Analysis of Factors Affecting Employee Turnover at Sun Island Resort

UNIT 08- RESEARCH PROJECT

FINAL REPORT

Title:

Analysis of factors affecting employee turnover at Sun Island Resort

Musthafa Saleem | A ----------

Maps Associate’s Degree | Business Management

Submitted on:

Word count:

Abstract

CHAPTER ONE

1.0 Introduction

1.1 Background

Tourism industry of Maldives started in 1972 with the opening of 2 resorts. However, today there are 108 resorts registered in Maldives. According to a research done by Dr. Aishath Shakeela, states “the local share of tourism and hospitality jobs in the Maldives is relatively low for various reasons”. The projection that by 2010, the tourism accommodation sector alone will require 29,000 employees magnifies the challenges that face the industry in terms of labor needs. She has also mentioned the opportunity cost of losing a job is very low for Maldivians and as a result the turnover among Maldivian employees is very high making Maldivians very unreliable employees.

Sun Island Resort is an island resort located in south Ari atoll in approximately about 107 km away from velana international airport. Up until today sun island resort is the biggest resort in Maldives with over 469 beautifully designed villa (Villa Hotels & Resorts, 2017). The reason I choose sun island for my research is because a concerned from management has been reported regarding employee retention. Management was concerned about increasing employee turnover rate, and seeking to determine what are the possible factors that could lead to this issue.

1.2 Research problem

Employee turnover in the industry is very high. This research was done on the problem “Factors affecting employee turnover in sun island resort and spa in Maldives tourism industry”. This is a problem which is also a concern for the management of sun island resort management as they are seeking to find significant factors which may lead to this state. This has become a concern for majority of resorts in Maldivian tourism industry (Tourism Ministry, 2015).

CHAPTER TWO

2.0 Focus of the study

This chapter of the research discusses key areas of focus and what I intended to determine from this research study. Sections in this part include the purpose of research, research questions, and significance of the study.

2.1 Purpose of the research

The main purpose of this research project was to analyze the factors affecting employee turnover at Sun Island Resort and Spa owned and managed by Villa Resorts & Hotels. Key areas of investigation was to analyze levels of satisfaction and significant factors that may influence employee overall satisfaction, to analyze factors may cause employee turnover, and to determine correlation between significant factors and employee turnover.

2.2 Research question

Following research questions were addressed and answered in this study:

1. What are the factors that affect employee turnover?
2. What are the effects of employee turnover on overall resort productivity?
3. What are the reasons why there have been no controls over the labor turnover?
4. What are the possible measures to be taken to control the labor turnover?  

2.3 Significance of the research

The study of the employee’s turnover and organization performance could be a learning model to the top management of the organization in the Maldives to recognize the factors affecting labour turnover as well as the organization performance itself. Since this is a small contribution to this area in such a way to make an awareness among the organization top managers about the importance of recognizing labor turnover, that not only they be recognize about the sources of labor turnover, but they will also understand the mediating effect on employees turnover and how employee turnover would indeed influence organizational performance. However, this research would help managers and organization to improve their employee’s condition to better condition than now through understand the employee’s turnover and implementing ways to reduce employee turnover such like coaching and developing their employability skills and resources. Further, this study could be a help for the managers to predict the employees job stress and turnover intention, hence this study would enable organization to take pre causation measures in order to minimize high level of turnover from the company.

CHAPTER THREE

3.0 Literature review

Many theories have been proposed to explain the significant of the factors affecting labor turnover in an organization. Although these literature reviews cover a wide variety of such theories, this research will focus on three main aspect of the labor turnover throughout this literature review which is emerging from various sources. The three dominant aspect of this research are; labor turnover, its impact on organizational performance and factors affecting labor turnover.

Turnover refers to the amount of movement of employees in and out of an organization, normally present in terms of the turnover rate (Chruden & Sherman, 1972). However, (Mobley, 1982) gave the meaning of employee turnover as the discontinuance of membership in an organization by the person who received monetary compensation from the organization. (Tanke, 2001) has defined turnover as the movement of employees out of the organization. (Carley, 1992) quoted in (Tham, Pee, Kankanhalli & Tan, 2008) states that employees turnover means the rotation of workers around the labor market, between organizations, jobs and careers.

Demographic factors that have been found to have stable relationship with turnover intention in past research include age, tenure, level of education, level of income, and job category (managerial or non-managerial). Several studies have reported negative relationship between turnover intention and three demographic factors, age, tenure, and income level (e.g., Arnold & Feldman, 1982; Cotton & Tuttle, 1986; Gerhart, 1990; Mobley et. al, 1979; Price & Mueller, 1986; Wai & Robinson, 1998; Weil & Kimball, 1995). Amount of education, on the other hand, is found to be positively associated with turnover suggesting that the more educated employees quit more often (Berg, 1991; Cotton & Tuttle, 1986). Finally, (Wai & Robinson 1998) and (Price & Mueller 1986) found that non-managerial employees are more likely to quit than managerial employees.