Journal of Hospitality & Tourism Research, Vol. XX, No. X, Month 201X, 1–4
DOI: h t t p s : / / do i . o r g / 10.1177/1096348020955213
© The Author(s) 2020
1
TURNOVER AND PERFORMANCE IN
FULL- AND SELECT-SERVICE HOTELS
Mary Jo Dolasinski
Chris Roberts
DePaul University
Turnover plays an important role in hotel performance. This study explored turnover
and its relationship between three key categories of the balanced scorecard (revenue,
profit, and guest satisfaction) using secondary data from a 6-year period for 118
full- and select-service hotels. Analysis revealed strong positive correlations between
hourly and management turnover in full-service hotels and positive correlations in 4
of the 6 years in select-service hotels. There was also a modest negative correlation
between management turnover and guest satisfaction in 4 of the 6 years.
KEYWORDS: employee turnover; hotel performance; management turnover
The changing workforce and the demands of the hospitality industry are dis-
rupting traditional processes. Organizations are facing competition for talent
while looking for a competitive advantage. Critical for future success are loyal
guests fueled by perceived service value, processes, and technology that mini-
mize costs and maximize profits, and engaged, productive employees. The gen-
eral belief in lodging is that lower turnover equals better performance. The hotel
industry typically experiences a high rate of turnover, estimated at 75% annually
(U.S. Bureau of Labor Statistics, 2019). While many studies have investigated
the reasons why people leave an organization, there is a paucity of empirical
research on the impact of turnover on hotel performance. The goal of this study
was to explore the relationships between turnover and performance in hotels.
REVIEW OF LITERATURE
The balanced scorecard is a method for systematically measuring both finan-
cial and nonfinancial performance of a business (Kaplan & Norton, 1992). It has
been “estimated that half of Fortune 1000 companies utilize it” (Kala & Bagri,
2014, p. 167) and that at least 60% of the major companies in the United States
and Europe use it (Antonsen, 2014). For the purposes of this study, the balanced
scorecard categories of revenue (market share), profit (flow-through), and guest
(guest satisfaction) were used.
A key benchmark measure for a hotel’s top-line revenue is market share.
Bowie and Buttle (2004) defined market share as the amount of room nights sold
955213JHT XX X 10.1177/1096348020955213JOURNAL OF HOSPITALITY & TOURISM RESEARCHDolasinski, Roberts / TURNOVER IN HOTEL PERFORMANCE
research-article 2020