Employee Satisfaction and Turnover Intentions: An Empirical Study

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The proposed study will aim to critically evaluate the relationship between job satisfaction and turnover intentions of employees of Sheraton Haikou Resort, with a view to informing human resource policies on the industry’s best practices in motivating and retaining employees.

The following will be the specific objectives:

To critically review secondary literature on human resource management, with the purpose of bringing into light factors that leads to employee satisfaction and turnover in the hotel industry;
To critically investigate the impact of various techniques used by Sheraton Haikou Resort in order to motivate and retain its staff;
To analyze and report on probable alternatives and recommendations that could be used by management to enhance job satisfaction and curtail turnover.

In the 21^st century, one of the persistent debates in the business field concerns the essential role played by employees in enabling ventures to accomplish their set objectives, including maintaining unsurpassed competitive advantage (Singh & Loncar, 2010). A rapidly shifting business environment characterized by such phenomena as vagrancies of the macroeconomic environment, globalization and deregulation of markets, shifting customer and shareholder demands, and escalating service-market competition, has turned out to be the norm, forcing business entities to reformulate their strategies and policies, particularly in the human resource domain, to remain relevant (Thornhill et al., 2000).

The stakes are even higher in the hotel industry, which is inarguably affected by a myriad of events, including the vagrancies of the high-low seasons and heightened customer expectations regarding service quality (Yang, 2008). In a swift rejoinder to counteract the shifting trends in the industry, conscientious managers have prioritized job satisfaction as a key focus area, especially after the realization that retaining key employees is critical for organizational success. (Chen et al., 2011). In terms of tangible organizational outcomes, employees can contribute fresh and innovative ideas, dedicate more time and energy to satisfy a strategic customer, or possess exceptional capabilities that could be put to use for the benefit of the organization.

Consecutive studies reveal that job satisfaction and motivation to a large extent correlate positively with customer satisfaction, profitability and shareholder value (Corporate Leadership Council, 2003; Alford, 2009, Chen et al., 2011). In equal measure, the ramifications of an unmotivated workforce are a huge expense to the performance, efficiency, and productivity of any business venture (Singh & Loncar, 2010). Consequently, organizations stand to gain more, productively, when jobs offer the desired satisfaction to employees.

According to Harrell & Daim (2010), “managers need to make sure they are in tune with their employee’s motivators…Asking employees what motivates them and listening and acting on their responses is very important” (p. 23). Indeed, researchers have positively correlated unresponsive management with turnover intentions (Ashill et al., 2008). A study conducted by Bockerman & Ilmakunnas (2009) found a significant negative correlation between job satisfaction and intent to leave. In a meta-analysis examining job satisfaction and turnover intentions, Hellman found that turnover intentions are in most instances activated when there exists a real or perceived disconnect between employee intrinsic values and expectations on the one hand and a host of other factors, including lack of motivation and career advancement, role-overload, work-life conflict, pay, and work environment, on the other (Chen et al., 2011).

According to Yang (2008), “employee turnover is a significant issue for many hotels and the focus of much academic interest” (p. 429). Like in many other service sectors, hoteliers always endeavor to recruit talented, productive, and suitable workers and then stimulate commitment and loyalty to the organization in a focused quest to be successful in adapting to market changes.

However, the issue arises, as it does in other sectors, that there is an evident difficulty in motivating and retaining employees. Chen et al (2011) is of the opinion that some market changes within the hotel industry act simultaneously to result in job dissatisfaction among employees, while Yang (2008) postulates that job satisfaction plays a fundamental role in modeling the processes that lead to turnover. In particular, central to modern turnover suppositions is the idea that “…job satisfaction directly and negatively relates to employees’ intentions to quit their jobs, which in turn positively relate to actual turnover” (Chen et al., 2011 p. 159). These dynamics demonstrate why job satisfaction and employee turnover continue to interest scholars and practitioners over the years.

As is the case in many other hotels, Sheraton Haikou Resort, which is the focus of the proposed study, operates in a business environment that is ever-changing and influenced by dynamic market forces. Job satisfaction and retention of staff are critical issues that the management has to contend with on a daily basis, particularly because of the competitive nature of the hotel industry in China (Archer, 2006). Furthermore, the hotel is owned by international investors, and research has demonstrated that expatriate employees often experience challenges adapting to China’s contextual variables, including its cultural, political, linguistic, and cultural systems (Leung et al., 2001). The needs, values, and job expectations of these employees may not be in tandem with the needs of local employees.

While there is a fairy body of literature on job satisfaction and turnover intentions, few empirical studies have been based on samples drawn from China, more so in the hotel industry. In consequence, relatively little is known about the relationship between job satisfaction and turnover intentions of hotel workers in China. It is against this backdrop that the proposed study will aim to evaluate the relationship between job satisfaction and turnover intentions, with a view to inform Sheraton Haikou’s HR policies on the industry’s best practices in addition to coming up with recommendations that could be integrated to motivate and retain employees.

The proposed study will employ a quantitative research design to critically evaluate the relationship between job satisfaction and turnover intentions of employees of Sheraton Haikou Resort. This methodology best suits the objectives of the study because, as Hopkins (2006) argues, most quantitative research designs are interested in determining the relationship or association between an independent variable and a dependent variable.

Most quantitative studies are either descriptive or experimental (Sekaran, 2006). The proposed study will employ a descriptive approach because participants will be measured once. Furthermore, the study will employ an online survey technique to collect data from sampled employees and the human resource management team. According to Sekaran (2006), a survey technique is most useful when the researcher is essentially interested in descriptive, explanatory or exploratory evaluation; the proposed study will be descriptive, thus the rationale.

A comprehensive review of related literature, including theories of job satisfaction and turnover, will also be undertaken to compare the study’s findings against other previous studies and offer workable solutions, alternatives, and recommendations for challenges facing employees.

Data will be collected using two sets of self-administered questionnaires, consisting of open and ended questions. One set, mainly revolving around the company’s policies towards motivating and retaining staff, will target the human resource department, while another set, mainly revolving around issues of perception, attitudes, and expectations, will target employees. Questionnaire schedules, according to Creswell (2003), are ideal in quantitative studies because of their easy application and adaptability. Other advantages of using questionnaires over other data collection techniques in such a study include cost-effectiveness when administered online; ease to make comparative analysis; the liberty to incorporate unstructured questions; the ability to guarantee anonymity; and the ability to attain a high response rate (Sekaran, 2006).

Data collected from the field will be analyzed using SPSS for Windows and afterward run univariate analysis aimed at generating frequency distributions and contingency tables. Data arising from the analysis will further be harnessed, interpreted and presented using statistical techniques such as pie charts, bar graphs, and normal text.

List of References

Archer, J. (2006) Discover the Hawaii of China. Travel Weekly: The Choice of Professionals, Issue 1837.

Ashill, N.J., Rod, M., & Carruthess, J. (2008) The Effect of Management Commitment to Service Quality on Frontline Employees’ Job Attitudes, Turnover Intentions and Service Delivery Performance in a New Public Management Context. Journal of Strategic Marketing, Vol. 16, Issue 5, p. 437-462.

Bockerman, P., & Ilmakunnas, P. (2009) Job Disamenities, Job Satisfaction, Quit Intentions, and Actual Separations: Putting the Pieces Together. Industry Relations, Vol. 48, Issue 1, p. 73-96.

Chen, G., Ployhart, R.E., Thomas, H.C., Anderson, N., & Bliese, P.D. (2011) The Power of Momentum: A New Model of Dynamic Relationships between Job Satisfaction Change and Turnover Intentions. Academy of Management Journal, Vol. 54, Issue 1, p. 159-181.

Corporate Leadership Council. (2003) Linking Employee Satisfaction with Productivity, Performance, and Customer Satisfaction. Web.

Creswell, J.W. (2003) Research Design: Qualitative, Quantitative, and Mixed Method Approaches, 2^nd Ed. Thousand Oaks, CA: Sage Publications, Inc.

Harrell, G., & Daim, T.U. (2010) HDM Modelling as a Tool to Assist Management with Employee Motivation: The Case of Silicon Forest. Engineering Management Journal, Vol. 22, Issue 1, p. 23-33.

Leung, K., Wang, Z., & Smith, P.B. (2001) Job Attitudes and Organizational Justice in Joint Venture Hotels in China: The Role of Expatriate Managers. International Journal of Human Resource Management, Vol. 12, Issue 6, p. 926-945.

Sekaran, U. (2006) Research Methods for Business: A Skill Building Approach, 4^th Ed. Wiley-India.

Singh, P., & Loncar, N. (2010) Pay Satisfaction, Job Satisfaction and Turnover Intent. Industrial Relations, Vol. 65, Issue 3, p. 470-490.

Thornhill, A., Lewis P., Millmore, M., & Saunders M. (2000) Managing Change: A Human Resource Approach. Harlow: FT Prentice.

Yang, J.T. (2008) Effect of New Comer Socialization on Organizational Commitment, Job Satisfaction, and Turnover Intention in the Hotel Industry. Service Industries Journal, Vol. 28, Issue 4, p. 429-443.

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Employee Satisfaction and Turnover Intentions: An Empirical Study

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