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Contextual Factors and Cost Profiles Associated with Employee Turnover

Cornell University School of Hotel Administration, jbt6{at}cornell.edu

Timothy R. Hinkin

trh2{at}cornell.edu

To gain insights about the nature and expenses of specific aspects of employee turnover, the authors gathered data from thirty-three U.S. hotels and found that the costs of turnover were generally higher for (1) high-complexity jobs; (2) independent properties; (3) high—average daily rate (ADR) properties; (4) large properties; and (5) high-occupancy properties. The authors also identified several activities associated with recruitment, selection, and training that were linked to lower overall costs of turnover. The results shed new light on the nature and consequences of turnover and provide some prescriptive guidance for managing this serious operational and strategic challenge.

Key Words: human resources • turnover costs

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