Expected Outcome of Human Resource Practices on Labour Turnover in Restaurants in Kenya

Abstract

Labour turnover (LTO) disrupts organizations both indirectly and directly through increased costs of recruitment, training and social systems. This paper provides an understanding of the effects of human resource practices on labour turnover and how it can be managed in restaurants. The study was based on the equity theory and descriptive research design was used. The study covered a total of 80 restaurants operating in five major towns in Kenya namely: Mombasa, Nairobi, Kisumu, Nakuru and Eldoret with 284 respondents comprising employees randomly selected. Structured questionnaires were used to collect data. Frequency tables were used to present descriptive data while regression analysis and ANOVA were used to analyse the data. ANOVA results pointed to the fact that HRM practices were basically the same in all the towns studied. It was also established that socio-demographic characteristics and existence of gross informal human resource management practices in the restaurants have contributed to labour turnover. Thus, the study recommended that the Ministry of Labour enact, enforce and monitor standard management procedures that could reduce labour turnover. In addition, ways in which Human Resource Management practices could be used to manage labour turnover in the hospitality industry were given.