Essay on Importance of Motivation in Rention - 6498 Words

Executive Summary Employees are the most important factor in the success and failure of any organization. In service industry, employees are in direct contact with the customer, hence they should be motivated. Firstly, this paper focuses on importance of employee motivation on Staff retention, by studying the concepts of staff retention, employee turnover and employee motivation. Further discussing about the major motivational theories, followed by the factors which help to increase motivation and backed up with some latest examples. Secondly, it takes a case study of Heathrow Windsor Marriott, a leading 4 star Airport Hotel, it reflects my observations about the good and bad practises followed by the management of hotel. And at the end,†¦show more content†¦Retention is not only important to reduce the turnover costs but to retain talented employees. According to Ramlall (2004), when every 10 managerial level employee leaves an organization, a company experiences approximately loss of $ 1 mi llion. 2.1. Employee Turnover Rotation of workers around the labour market between the status of employment and unemployment is called as Employee turnover (Abassi and Hollman 2000). Labour turnover has become a critical problem for service industries as it depends on human factor. Employees do not leave the organization without any significant reason. Taris et al. (2004), divided two motives for turnover i.e. the push and pull factors. The pull factors include inequity in compensation, availability of opportunities for future development over the external market and the employees who would resign to go into private business. The push factors have relationship with the dissatisfaction of work situation, lack of democratic managerial pattern and job stress. On the other hand, Griffieth (2000), viewed remuneration and remuneration related variables have intense effect on turnover. Griffieth demonstrated a relationship between remuneration, employees performance and turnover and concluded that when an employee perf orms extremely well expects a high pay and when they are paid low they quit. There are various costs associated with turnover, according to Society for Human Resource Management, it costs 30-50%