impact of quality of work life on retention of employees report

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INFLUENCE OF QUALITY OF WORK LIFE ON EMPLOYEES RETENTION
MASTER OF MANAGEMENT IN HOSPITLITY AND TOURISM
ABSTRACT
Human resources are the life-blood of any organization. They are the most vital and dynamic
resources of any organization, without an effective team of human resource the organization
can’t attain their goals. There are different types of challenges are facing by the organizations in
the case of human resource The biggest challenge that organizations are facing today is not only
managing these resources but also retaining them. Securing and retaining skilled employees
plays an important role for any organization, because employees’ knowledge and skills are
important to companies’ ability to be economically competitive. Besides, continuously satisfying
the employees is another challenge that the employers are facing today. Employee retention is a
process in which the employees are encouraged to remain with the organization for the
maximum period of time or until the completion of the project. Employee retention is beneficial
for the organization as well as the employee. For any organization employees are very important
and they are treated as the asset of the organization. I selected this topic “the factors affecting
employee’s retention”, to know what type of factors are influencing the employees to stay back
in the organization, and to analyze the strategies that can be adopted by the organization maintain
the retention of the employees in the organization.
INTRODUCTION
In recent years, the number of visitors to India has increased rapidly. This means that the tourist
demands for hotels and services have also increased. One of the important features of the
hospitality industry is the growth level of the sector which is highly notable one. According to
the world trade union this is the only industry which is growing fast.
More than 81.5% of employees work in the same workplace for less than 5 years, and half of the
employees leave the workplaces within one year, indicating that hospitality industry workers
choose to quit their jobs due to low salary levels and high levels of work pressure. Past studies
relating to turnover intention have shown that organizational commitment and job satisfaction
are regarded as two important variables that affect the turnover intention of employees (Clegg,
1983). In fact, the findings of the major studies on the relationship between organizational
commitment, job satisfaction and turnover intention have confirmed that the two variables have
significantly negative effects on turnover intention. This suggests that employees with high job

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satisfaction levels have a higher level of work efficiency, organizational commitment, and
willingness to sacrifice for the organization, making it more difficult for them to leave their jobs
(Cranny, 1992).
(Feuer, 1989) Defined QWL as a process by which an organization responds to employee needs
by developing mechanisms to allow them to share fully in making the decisions that design their
lives at work and Quality of work life is specifically related to the level of happiness a person
derives for his career.
Factors affecting employee turnover today have become increasingly complex. The quality of
work life of the employees is an important factor which determines the employees stay back in
an organization (Lambert, 2001). The factors like superior and family support co workers
relation the features of the working environment etc are highly affecting the job satisfaction of
the employees.
Employees in the hospitality industry facing lot of problems, most of the studies were revealed
the factors such as work environment and coworker relationships as the most influential factors
affecting job satisfaction. Moreover, other studies have confirmed that salary level has a
significantly positive effect on organizational commitment, as well as on turnover intention.
Salary is a main motive of the human beings to work in an organization bit the present situation
saying that salary is the only reason behind the retention of the employees. It is apparent that the
effect of work environment, salary level, and coworker relationships are important to turnover
intention.
Regarding coworker relationships, this study intends to find out whether the work environment
affects employee job satisfaction, and in turn, turnover intention. Moreover, because the salary
level of the hotel and F&B industry is the lowest among all industries, another question to be
answered by this paper is whether the salary level affects organizational commitment, which
leads to a high turnover rate. This study uses hotel employees in Le Meridian Kochi as the
research subjects, and discusses the causal structural relationship of their turnover intentions.
COMPANY PROFILE
One of Kochi’s most exclusive addresses since its grand launch in April 2001, Le Meridien
Kochi is adorned in a contemporary style with modern amenities. With its 151 guest rooms and

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13 banquet halls, we inspire a new perspective of discovery for both business and leisure
travellers. Le Meridien Kochi boasts of the most picturesque locale overlooking the serene
backwaters and manicured gardens. The hotel is located at 34 KMs away from the Cochin
International Airport and 5 KMs from the Ernakulum Railway Station. The International
Convention Centre combines spaces that expand ideas with an endless choice of creative
experiences. Explore 60,000 sq.ft of air conditioned indoor space to discover the vivid
opportunities to organise events
The Le Méridien brand was established in 1972 by Air France "to provide on a home away from
home for its customers." The first Le Méridien property was a 1,000-room hotel in Paris — Le
Méridien Etoile. Within two years of operation, the group had 10 hotels in Europe and Africa.
Within the first six years, the number of hotels had risen to 21 hotels in Europe, Africa, the
French West Indies, Canada, South America, the Middle East and Mauritius. By 1991, the total
number of Le Méridien properties had risen to 58.
In May 2001, Nomura Group announced the acquisition of Le Méridien Hotels & Resorts from
Compass Group plc for £1.9 billion and Le Méridien was merged with Principal Hotels, which
was acquired in February 2001. In December 2003, Lehman Brothers Holdings acquired the
senior debt of Le Méridien.
On November 24, 2005, the Le Méridien brand and management fee business was acquired by
Starwood Hotels & Resorts. The leased and owned real estate assets were acquired in a separate
deal by a joint venture formed by Lehman Brothers and Starwood Capital.
LITERATURE REVIEW
Quality of work focuses on the quality of relationship between employees and total work
environment. The fundamental rationale is to develop work environment that are the best thing
for people as well for the economic health of the organization. Quality at work trims down
attrition intentions of the prospective employees and then helps out in reducing absenteeism and
improving job satisfaction (Clarke, 2001). Previous researches suggested several factors which
play an important role in employee retention (Cappelli, 2000). The factors which are considered
and have direct affect are; career opportunities, work environment, work life balance,
Organizational justice, and existing leave policy and organization image. Employee are stay and

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loyal with such organization where employee have value, sense of pride and work to their full
potential (Cole, 2000). The reasons to stay employee in organization are organization reward
system, growth and development, pay package and work life balance.
Employees retaining is the most important target for the organization because hiring of qualified
candidate is essential for organization but their retention is more important than hiring, because a
huge amount is spending on the orientation and training of the new indicated employees (Cotton,
1986). Many researchers found that the cost of replacing of old employees with new is estimated
up to twice the employee annual salary. When Employee leaves the job, organization lost not
only employee, but also lost the customers & client who ware loyal with the employee,
knowledge of production, current projects, competitor and past history of the organization.
Organizations make enormous efforts to attract employees and sustain them in the organization.
In today’s business scenario only high salary and designation is not significant for employees to
retain them in the organization, but others factors also play important role in their retention. The
intent of this research is to how the organizations retain the talented employees in the
organization focusing on the factors which means career development, leave policy, leadership
style, work environment, remuneration & rewards, Organization Justice, and performance
appraisal. (Van Knippenberg, 2000), suggested that employee become more loyal and stay in the
organization when they identify themselves within a group and contribute to the performance as
a group. When the employees came in to a group there will be a common goal and co ordination
to achieve the same. Today’s reasons for the retention of the employees are lack of coworkers
relation defects in the organization policies, effects of the supervisor support dissatisfaction in
work environment etc are the leading reasons for the retention of the employees.
(Fitz-enz, 1990) recognized that only one factor is not responsible in management of employee’s
retention, but there is several factors influenced in employee’s retention which need to manage
congruently i.e. compensation & rewards, job security, training & developments, supervisor
support culture, work environment and organization justice etc.
Earlier studies on employee turnover focused mainly on understanding causal mechanisms but
several studies carried out on employee retention, the strategic human resource researchers are
still investigating the things happening in between HR practices and firm’s performance
(Bluedorn, 1982), mostly related to voluntary turnover as a critical component (Shaw, 2005) as

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employee retention plays a vital role in bridging the gap between the work progress and the
growth behavior in Organizations. This is because it ensures stability and connects the
experiences of individuals in Organizations on a continuous basis to the critical measures of
success factors in the Organization. The decision of leaving the Organization is not easy for an
individual employee as well as significant energy is spent on finding new jobs, adjusting to new
situations, giving up known routines and interpersonal connection and is so stressful (Boswell,
2005). Therefore if timely and proper measures are taken by the Organizations, some of the
voluntary turnover in the Organization can be prevented. The aim of this research is to find out
whether the factors like work environment, co workers relation, supervisor and family support
are influencing the retention of the employees in Le meridian hotel cochin also helpful to know
the determent that why employees leave the organization.
METHEDOLOGY
The topic of the research was “A study on the influence of quality of work life on employee’s
retention”. The study conducted among 33 respondents gave a clear idea about the type of
relationship between the dependent and independent variables i.e. retention of the employees and
factors like co workers relation, superior subordinate relation, and work environment
respectively. The research instrument of the study was the questionnaire filled up by employees
of different departments and designation of Le meridian Cochin. The questionnaire contains
many questions that can get answers about the impact of quality of work life on employee’s
retention. The questionnaires were collected from the respondents during the two month
internship period. There were 33 respondents and questionnaires were collected from them all
and were evaluated on a 5 point scale, rating as strongly agrees to strongly disagree.
The sample for this study was chosen through convenience sampling. The sample is selected
irrespective of the gender, age, department, designation, qualification etc. The sample size of the
study is 33. SPSS was used as statistical software and the statistical tools used in this were,
correlation, ANOVAs, Regression, and Cross tab. The general objective of the study was to find
the influence of quality of work life on employee’s retention. Through this study the organization
can be able to know about whether the retention of employees are being the reason of different
factors like work environment, co workers relation, and the supervisor support. By the result of
this research they can understand the satisfactory level of being a member of the organization;

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they feel that they are working with an excellent team in the organization, they are loyal to the
organization or not, their attachment etc. The main objectives of the study were; to find the
influence of work environment on employee’s retention, co workers relation on employee’s
retention, superior and family support on employee’s retention.
DATA ANALYSIS AND DISCUSSION
Table 1: PROFILE OF RESPONDENCE
Sample characteristics of
respondent
Characteristics Frequency Percentage
Gender Male 21 61.8
Female 12 35.3
Age
20-30 3 8.8
30-40 13 38.2
40-50 13 38.2
50-60 4 11.8
Level of Employment
Managerial 6 17.6
Non Managerial 27 79.4
Years of Employment
Less than 1 year 4 11.8
1-2 8 23.5
2-3 9 26.5
3-4 10 29.4
4-5 2 5.9
Sample Characteristics
The above table shows the detail of the sample selected. Here in the above table 61.8 percent of
the respondents are male and the rest 35.3 percent are females. Over 8.8 percent of them are of
the age category of 20-30, 38.2% are belongs to 30-40 category, under 40-50 category again
38.2% are coming, rest of the 11.8% respondents are belongs to 50-60. In my respondents 17.6%
are holding the managerial positions and the rest 79.4% of them do not hold any managerial
positions. The levels of experience among the employees are 11.8 % with less than 1 year, 23.5%
with 1-2 year experience, and 26.5% with 2-3 years of experience. The employees with 3-4 years
of experience are 29.4% and the rest of 5.9% belongs to 4-5 years of experience.

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Information from the respondents was entered into the SPSS. Data were analyzed with the help
of Descriptive Statistics, Correlation, ANOVA, Regression etc. Following are the analysis and
interpretation of the data collected from the 33 respondents.
To know the impact of work environment on employees retention.
Correlations
Retention
Work
environment
Retention Pearson Correlation 1 .395
*
Sig. (2-tailed) .023
N 33 33
Work environment Pearson Correlation .395
*
1
N 33 33
From the above table we can understand that, there is a positive correlation between the work
environment and the retention, which is significant at 0.05 levels. This means that when the work
environment improves the retention also increases and vice versa. Therefore the companies
should take efforts to see that the work environment should be satisfied by the employees in the
organization.
ANOVA
Retention Work environment
Sum of Squares df Mean Square F Sig.
Between Groups 1.251 2 .625 2.831 .075
Within Groups 6.628 30 .221
Total 7.879 32
From the above ANOVA table we can understand that retention of the employees is different
based on their intensity of work environment. The descriptive table below gives the mean values
of retention based on work environment.

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Retention Descriptive
Mean
neither agree nor disagree 4.0000
Agree 4.5217
strongly agree 4.8889
Total 4.6061
The descriptive table above once again makes it very clear that their retention increases
with their level of satisfaction of work environment which was also clear from the correlation
table above. The company must also take some actions that result in matching organizational
values and employees which will later result in retention of employees.
Coefficients
Model
Un standardized
Coefficients
Standardized
Coefficients
Sig.B R Square Beta
Work environment .391 .156 .395 .023
a. Dependent Variable: Retention
Regression analysis is done to check the significance found in correlation. It is significant in
regression analysis also. Here the P-value is .023, which is significant at 0.05 levels. Here R
square value is .156, which means 15.6% of retention is due to work environment. The beta
value here is 0.395 which means that one unit change in work environment leads to 0.395 unit
change in the rate of retention. The positive beta value also indicates that there is a positive
relation between retention and work environment.

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 To evaluate the impact of co-workers relation on employees retention.
Correlation table between co workers relation and retention
retention
Coworkers
relation
Retention Pearson Correlation 1 .759
**
N 33 33
Coworkers relation Pearson Correlation .759
**
1
N 33 33
From the above table we can understand that, there is a positive correlation between the co
workers relation and retention, which is significant at 0.01 levels. This means the co workers
relation is affecting in the retention of the employees. Therefore the companies should take
efforts to maintain a good co workers relation in the organization.
ANOVA
retention
Between Groups 4.534 1 4.534 42.029 .000
Total 7.879 32
From the above ANOVA table we can understand that retention of the employees is significantly
influenced by the intensity of the co workers relation. Which means that, the differences in co
workers relation significantly influences the retention. The descriptive table below gives the
mean values of retention based on co workers relation.

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Mean
Agree 4.2000
Total 4.6061
The descriptive table above once more makes it very clear that their retention increases with their
level of co workers relation which was also clear from the correlation table above. The company
must also take some actions that will keep co workers relation factors high otherwise which will
result in retention of employees.
Coefficients
Model
Un standardized
Coefficients
Standardized
Coefficients
Sig.B R Square Beta
Co workers relation . .744 .576 .759 .000
Regression analysis is done to check whether, the significance found in correlation is significant
in regression analysis also. Here the P-value is .000, which is significant at 0.01 levels. Here R
square value is 0.576, which means 57.6% of retention is due to co workers relation. There is a
positive relation between retention and co workers relation. The beta value here is 0.759 which
means that one unit change in co workers relation leads to 0.759unit change in retention.

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To know the influence of supervisor support and the family
support on employee retention
Correlations
retention
Supervisor
support
retention Pearson
Correlation
1 .312
N 33 33
Supervisor
support
Pearson
Correlation
.312 1
N 33 33
From the above table it is clear that there is no significant relation in between the supervisor
support and the retention of the employees. From the above table showing the values which is
clearing that there is relation between two factors but it can’t be proved. For the further studies I
have done the ANOV and cross tab of these two variables.
ANOVA
Retention
Between Groups .766 1 .766 3.339 .077
Total 7.879 32
From the above ANOVA table we can understand that retention of the employees is not
significantly influenced by the intensity of the supervisor support. This result means that there is
relation but it is not significantly influencing the two variables.

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Mean
Agree 4.4286
Total 4.6061
The descriptive table above once again makes it very clear that their retention increases with
their level of satisfaction of superior support which was also clear from the correlation table
above. The company must also take some actions that result in matching organizational values
and employees which will later result in retention of employees
FINDINGS OF THE STUDY
The project on “Study on the influence of quality of work life on employee’s retention in Le
meridian hotel Cochin” has delivered us the findings and conclusion based on the topic. Through
analyzing different factors that influence the retention of employees, it is understood that all the
factors like superior support, co workers relation, work environment etc are influencing the
retention of the employees, but the employees are saying that the superior family supports are not
a factor which is not being influencing the retention. There is a positive relationship found
between the dependent and independent variables when did the correlation. It is also clear that,
when the work environment in the le meridian hotel increase the retention rate of the employees
is also changes and vice versa. And when take into consideration of the second objective the co
workers relation from the calculation it is also clear that the relation between the employees are
less as compared to the other hotel industry. From the response of the employees they
mentioning that effective co workers relation can maintain the retention rate and can build up
good relation and through that, the organization can offer job satisfaction among the employees.
The questionnaire that used to collect data from the employees includes questions that measuring

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the level of different factors that affecting the retention of the employees. Through the analysis
and interpretation the role of quality of work life on the retention of the employees is clear and
the range of influence that through various factors are also revealed. The result helps the
organization to determine which the factors are that is increases the rate of retention of the
employees, and the organization can control the factors and can implement new policies and
procedures to reduce the rate of retention of the employees in the organization. This study giving
the organization a chance to analyze, which are the factors that influencing the retention of the
employees and also they can take appropriate attention to prevent such situations in the
organizations.
The major findings on the objectives of the study are; the retention of the employees is different
based on the intensity of the work environment of the organization, it was also found that, the co
workers relation intensity is also high, so the retention is significantly influenced by the co
workers relation of the employees. It was clear that, the superior family support to the employees
is high but it is not contributing significance to the retention of the employees.
. Managers also need to give training to employees who rated as the organization value and that
of the organization matches as average, to make them clear about and understand the value of the
organization. Perhaps it may the problem of employees because they are new to the organization.
Proper planning and coordination can maintain the employees’ stay back in the organization. The
organizations attitudes towards the employees is also a factor which determines the retention of
the workers so the organizations should take attention regarding wealth of the employees, and a
solution for the leaving the organization.
LIMITATIONS OF THE STUDY
One of the limitations I found in this study is that, the study is based on the responses of the
respondents which may bias. The total number of the respondents that is used for the study is
very less; it should have been more in numbers. Perhaps there would have been a change in the
result when the no increases. So when further study is done, no of the respondents must be
considered. And another factor to be taken care is the equality of gender in selecting the
respondents. In this study most of the respondents were male; only 8 female employees were

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there. There were some employees who were not ready to fill the questionnaire. It may because
of the some kind misunderstanding of them. Le Meridian as a reputed brand, some of the
employees were not ready to give the information and also the most of the employees were
satisfied and they tell me no need of filling of such data because they are showing commitment
and job satisfaction and also they happy with the work environment and factors like co workers
relation, superior subordinate relation and all.
CONCLUTION
The main thrust of this study is based on the quality of work life on retention of the employees.
The study analyzed various factors that come under the quality of work life like happy being a
member, working with an excellent team, co workers are very helpful to the work life and the
superior family support is essential etc. Through this analysis the specific objectives were proved
to be significant. Through this paper we can come to the conclusion that, the quality of work life
is highly influencing the retention of the employees in the le meridian hotel Cochin.
So the study suggests that, since the quality of work life influencing the retention, the managers
must take steps to prevent the left out of employees from the organization. And also they must
take necessary actions to improve the factors come under the quality of work life. The
improvement of the factors in work life will increase the rate of retention in the organization.
The results of this study suggest that coworker relationships and work environment have
significantly positive effects on retention of the employees when the facilities and co works
relation is increasing the employees retention is also increase. If hotels can provide a better work
environment and facilitate harmonious coworker relationships among employees, job satisfaction
can be effectively improved. Moreover, job satisfaction and salary level have no direct effect on
retention, however, job satisfaction and salary level can indirectly affect the employee turnover
rate through organizational commitment. The results also suggest that higher salary levels, higher
levels of job satisfaction, and higher levels of organizational commitment will lead to lower
turnover intention. When discussing factors affecting employee turnover intention, the study
showed that coworker relationships, salary level, and organizational commitment in addition to
work environment are important factors that influence employee retention. Because job
satisfaction and salary level indirectly affect retention through organizational commitment,
employees will begin to identify with the company, its goals and business strategies, and their

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jobs if the company can effectively enhance their organizational commitment. Therefore, the
effect of organizational commitment is very important to hotel employees.
Questionnaire
1. Age: 20-30 30-40 40-50 50-60
2. Gender: Male Female
3. Level of Employment: Managerial Non managerial
4. Years of work experience: below 1 1-2 2-3
3-4 4-5 above 5
Mark the options from highest agreement (5) to lowest agreement (1)
5= Strongly Agree 3 = Neither agree Nor Dis-agree 1 = Strongly Dis-agree
I often get opportunities to communicate with my
superiors.
I have freedom to communicate with my superiors.
I have my supervisors’ support in work.
Superior willing to tolerate arguments and give fair hearing
Listens to you when you share things that are bothering
you
My family is willing to share my stress
They are very eager to know about my work
Suggestions and support from the family.
Please rate your level of agreement with the following statements regarding your colleagues
in the department where you work:
The people in my work group use time and resources

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effectively.
The people in my department cooperate to get the job done.
I feel that my own ideas are genuinely considered in the
department.
The people in my department share job knowledge with
each other.
The people in my department are honest, open and
transparent in their dealings.
The people in my department treat each other with respect.
The people in my department resolve conflict quickly when
it arises.
Please rate your level of agreement with the following statements regarding aspects of your
organisations working environment:
My organisation is a good place to work.
In general, employees in my organisation effectively
manage conflicts of interest.
Employees in my organisation feel they are valued for their
contribution.
My organisation places a high priority on the learning and
development of employees.
When someone praises the accomplishments of my
organisation, it feels like a personal compliment to me.
Please rate your level of agreement with the following statements regarding aspect of your
retention from the current organization
I often seriously consider leaving my current job.
I intend to quit my current job.
I have started to look for other jobs.
This organization giving only stressing duties more than
my working capabilities
Other organizations providing more freedom to workers
Organization is not considering employees wealth

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