Employee retention in selected hotels in Cape Town, South Africa

Abstract

The hotel sector has been identified as experiencing the largest numbers of employees leaving their jobs within a short period of employment when compared to other sectors of the economy. The large number of employees leaving hotels within a short period of employment is perceived as detrimental towards business’ success. This research is about testing the strength of the relationship between employee retention variables and employee retention in hotels in Cape Town, South Africa. The researcher firstly consulted literature (secondary data) in order to understand the hotel employee retention phenomenon. From the literature findings, the objectives of this research were formulated. The research objectives were built based on the literature findings in order to assess the strength of relationships between employees’ perceptions of employee development, employee compensation, work engagement, good working relationship between line managers and subordinates, long working hours on the one hand; and employee retention in the hotel sector on the other hand. As the research aimed at testing relationships between variables, a quantitative research method was deemed the appropriate approach. Structured questionnaire surveys, using non-probability sampling, were applied in the form of a convenience approach. Hotels willing to participate in the study were selected, as Cape Town has a large population of hotels. Data for this study was collected over a period of ten months. A bivariate analysis was applied in this research in the form of correlation and Chi-square tests, after descriptive statistics were done. Reliability tests also measured the level of internal relatedness of the variables used to explain employee retention and related constructs. The variables and constructs used in this study were tested for relationships. The major results showed that there are highly significant relationships between employee retention, on the one hand, and employee compensation, employee development, working relationship, work engagement, and working hours, on the other hand.