BUSI710
Creating Problem
Statements
Liberty University
BUSI710: Foundations of Applied Research
Methods
Creating Problem Statements
The general problem to be addressed is the impact of employee turnover on a business. It is
important for an organization's success to attract and retain high-performing employees. Employee
turnover costs a lot of money, both in terms of rehiring and educating new workers and in terms of
losing seasoned employees to future rivals. According to a report by the Hay Group, replacement costs in
the hospitality industry range from 50% to 60% of an employee's annual salary (Afsar et al., 2018). As a
result, every company strives to keep their top-performing frontline workers for as long as possible. As a
result, scholars and practitioners alike are worried about the issue of “Why do workers leave?” and “Why
do they stay?” "Employees don't quit firms, they leave bosses and supervisors" exemplifies this
conundrum (Afsar et al., 2018).
When the pace at which workers leave the company is high, it has a negative impact on the
company's productivity and profitability. Since staff turnover is linked to the loss of human capital, it
poses a challenge to organizational success and profitability. When leaders understand the causes of
employee turnover, they will adopt strategies that increase competitiveness and profitability. To
establish successful retention strategies, a company must first recognize the causes of high labor
turnover (Dwesini, 2019).
The specific problem to be addressed is the high turnover rates in the hospitality industry. Based
on a study by Ezeuduji and Mbane (2017) conducted in Cape Town, South Africa, researchers correlate
the reason for high staff turnover in the hospitality sector with the following: workers seeing salaries as
being low when measured against their jobs, limited growth opportunities, insufficient work
commitment, weak labor relations and long working hours.
Creating Problem
Statements
Liberty University
BUSI710: Foundations of Applied Research
Methods
Creating Problem Statements
The general problem to be addressed is the impact of employee turnover on a business. It is
important for an organization's success to attract and retain high-performing employees. Employee
turnover costs a lot of money, both in terms of rehiring and educating new workers and in terms of
losing seasoned employees to future rivals. According to a report by the Hay Group, replacement costs in
the hospitality industry range from 50% to 60% of an employee's annual salary (Afsar et al., 2018). As a
result, every company strives to keep their top-performing frontline workers for as long as possible. As a
result, scholars and practitioners alike are worried about the issue of “Why do workers leave?” and “Why
do they stay?” "Employees don't quit firms, they leave bosses and supervisors" exemplifies this
conundrum (Afsar et al., 2018).
When the pace at which workers leave the company is high, it has a negative impact on the
company's productivity and profitability. Since staff turnover is linked to the loss of human capital, it
poses a challenge to organizational success and profitability. When leaders understand the causes of
employee turnover, they will adopt strategies that increase competitiveness and profitability. To
establish successful retention strategies, a company must first recognize the causes of high labor
turnover (Dwesini, 2019).
The specific problem to be addressed is the high turnover rates in the hospitality industry. Based
on a study by Ezeuduji and Mbane (2017) conducted in Cape Town, South Africa, researchers correlate
the reason for high staff turnover in the hospitality sector with the following: workers seeing salaries as
being low when measured against their jobs, limited growth opportunities, insufficient work
commitment, weak labor relations and long working hours.
