to
guide one’s thinking and action” (Salovey and Mayer, 1990, p. 198). According to Wolfe and
IHR Kim (2013), employees with higher EQ levels tend to remain longer in hospitality careers, but
36,1 EQ did not predict company tenure. In addition, Lee et al. (2011) revealed how EQ could
influence employee turnover indirectly via job flexibility. In other words, employees with
higher levels of EQ were more capable of dealing with the demanding schedule in the
hospitality industry, as EQ increased job satisfaction, thus reducing turnover intentions (Lee
et al., 2011). Both studies indicated the possible effects of EQ on employee turnover but
determined that EQ had a long-term/indirect effect on turnover decisions instead of an
160 immediate/direct connection.
Concerning the factor of competency on the career level, Rasheed et al. (2020) concluded
that individuals who possess better career adaptability and the ability to cope with job-
related issues have lower turnover intentions because they tend to have a higher level of
orientation toward happiness that forms positive job performance.
3.1.4 Work–life balance. Although work–life balance is possibly a nongender issue that
affects employee turnover, as Blomme et al. (2010b) confirmed, most previous studies agreed
that female staff members are highly affected by work–life balance issues. For example,
shorter traveling time to work and more family time were important concerns for female staff
members (Qiu et al., 2014). Furthermore, work–family balance is a concern when female staff
members change to new jobs. The author explained that the nature of hospitality work is
demanding and inflexible, which makes it difficult for staff to achieve an appropriate balance
between work and life.
Although a general agreement concerning work–life balance exists in the previous
literature, work–life balance was not confirmed as a turnover factor in India (Mohsin et al.,
2013). Moreover, kinship responsibility was not supported as an antecedent of turnover
intentions (Iverson and Deery, 1997).
3.1.5 Employee background. Individual employment characteristics affect the intention to
continue in a job, depending on employment level, working hours, number of years at the
organization and work shifts (Lee and Way, 2010). For instance, the managerial staff was
more concerned about the work environment and job quality in turnover decisions, whereas
staff members in the food and beverage department were more influenced by job quality (Lee
and Way, 2010). Pizam and Thornburg (2000) proved the influence of different departments
on turnover decisions in addition to employment status (part-time or full-time) and other
factors. However, individual employment profiles did not affect compensation and personal
status related to turnover intentions (Lee and Way, 2010).
Moreover, the older generation had lower job satisfaction levels, which led to higher
turnover intention levels, particularly for those at nonmanagerial levels (Maier, 2011). In
particular, when baby boomers work under managers from younger generations, their
dissatisfaction was increased due to misaligned leadership expectations (Maier, 2011).
Nonetheless, the effect of age on turnover intentions was relatively weak (Pizam and
Thornburg, 2000) or was not supported statistically (Nadiri and Tanova, 2010).
Concerning female workers, Blomme et al. (2010b) highlighted work–life balance as a
factor affecting turnover decisions because women usually have more responsibility for
family and housework. Blomme et al. (2010a) added that promotion opportunities affected
women more significantly regarding turnover decisions because women frequently had
fewer promotional opportunities than men, affecting work–life balance issues. Accordingly,
women tend to emphasize promotion in job decisions (Blomme et al., 2010a).
In contrast to the other demographic factors, the educational level was not confirmed as a
reason for turnover (Mohsin et al., 2013). No further explanations were provided in the study.
4. Key findings
The recent literature in the hospitality sector identified a wide range of antecedents to
employee turnover, and the current review summarized them into three levels (Tables 1 and 2:
Individual variables and vrganizational variables). In the team factors, the quality of the
relationships among team members was the most crucial concern when making turnover
decisions (Vasquez, 2014; Robinson et al., 2014). Emotional and instrumental support from
team members was concluded to be a reason for turnover (Tews et al., 2013) in addition to the
department to which the team belonged (Lee and Way, 2010) Appendix 2).
The recent turnover research from the hospitality sector developed models to understand
the paths and relationships, which are summarized in Table 3. For example, Wang (2010)
proposed a model that included a direct path from a factor of team level to turnover intention.
In contrast, Kim and Jogaratnam (2010) confirmed an indirect path from factors on an
organizational level, such as job characteristics, work environment and salary level.
The effect of team-related factors on employee turnover was also reported by Robinson
et al. (2014) and Tews et al. (2013). It was illustrated in a model developed by Vasquez (2014),
which indicated that supervisory leadership influenced the intention to remain with an
employer. Turnover determinants on an individual level, such as job satisfaction (Choi, 2006)
and intrinsic motivation (Kim and Jogaratnam, 2010), were also reported frequently as direct
antecedents to turnover.
In terms of the indirect paths, Choi (2006) confirmed the team (relationship quality)/
individual-level (job satisfaction) path, and Feeley et al. (2008) and Lam et al. (2002)
suggested the team/organizational-level path, stating that the positive relationship quality
could reduce job stress and improve the overall quality of the working environment, which
affects turnover. Martin (2010) also explained the path between the team and organizational
levels, positing that strong peer support improves training effectiveness. The
organizational-/individual-level path was also supported by many researchers, such as
Wang (2010).
As the previous literature focused on the paths and connections between various variables
and determinants (e.g. Bluedorn, 1982; Price and Mueller, 1981; Choi, 2006; Wang, 2010), the
current model was developed to understand the relationships and paths on the three levels,
individual team and organizational, based on the variables and determinants studied in the
previous literature. Based on the above models and findings in the previous literature
concerning turnover determinants, the current study developed a conceptual model, which is
presented in Figure 1. The conceptual model consists of four constructs, including individual,
team and organizational levels and turnover intention, which revealed three direct paths and
four indirect paths leading to turnover, as depicted in Figure 1.
IHR Sub-category Turnover factor Supporting literature
36,1
Demographics Age Pizam and Thornburg (2000)
Marital status Pizam and Thornburg (2000)
Gender Pizam and Thornburg (2000)
Blomme et al. (2010b)
Education level Mohsin et al. (2013)
166 Employee profile Length of service Pizam and Thornburg (2000)
Nadiri and Tanova (2010)
Level of employment Lee and Way (2010)
Job category Lee and Way (2010)
Performance-related factors Job performance Pizam and Thornburg (2000)
Effort Dipietro and Condly (2007)
Persistence Dipietro and Condly (2007)
Polychronicity Jang and George (2012)
Psychological factors Job satisfaction Choi (2006)
Intrinsic motivation Kim and Jogaratnam (2010)
Subjective norm Lam et al. (2002)
Comparison with others Choi (2006)
Chan and Kuok (2011)
Emotional intelligence Iverson and Deery (1997)
Lee et al. (2011)
Self-efficacy Dipietro and Condly (2007)
Unmet expectations Choi (2006)
Organizational commitment Saporna and Claveria (2013)
Work–life balance Social life balance Blomme et al. (2010b)
Kinship responsibility Iverson and Deery (1997)
Table 1. Career development plan Qiu et al. (2014)
Individual variables Easier travel to work DiPietro and Milman (2004)
The proposed model suggests that various antecedents of employee turnover are associated
with the three levels and form different paths to employee turnover decisions as follows:
(1) Different personal backgrounds, such as age (Maier, 2011), gender (Blomme et al.,
2010a), education (Mohsin et al., 2013) and performance (Pizam and Thornburg, 2000);
Author Direct reason Direct and indirect reasons Indirect reason
Antecedents of
employee
Choi (2006) Organizational Job satisfaction Accuracy in terms of job turnover
commitment information
Need–rewards match
Relationship quality
Comparisons to others
Salary level 167
Yang (2010) Absenteeism Role conflict
Affective commitment Burnout
Continuance commitment Socialization
Job satisfaction Autonomy
Kim and Intrinsic motivation (Job satisfaction has no effect
Jogaratnam (2010) Supervisory leadership on turnover)
Lee et al. (2011) Satisfaction with job Emotional intelligence
flexibility Overall job satisfaction
Iverson and Deery Job search Union loyalty Routinization
(1997) Role conflict
Promotional opportunity
Career development
Negative affectivity
Job satisfaction
Organizational
commitment Table 3.
Job opportunity Direct and indirect
Turnover culture causes of employee
Source(s): Author turnover
psychological reasons (Wolfe and Kim, 2013) and work-balance issues (Blomme et al.,
2010b) influence employee turnover intention on the individual level.
(2) Team cohesiveness influences employee turnover intentions through relationship
quality (Qiu et al., 2014), emotional support, instrumental support (Tews et al., 2013)
and different departments/teams (Gustafson, 2002) at the team level.
(3) Organizational factors, such as work environment (Yang et al., 2012), compensation
(Chan and Kuok, 2011), communication (Milman, 2003), culture (Moncarz et al., 2009)
and company ethics (Lee et al., 2014), affect employee turnover intentions at the
organization level.
The three levels show (see relations (1), (2) and (3)) direct patterns in employee turnover
intentions. In addition, there might be patterns in correlations among these levels, as
shown in the model by the potential relations (4), (5) and (6). Either the direct relations or
correlations might point to ways of understanding and improving HRM effectiveness.
The theory of interactions among three levels might influence employee turnover
intentions:
(1) Organization-related factors influence individuals and affect HRM effectiveness
(Choi, 2006). For instance, a satisfactory salary and compensation lower employee
turnover through a higher level of job satisfaction as a mediation effect.
(2) Team-related factors influence individuals and affect employee turnover intentions
(Choi, 2006). For example, satisfactory coworker support improves overall
satisfaction with the job quality and the commitment to the organization as a
mediation effect on employee turnover.
IHR
36,1 Organizational
level: e.g.,
salary, (c)
promotion, etc.
168 (d)
Individual
level: job
(a) Employee
(f) satisfaction,
organizational Turnover
commitment, etc.
(e)
5. Conclusions
As the proposed model implies, various paths to employee turnover exist on the three levels.
The empirical evidence should be collected and analyzed to test the proposed model.
Moreover, as recent research has primarily focused on organizational-level antecedents while
lacking evidence of team-related turnover factors, more research should be conducted to
understand the effect of coworkers and supervisory relationships on employee turnover.
Throughout the review, the conceptual model illustrates how various turnover factors on
the three levels are associated with and create possible paths to employee turnover decisions.
As the model suggests, the antecedents on organizational and team levels are mediated by
individual factors, implying that individual-level factors might be good indicators of future
employee turnover but not the fundamental causes. The turnover paths should be tested on
the three levels to determine the complex nature and root causes of employee turnover in the
hospitality sector.
Moreover, the literature on employee turnover issues in the hospitality sector was highly
skewed toward the Western world regarding quantity and quality. Insufficient research has
been conducted in emerging economies in Southeast Asian markets, such as Vietnam,
Singapore and Thailand. Therefore, employee turnover research should focus more on the
emerging market to understand contextual differences, as pointed out by Hom et al. (2017).
For instance, relationship quality is confirmed as a turnover predictor, whereas it was
rejected in China (Lam et al., 2002) and India (Mohsin et al., 2013) because the local cultures
moderate the influence of the relationship quality on employee turnover. Furthermore, factors
predicting employee turnover are evolving with the nature of human beings. As COVID-19 Antecedents of
changes the fundamentals of social conditions and assumptions, the effect of the current employee
pandemic should be studied concerning the previous findings of the employee turnover
studies.
turnover
Understanding employee turnover is critical for hospitality employers as HR is a critical
contribution to business success and sustainability. The current review presents the most
recent quality research and synthesizes the key findings into a proposed model on the three
levels that suggest the complex nature and relationships among the variables and levels. 169
Although the study of employee turnover has been conducted as long as the history of
business and management research, the research should be continuously updated to
comprehend the evolving nature of society and organizations.
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