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High turnover is one of
the main problems faced by every company and every hotel usually because of the
remuneration benefits and increase in income in competitive hotels and the
motivation aspect is missing in the superior level, the rank and file category.
The main reasons for high staff turnover is mainly the remuneration packages
offered by other hotels, the income and the other promotion packages that is
not given out by the present hotels. Staff turnover plays a big threatening
role in the hotel industry as there are shortages in staff. Due to the
remuneration package and this effects the employee’s morale and this leads to
poor efficiency and effectivity.  Without
the right amount of motivation and without the support from the superiors, the
turnover rate in many hotels are still on a high bar. Motivation and the pay
structure make a significant change in the work place as it boosts up the
effiency of the employees to work harder and strive to achieve the goal of the
company. The turnover of employees is becoming a serious problem in today’s
companies as the employees ask for more or they feel like their work is not
being valued or appreciated. Hence, motivation is the only way to make sure
that the employees work with higher productivity and efficiency in the
organisation.  Different types of pay
structures and the different methods of motivation helps the organisation
increase its productivity and it also ensures that the employees are happy.

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The main reason for
high turnover is mainly:

undervalued: Sometimes the main reason employees
leave the job is mainly because they are not valued in the company. The
employees usually want to be recognised for the work done by them and usually
it is not taken into consideration in rare occasions where they are not
recognised. The main thing that makes the employees feel happy and motivated is
the a sincere appreciation from the manager or the top level. This gives them
more motivation to work forward. Usually they do not have to be monetary but
just a simple appreciation from the top level gives them a chance to perform
better as they are well recognised in the organisation.

of feedbacks and coaching: The main problem of high staff
turnover is the lack of feedbacks given to them by their superiors to render the
problem if there is any. Without the help of these feedbacks and without having
a communication with their staff on their effectiveness and their job work in
the company, there is no coaching and this keeps the company the same and
without any positive feedbacks or good coaching like other the hotels, people
tend to leave the organisation and join the other companies for better coaching
and better team organisation and team coordination for growing their

Misalignment: One of the main problems is hiring the
wrong staff for the job without any qualifications. This generally happens in
the small organisations where there are less staff and they are desperate for
more staff to run the organisation. This is generally not practiced in a larger
organisation as they have the right screening for training and hiring
employees. In small organisations, the managers don’t have the time to train
their employees as they are also a part and they do the job too.

Eg: Angelo’s Pizza company was a small organisation but
there was high staff turnover because of the lack of training and motivation.
This brought problems to the company later on and this had a major impact on
the company.

4.      Work- Life balance: The
managers demand the employees to work in an organisation covering the work of
two-three of their staff when the organisation is small and there is full
occupancy in hotels. With the rise in economic pressures, many employees are
told to do over time and more work with the same pay in small organisations and
this is mainly a cause for high labour turnover.

5.      Rude Behavior:
In larger organisations, the managers make sure that the job is done in the way
it is demanded to be done. Hence, the managers put the pressure on the
employees and usually have a rude behaviour or an over confident power of
superiority over their employees to get the work done and this creates a lack
of motivation to the employees. Many employees feel worthless and this ruins
their motivation to work in the organisation to work. Lack of motivation in
today’s organisations are the main reason employees leave the organisation and
the overpowering superiority of the managers cause the high labour turnover.

6.      People skills are inadequate:
Many of the employees become managers when their hard work meets the desires of
the company and the job process. They become managers with more motivation and
leadership skills taught by their superiors and once they become managers, they
do not give the same amount of time and effort to train their employees and
lead them to achieve the goals of the company and motivate them to become
future managers with the right leadership skills and motivation. The main work
of the managers are to train the employees like how they were trained and lead
the way as a leader and be a type of role model to the employees by providing
the motivation and having a good relationship with the employees.

7.      Raises and promotions are frozen:
Raises and promotions are an important combination in an organisation where the
employees feel valued in the company. In general, salaries and wages are the
second most important reason why the employees leave the organisation. The
first being lack of motivation. The salaries the employees receive is agreed
but if 25% of the employees get a higher salary compared to them when the job
description is the same, they tend to fight for the raise of their salaries or
just leave the company and find a better organisation to work in. If the salary
of the employees are less in an organisation for their job description, they
need to be paid a compensation or given many benefits for working in the
organisation to keep the employees stay in the organisation and get more
motivated to work in the organisation.

8.      Poorly Managed:
One of the reasons for leaving the organisation is the relationship with the
direct – managers. Without the good relationship the employees feel less
motivated and tend to leave the organisation to move to a company with a
healthier relationship. With a good relationship, the employees will agree to a
salary fixation and long work hours if the relationship is strong between the
manager and the employer.

9.      Lack of vision:
Generally, the employees care more about their personal gains than the profits
and the total financial position of the company. But, few of the employees do
not think of the long term gains but look for the gains soon. These employees
are the shortseeing employees who need the gains earlier than waiting for it in
the long term desires. Hence, when they wait for long and give up on the
patience, they tend to leave the organisation to join a larger organisation
that serves their requirements with the gains.

10.  Growth Policies: The
employees generally wish for promotions and grants after working hard in a
company and hence look for potential opportunities. When the company overlooks
at your performance and takes long in promoting you to the next level, they
leave the organisation when they know that their promotion is taking more time
than expected.

paucity of motivation is the main problem in an organisation because the
employees do not just wish for a pat at the back but they want the managers to
tell them that their work is making a significant change in the organisation.With
this motivation, it helps them to perform more effectively and they get
motivated to work more and this helps the organisation as these employees who
are committed to the organisation can work in flexible hours if the
relationship is strong in the organisation.

Employee retention is the main step in
the organisation as it has many financial and emotional positives than losing
the employees.

the employees leave the organisation, finding new employees is one of the most
time consuming task in an organisation

Once the employees are screened and
hired, training, integrating into different environments and monitoring their
performance is the main tasks of the managers while working in the same


Financially, hiring new staff costs the
organisation for many different processes.

The hiring cost is one of the main costs
that has to be taken care by the organisation as it bears the cost of losing an
employee. Hence, conducting interviews and selecting an employee costs them

Manager training is the second main cost
taken care by the organisation and it costs expenses and also time. The cost of
onboarding the employee takes an expense to bring the staff into the

The learning structure of the newly
employed employee takes more time after training and this costs the team a
lesser productivity than the rest as they have to get adjusted to their new

The emotional cost mainly differentiates
the employee to the rest of the team and this reduces the efficiency and
effectiveness of team work and lowers the productivity of the organisation
until the employee becomes as good as them.


objectives and pay structure play an important role
in the organisation and the employee turnover in the company. More than the pay
structure within the company, the motivation plays an important role as even if
the pay increases for an employee, the relationship and a friendly environment
is necessary to keep the employee in the organisation.


Motivation is one of the main part of an
organisation to keep the work going successfully. The factor of motivation acts
as a way of boosting the organisation. In a way, it works as a catalyst to an
employee’s success.

Motivation must be one of the main area
the managers must cover by appreciating them for the work done by them that
makes a change in the organisation. Words like “Keep it up” or “Well Done”
boosts the confidence of the employees and this pushes them to work harder to
achieve goals. This must be one of the main criterias to motivate the

The employees who work really hard must
be the main attention or the limelight of the company because they work by the
rule “Ownership of the work comes by motivation” . Make the employees get the
right motivation to get the work done and appreciate them for a better outcome
in the future.

Boost the employee’s morale when the
employee feels bad or demotivated. The right job of the manager of the
organisation is to motivate the employees. Hence, if they feel demotivated or
neglected in the work place, bring them back on track.

Having a positive relationship is very
essential in the workplace as it motivates the employees to work harder and
this produces a positive result with efficiency and effectiveness.

It is the job of the managers to send
motivational emails and positive feedbacks to every employee in the company to
keep them motivated while working. Every good feedback given back to the
employees makes them want to work much harder to achieve a good positive review
from the seniors.

Team building is one of the main
criterias to maintain a good relationship in the company and it is done by
engaging the employees with games in team work to rise the relationship between
colleagues in the work place.

Employees who perform exceptionally well
must be felicitated in front of the entire company and the superior level as
well by providing badges or a certificate for the best employee. This will push
the employees to work more.

Appraising the salary or giving bonuses
for the job done is a good way to keep them motivated and this will motivate
every other employee in the organisation to work harder to achieve the same.







The pay structure is
important as it consists of the wages, compensations received by the employee
of a company. Pay structure is one of the essentials after motivation as you
get paid for the job you do in the company and the significant change you make
in the company.

Wages must be given according to

Wages are an important factor in a
company or an organisation and the wages must be decided to be given out to the
employees according to their efficiency and effectiveness in the workplace.

Providing attractive benefits and
compensations like health benefits, the life insurance and so attracts them
towards the company more because of the type of incentive or bonus it is as a
point to work in the company.

Bonuses and incentives must be an important
thing to be provided to every employee in the company according to the amount
of productivity they offer to the company.

Few hotels provide a free stay in their
branch of hotels if they are an employee as termed as an AHP, Associate Holiday
Plan. Hence, this will motivate the employees to work  in the organisation when they have worked for
a particular number of days and hours in the organisation. They can use this
holiday plan for their relaxation for a day or two away from work. This creates
a work life balance.

Different types of bonuses must be given
to the employees for their continuous productivity in the organisation and this
motivates the other employees to get the same. Bonuses like the acceptance
bonus is in an organisation where the placement is hard to be filled into and
no employee fits into that position. Hence, the managers can hire the employees
who fit into the place and give an acceptance bonus depending on how important
the client is to the organisation.

The performance bonus is paid by every
organisation when the employee has worked really hard for the job description
and they receive a bonus for the performance from the employee that provides
some productivity in the company.

The employee’s satisfaction and
retention can be done by the incentives, bonuses, compensations, salaries etc.

Compensations can be given to the
employees in direct and indirect ways.

Direct ways: Salaries, incentives,
holiday premium, wages, salaries, bonuses, promotions.

Indirect ways: Meal allowances, utility
allowances, car allowances, holiday allowances, hospitalization benefits etc.

Compensation can attract an employee and
satisfy them by the financial and non financial benefits and rewards that
attract, retain and also motivate the employees to work ahead.

Wages are the normal salaries given to
the employees and it is totally different from the compensations received by
the employees by the upper management as the compensations vary from person to
person depending on the work and effort put in by every employee to finish and
complete their tasks before the task deadline and doing more than the
expectation from the employee before the deadline of the submission.

The bonuses are the type of
compensations given to the employees after they succeed in achieving their
targets and objectives. Every bonus received by the employee drives them to
achieve more targets and objectives for more bonuses.

The compensation package is attractive
to every employee as it prevents the employees from becoming dissatisfied from
their earnings looking somewhere else for a better salary or a better
remuneration package than the existing company.

Fringe Benefits are one of the benefit
packages under the compensations that are given to every employee irrespective
of their productivity in the company in the form of non financial benefits that
covers a lot of allowances and educational assistances, hospital allowances and

In a way, the compensation effects the
behavior of an employee. In this way, the compensations and bonuses makes them
to work harder and achieve their targets to get bonuses. This keeps the
productivity of the organisation on a higher level and the employees are
satisfied as well.

Human Behavior is said to be very complex but the reward systems and other
reward programmes can play a serious mindgame with the employees.

Compensation components are divided into
two :- Financial and Non financial systems.


Non Financial




Health care

Indirect payments:

Holidays (AHP)


                     Supportive culture


Meal allowance


Educational assistance




The staff turnover is a
major problem in every organisation but it is never impossible to reduce the
turnover rate in an organisation. Motivation and pay structure plays an
important role in the work place where there is a friendly environment and it
helps every employee be satisfied and happy in the work place where he/she is
continuously praised for their work. Motivation is one of the main key elements
for a happy organisation with a valued productivity with the right workforce
that is happy to work late hours with the same pay structure when the internal
environment is pleasing. With the supervisors pressurising them to work harder
or work long hours with a rude behaviour and not giving the right amount of
motivation and leadership skills inturn dissatisfy the employees and this is
the main reason for employee turnover in many of the organisations. 


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