As a new market of the universe cordial reception industry, China has an highly attractive force non merely for investors but for those bookmans or experts. The turnover rate as a large issue in the cordial reception industry spontaneously is paid a close attending to in this new market. So this research paper aims to happen out effects, analyze the grounds and possible solutions of a high employee turnover rate in the eating house industry of China, based on the research accomplishments of other bookmans.

Key words

China ; Restaurant employees ; a high turnover rate ; grounds ; influences ; possible solutions

The factors that cause a high turnover rate in eating house industry of China and possible solutions

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As a labour intensive and people orientation industry, the eating house industry needs more considerations towards its human resource direction than the other industry does. As a effect, many experts in eating house industry pay their attendings to the turnover rate which term is about behaviours of single and a large issue in a eating house. Actually, because of the harm a high turnover rate brings to the organisation has more weight influence on operating than the benefit the positive effects of a high turnover rate has, the most organisational theoreticians and employers merely are eager to set their eyes on the negative facets of the turnover rate and take it as a large job in the day-to-day operation, although there are some positive facets of a high turnover rate such as the decrease of entrenched struggle, increasing of mobility, invention and version in the organisation. ( Dalton, & A ; Todor, 1979 ) Finally, with 1000s of articles about the high turnover rate, those experts have already got an about completed theory about the turnover rate depending on the patterns of the western states. But this sort of survey can be eternal because of the changing of the universe. With the gap of market of eating house industry in China, they find there is an highly high turnover rate in China ‘s eating house industry ( Yang, 2009 ) . For the other industries, the normal turnover rate normally was kept in the scope from 5 % to 10 % , even for the labour intensive industry, this figure should hold been over 20 % , nevertheless, in the eating house industry, this figure can make mean 23.95 % from 2005 to 2009. ( Zhao, Hu, & A ; Deng, 2006 ) As a consequence, more and more employers and experts start to pass their energy in Chinese eating house industry to analysis grounds and to happen out possible solutions for those restaurant employers of China. So my paper will concentrate on those researches about what factors that cause a high turnover rate and possible solutions are in restaurant industry of China.

The Definition of the Employee turnover

The mentions to turnover in the organisational literature began to look around the 1900 ( Dalton and Todor, 1979 ) . The writer Fred Herbert Colvin mentioned this term in his book about the labour turnover, trueness and end product. Actually, he merely used this term to demo his sentiment about how the war affects the concern without seting an accurate definition in this book. In the following 100 old ages, many people keep to seek to specify this tern from all facets, such as the definition of turnover which gives me a first feeling about turnover is a step of the proportion of a work force that is replaced during a intentional clip period ( Hayes and Ninemeier, 2005 ) and turnover rate is ratio that the figure of people go forthing the organisation divided by the entire figure of employees in the organisation ( Zhao, Hu and Deng, 2006 ) . In the general head, all those sensible definitions are acceptable, because we can non pick out the most accurate one but the most suited one to utilize in some particular state of affairss. However, several people frequently misunderstand those definitions by taking the turnover every bit same as the purpose to go forth because they can be interchangeable sometimes. Actually, those two points are different from each other in definition. The purpose to go forth is merely referred to a worker ‘s purpose to go forth his or her present organisation. But the turnover non merely includes departure of employees but besides contains remaining or coming of employees in an organisation ( Cho, Johanson and Guchait, 2009 ) .

The Effects of a High Employee turnover Rate In The Restaurant Industry

The turnover of employees non merely is a regional issue but an issue in the whole industry. ( Zhao, Hu, & A ; Deng, 2006 ) There are 100s of articles about the effects of a high turnover rate. Seonghee Choi??Misty M. Johansoni??and Priyanko Guchait published a diary on International diary of cordial reception direction in 2009 mentioned that “ When employees leave an organisation, either voluntarily or involuntarily, the impact can be significant. Employee turnover has been straight linked to lifting employee enlisting and preparation costs, break in the operation, low degrees of employee morale, occupation satisfaction, and clients ‘ perceptual experiences of service quality ” . Yang Ping, 2009, besides mentioned the turnover of employees is the effect of the market competition of eating houses and optimisation of human resource in China. But, besides raising the money and clip cost of enlisting and retraining, a comparative high turnover could allow organisation lose the competitory advantage by retrieving the internal policies of the eating house and lose costumiers by neglecting to accomplish consistency of client service quality and operation. Finally the ROA and ROI will be affected indirectly. Meanwhile a high turnover rate will impact the lesson of employees. The running away of a group of employees will do an unfavourable effect on other employees who stay in the place. Those turnovers will inform other employee that there are some other picks of work chances, particularly when people find out those run off staffs has a better benefits and a calling development. It will act upon the working enthusiasm of employees, the assurance for the eating house and the cohesive force of organisation which are deadly effects for an organisation. ( Yang, 2009 ) Furthermore, the employee who has the direct contact and communicating with clients plays an of import function in the service industry. A high turnover of this sort of employees causes a adversity of conglomerating of service and work experience for them which will go an obstruction for the development of the whole service industry. ( Nadiri, & A ; Hussain, 2005 )

As we all known, the coin should hold two sides. So the high turnover rate could hold some positive effects in some state of affairss. When the high turnover rate is caused by disregarding those unqualified employees and absorbing those adept staffs, it would better the operating of the eating house. ( Ai, 2005 ) Besides, if those new employees could convey some new engineerings, constructs, accomplishments and techniques and make some invention in the organisation to better and hone operation, the high turnover rate could be counted as a good phenomenon in a eating house. ( Dalton, & A ; Todor, 1979 )

Although the high turnover rate has both negative effects and positive effects, it is counted as a large job in the day-to-day operation, because its negative influences are more obvious and harmful than the positive. ( Ma, 2006 )

The Factors Cause the High Turnover Rate in Restaurant Industry

Most clip, Employees have some grounds to go forth the eating house ; this paper will concentrate on four most of import and particular factors.

The Monetary Factor

The comparative degree of pay or wage is the most of import factor which determines employees go forthing an organisation voluntarily. ( Poole and Warner, 1999 ) This factor is exceptional of import for the eating house industry. When the benefits can non fit the load and deadening work in the service industry, the staff will more be given to discontinue the occupation. ( Yang, 2009 ) Meanwhile, in China, those employers prefer to engage those immature employees as waiters ; so the employees in the eating house industry attempt to roll up as much money as they can when they are immature. But those immature employees seldom can have an ideal degree of income in their head because of lacking of necessary experience and accomplishments. It means the realistic can non fit their wants, so they will discontinue the occupation. ( Zhang, 2008 ) Besides, a good compensation is a cosmopolitan psychological demand for most employees in the eating house. Actually the degree of salary non merely is the difference of those individual Numberss but a dimension for measuring the worth and capableness of an employee and a symbol stands for the accomplishment and position of an employee. When an employee wants to acquire a better income to demo his or her ain capableness or worth, he or she will take to yield to temptation to discontinue the occupation. ( Guo, 2007 ) Furthermore, some wonts indirectly affects turnover rate in the eating house, such as tips. Recently, tips become the chief resource of income for servers or waitresses in the eating house industry in many states. So tips have a important interaction with the turnover rate. The turnover should be lower in eating houses with high tip per centums than in eating houses with little tip per centums. ( Lynn, 2002 ) However, the Chinese people do non hold this sort of wont, which means the tips percentages attack to zero. It will do a high turnover rate in the eating house. ( Wang, & A ; Huang, 2003 )

The Factors about Features of the Work Itself in the Restaurant Industry

The characteristics of the work itself such as repetitiousness in the cordial reception industry could do a high turnover rate, particularly for those employees who work in the front line. ( Yang, 2009 ) Those heavy and deadening plants in the front line of a eating house would be repeated each twenty-four hours which will do employees loss passions for working. In the same clip, the occupation in those high volume eating houses needs a batch of displacements each twenty-four hours which may change by reversal the normal natural clock in people ‘s head. It makes employees experience tired, even disgusted which may do increasing of the occupation dissatisfaction. When people ‘s feelings towards a sort of occupation are dissatisfied, tiring, tired or disgusted, unless there are some particular factors coercing or pulling people to guarantee it, no 1 wants to work in this industry. ( Nielsen, & A ; Smyth, 2008 ; Lee, & A ; Way, 2009 ) Furthermore, because the eating house industry is a sort of service industry, its extremum season or period is the other industries ‘ remainder clip, which means the eating house employees need to see the busy period while others have a great remainder clip such as working in some large festivals or holidaies. Unlucky, the Chinese people thinks a batch of those festivals or holiday which can acquire together with their household such as the spring festival. Therefore, a batch of employees in the eating house will take to discontinue the occupation even this industry, due to the particular work agendas. ( Guo, 2007 ; Lei, 2006 )

Additionally, the server or waitress in the eating house has a batch of direct connexions and communications with the all sorts of clients in the day-to-day work. When the staff experiences those average clients who ever are intensive to make some troubles, abuses or favoritisms, the employees will experience defeated which can worsen the enthusiasm to work and increase the negative attitudes towards the work. Finally, when those bad feelings or attitudes reach a certain degree, the employees will go forth the eating house, even do some worse things. ( Guo, 2007 )

The Factors about Features of the Employees Themselves in the Restaurant Industry

In some state of affairss, the causes of a high turnover rate in eating house industry are related to a batch of characteristics of eating house employees. Individual employment features of employees in the cordial reception industry have a important impact on turnover rate. The features can impact how employees feel about their work environment. ( Lee, & A ; Way, 2009 ) It means that some features of employees can assist them to manage troubles and minimise negative effects bing in this tough industry, such as an energetic employee can confront the great work load in the eating house easy. When the negative effects are declined, the turnover can be decreased in the same clip. But the fact ever can non fit what we want. Because the eating house industry is an experience industry which means it has fewer barriers to entry into this industry than others have. So most new employees in this industry have a comparative low instruction and see less if they are fitted with this industry, comparing to other industries. As a effect, after several old ages, the employee who is non suited for this industry will discontinue the occupation to happen those favourable occupations. ( Guo, 2007 )

Besides, the age of employees will lend to the high turnover rate. Based on the theory of labour economic systems, the older employees have less clip to acquire income with the same cost of turnover than those younger 1s. In the same clip, the older employee has a high psychological cost when he or she transportations from a familiar work environment to a new one. So the senior employees prefer to hold a more stable work state of affairs and lower turnover rate than those immature employees do. However, in the eating house industry, the figure of employees whose age is concentrated in a scope from 20 old ages old to 40 old ages old is 73 % of sum figure of employees in whole eating house industry ( Yang, 2009 )

The Chinese Social Factors

The Chinese civilization has a large difference from others ‘ . Some Chinese traditional thought raises the turnover rate aggressively. In the Chinese traditional positions, the occupation in the eating house is a sort of low occupation which needs waiting on others. Recently, this sort of old construct still affects people ‘s behaviours in some extents. So the employees in the eating house ever are taken as the inferior. When the employees can non bearing the force per unit area coming from their surrounding environment, they will vacate and turn to other industry. ( Yang, 2009 )

Additionally, implementing the incorrect company policies causes a high bend over rate. China is a underdeveloped state. There are a batch of industries coming up in the last 50 old ages. Although the eating house has been existed in China for 1000s old ages, but the eating house industry still can be counted as a new industry in China because of the assortment of alteration in this industry. As a “ babe ” , the eating house industry of China has a batch of jobs which can do a high turnover rate. The freaky development of the industry makes employers merely pay their attending to the short term benefit. Due to this sort of outlook, the employer wo n’t offer any preparation programs or calling programs for the employees. When the employees can non acquire adequate preparations and chances for development, they will lose the trueness to a company even leave the eating house. ( Yang, 2009 ) Furthermore, a unsighted acquisition can do a high turnover. There are more and more international hotel and eating house ironss come ining the Chinese market. On history of authorities ‘s particular supportive policies and a mature system and extended experience in direction and day-to-day operation most of them have, those international companies can acquire a more or less success. As a nationality which is good at acquisition, the Chinese employers try to copy those win illustrations. But each determination should be made based on different state of affairss inside or outside the organisation, so if the employer merely imitates others by utilizing their system or operation without any judgements, they would hold a great possibility to neglect in the operation. ( Gamble, 2006 ) For illustration, if the employer copies an unsuitable employee motive policy from a successful international nutrient service concatenation without any analysis, the employer may loss his or her good employees alternatively of maintaining them, which will do a high turnover rate in the organisation.

The Possible Ways to Control the High Turnover Rate in the Restaurant Industry

To cut down the high turnover rate in the eating house industry, there are a batch of methods can be used. This paper will exemplify those methods from three facets: the employer, the employee and the school of cordial reception direction.

For the Aspect of Employers and Restaurant

Constructing an effectual compensation system.

In the eyes of employees and appliers, the proper compensation is a rather of import factor which affects their determinations about if they will take to discontinue the occupation. ( Yang, 2009 ) But in China, the eating house industry starts to come in into a low-profit epoch because of the recession of economic system, more and more employers merely focused on cost commanding which includes cut downing labour cost and employees ‘ benefits blindly, which will do a high turnover rate and put those employers into a worse state of affairs. Actually, in this sort of bad state of affairs, the employer should hold increased employees ‘ wage and benefit to actuate and maintain them alternatively of subtracting the compensation. But when they want to increase the wage and benefit, there are more jobs coming up such as equity issues and effectiveness issue, worse, if employees feel disgruntled and unfairness in the compensation, they are eager to take to discontinue the occupation. Meanwhile, the employer ever makes a sort of error: they try to utilize money to pull and maintain their employees. Indeed, money can maintain employee in some degrees. However, as Gregory P. Smith said “ The money may pull people to the front door but something else is needed to maintain them from traveling out the dorsum. ” It means employers need other ways to maintain their employees, besides money. As a consequence, to work out those above jobs, the eating house has to plan and build an effectual compensation system. An effectual and completed compensation system could assist employers to offer a sensible and cost-efficient wage or benefit to maintain their employees and actuate them in the same clip. ( Li, 2007 ) Recently, more and more restaurant direction squads try to utilize the productiveness betterment plan as a portion of compensation. Take a addition sharing program as an illustration, this program can non merely increase employee ‘s trueness but supply more benefit to employees which can maintain employees and better their productiveness. ( Yang, 2009 )

Constructing a proper employee preparation and developing system.

In all industry, those top employees can convey the competitory advantages to an organisation by effectual working. But the more competitory employees are, the better preparation and developing system they need. ( Yang, 2009 ) When employees can non be satisfied with those demands, they will take to discontinue the occupation. Besides those voluntary turnovers, a preparation system besides can impact unwanted turnovers. A hapless preparation can do the deficiency of necessity accomplishments which is chief ground of discharge. So a proper and effectual preparation and developing system is quiet of import to retain employees, particularly in the eating house industry in China with an highly high bend over rate. For the development system, the employers should plan personal calling programs for each possible top employees. As the employee is hired, employers should inform them about their publicity programs and places in the eating house and design a particular employee calling way depending on demands and characteristics of employees. During implementing, the direction squad needs to supervise the procedure and to give the feedback to those employees in each measure. For the preparation system, the employers should seek to better each employee ‘s capableness relevant to the existent work in the eating house by utilizing a mix of different sorts of developing methods. ( Yang, 2009 ; Zhang, 2008 ) Furthermore, the employees should utilize the cross-training to do employees be familiar with each occupation place in the eating house, which can increase the possibility about reassigning the turnover outside to inside. Depends on the definition of turnover, the turnover rate of a eating house can be decreased. ( Guo, 2007 )

Implementing a valid recruiting system.

Many people choose to come in into restaurant industry merely because they merely need a occupation impermanent for life. Those people have a few involvements and passions about this industry so that they have a great possibility to discontinue their occupations. A valid recruiting system can avoid this sort of enlisting efficaciously. For illustration, by utilizing scientific trial techniques such as psychological trials, the employer can pick up the best and most suited campaigner in the recruiting pool. ( Yang, 2009 ; Yang, 2007 )

Puting a pleasant working environment.

Due to characteristics of the eating house industry, the employees have to hold a direct connexion with all sorts of clients. A average client may hold a large impact on employees such as frustrating feelings and emphasiss, which can do employee leave. It is impossible to inquire those clients to alter. So we have to happen out other ways to soothe our employees. As Guo Jianying, 2007, said, a pleasant work environment will be really helpful for employees. This sort of environment or atmosphere can give employees supports and respects from the organisation side which can increase the trueness toward the organisation. Besides, a good human relation among employers and employees is an of import portion of environment. It can supply a good trust and regard between direction squads and employees, which can increase the keeping in the eating house.

For the Aspect of Employees in the Restaurant Industry

Put a sensible outlook fiting the realistic.

By and large talking, the employee in the eating house industry needs at least 5 old ages to be promoted to be a supervisor or director. But many new employees have a strong willing to be promoted in the short period. When their outlooks can non be satisfied, they will discontinue the occupation to happen the other ways. Besides, the employees ever underestimate the work load of occupations in the eating house industry. The immense sum of plants and emphasiss can beyond people ‘s image easy in this industry. Those mismatches can do the employees to discontinue the occupation. So the employees should hold a sensible outlook toward the occupations in the eating house industry. Those mental readyings can assist employees to get the better of those troubles in the day-to-day work, which can lend to cut down the high turnover rate. ( Guo, 2007 )

Suppressing the influence of Chinese traditional thought.

Most Chinese people believe that the occupation in a eating house is a sort of low occupation, which is influenced by the traditional thought. As a consequence, besides the force per unit area from the busy work, the employees have to confront those emphasiss coming from people around them such as their friends or household. Without the support from household and friend, an employee can non confront those tough plants in this industry. So if the employee wants to remain working in a eating house which can diminish the turnover rate, they need to suppress this sort of believing when they decide to work in the eating house. ( Guo, 2007 )

Be responsible for yourself.

Recently, in China, the money worship and egoism affects people a batch, particularly adolescents. As the consequence, the public presentations of those people normally are discharged by the ground that they can non make the standard employers set. So if the employees could remain in the eating house which can cut down the turnover rate, they should take duty for themselves to show their values. ( Yang, 2009 )

For the facet of school of the cordial reception direction

The school of the cordial reception direction has an unreplaceable consequence on the development of the whole cordial reception industry. However, due to less attending those Chinese schools paid and deficiency of effectual class design, the school can non supply the competitory alumnuss for the industry, which has indirectly effects on turnover rate. So the school needs some betterments to alter the state of affairs that is a high turnover rate. There are several ways schools can utilize to better themselves. First, the school should engage those instructors with both theoretical and realistic accomplishments. Second, the school should collaborate with some eating house groups to give pupils chances to see the existent plants in the internship. Last, when schools select text editions, they need to make some probes about the tendency and new techniques of whole eating house industry. ( Wu, 2006 )


As I mentioned above, the ratio of turnover is a good tool for mensurating the province of an organisation ‘s operation in a period clip. Due to the negative effects, the high turnover rate in the eating house industry ever is counted as an of import and complex job. It can associate to a batch of factors, but the most those factors can be summarized as two theoretic factors which are the employee ‘s satisfaction and motive in the eating house. So those eating houses in China should pay a close attending to those two factors. They need to analysis the causes of a high turnover rate based on the facet of the employee ‘s satisfaction and stress on the consequence of employees ‘ motive to command the turnover rate in an acceptable scope by utilizing proper plans and actions. Meanwhile, besides the attempt of employers, the employee and instruction establishments besides can lend to decrease of the turnover rate by increasing the competition and pertinence. If all the facets can utilize some effectual and appropriate patterns in the eating house industry, it has a great possibility to diminish the turnover rate in some extent.

Restrictions and waies for future research

This research paper has several restrictions which readers should pay attending to. First, as a secondary research paper, the mention may be non plenty. Because of the restriction of clip and informations resources, this paper can non connote all the recent research consequences about the high turnover rate in the eating house industry. Besides, merely a few researches specially focus on the eating house industry of China. Most of them are depended on the western state ‘s state of affairs or the whole cordial reception industry. As the consequence, I have to pick up a batch of points from each mention which can be applicable for the eating house industry of China to complete my paper. Second, some looks may be improper or inappropriate for readers. Because several mentions in my research are written in Chinese, I need to sum up those documents and interpret them into English. However, due to the restriction of my English linguistic communications and composing accomplishments, the interlingual rendition or organisation of the paper may be improper for those English native talkers, though I have tried my best.

For those people who want to better this subject, the secondary research is non plenty for this subject. The state of affairs of the eating house industry of China is a quite particular and alone subject and new issue. The bing theories or theoretical accounts can non be applied to the Chinese society normally. So a information aggregation in China is necessary for this subject.


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