10 pages report and 10 PPT Presentation. I attached the Sample Report and Sample PPT too.
Business Writing and Rhetoric, Feigner
Report Project
Total Points: 350
Purpose
For our final project, your group will write an 8-10-page recommendation report on an issue associated with your major. You’ll identify a specific audience, but you can count on writing to a group of people who are interested in your topic, but doesn’t know much about it. You’ll supplement the report with an 8-10-minute presentation, with PowerPoint or Prezi, in front of our class.
Report Types and Topics
As our text points out, reports come in many varieties. For our project, we’ll use the book’s “middle-ground” definition: “A business report is an orderly and objective communication of factual information that serves a business purpose” (200). The business purpose of your report is to recommend a change.
Your group has tremendous flexibility regarding topics. First, you should write about something your group is interested in. If possible, you should be passionate about the topic, and each member must buy into the topic. Perhaps more importantly, you need to choose a topic that will yield enough content for a strong, well-developed document.
The report’s primary goal is to recommend a change, but you will also offer analysis and present conclusions drawn from research you conduct. You may, for example, write a report that:
· compares the business major requirements at SDSU with those at other universities and suggest changes to those requirements;
· presents different models of human resource management, then recommend one that your group believes works best for a certain business sector;
· recommends an investment strategy for a specific consumer group, like students.
I’ll be working closely with your group to define a topic and choose a type. We’ll also rely heavily on chapters 8 and 9 in our book, especially when we define problem and purpose statements and determine the factors you need to investigate (201-202).
Importance of Research
Your report must rely on research to inform and persuade your reader. She is expecting you to provide a range of in-depth, high-quality facts and/or observations. Remember, your reader may be making a decision based on the information you provide. You’ll begin by conducting some general research about the topic, issue or trend using Google or another search engine. Then you will find more targeted research using the databases accessed through our RWS 290 Course Guide via SDSU’s library. Again, this is a professional document; your report must rely on at least three formal sources (note by “formal,” I mean either a peer-reviewed article or official guidance released by the company, industry, or legal authority). This requirement may be waived depending on the nature of your project (i.e. surveys, interviews, etc.). Please see me for further guidance.
Visuals/Executive Summary/Cover Letter/Tone
Your report must also include graphic elements (visuals); we will discuss citation format, integrating figures, tables, charts and graphs into the report in class. You will also submit a cover letter. The report must be written in a professional tone/style defined by our text in Chapter 4.
Supplemental Assignments
Your group will complete these supplemental assignments for the Report Project
· A Team Charter that establishes group expectations and protocol. (10 points)
· A Gantt chart, which is a great tool for focusing on the most critical tasks required to complete a project. (10 points)
· A brief Kickoff Memo presenting the report’s problem and purpose statements describing the background of the report’s topic, and listing the “factors” the report will investigate. (10 points)
· A Report Progress Report Memo that reports on your work to date. (10 points)
· An 8-10-minute presentation on the report, during which each member must speak. (30 points)
· A confidential Collaboration Report quiz, where you evaluate each member of your group. (50 points)
You’ll find descriptions for each of these supplemental assignments in our Report Project folder.
Coursework, Point Totals and Due Dates
Team Charter
10
Friday, 10/30, by 11:59 pm
Kickoff Memo
10
Wednesday, 11/4, by 11:59 pm
Gantt Chart
10
Wednesday, 11/11, by 11:59 pm
Report Progress Memo
10
Monday, 11/23, by 11:59
Report First Draft
10
Monday, 11/30, by 11:59 pm
Report Peer-/Self-Review
20
Monday 12/7, by 11:59 pm
Report Presentation
30
Wednesday 12/9, in class
Report Draft: Revision 1 (Final Draft)
200
Monday, 12/14, by 11:59 pm
Collaboration Assessment
50
Monday, 12/14, by 11:59 pm
Total Points
350
Report Page Specifications
Length: At least 8 pages of body text
Margins: 1 inch all around
Line Space: Single
Justification: Ragged right
Paragraph Length: “Chunked,” varied
Paragraph Breaks: Line space; no indent
Font Size: 11pt for serif, 12 for sans serif
Headings: No more than 3pts larger than text type size
Heading Line space: One line space above, one below
Bulleted/Numbered Lists: Yes, for appropriate content
Page Numbers: Bottom, flush right margin, text size
Hyperlinks: Not active
Text Citations: Footnote format; font size 9pt
Visuals: Yes, framed with adequate white space
Visual Captions: Placed per convention in 9pt font size
Visuals Citations: Yes, for all non-original visuals
Executive Summary: Yes, not counted in page count
Title Page: Yes, with course name, instructor name, report title, group name, individual names
Cover Letter: Yes; standard transmittal letter format
Evaluation
To evaluate your group’s report, I’ll use the Recommendation Report Rubric posted on our Blackboard site.
RWS 290W Writing in Business Settings, Merriam
Rubric for the Recommendation Report
Criteria
1. Excellent (A)
2. Very Strong (A-)
3.Strong (B+)
4. Good (B)
5. Generally Good (B-)
6. Above Ave (C+)
7. Satisfactory (C)
8. Developing (C-/D)
9. Below Expect
Content/Research
Points: 80
The writer presents the report’s content thoroughly and explicitly, giving the reader more than enough information to be usable. Sources are of exceptional quality, reflecting a thorough and thoughtful research process, and include an outstanding mix of both general and specific published resources.
The writer presents the report’s content relatively thoroughly and explicitly, giving the reader enough information to be usable. Sources are of high quality, reflecting a very strong research process.
The writer covers the report’s content adequately, and the content is generally usable. Generally, sources are of good quality.
The writer covers the report’s content adequately, but in at least one instance, content could have been more complete or better supported. Generally, sources are of good quality and include an adequate mix of sources.
The writer covers the report’s content adequately, but in at least one instance, content could have been more complete or better supported. Generally, sources are of average quality.
The report may be missing some important content that would increase usability, or needs more specific content in more than one area. Better mix of both higher-quality general and business-specific sources.
The report is missing some important content that would increase usability, or needs more specific content in more than one area. Much better mix of both higher-quality general and business-specific sources.
The report is missing enough important content to inhibit meaning significantly. The report needs more sources, or they need to be of much higher quality.
The report’s content does not meet the minimum expectations for the assignment.
Format/Design
Points: 80
The report is formatted correctly and relies on a model transparent design, with appropriate white space, heading structure, line spacing, highlighting and alignment.
The report is formatted correctly and relies on a strong, transparent design, with appropriate white space, heading structure, line spacing, highlighting and alignment.
Some minor formatting and design issues may be present in the report, but these don’t inhibit overall reading/skimming.
Some minor formatting and design issues in the report, but these don’t inhibit overall reading/skimming.
Some definite formatting and design issues may be present in the report, and some may inhibit overall reading/skimming.
The report shows some formatting and design issues; the inconsistencies in whitespace, paragraph length or other design issues will inhibit readability.
The report shows definite formatting and design issues; the inconsistencies in whitespace, paragraph length or other design issues will inhibit readability.
The report lacks proper formatting and any conventional sense of design—whitespace, margins, paragraph length—which significantly inhibits its readability.
The report needed significant help with presentation, and may not have followed the best principles of information design for these kind of research reports.
Writing/Style
Points: 40
The report demonstrates a sophisticated grasp of language in terms of both sentence structure and vocabulary. No errors in word usage, sentence structure, spelling, punctuation, and capitalization. It offers an outstanding synthesis of researched information, a straightforward style with no personal opinion, and an easy-to-follow structure.
The report demonstrates a very strong grasp of language in terms of both sentence structure and vocabulary. No egregious errors in word usage, sentence structure, spelling, punctuation, and capitalization. It offers an very good synthesis of researched information, a straightforward style with no personal opinion, and an easy-to-follow structure.
Wordiness, if present, is minimal.
The report uses an effective style and is relatively free of errors in word usage, sentence structure, spelling, punctuation, and capitalization. It offers a successful synthesis of researched information, and a generally straightforward style, with no personal opinion, and an easy-to-follow structure.
Wordiness may inhibit readability.
The report uses an effective style and is relatively free of errors in word usage, sentence structure, spelling, punctuation, and capitalization. It offers an adequate synthesis of researched information, and a relatively straightforward style, with little personal opinion, and, in most places, an easy-to-follow structure.
Wordiness may inhibit readability.
Overall, the report uses an effective style and is relatively free of errors in word usage, sentence structure, spelling, punctuation, and capitalization, although it could have used one more editing pass. It offers an adequate synthesis of researched information and for the most part exhibits a relatively straightforward style, with little personal opinion and an easy-to-follow structure.
Wordiness may inhibit readability.
While readable, the report’s sentence structure and language use is sometimes difficult to navigate and needs development. A few high-profile errors in word usage, sentence structure, spelling, punctuation, and capitalization, all of which affect the report’s readability. Research needs to be integrated more effectively.
Wordiness may inhibit readability.
While readable, the report’s sentence structure and language use is sometimes difficult to navigate and needs development. A few high-profile errors in word usage, sentence structure, spelling, punctuation, and capitalization, all of which affect the report’s readability. Research needs to be integrated more effectively.
Wordiness may inhibit readability.
The report’s writing style needs improvement; the sentence structure and word use in several passages inhibit readability. Significant errors in word usage, sentence structure, spelling, punctuation, and capitalization, all of which affect the report’s readability. Research needs to be integrated more effectively.
Wordiness may undermine or otherwise obscure readability.
The report’s style is confusing, inappropriate or inconsistent, which affects readability significantly. The content does not achieve its purpose for this audience because of the many mechanical issues, especially “end-stop” errors.
Wordiness may undermine or otherwise obscure readability.
When Should A Company Go Public?
Armando, Dominique, Corrie, Daniel
Introduction
Businesses require investment
Start off private and can later become public
Private Companies: internally financed, belong solely to the initial investors.
Public Companies: externally financed, belong in part to those who purchase companies share on the stock market.
Dominique : Whenever a business is created in hopes of making a profit, there must first be a sizable monetary investment made, as revenues cannot occur without operating expenses. In the beginning stages of a company, it is common for the investments to come straight from the pockets of the business’ founders. At this stage, the company is considered privately owned, which means its executives are solely responsible for the expenses the business incurs and solely entitled to the revenues it generates. At a certain point in any business’ expansion, however, it is important to consider going public, which means enforcing external financing through selling shares of the company on the stock market. The benefits associated with going public, coupled with the correct financial circumstances and timing in the company’s lifetime, make looking into the process worthwhile.
Benefits
Publicly traded stock
Share premiums
Stock options in contracts
Favorable loan terms
Prestige
Armando: The main reason companies would go public is to be listed on the stock market. After filing as an IPO a company will sell their stock to big investors and investment banks at a specific rate per stock. This is how companies earn money from going public.
Initial investors also benefit from this as the stock they owned when the company was private will no have the potential to increase in worth. If they choose to sell their shares, the increase in worth would be known as their share premiums.
Since their stock now have actual value, companies could use it as part of hiring contracts to attract new talent and rewards for efficient employees.
The public recognition also comes with a certain level of trust as people know a company’s disclosed statements. This could allow them to get more favorable loan terms by lenders since they would be better informed about the risk associated with doing business with the company.
Costs
Pre-IPO direct and indirect costs ($3.2-4.8 M)
Post-IPO one time and recurring costs ($1.5 M+)
Time and resources
Reduced freedom
Higher level of scrutiny
Armando: Going public also has its costs, both monetary and nonmonetary. The monetary costs are split into pre-IPO and post-IPO costs. The pre-IPO costs include things like legal, auditor, consultant, and restructuring costs. While the direct costs average anywhere from $3.2 to 4.8 million, the indirect costs vary from company to company and industry. Post-IPO costs include things like new financial reporting systems, new controls, new compensation plans, new staffing, and organizational expenses. The one time costs average at $1 million while the recurring costs average another $1 million every year.
Money isn’t the only thing a company loses in an IPO. They also have to allocate and ration time and resources from their normal operations to the IPO process, which can slow down their day to day business. They also experience reduced freedom after going public as they have to consider the interests of public investors when making decisions. Sometimes a company has to choose between immediate gains to satisfy investors and long term growth benefits the business as a whole.
Company’s also have to comply with all the legal regulations and formalities. This can be rather cumbersome as a company could use their time and resources more efficiently if these weren’t in place. They’re also required to disclose their statements to the public to ensure there isn’t any wrongdoing and for the public to be aware of their activities.
Becoming a Public Company
Get ready to invest the time and money…
Step 1: Hire an investment bank.
Step 2: Due diligence and
regulatory filings.
Corrie: Becoming a public company can take 6 months to over a year so it’s important to understand the commitment it will take in order to complete the process. That being said there’s 5 main steps.
The first is to hire an investment bank that is reliable and you have prior experience with to help guide you through the process.
After you have chosen a bank, the company will choose an underwriter agreement which dictates how the stocks will be sold. Then the underwriter will help you draft the proper documents and filings that have to be reported to the SEC.
Becoming a Public Company
Step 3: Pricing
Success/failure of roadshows
Company’s goal
Stock price of competitors
Condition of the economy
Corrie: Once the filing has been completed and the IPO is approved they pick a date to release the stock. Before this date occurs the company and the underwriter work together to decide the amount of shares that will be offered and the price at which they will be sold. The pricing is important because it’s how the company raises capital and is typically based off of these factors…
Becoming a Public Company
Step 4: Stabilization
Step 5: Transition to market
competition
The company has successfully gone public.
Corrie: After the IPO is released there is a certain period of time in which the underwriter can purchase shares at or below price to stabilize imbalances, this is called stabilization. This creates a market for the stock before it becomes completely reliant on market forces in step 5. Once the grace period ends the underwriter becomes an advisor and evaluator and the shares become fully apart of market competition. After these steps you are now a public company.
Legal Components and Suspending Reporting Obligations
Securities and Exchange Commision (SEC)
“Effective” registration statement subject to the Exchange Act reporting requirements
Section 12 of the Exchange Act
Obligations a company needs to do once it registers a class of securities under the Exchange Act and begins reporting
Daniel B: The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation. Under the SEC, once a company’s registration statement is “effective,” the company becomes subject to Exchange Act reporting requirements and even if your company has not issued securities under a registration statement declared effective by the SEC, it could still become a reporting company and be required to file a registration statement under Section 12 of the Exchange Act. Other than this, once a company registers a class of securities under the Exchange Act and begins reporting, it will be required to continue reporting unless it satisfies one of the following “thresholds,” in which case its filing obligations are suspended: 1. A your company has fewer than 300 shareholders of record of the class of securities offered (1,200 shareholders of record if your company is a bank, bank holding company or savings and loan holding company) or 2. A company has fewer than 500 shareholders of record of the class of securities offered and less than $10 million in total assets for each of its last three fiscal years.
Exchange Act and Annual Meeting Requirements
Annual and Quarterly Reports
Current Reports
Form 8-K
Exchange Act Registration
Exceptions to Exchange Act Registration
Employee compensation plan
Regulation Crowdfunding
SEC’s proxy rules
Daniel B: SEC rules require your company to file annual reports on Form 10-K and quarterly reports on Form 10-Q with the SEC on an ongoing basis. These reports require much of the same information about the company as is required in a registration statement for a public offering. A company must also file current reports on Form 8-K to report certain specified events, often within four business days after occurrence of the event. The company also will have to comply with certain rules whenever its management submits proposals to shareholders that will be subject to a shareholder vote, usually at a shareholders’ meeting, and certain of its shareholders and management become subject to other requirements. Also, a reporting company must comply with the SEC’s proxy rules whenever its management submits proposals to shareholders that will be subject to a shareholder vote.
Proxy Requirements and Listing Standards
Proxy statements and requirements
Companies listing securities on a securities exchange such as:
NASDAQ
New York Stock Exchange
Listing Standards
Companies securities not listed on an exchange may be traded through other marketplaces such as:
OTC Bulletin Board
OTC Markets Group
Daniel B: These proxy requirements and rules get their name from the common practice of management asking shareholders to provide them with a document called a “proxy card” granting authority to vote the shareholders’ shares at the meeting. The proxy rules require the company to provide certain disclosures in a proxy statement to its shareholders, together with a proxy card in a specified format, when soliciting authority to vote the shareholders’ shares. Proxy statements describe matters up for shareholder vote, and include management and executive compensation information if the shareholders are voting for the election of directors. Furthermore, If your company lists its securities on a securities exchange, such as the NASDAQ or New York Stock Exchange, it will be subject to the rules or “listing standards” governing all companies listed on that exchange, including rules on corporate governance and audit committees. Companies whose securities are not listed on an exchange may be traded through other marketplaces, such as the OTC Bulletin Board or OTC Markets Group, which may have other requirements.
Recommendation
Smaller, newer companies
→ stay private
Larger, more mature companies
→ go public
Dominique: Considering the costs, benefits, and steps involved in taking a company public, it is recommended that only businesses in certain stages of their company’s lifetime consider an IPO. There are several indicators that signal a company is ready to go public, and companies that have yet to reach these benchmarks should remain private. The indicators are generally characteristic of relatively large, more mature companies and are absent in smaller, newer ones, which is why we recommend that the latter remain privately owned, and the more mature companies go public.
Recommendation
Key Factors to Consider:
Steady, healthy stream of income
Growth potential
Managed debt
Strong company leadership
Legal upkeep
Office of Foreign Assets Control (OFAC)
Foreign Corrupt Practices Act (FCPA),”
Dominique: The first and most important factor that makes a company a good candidate for going public is having a consistent and predictable stream of revenue. IPO underwriters may require revenues of up to $20 million every year with $1 million profits before considering working with a company.This kind of fiscal maturity and stability rarely occurs in new, smaller companies and is generally characteristic of larger, slightly older ones.
In addition to having a steady, healthy stream of income, a company should be able to demonstrate growth potential when filing for an IPO. Investors will be hesitant to give money to a company that shows no indication of being able to expand. Possessing a low-debt to equity ratio also makes a company attractive to underwriters and potential investors.
Other key factors in deciding which companies are fit to go public include qualitative measures that support the quantitative ones previously described. Firstly, the company’s executive team needs to be internally strong, and externally perceived of being capable of steering the business towards financial success. Public image is essential to a successful IPO. Secondly, the company’s legal compliance needs to be well taken care of before the IPO, to avoid legal issues when shares are placed on the market.
With all of these factors in mind, it is again evident that larger, more mature companies are in the best position to go public, while smaller, newer ones are not and should remain privately owned.
Recommendation Report Cover Letter
Julia Gulia, Elena Meringua, and Lexi Shmecksy
HTM Group 6
5500 Campanile Dr
San Diego, CA 92182
December 19th, 2018
Matt Feigner
Professor of Business Writing and Rhetoric
5500 Campanile Dr
San Diego, CA 92182
Dear Professor Feigner,
The following recommendation report titled, “Sectors of Human Resource Management &
Problems with Increased Employee Turnover”, was submitted to assess the reasons for increased
turnover rate in the hospitality industry specifically within the hotel and lodging sector.
The report details the key factors for employee turnover, a hotel related survey, and an interview
of industry professionals in order to recommend the most successful solutions for small hotels
struggling with high turnover of employees.
Thank you for your time and consideration in reviewing the report.
Sectors of Human Resource Management &
Problems with Increased Employee
Turnover
Group 6: Hotel Management
Julia Gulia, Elena Meringua, Lexi Shmecksy
RWS 290, Fall 2018
Matt Feigner
December 19, 2018
1
Table of Contents
Table of Contents 1
Executive Summary 2
Introduction 3
Key Factors of Employee Turnover 4
Human Resource Sectors 4
Company Culture 5
Economic Influences 5
Employee’s Age and Individual Culture 6
Student Survey and Industry Professional Interviews 7
Recommendations To Decrease Turnover Rate 8
Recruiting from Schools with Hospitality Programs 8
Successful Training Models 8
Conclusion 9
2
Executive Summary
The following recommendation report was created to analyze the issue of increased employee
turnover rates within the hospitality and tourism industry, in relation to human resource
management and company policies.
Through qualitative and quantitative research methods, the key factors associated with a rise in
employee turnover rates, specifically within the hotel and lodging sector of the hospitality
industry, were addressed. Recommendations were generated for how small-scale hotels can
successfully implement training practices to decrease this trend in the future.
By gathering previously published research, the following key factors were thoroughly analyzed
to assess the potential influence on turnover rate:
1. Scale of hotels and its effects on human resource management
2. Company culture
3. Employee age and individual culture
4. Economic influences
Through a survey administered to students at San Diego State University, we were able to
address the direct effects of employee training and company culture on the overall service
delivered by hotel employees.
Our team interviewed two business professionals currently working in the industry in order to
gain a better assessment of the effects of turnover rates on specific companies. Thomas
Kermabon, the General Manager at Omni San Diego, and Nickie Aphayrath, the Human
Resource Director at Hilton La Jolla Torrey Pines, provided insight for factors that affect this
rate including:
● Personal motivation
● Differences with company culture
● Miscellaneous factors
After compiling the various quantitative and qualitative data, the information was evaluated and
synthesized to recommend the following solutions to decrease the turnover rate and increase
financial success:
● Implement better training models/strategies for human resource development
● Recruitment from schools that have hospitality programs, to ensure potential employees
are well educated and qualified
3
Introduction
The hospitality industry is centered around providing quality service to individuals and families
alike to create memorable experiences for a lifetime. These experiences are dependent upon a
company’s resources and their ability to train their staff accordingly.
Employee turnover in the hospitality industry
has occurred for years but became more
prominent when hotels realized the amount of
profit being lost and the constant burden of
rehiring and retraining employees.
Turnover rate refers to the percentage of
employees leaving a company within a certain
period of time. 1
In 1995, hotels experienced a 53.2% employee
turnover rate, however today hotels experience a
73.8% turnover rate , thus dramatically affecting 2
their financial success and stability.
In the United States, the hospitality industry
alone accounts for 29.3% of the overall
employee turnover rate in industries. Figure 1,
shows the statistics of average turnover by industry.3
By analyzing the effects of differing human resource sectors, company culture, employee’s age,
employee’s individual culture, and by utilizing a hotel based survey and conducting interviews, a
recommendation report was created to present the best solutions on how to better train
employees, implement training models, and recruit for future financial success in order to
decrease employee turnover.
1 What Is Business Necessity? , www.criteriacorp.com/resources/glossary_turnover_rate.php.
2 Donoho, Ron. “Hotel Survey: Staff Turnover Rate Rising.” Successful Meetings, vol. 46, no. 2, Feb. 1997, p. 11. EBSCOhost,
libproxy.sdsu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=9708176181&site=ehost-live&sc
ope=site .
3 “4 Truths about Hotel Employee Retention.” Hotel Management , 25 Oct. 2016,
www.hotelmanagement.net/4-truths-about-hotel-worker-employee-retention.
3 “Stop the Madness: The Cost of Employee Turnover.” YouEarnedIt.com , 1 July 2016,
youearnedit.com/blog/stop-the-madness-the-cost-of-employee-turnover/.
4
http://libproxy.sdsu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=9708176181&site=ehost-live&scope=site
http://libproxy.sdsu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=9708176181&site=ehost-live&scope=site
Key Factors of Employee Turnover
Human Resource Sectors
Quality human resource management is crucial for the success and nature of a hotel because it is
dependent upon the individual employee’s performance and customer service skills.
There are varying human resource sectors within the hospitality and tourism industry. The four
overall sectors are:
1. Food and beverage
2. Lodging
3. Recreation
4. Travel and tourism
Hotels fall under the lodging sector of the hospitality and tourism industry; however, the other
three sectors can be incorporated into the hotels as well. For example, hotels provide guests with
food and beverage services as well as recreation through concierges or other agents. Hotels have
variety of styles and services ranging from luxury, mid-scale, and down to economy. These
hotels are personalized based on the people that stay there and the services that are provided.
Hotels in the hospitality and tourism industry can also vary upon the type and size:
● Mega hotels: 1500 rooms or more
● Large hotels: 300 rooms or more
● Medium hotels: 150-300 rooms
● Small hotels: 100 rooms or less
A resort like the Hilton San Diego Resort and Spa or the Catamaran Resort in San Diego are
considered mega hotels. The Kimpton Hotel in San Diego is considered a boutique hotel which is
usually smaller in size and regarded to be a small hotel when comparing scale.
The size and scale of a hotel usually determines the amount of employees needed to work as well
as the different training methods used in each varying hotel. Human resource’s role is to “support
managers by providing coaching, training and development opportunities, giving them the tools
they need to help their teams move forward.” 4
A key factor in employee turnover is that employees don’t know how to correctly handle
situations that arise within their roles for the service scale they are categorized by. An employee
working at a large or mega hotel needs adequate training to deal with more rooms, more
customers, and more complaints.
4 Contributor, ADP. “Why Are Employees Leaving? The Economy Is Only Part Of The Reason.” Forbes, Forbes Magazine, 26
Mar. 2018, www.forbes.com/sites/adp/2018/03/19/why-are-employees-leaving-the-economy-is-only-part-of-the-reason/.
5
Company Culture
Company culture is imbedded in a company’s standards from the moment it is created. The
owners and executive teams create the values that are unique to a specific company.
If employees don’t relate or understand the culture of a company, they won’t feel included or
want to promote the company positively, thus causing an employee to leave resulting in
increased turnover.
A study was conducted in Jamaica, interviewing nine management level employees of two large
hotel chains that have successfully reduced their turnover rates. The participants were
interviewed and asked a variety of questions about their company’s culture and how they interact
with their employees.
It was found that having a “genuine concern for employees, empowering them, and providing
opportunities for growth and development, were important factors in employee retention.” 5
Some of these managers implemented these ideas by:
● Providing employee satisfaction surveys
● Involving employees in decision making for the company
● Being approachable through communication and often leaving the door to their office
open
One manager said “I send my employees to different departments to be cross-trained so if a
position comes up in other areas, they are ready to take up the challenge.” 5
Studies have shown that some companies use data that displays how “employees’ feelings of
connection to their team weighs more than their pay or relationship with their bosses in their
decision to stick around.” For companies, this can be achieved by “pushing managers to
recognize team-based work, hold more social events and foster more mentoring programs
between senior leaders and newer employees.” 6
Economic Influences
In the hotel and lodging sector of the hospitality and tourism industry, there are varying
economic influences. Companies are often faced with the challenges of the everyday economy as
5 Davis, Odetha. “Strategies for Low Employee Turnover in the Hotel Industry.” Walden University, ProQuest Dissertations
Publishing, 2018,
https://search-proquest-com.libproxy.sdsu.edu/docview/2033582016/fulltextPDF/6C3DC9FC0D6749DFPQ/1?accountid=13758
6 Contributor, ADP. “Why Are Employees Leaving? The Economy Is Only Part Of The Reason.” Forbes, Forbes Magazine, 26
Mar. 2018, www.forbes.com/sites/adp/2018/03/19/why-are-employees-leaving-the-economy-is-only-part-of-the-reason/.
6
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well as the concerns from their employees. “Employees have more access than ever before to
online resources that show how others in their industry with the same experience are
compensated.” 4 In today’s society, there is constantly new information readily available on the
economic effects facing companies.
Hotels can face a variety of economic influences. From direct, indirect, fiscal, and induced
impacts, hotels have the ability to calculate and measure the degree to which the company and its
employees will be affected.
Employees tend to leave companies dependent upon personal motivation; whether that be a more
advanced job offer, higher pay raise, or better location. Economic measures motivate an
employee to stay engaged and feel valued at a company. If an employee doesn’t have hope for
future opportunities they often quit.
Employee’s Age and Individual Culture
“Millennials are now the largest workforce generation in the United States and tend to change
jobs more frequently than older workers. The median tenure of workers 25 to 34 was 2.8 years
versus 10.1 years for workers 55 to 64 according to the Bureau of Labor Statistics data from
2016.”4
Young individuals are often conflicted about their career path and change jobs frequently to
determine what their passions are.
The chart below provides the age range of employees in the hotel industry in 2017. It shows that
the age ranges 20-24 and 25-34 contain the highest amount of employees. The hotel industry has
a relatively young median age range compared to other industries, such as machinery
manufacturing in which the average age range varies between about 40-50 years old. 7
Hotels are present worldwide and the guests and employees different backgrounds and cultures
effects how the business is run. It is the human resource manager’s responsibility to train
7 “Employed Persons by Detailed Industry and Age.” U.S. Bureau of Labor Statistics , U.S. Bureau of Labor Statistics, 19 Jan.
2018, www.bls.gov/cps/cpsaat18b.htm.
7
http://www.bls.gov/cps/cpsaat18b.htm
employees accordingly and understand the general social structure of the different countries and
ethnicities employees come from. Appropriate training about respecting and understanding
individual’s culture should be required for management as well as employees. 8
Student Survey and Industry Professional Interviews
Based on the student survey administered, it was observed that young employees age 19-20 have
a strong association with company culture which ultimately affects their motivation to stay at a
company.
One survey response emphasized that, “a positive company culture makes work more enjoyable
and improves employee retention.” This can be compared to another student’s response in which
they “left a job within the first few months because the manager didn’t try to connect
emotionally.”
From the qualitative data collected from interviews with Thomas Kermabon, the General
Manager at Omni San Diego, and Nickie Aphayrath the Human Resource Director at Hilton, it
was confirmed that certain factors lead to an increased turnover rate.
After asking the interviewees a series of questions about their roles in the company and opinions
on turnover rate, they each discussed the following factors:
● Personal motivation (someone getting a better job offer for higher pay raise)
● Not feeling connected to the company culture or employees
● Miscellaneous factors dependent on the individual case
It was interesting to observe the similar opinions from a General Manager and the Director of
Human Resources (HR) because it confirmed that by utilizing the HR department effectively, a
company can greatly reduce employee turnover and increase incentivized programs.
Lastly, Thomas Kermabon emphasized the importance of:
(1) Detailing the exact requirements of the position in an interview
(2) Correctly training a new employee the first day on the job so they fully understand the
position
(3) Recruiting from schools with hospitality programs is a great resource for qualified and
educated employees
The survey and interviews evidently show that personal motivation and company culture truly
affect employee turnover and can be minimized through the following recommendations.
8 Writepass. “Human Resource Management in the Hospitality Industry – The WritePass Journal.” The WritePass Journal,
Publisher Name WritePass Publisher Logo, 9 July 2013, writepass.com/journal/2012/11/human-resource-management/.
8
Recommendations To Decrease Turnover Rate
Recruiting from Schools with Hospitality Programs
There are a variety of different hospitality and tourism programs that are now available
throughout colleges in the United States. For example, one of the best hospitality and tourism
programs is available at Cornell University.
San Diego State has become recognized for its own hospitality and tourism program presented
by Robert L. Payne who donated $1.1 million as a part of an $8.5 million endowment.
These programs in colleges focus on the different sectors of the hospitality and tourism industry
with major emphasises in:
● Restaurant Management
● Meetings and Events
● Tribal Gaming
● Hotel Management
These programs are business oriented and prepare students to be industry leaders within these
sectors. “Faculty and staff incorporate a customized learning experience for each student that
includes rigorous coursework, practical application, personal assessment and professional
guidance from industry leaders.” 9
By recruiting students from these hospitality programs, hotels can be better prepared to provide
guests with quality service from its employees that are educated and trained within the field.
Having pre-educated employees also allows hotels to spend more time focusing on guest
satisfaction and lowering their overall employee turnover rate.
However, if a student doesn’t have the opportunity to attend a school with a hospitality program,
they can utilize online programs. Cornell University, as well as various other schools, have
online certificate programs that can provide students with greater opportunities in the hospitality
and tourism industry.
Successful Training Models
There are various training models that have been developed to assess the issue of increased
employee turnover. Critics argue that training models can be an expensive cost for a company;
however, they increase the company’s value in the long run once a successful system is
developed.
9 “L. Robert Payne School of Hospitality and Tourism Management.” Hospitality & Tourism Management, The L. Robert Payne
School, htm.sdsu.edu/.
9
Two example models are provided below but are dependent upon the human resource director,
general manager, and company executives to determine which training model best fit the
individual company to ensure success. A small hotel will develop different less costly programs
than a mega hotel, but it does not mean they are not equally as effective.
For the Hospitality Human Capital Process Model, the three components evaluated are:
(1) Developing service-oriented employees requires training on guest expectations, an
appropriate hiring process, and a service-oriented culture.10
(2) Developing empowered employees requires more focus on training employees on
problem solving; shared values, norms, and goals. 10
(3) Managerial activities that develop committed employees include nurturing psychological
bonds, treating employees fairly, meeting employee expectations, in addition to a hiring
process that selects “best fit” employees – matching employees to positions they will
excel in dependent upon personality and skills.10
The Commitment And Necessary Effort (CANE) model of motivation is “successful in
determining if levels of motivated thinking and behavior, indexed as choice, persistence, and
effort, and influenced by self-efficacy, support, emotion, and task value, impacted employee
turnover rates in the hotel. It was determined that the motivation component of the CANE model
was a statistically significant variable when analyzing turnover in the current study.” 11
Therefore, hotel companies must work closely with the human resource department to find
structure within the hiring and training process in order to develop systems to motivate
employees through rewards and emotional support. Today, in some companies, the HR
department has been viewed as a source of competitive advantage and has become a strategic
partner at the executive level. 12
Conclusion
While there are various factors that influence a hotel company’s turnover rate, there are measures
that can be adapted to decrease this trend in the future. After extensive analyzation of previously
published research and articles, we found that in order to decrease employee turnover rate in
hotels, better recruitment and a successful training model should be implemented.
It is important for hotels to understand their employees needs and the overall goal of the
company in order for proper training to be established and an overall decrease in turnover rate.
However, keeping employees motivated and engaged is an everyday process that depends upon a
positive company culture and team dynamic.
10 Young, C., McManus, A. and Canale, D. 2005. A value-driven process model of hospitality human capital. Journal of Human
Resources in Hospitality and Tourism, 4(2): 1–26.
11 Robin B. Dipietro PhD & Steven J. Condly PhD (2007) Employee Turnover in the Hospitality Industry, Journal of Human
Resources in Hospitality & Tourism, 6:1, 1-22, DOI: 10.1300/J171v06n01_01
12 Kearns, P. 2004. How strategic are you? The six “killer” questions. Strategic HR Review, 3(3): 20-23
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