The hospitality industry refers to a broad group of businesses that provide services to customers in the field of providing services in hotels, restaurants and lodges. The primary areas of this service sector based industry are accommodation, food and beverage and travel and tourism.
The Tourism, Hospitality and Recreation industry of New Zealand provides is a big avenue for employment generation giving opportunities to the young generation especially including part-time jobs (Cropp, 2016). Most of the employed youth in the industry are young students working part time and studying for higher qualifications. Employee turnover in an industry refers to the given number of people in the workforce which the industry needs to replace within a fixed period of time. This aspect is of vital importance to the functioning of an organization as it affects the productivity and more so when it is service based (Mok, Sparks & Kadampully, 2013).
Aim of the research
The aims of this research are:
- To understand the hospitality industry of New Zealand
- To find out the rate of employee turnover in New Zealand
- To find out the difference in the rate of turnover in comparison to a global figure.
- To find out that factors or the causes behind the employee turnover in this sector
- To understand and find out the relation between the turnover rate and the wage of the employees
- To understand the effects of low wages on the employees
- To find out how this relation affects the productivity of the hospitality industry in New Zealand.
Purpose of the research
The purpose of this research is to understand the scenario of employment in the hospitality industry in New Zealand. Employee turnover has been the center of research of various researchers in the recent times highlighting many aspects of the hospitality industry (Hall & Rusher, 2013). In New Zealand, this sector is the highest revenue earner garnering to employment needs of its young workforce. But in the past few years the hospitality industry has faced many ups and downs leading to a volatile job market (Poulston, & Jenkins, 2016). The low rate of wages earned in this service industry that involves strong commitment and dedication in providing optimum customer satisfaction has been identified as a primary reason by many international studies (Hatch, 2016). It is therefore, very important to study what are the factors that have led to a low wage system in the industry leaving the workforce de motivated to leave the job and also find out ways and means to solve this problem (Mohsin, Lengler & Aguzzoli, 2015).
The research questions that need to be answered in the course of study are:
- What is the hospitality industry of New Zealand?
- What is the rate of employee turnover in hospitality industry of New Zealand?
- What is the rate of employee turnover in hospitality industry in a global scale?
- What are the factors or causes behind the employee turnover rate in hospitality industry of New Zealand?
- What is the relation between the employee turnover rate and wages?
- What are the effects of low wages on employee?
- What are the effects of the employee turnover due to low wages in the productivity of the hospitality industry of New Zealand
The theory of causality or cause and effect relationship is the guiding force shaping the research question of the study undertaken which has also been the basis of scientific enquiry since ancient times. This theory basically explains the universal phenomenon of a cause leading to an effect. In the context of the study undertaken this forms the construct that low wages have led to the high rate of employee turnover in the hospitality industry of New Zealand. This will help finding out the answers to the research questions by significantly exploring the distinct role played by wages or remuneration existing and how it effects the employees duration of employment in that industry. Studies have showed that wages or earnings are the sole purpose of employees to continue their association in any organization (Pascoe, 2017).
The motivation to work is dependent on the salaries they receive in turn for the efforts they put in to deliver as employees. If the salaries they receive are at par with the services they deliver as employees they are more motivated to stay for longer durations in that particular job and similarly are de motivated if the wages are low (Brien, Thomas & Brown, 2017). This theory will therefore helpful in the course of study.
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Cropp, A. (2016). Hotel staff shortages spell trouble for tourism. Stuff. Retrieved 21 July 2017, from
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