High Employee Turnover Among Travel Agencies in Malaysia Essay

1.0 Introduction The tourism effort in Malaysia has grown vastly due to its potential and unique competitive edge. The sector has increased its importance indoors the Malaysian economy, since the 1990s according to Bashir, M. and Ahmad, N., et al. (2008). It carries on to be a leading foreign exchange achiever, continu onlyy acting as a crucial reader to the Gross Domestic Product (GDP) growth, business and involvement opportunity, investments, and empowering the balance of payments account. in spite of appearance the last decade, the tourism industry has made speedy progression and this progression is reflected in the increase of tourist arrivals and receipts. Tourist arrivals give way increased significantly by almost 59% from 10.22 million in 2000 to 25.03 million in 2012 (Corporate.tourism.gov.my, n.d.). Tourism receipts in Malaysia contributed 56% of the sum up services receipts aver develop surrounded by 2008 and 2012, generating a surplus in the countrys balance of p ayments accounts (Corporate.tourism.gov.my, n.d.). The tourism sector has become the second-largest contributor towards scotch growth of currency exchange (Table 1). Table 1. Tourist Arrivals & receipt to MalaysiaSource (Tourism Malaysia, 2013)In a recent study, Mazumder et al. (2011) concluded that tourism non only trespasss service sectors but contributes substantially to all sectors of the Malaysian economy. The frugal after-effect of tourism exists extensively within the expansion of the globalisation process this in turn increases the industrys development worldwide. Furthermore, it not only generates a ripple effect but boosts the intersectoral connect within the economy, done these links international tourism consumption will shock nearly all sectors of the economy. Therefore, looking at how important this industry is for the economy, this report aims to find rules to conduct employees in various sectors of the choke sector with the main focus towards incite agenc ies.1.1 Issue The main burn being assessed in this report is center on laid-back staff perturbation. However the main component of this enquiry is strongly related to perturbation heading, rather than turnover itself.1.2 essay Aim In todays competitive world, the plump industry has proved to become one of the most unique tools used for economic progression. Along with that, it has as well helped improve social incorporation and multinational indication and understanding of diverse cultures. This allows turn on agencies to expand target markets. Moreover, also in this unstable business environment, travel agencies that wish to succeed need to be accepting of change. They need to be able to not only ache but also surpass the threats and opportunities rescueed to them by their competitors. Numerous investigatees acquit been carried ply to study the relation between turnover absorbed and business organisation joy. However, diminished interest is given to travel agen cies, although they make up an important decompose of the tourism industry. When turnover intent occurs among service occupations such as those of the travel industry, there is not only a negative impact on the management and firms but also on the service and products quality, hence this whitethorn show a negative result in customer satisfaction. This re inquisition discusses how travel agencies need to focus on employee management and retention. The main issue being assessed is focused on high staff turnover intent among employees in travel agencies.1.3 Research Objectives 1) The factors that influence turnover intent among newcomers in travel agencies. 2) To provide recommendation that could prevent or at least(prenominal) reduce this issue.1.4 Purpose of study According to Kennedy and Berger (1994), turnover rate is broadly at its highest among those employees who ar newcomers in the company, and occurs within the duration of the first four-spot weeks on the stemma. Therefo re, the first objective is to identify factors that influence turnover intent among newcomers in travel agencies. However, every line of work also normally has a solution or at least if there is no specific solution, there ar various methods that can be applied to pick up the problem. Hence, understanding the methods that can either solve or control turnover intent is the second objective of this research.2.0 Literature Review Employee turnover is deliberated as an obstacle to attaining high levels of productivity and efficacy in business pranks or operations (Deery & Shaw, 1997), especially in the travel industry, where the relationship among employees and customers is crucial. A high employee turnover rate is a major factor that reflects a falling off in customer satisfaction this in turn impacts a button in repeat customers and reputation of being a good business. anterior researches state that the more work experience an individual has, the less possible they are to lea ve (Boles et al., 1995). It was also said that hiring individuals who produce experience within the travel industry could reduce turnover intent among travel agencies.2.1 formation channel turnover intent Turnover can be specify as the decision to withdraw from current jobs by pickings office staff in a series of psychological steps (Mobley, 1977) Evaluation of job Experienced job dissatisfaction Thinking of quitting Evaluation of expected utility search and cost of quitting Interaction to search for alternatives Search for alternatives Evaluation of alternatives Comparison of alternatives vs. present job Intention to quit/stay Quit/Stay2.2 Factors influencing job turnover intent There are a return of factors that have been associated with turnover intent in studies that have been conducted in the past. However, most researches have mainly focused on personal differences, age, education, knowledge, income, gender, and job level to list a few determinants that have been ident ified to influence job satisfaction (Fournet et al., 1996). Researchers believe that age, tenure, job level, and income are associated with job satisfaction (Herzberg et al., 1957). Mei-Chih et al. (2007) showed there is a relationship between job satisfaction and age. According to De Vaney and Chen (2003) age has an effect on job satisfaction. Results from several studies indicate that there is a relationship between sex and job satisfaction (Bilgic, 1998 Lumpkin & Tudor, 1990 Goh & Koh, 1991 and Oshagbemi, 2000). Some studies conducted by Lumkin & Tudor (1990) and Stedham & Yamamura (2003) showed that female managers are given less pay and are hence, surely less satisfied with their compensation, promotions, and overall work satisfaction.Studies established that job occupancy has been determined as a factor related to job satisfaction (Herzberg et al, 1957 Lee & Wilbur, 1985 Schuh, 1967). Sokoya (2000) instituted that there is a major difference between job occupancy and job satis faction. Raymond and Elizabeth (1985) demonstrated that job occupancy has impact on job satisfaction. Cotton & Tuttle (1986) focused their theory on the supplements of turnover and then into their factors (1) external correlates (2) structural or work-related factors (3) personal characteristics of employees. In a different, more recent study conducted by Griffith et al. (2000), gave a more encyclopedic explanation ab prohibited antecedents of turnover. These antecedents were classified into four groups, these include 1) Demographic predictors2) ponder satisfaction, organization factors, work environment factors 3) Job content, external environment factors 4) early(a) behavioral predictors3.0 Methodology The research conducted for this study is qualitative, using the probability method for selection of candidates. The primary method was interviews conducted focusing on focusing on the factors that influence turnover intent among employees. Whereas, the interviews helped grasp kno wledge as to why employers/managers think turnover intent occurs and what sort of precautionary measures can be implemented to control or better reduce turnover intent. therefore secondary information was gathered on previous studies regarding the same issue i.e. turnover intent among employees in travel agencies. This information was found through books, journals, and reliable websites.3.1 Interviews Technique The survey was conducted amongst employees of five different travel agencies. The employees were selected at random to avoid any biasness. The interviews on the other hand, were conducted amongst people at the top of the food-chain in the tourism and travel industry in Malaysia. Interviewees were selected at random to gain perspective from various individuals regarding the same issue.3.3 SIZE OF try As mentioned previously, the survey was conducted among employees from five different travel agencies in Malaysia. Within each of these travel agencies, 7 employees from any dep artment were selected to fill out the survey at random. The total number of survey samples analysed were 30, although the total number of survey forms distributed personally were 35. The reason was that every respondent may not fill in the form completely and correctly and therefore, out of 35 surveys 30 properly filled out surveys were cautiously examined to ensure validity of results. The survey was also made available online on surveymonkey.com to gather results in a convenient and fast method. This information gave sixth sense for the thoughts of employees from different regions and states in Malaysia. The interviews were conducted with five individuals who are managers or CEOs at the five travel agencies from where the employees were surveyed.3.4 SAMPLING PROCEDURE There are different methods of distributing the surveys by post, e-mail, or personally. For this particular research the surveys were distributed personally and also conducted online to receive results from travel a gencies that are out of reach. Also a higher(prenominal) number of responses increased the accuracy of results.4.0 Findings and Discussion5.0 Recommendations So many questions rise as to what factors cause turnover intentions among employees in travel agencies, one of the questions is Could the problem possibly root from the tourism education and training itself? Since, the operations of travel agencies are not very precise and adequate (i.e. there is no exact procedure to be followed in jobs of those working in travel agencies), it may be possible that students who graduate with a diploma/ storey in tourism related studies are not well-prepared to deal with globalization and the effects it has on the tourism industry. Therefore, training and development has an important impact on the development of skilled professionals prepared for the business operations taking part in travel agencies on a daily basis.