All Employees Are Not Created Equal: An Alternative Method of Assessing Employee Turnover

Keywords

employee turnover, restaurants, human resources, assessment, employee development

Abstract

Employee turnover and its effects on business have been the topic of many research articles and the concern of businesses in all industries. The traditional method of measuring employee turnover ratio (ETR) includes a ratio of number of employees leaving the firm compared to the total number of employees. Unfortunately, this method assumes that all employees are of equal value to the firm, and it doesn’t take into consideration factors such as quality of employee performance, employee tenure, and employee knowledge base in determining the impact of employee turnover. Thus, the current method of reporting employee turnover ratio leads to spurious results in real dollar terms. The proposed method makes this correction by including various employee attributes in calculating employee turnover impact. In addition, to accommodate comparisons across units or industries, the current method reports employee turnover in terms of dollars instead of ratios. The current article presents various employee turnover percentage scenarios and relevant dollar values from a hospitality industry example.

Publication Date

11-24-2009

Original Citation

Parsa, H.G., Tesone, D., Templeton, A. (2009). All Employees Are Not Created Equal: An Alternative Method to Assess Employee Turnover in Hospitality. Journal of Foodservice Business Research. 12(4), 317-331.

Number of Pages

317-330

Document Type

Paper

Language

English

Source Title

Journal of Foodservice Business Research

Volume

12

Issue

4

College

Rosen College of Hospitality Management

Location

Rosen College of Hospitality Management

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