Date Capstone Completed


Document Type

Capstone Paper

Degree Name

Masters of Science in Educational Leadership


Leadership Education


Barbara Holmes


One of the major issues that business leaders face are high rates of employee turnover. From 2013 to 2017, the annual total separation rate increased by 38.1 to 43.0 across all industries (Bureau of Labor Statistics, 2018). This demonstrates that employee turnover is increasing over time in the United States. Turnover is problematic because it forces business leaders and managers to replace reliable and trained employees with new employees, which is a timeconsuming process that is often quite costly. Out of all industries that deal with employee turnover, the hospitality industry is known for having one of the highest employee turnover rates across all industries (Kavanaugh, 2018). This is evidenced by the fact that the United States Bureau of Labor Statistics reported that the turnover rate for restaurants and accommodations was 73% in 2016 (McNamara, 2018). The high rate of employee turnover within this industry is explained by a few factors. For one, seasonality leads to a higher turnover rate because many part-time employees are hired as seasonal workers during summer months, and these workers are often younger students who leave their restaurant positions to return to school in August and September (Navarra, 2018). The turnover rate may also be broken down by position, as roles involving performing counter service or working as the cashier had a turnover rate of 36%, which is much higher than the bar staff turnover rate of 25% or the managerial turnover rate of 23% (Navarra, 2018). Turnover is not something that is inherently inevitable to this industry however, and business leaders within the hospitality industry focus on implementing viable strategies to reduce turnover to a more manageable rate.



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