Table 1: Companies With the Highest Turnover Rate 2017
| Rank | Company | Turnover Rate |
|—|—|—|
| 1 | Hilton Worldwide | 56.9% |
| 2 | Hyatt Hotels Corporation | 56.2% |
| 3 | Marriott International | 55.8% |
| 4 | Wyndham Worldwide | 55.5% |
| 5 | Choice Hotels International | 55.3% |
Introduction
Employee turnover is a major issue for businesses of all sizes. In 2017, the average turnover rate for all industries was 18.4%. However, some industries have significantly higher turnover rates than others.
The hospitality industry is one of the industries with the highest turnover rates. In 2017, the turnover rate for the hospitality industry was 56.9%. This means that more than half of all hospitality employees left their jobs in 2017.
There are a number of factors that contribute to the high turnover rate in the hospitality industry. One factor is the low wages that are often paid to hospitality employees. According to the Bureau of Labor Statistics, the median hourly wage for hospitality workers is $12.36. This is less than the median hourly wage for all workers, which is $16.66.
Another factor that contributes to the high turnover rate in the hospitality industry is the long hours that hospitality employees often have to work. Many hospitality employees work more than 40 hours per week, and some even work more than 60 hours per week.
The high turnover rate in the hospitality industry can have a number of negative consequences for businesses. One consequence is that it can increase the cost of doing business. When employees leave their jobs, businesses have to spend time and money recruiting and training new employees. Another consequence of high turnover is that it can damage employee morale. When employees see their colleagues leaving their jobs, they may start to feel undervalued and disengaged.
The Top 5 Companies With the Highest Turnover Rate
The five companies with the highest turnover rate in 2017 were:
- Hilton Worldwide (56.9%)
- Hyatt Hotels Corporation (56.2%)
- Marriott International (55.8%)
- Wyndham Worldwide (55.5%)
- Choice Hotels International (55.3%)
These companies have a number of factors in common that contribute to their high turnover rates. One factor is that they are all large, multinational companies. This means that they have a large number of employees, and it is more difficult to retain employees in a large company than in a small company.
Another factor that contributes to the high turnover rates at these companies is that they are all in the hospitality industry. As we discussed earlier, the hospitality industry has a high turnover rate due to low wages and long hours.
Table 2: Factors Contributing to High Turnover Rate
| Factor | Description |
|—|—|
| Low Wages | The median hourly wage for hospitality workers is $12.36. |
| Long Hours | Many hospitality employees work more than 40 hours per week, and some even work more than 60 hours per week. |
| Lack of Benefits | Many hospitality employees do not receive benefits such as health insurance or paid time off. |
| Poor Management | Poor management can lead to employees feeling undervalued and disengaged. |
| Lack of Opportunity | Employees may leave their jobs if they do not see any opportunities for advancement. |
The Cost of Turnover
High turnover can be a very costly problem for businesses. The cost of turnover includes the cost of recruiting and training new employees, as well as the loss of productivity that occurs when employees leave.
According to the Society for Human Resource Management, the cost of replacing an employee can be as high as 200% of their annual salary. This means that if a company has a turnover rate of 50%, it could be losing up to 100% of its annual payroll costs.
Table 3: The Cost of Turnover
| Cost | Description |
|—|—|
| Recruiting and Training | The cost of recruiting and training new employees can be as high as $4,000 per employee. |
| Lost Productivity | Employees who are leaving their jobs are often less productive in the weeks leading up to their departure. |
Tips for Reducing Turnover
There are a number of things that businesses can do to reduce employee turnover. Some tips for reducing turnover include:
- Offering competitive wages and benefits. Employees are more likely to stay with a company that offers them a good salary and benefits package.
- Providing opportunities for advancement. Employees are more likely to stay with a company that offers them opportunities to advance their careers.
- Creating a positive work environment. Employees are more likely to stay with a company where they feel valued and respected.
- Providing training and development. Employees are more likely to stay with a company that invests in their development.
Conclusion
High turnover can be a major problem for businesses. However, there are a number of things that businesses can do to reduce employee turnover. By offering competitive wages and benefits, providing opportunities for advancement, creating a positive work environment, and providing training and development, businesses can retain their employees and reduce turnover costs.
