Labour Turnover Rate and its Costs in the Five Stars Hotel: A Case of Serena Hotels in Ilala District

Mashauri, Jackline Raphael (2015) Labour Turnover Rate and its Costs in the Five Stars Hotel: A Case of Serena Hotels in Ilala District. Masters thesis, The Open University Of Tanzania.

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Abstract

The main purpose of this study was to investigate the rate and costs of labour turnover in the five star hotel industry in Tanzania. This research study is conducted in Serena hotel as one of the big five rated star hotel in Dar es Salaam Tanzania. The study adopted descriptive survey research design. Simple random sampling method was used to pick respondents for this study. In this research, data were collected from 120 hotel employees in Serena hotel. Total number of respondents were required to answer the questionnaires and other data regarding total number of hotel employees , annual turnover number , annual replacement costs and hotel department line budgets for meeting the costs of replacing employees were provided by Human resource manager by filling data form and through in depth interview. The results indicated that, labour turnover was lower for (5%) in the five star-rated hotels. The hotel manages to control the supervision and administration cost by reducing the number of employees who are less reliable, low committed and poor performers through dismissal and redundancy. Also the researcher found that, there are strategies for human resource employment in Serena hotel that has been taken for attracting, developing and retaining employees such as hiring employees with good qualifications and working experience that fit the right person to the job. Providing different extra off, breakfast and lunch package, welfare loan system and compensation package. The research will assist larger and smaller hotels to reduce high labour turnover by adopting systematic HRM strategies, to monitor their costs closely and use the research findings information to manage human capital more effectively, to allocate resources well and to adopt better ways of managing and retaining employees.

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