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Article
The Costs of Employee Turnover: When the Devil Is in the Details
Center for Hospitality Research Publications
  • J. B. Tracey, Ph.D., Cornell University
  • Timothy R. Hinkin, Ph.D.
Document Type
Article
Publication Date
12-1-2006
Abstract

Employee turnover continues to be a concern for many hospitality firms. To gain insights about the relative costs of different aspects of turnover, we first compared the costs of turnover for different hotel types. Based on data gathered from 33 U.S. hotels, we found that the costs of turnover were generally higher for: (1) higher complexity jobs; (2) independent properties; (3) properties with relatively high room rates; (4) large properties; (5) high- occupancy properties; (6) properties in markets with a high cost-of-living index; and (7) properties in markets with a high unemployment rate. We also examined the relative effects of actions taken to replace departing staff, and found that the damage to productivity caused by the inexperience of new employees is the greatest contributor to the overall costs of turnover.

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Citation Information
Tracey, J. B., & Hinkin, T. R. (2006). The costs of employee turnover: When the devil is in the details [Electronic article]. Cornell Hospitality Report, 6(15), 6-13.