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Turnover Cost Evaluator, Timothy R. Hinkin, J. Bruce Tracey Nov 2015

Turnover Cost Evaluator, Timothy R. Hinkin, J. Bruce Tracey

Timothy R. Hinkin

***************************************************************** Turnover Cost Evaluator (online tool, click to access) ***************************************************************** Attracting and retaining talented staff is one of the most important means for creating and sustaining a competitive advantage. Yet despite the efforts by many firms, employee turnover continues to be one of the most vexing challenges in the hospitality industry. One of the ways to effectively manage employee turnover is to account for the costs associated with replacing staff. By doing so, employers can create a more detailed and comprehensive understanding of the impact of this problem on property performance. The Turnover Cost Evaluator has been developed to help …


The Effect Of Employee Turnover On Hotel Profits: A Test Across Multiple Hotels, Tony L. Simons, Timothy R. Hinkin Apr 2015

The Effect Of Employee Turnover On Hotel Profits: A Test Across Multiple Hotels, Tony L. Simons, Timothy R. Hinkin

Timothy R. Hinkin

Employee turnover is generally recognized as a costly phenomenon, and hotel companies consequently have initiated various turnover-reduction programs. Despite many studies, however, it remains difficult to assess exactly what effect turnover has on operating profits—and thus to assess the return on investment for initiatives designed to reduce turnover. An analysis of gross operating profits and employee turnover rates at 98 full-service hotels at one hotel company yields an estimate of the actual dollar costs of employee turnover. In general, the cost of turnover increases with ADR. That is, the cost of a 1-point increase in turnover is greater for a …


Scale Construction: Developing Reliable And Valid Measurement Instruments, Timothy R. Hinkin, J. Bruce Tracey, Cathy A. Enz Apr 2015

Scale Construction: Developing Reliable And Valid Measurement Instruments, Timothy R. Hinkin, J. Bruce Tracey, Cathy A. Enz

Timothy R. Hinkin

The purpose of this paper is to describe the process for developing reliable and valid measurement instruments that can be used in any hospitality industry field research setting. Many instances exist in which the researcher cannot find an adequate or appropriate existing scale to measure an important construct. In these situations it is necessary to create a new scale. Failure to carefully develop a measurement instrument can result in invalid and unintegratable data. Hence, a systematic seven-step process is outlined here to assist researchers in devising usable scales. Examples from the authors’ own research are used to illustrate some of …


An Examination Of “Nonleadership”: From Laissez-Faire Leadership To Leader Reward Omission And Punishment Omission, Timothy R. Hinkin, Chester A. Schriesheim Apr 2015

An Examination Of “Nonleadership”: From Laissez-Faire Leadership To Leader Reward Omission And Punishment Omission, Timothy R. Hinkin, Chester A. Schriesheim

Timothy R. Hinkin

Laissez-faire leadership has received much less attention than have the 3 transactional leadership dimensions of the Multifactor Leadership Questionnaire (MLQ). However, laissez-faire leadership has shown strong negative relationships with various leadership criteria, and the absence of leadership (laissez-faire leadership) may be just as important as is the presence of other types of leadership. This article focuses on a single type of laissez-faire leadership (i.e., the lack of response to subordinate performance). Using a reinforcement perspective, the authors developed measures and examined the effects of the lack of performance-contingent reinforcement in 2 forms: reward omission (leader nonreinforcement of good subordinate performance) …


What Makes It So Great? An Analysis Of Human Resources Practices Among Fortune’S Best Companies To Work For, Timothy R. Hinkin, J. Bruce Tracey Apr 2015

What Makes It So Great? An Analysis Of Human Resources Practices Among Fortune’S Best Companies To Work For, Timothy R. Hinkin, J. Bruce Tracey

Timothy R. Hinkin

Although few hospitality organizations are listed in the annual survey of Fortune magazine’s one hundred best companies to work for, an analysis of companies with similar operating challenges provides clear direction for hospitality and service companies’ human resource practices. This study examined twenty-one companies, including one food-service firm (Starbucks) and three hotel chains (Four Seasons, Kimpton, and Marriott). The remainder of the companies analyzed were grocery and health care organizations, both of which share human resources issues with the hospitality industry, such as long operating hours, relatively high turnover, and relatively low pay. The innovative human resources practices isolated in …


Contextual Factors And Cost Profiles Associated With Employee Turnover, J. Bruce Tracey, Timothy R. Hinkin Apr 2015

Contextual Factors And Cost Profiles Associated With Employee Turnover, J. Bruce Tracey, Timothy R. Hinkin

Timothy R. Hinkin

[Excerpt] Employee turnover has long plagued the hospitality industry. In the lodging segment, turnover rates have been shown to average about 60 percent annually for line-level employees (Woods, Heck, and Sciarini 1998) and about 25 percent for managerial positions (Smith Travel Research, Tracey, and Tews 2002). This concern is even greater in other hospitality contexts, such as quick-service restaurants, where mean employee turnover runs in excess of 120 percent. Employee turnover has been and continues to be a particularly prolific area of research, with many publications on the topic. Evidence suggests that turnover is triggered by dissatisfaction with such factors …


Development And Use Of A Web-Based Tool To Measure The Costs Of Employee Turnover: Preliminary Findings, Timothy R. Hinkin Ph.D., J. B. Tracey Ph.D. Apr 2015

Development And Use Of A Web-Based Tool To Measure The Costs Of Employee Turnover: Preliminary Findings, Timothy R. Hinkin Ph.D., J. B. Tracey Ph.D.

Timothy R. Hinkin

Employee turnover continues to be one of the most vexing and costly challenges in the hospitality industry. Despite the obvious expense of turnover, few studies have attempted to account for the diverse costs associated with replacing staff. Rather than estimate the cost of turnover, the web-based tool described in this report compiles the specific costs of turnover in the following five categories: pre-departure costs, recruiting costs, selection costs, orientation and training costs, and the cost of lost productivity. Looking specifically at turnover among front-desk associates, recruiting constitutes a substantial portion of turnover costs. The greatest expense, however, that of lost …


Developing Mutually Beneficial Relationships Between Researchers And Organizations, Timothy R. Hinkin, Brooks C. Holtom, Malvina Klag Apr 2015

Developing Mutually Beneficial Relationships Between Researchers And Organizations, Timothy R. Hinkin, Brooks C. Holtom, Malvina Klag

Timothy R. Hinkin

[Excerpt] The keys to organizational success are constantly changing. As the global economy evolves in the direction of knowledge-based enterprise, the ability to create and manage information is essential. The decisions that managers make have large operational and financial implications. However, managers often lack the information needed to make sound decisions. When faced with challenges in their organizations they may rely too heavily on personal experience or obsolete knowledge. Often, they turn to consultants for assistance. There are a large number of academics who study issues important to managers, yet the results of their work are often not communicated effectively …


The Relevance Of Charisma For Transformational Leadership In Stable Organizations, Timothy R. Hinkin, J. Bruce Tracey Apr 2015

The Relevance Of Charisma For Transformational Leadership In Stable Organizations, Timothy R. Hinkin, J. Bruce Tracey

Timothy R. Hinkin

One of the primary dimensions of the multifactor leadership questionnaire (MLQ) developed by Bass and associates is idealized influence, or charisma. However, there has been very little empirical support for this dimension in a number of previous studies. We argue that this lack of support is due to the attributional nature of charisma and the situational impact on the existence of, or the need for, charismatic leadership. The current study supported this contention and provided a more parsimonious operationalization of the MLQ, which did not include the idealized influence dimension.


The Service-Quality Audit: A Hotel Case Study, James Y. Luchars, Timothy R. Hinkin Apr 2015

The Service-Quality Audit: A Hotel Case Study, James Y. Luchars, Timothy R. Hinkin

Timothy R. Hinkin

A service audit that quantifies the cost of everyday errors can help a hotel manager pinpoint which quality problems to address first.


Continued Relevance Of “Factors Driving Meeting Effectiveness”, Timothy R. Hinkin, J. Bruce Tracey Apr 2015

Continued Relevance Of “Factors Driving Meeting Effectiveness”, Timothy R. Hinkin, J. Bruce Tracey

Timothy R. Hinkin

[Excerpt] In 1997 we were approached by the directors of the International Association of Conference Centers (IACC) who asked us to conduct a study to determine whether conference centers were better than hotels for conducting meetings and similar activities (e.g., formal training programs). We told IACC that we could not do this type of research, but would instead try to identify the key property attributes that contribute to meeting or program effectiveness. The association agreed with this approach and provided funding for the project. The study coincided with the beginning of the substantial growth in the conference-center industry that continues …


The Contagion Effect: Understanding The Impact Of Changes In Individual And Work-Unit Satisfaction On Hospitality Industry Turnover, Timothy R. Hinkin Ph.D., Brooks Holtom Ph.D., Dong Liu Ph.D. Apr 2015

The Contagion Effect: Understanding The Impact Of Changes In Individual And Work-Unit Satisfaction On Hospitality Industry Turnover, Timothy R. Hinkin Ph.D., Brooks Holtom Ph.D., Dong Liu Ph.D.

Timothy R. Hinkin

This report describes a two-year longitudinal study examining the effects on employee turnover of the change in individual and unit levels of satisfaction. Analyses of data collected from 5,270 employees in 175 business units of a hospitality company demonstrate that changes in an individual’s level of satisfaction affect that person’s turnover decisions. More important, unit-level job satisfaction change and its dispersion jointly affect the individual’s satisfaction change and the overall turnover rate in a unit, in what can be termed a “contagion effect.” As the work environment becomes more positive (employees are satisfied) and overall satisfaction in the unit increases …


“If You Don’T Hear From Me You Know You Are Doing Fine”: The Effects Of Management Nonresponse To Employee Performance, Timothy R. Hinkin, Chester A. Schriesheim Apr 2015

“If You Don’T Hear From Me You Know You Are Doing Fine”: The Effects Of Management Nonresponse To Employee Performance, Timothy R. Hinkin, Chester A. Schriesheim

Timothy R. Hinkin

A study of 243 employees of two different hospitality organizations compared the effects of managers’ giving feedback with no comments at all (favorable or unfavorable). The study found that feedback, formally known as contingent reinforcement, improves performance even when that feedback involves negative or corrective comments. Echoing previous studies, this research found a positive relationship between contingent rewards and workers’ effectiveness and satisfaction. Moreover, contingent punishment also had a small positive relationship with effectiveness and satisfaction. Going beyond previous work, however, this study found that managers’ omission of any commentary on good performance has a direct, albeit moderate, negative relationship …


The Customer's Role In The Service Encounter: The Effects Of Control And Fairness, Karthik Namasivayam, Timothy Hinkin Apr 2015

The Customer's Role In The Service Encounter: The Effects Of Control And Fairness, Karthik Namasivayam, Timothy Hinkin

Timothy R. Hinkin

Two key elements of service satisfaction for customers are the perception that they have at least some control or choice and that the service provider is being fair. That notion was tested in a video-based experiment in which 50 subjects watched either a restaurant-based or hotel-based scenario that depicted an employee's response to the subject's request for a change in the original order or reservation. In half the scenarios the guest's wish was granted and in half; it was not. Whether the request was granted or not, in half the scenarios the employee behaved in a fair fashion (by being …


Transformational Leaders In The Hospitality Industry, J. Bruce Tracey, Timothy R. Hinkin Apr 2015

Transformational Leaders In The Hospitality Industry, J. Bruce Tracey, Timothy R. Hinkin

Timothy R. Hinkin

The classic metaphor of the manager as one who fights fires may need to be replaced by that of one who focuses on fire prevention.


A Theoretical And Empirical Examination Of The Transactional And Non-Leadership Dimensions Of The Multifactor Leadership Questionnaire (Mlq), Timothy R. Hinkin, Chester A. Schriesheim Apr 2015

A Theoretical And Empirical Examination Of The Transactional And Non-Leadership Dimensions Of The Multifactor Leadership Questionnaire (Mlq), Timothy R. Hinkin, Chester A. Schriesheim

Timothy R. Hinkin

Bass and his colleagues initiated the empirical investigation of transformational and transactional leadership two decades ago. They proposed that transformational leadership is comprised of four dimensions, that transactional leadership is composed of three dimensions, and that an additional category of non-leadership exists (laissez-faire leadership). The Multifactor Leadership Questionnaire (MLQ) has been developed to assess these dimensions and much has been learned about the positive effects of transformational leadership. However, far less attention has been paid to transactional leadership and non-leadership. The current study examined the theoretical and empirical properties of each MLQ transactional leadership and non-leadership measure. We first looked …


The Cost Of Turnover: Putting A Price On The Learning Curve, Timothy R. Hinkin, J. Bruce Tracey Apr 2015

The Cost Of Turnover: Putting A Price On The Learning Curve, Timothy R. Hinkin, J. Bruce Tracey

Timothy R. Hinkin

Employee turnover does more than reduce service quality and damage employee morale—it hits a hotel's pocketbook.


The Costs Of Employee Turnover: When The Devil Is In The Details , J. Tracey, Timothy Hinkin Apr 2015

The Costs Of Employee Turnover: When The Devil Is In The Details , J. Tracey, Timothy Hinkin

Timothy R. Hinkin

Employee turnover continues to be a concern for many hospitality firms. To gain insights about the relative costs of different aspects of turnover, we first compared the costs of turnover for different hotel types. Based on data gathered from 33 U.S. hotels, we found that the costs of turnover were generally higher for: (1) higher complexity jobs; (2) independent properties; (3) properties with relatively high room rates; (4) large properties; (5) high- occupancy properties; (6) properties in markets with a high cost-of-living index; and (7) properties in markets with a high unemployment rate. We also examined the relative effects of …


Continued Relevance Of "Factors Driving Meeting Effectiveness", Timothy Hinkin, J. Tracey Apr 2015

Continued Relevance Of "Factors Driving Meeting Effectiveness", Timothy Hinkin, J. Tracey

Timothy R. Hinkin

Recent history has only reinforced guests’ preferences regarding meeting-space attributes. Tops is safety and security, followed by service, service, service.


The Service Imperative: Factors Driving Meeting Effectiveness, Timothy R. Hinkin, J. Bruce Tracey Apr 2015

The Service Imperative: Factors Driving Meeting Effectiveness, Timothy R. Hinkin, J. Bruce Tracey

Timothy R. Hinkin

[Excerpt] American businesses spent over $100 billion in 1997 on business meetings, conferences, and training programs. To meet this demand, hotels and conference centers have made large investments in developing and enhancing meeting space. Competition for the meeting and convention business has tightened, particularly with the emergence of such markets as Las Vegas, Atlanta, and Orlando as viable alternatives to the traditional major-city locations. The meeting business is further pressed by technologies such as distance learning and interactive multimedia. In addition, customers are becoming more concerned with the effectiveness of meetings, and are taking steps to ensure that the money …


Becoming A Leader In The Hospitality Industry, Timothy R. Hinkin Apr 2015

Becoming A Leader In The Hospitality Industry, Timothy R. Hinkin

Timothy R. Hinkin

[Excerpt] Leadership has been defined in many ways, but the essence of leadership involves influencing people toward a desired objective. Leaders do not push followers—they pull them. While management is often concerned about stability, efficiency, and control, leadership is focusing on innovation, adaptation, and employee development. Management focuses on coping with the day to day, while a true leader is looking into the future. A manager can develop a brilliant marketing campaign, create an innovative strategy for growth, and design the most efficient work processes, but if the followers don't engage effectively in the implementation of these initiatives, these efforts …