Professional Documents
Culture Documents
A Study On Employee Attrition of The Oberoi Cecil
A Study On Employee Attrition of The Oberoi Cecil
Submitted To:
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DECLARATION
I, “Shaolin Sehgal”, hereby declare that the work presented herein is genuine work
done originally by me and has not been published or submitted elsewhere. Any
literature, data or work done by others and cited in the report has been given due
acknowledgement and listed in the reference section.
Shaolin Sehgal
1920984512
Date: ______________
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ACKNOWLEDGEMENT
On the very outset of this report, I would like to extend my sincere and heartfelt
obligation towards all the persons who have helped me in this endeavor. Without their
active guidance, help, cooperation and encouragement, I would have not made my
headway in the project.
At last but not the least gratitude goes to all of my friends who directly or indirectly
helped me to complete this project report. Any omission in this acknowledgement
does not mean lack of gratitude.
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EXECUTIVE SUMMARY
The project work is based upon the Winter Internship Program which I had completed
in the month of December with one of the hotel chains of The Oberoi Group of Hotels
in Shimla. The name of the Hotel is The Oberoi Cecil. The hotel was established in
1884 by the British but was later purchased by one of its employees, Mohan Singh
Oberoi, who later founded the Oberoi Hotels group. I got an opportunity to work
closely with the Human Resource Department of the Oberoi Cecil as a Management
Trainee. The work which I did there was all related to the employees of the hotel like
maintaining their attendance record, average working hours of employees. Making the
employee ID cards and issuing them , filling of the documents of the new employees
and the Industrial trainees, scheduling the interview of the candidates with the HR
head , working on the rewards and recognition to be given to the employees
,calculating the attrition of the employees, understanding the reasons behind employee
attrition in the hotel industry, preparing the leave cards of the employees , updating
the news and Daily briefing Sheet for the employees which contained the figures
relating to occupancy of the hotel , arrival and departures of guests in the hotel
,conducting online tests for employees to know that how much they know about the
hotel , keeping the record of selected candidates from the campus placements ,
preparing list of interns eligible for stipend. The problem which I identified was the
employee attrition in the hotel. The attrition rate in the hotel was high. Employee
attrition is the reduction of staff by voluntary reasons. The reason which I could
identify for high employee attrition is because employees find better avenues &
opportunities in other organizations, (not necessarily hotels), the working hours of the
employees are longer as compared to normal working hours, less salary. Many people
join at levels of operational trainees, front and back office management, in kitchen or
service but not many stay back. They move abroad or industries like BPOs, Banking,
Call centers etc. to explore better opportunities. The solutions to minimize the
employee attrition could be by enhancing the training programs, reducing the working
hours of employees, providing a good working environment, amending the perks and
benefits for the employees, offering continuous promotions, good employee retention
activities. These are some of the solutions that can be used for minimizing the
problem of employee attrition in the hotel.
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TABLE OF CONTENTS
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LIST OF FIGURES
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PART -1
INTRODUCTION
TO
THE OBEROI CECIL
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MISSION
Our guests
We are committed to meeting and exceeding the expectations of our guests through
unremitting dedication to perfection, in every aspect of service.
Our people
We are committed to the growth, development and welfare of our people, upon whom
we rely to make this happen.
Our distinctiveness
Our shareholder
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VISION
We see a multi skilled workforce; which consists of team players who have pride of
ownership, translating organizational vision into reality.
We see an organization where people are nurtured through permanent learning and
skill improvement; and are respected, heard, and encouraged to do their best. The
Oberoi Group is recognized as a best practice for training and developing its people.
We see a diverse workforce which has been exposed to different cultures, problems,
situations and can use its experiences to enrich the local employees whether in India
or overseas.
We see the world dotted with hotels of The Oberoi Group in strategic commercial and
resort locations.
We see user-friendly technology enhancing value for our customers and helping our
personnel by making information more accessible.
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We see an organization which is committed to the environment, using natural
products and recycling items thus ensuring proper use of diminishing natural
resources.
HISTORICAL BACKGROUND
The Cecil is a historic luxury hotel located in the hill station Shimla, India. The
Cecil's address is at Chaura Maidan. At an elevation of seven thousand feet, it sits at
the foothills of the Himalayas. with a stunning view of the mountains and valleys. The
hotel was established in 1884 by the British but was later purchased by one of its
employees, Mohan Singh Oberoi, who later founded the Oberoi Hotels group, which
presently owns and operates the property.
The Cecil had quite modest beginnings in 1883 as a one-storied house, the Tendril
Cottage with its famed inhabitant, Rudyard Kipling. It is claimed that Kipling
frequented the house where he wrote his novels, including Plain Tales from the Hills,
which was inspired by Shimla. According to an account, Kipling would book himself
into the cottage every summer for five consecutive years, making his from Lahore to
the British retreat. The author first set foot on The Cecil in the summer of 1883 when
he was just 17.
Rai Bahadur Mohan Singh Oberoi came to Shimla while he was a jobless newlywed
to find work in the government. However, he was employed at The Cecil in 1922,
starting as a staff in the boiler room, tasked with weighing coal sacks for the hotel's
water heaters. He rose from the ranks until finally, he was able to acquire The Cecil as
a part of the acquisition of the Associated Hotels of India in 1944. Oberoi's
experiences, since he took every job possible at the hotel, helped him learn the
hospitality trade and understand what motivates various classes of hotel guests. Under
his ownership, The Cecil became the address that everyone wanted to be seen at and it
was able to establish its own legacy of luxury.
The hotel was closed in 1984 for extensive renovation and refurbishment and was
reopened in 1997. The renovation included a heated swimming pool, billiards rooms,
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and a children activity centre along with the customary amenities such as fine-dining
restaurants and luxurious rooms facing the Shimla Valley.
The Oberoi Group is a hotel group with its head office in Delhi. It was Founded in
1934, the company owns and operates 31 luxury hotels and two river cruise ships in
six countries, primarily under its Oberoi Hotels & Resorts and Trident Hotels brands.
The foundations of the Oberoi Group date back to 1934 when Rai Bahadur Mohan
Singh Oberoi, the founder of the group, bought two properties: The Maidens in Delhi
and the Clarke's in Shimla. In the following years Oberoi, assisted by his two sons,
Tilak Raj Singh Oberoi and Prithvi Raj Singh Oberoi (P.R.S. Oberoi), continued the
expansion of their group with properties both in India and abroad.
The Oberoi family is the majority shareholder in EIH Ltd with a 32.11% stake.
The Annual Turnover of the Oberoi Group of Hotels for the year 2018-19 was Rs.
1,133 crores.
The equity shares of the Company were first listed on the BSE in 1956. In 1965, we
built our first hotel, The Oberoi Intercontinental, now known as The Oberoi, New
Delhi, and in 1957, it started flight services business. On 9 September 1968, The
Associated Hotels of India Limited and Hotels (1938) Private Limited merged into the
Company pursuant to which the Company acquired five hotels including, The Oberoi
Grand in Kolkata, The Maidens Hotel in Delhi and The Oberoi Cecil, Shimla.
In 1973, the company commenced operations at the Oberoi Towers in Mumbai and
subsequently expanded their operations from the five-star deluxe segment to - Trident
branded hotels which were targeted at business and leisure customers seeking high-
quality service at more affordable prices. Between 1986 and 2009, they added nine
hotels branded Trident. In 1974, the Company established a printing press in Delhi
primarily to ensure supply of high-quality guest interactive stationery.
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In 1997, the company opened The Oberoi Rajvilas, the first premier leisure hotel
targeting the high - income international and domestic leisure traveler. Subsequently,
three more such hotels were opened, The Oberoi Vanyavilas and The Oberoi
Amarvilas in 2001 and The Oberoi Udayvilas in 2002 and also commenced operations
at the Wildflower Hall in Shimla in 2001.
In 2004, they entered into a strategic arrangement with Hilton for the international
marketing and handling of reservations of the "Trident" hotels. As part of this
arrangement, all the "Trident" hotels were re-branded as "Trident Hilton", and the
Oberoi Towers in Mumbai was re-branded as the Hilton Towers. In April 2008, this
alliance ended and the "Trident" Hilton hotels and the Hilton Towers hotel were
renamed "Trident" hotels.
In April 2005, Indus Hotels Corporation Limited, a 50% joint venture between The
Oberoi Group and the R. Raheja Group, merged with the associate company, EIH
Associated Hotels Limited, to achieve a balanced portfolio of business and leisure
properties by creating a single entity focused primarily on the five-star segment. The
merger resulted in the Company holding approximately 36% of the equity of EIH
Associated Hotels Limited. Effective 1 April 2006, The Oberoi Cecil, Shimla and the
Trident Bhubaneshwar were transferred to EIH Associated Hotels Limited.
In 2006, they acquired a 66.67% equity stake in Mercury Car Rentals Limited, a joint
venture with Avis Europe for car rental business. In June 2010, EIH International Ltd,
a wholly owned subsidiary of the Company completed an acquisition of
approximately 46% of the equity interest of Amex Investment Limited, in its
international hotels joint venture company EIH Holdings Ltd. Pursuant to this
acquisition, EIH Holdings Ltd is now a wholly owned subsidiary of EIH International
Ltd.
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Fig. 1
STUDY OF FUNCTIONING OF VARIOUS DEPARTMENTS
The Departments of the Oberoi Cecil, Shimla are mainly divided into 2 broad
categories:
OPERATIONAL DEPARTMENT:
Front office.
Food & Beverage service.
Housekeeping.
Food production (kitchen)
Spa
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FRONT OFFICE: The function of front office is to allot rooms to the guests
(check-in), to maintain the room records for reservation and allocation, to collect
the room charges and other miscellaneous charges for various services used by
guests during his/her stay at the Oberoi Cecil (at the time of departure of guests),
to take advance booking for rooms and to handle the phone calls of hotel.
FOOD & BEVERAGE SERVICES: The function of the food and beverage
services is to provide food & beverage facilities to the guest, to provide food &
beverage for groups, conferences, meetings, theme parties etc. There are different
sections in F&B Services. Those are:
Restaurant
Room Service department
Banquet department
Bar & lounge
KITCHEN: The function of the kitchen is to provide various type of dishes to the
guest as per the menu, to provide food for various buffet or banquet parties, to
provide food to the staff of the hotel & to prepare different type of dishes for
special occasion. Recently they prepared food for the Christmas Eve and the
GALA Dinner. There are different sections of kitchen also. Those are:
Hot Kitchen: North Indian
South Indian
Tandoor section
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Chinese or oriental kitchen
Halwai or Indian sweet section
Pantry or salad section: tea/coffee, juices, salads, breakfast items etc.
Butchery or cold kitchen: for making different types of chicken, mutton, beef cuts
etc.
Bakery and confectionary: for making cookies, cakes, pastries etc.
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IT DEPARTMENT: The function of the IT Department is maintenance of
various aspects of Internet and its related matters, maintenance of all computer
units hired or purchased by hotel and its relevant software.
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SWOT ANALYSIS OF THE OBEROI CECIL
SHIMLA
STRENGTH
Brand Image
Perfect Experience of Indian Luxury Living in the Valley of
Shimla Hills
Good Administration
Good Communication
Service Skills
WEAKNESS
Shortage of Staff
Hotel Security
High Employee Attrition
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Location (close to political rally points)
Monkey Menace
OPPORTUNITIES
THREATS
Mainly there are two hotels in Shimla which stand as a competition for the Oberoi
Cecil. Those are:
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WOODVILLE PALACE SHIMLA: Woodville’s past engulfs you from the
moment you walk into the reception and glance at Raja Rana Sir Bhagat
Chand's (Knight Commander of the Star of India) intimidating portrait. The
number of secrets and the untold tales in its furniture, decor and antiques may
never rise to the surface but what comes across is a vintage tradition that the
Royal family of Jubbal has upheld over the decades and across generations
going back a thousand years.
The CSR Policy of all the Oberoi Hotel Chains is same. The Company is engaged in a
number of community development and social service efforts as part of its corporate
social responsibility initiatives. It is the vision of the Company to take up “education
for the under-privileged children” as the cornerstone theme of its Corporate Social
Responsibility.
The Company’s CSR policy’s focus is on addressing the critical social, economic and
educational needs of the marginalized under-privileged children of the society. The
policy particularly direct its energies to orphan and homeless children and care for
their educational, nutritional, health and psychological development needs. The policy
also focuses on sanitation including contribution to the Swachh Bharat Kosh set up by
the Central Government for the promotion of sanitation and also contribution to the
Prime Minister’s National Relief Fund.
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The theme of “education for the underprivileged children” is in consonance with
clause (ii) of Schedule VII of the Companies Act 2013. This clause defines
“promoting education, including special education and employment enhancing
vocation skills especially among children, women, elderly and differently abled and
livelihood enhancement projects” as permissible CSR activity.
STRATEGIES
FINANCE: The sources of finance of the Oberoi Cecil is the guest bookings of
rooms, swimming pool, spa, restaurants, games, activity center, lounge, taxi services.
The Oberoi Group runs 3 hotels in Shimla: The Oberoi Cecil, Wildflower Hall and
Clarkes
HUMAN RESOURCE DEPARTMENT: The Oberoi Cecil does not have any
prescribed recruitment process. They do recruitment through internal references. They
do not advertise their vacancies.
Talking about the Rewards & Recognition the employee of year is selected and given
rewards like free stay in other hotels or movie tickets and shopping vouchers.
Fig. 2
The Oberoi, Mumbai
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Fig. 3
The Oberoi, Bengaluru
Fig. 4
Fig. 5
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Fig. 6
Fig.7
Fig.8
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Fig.9
Fig. 10
Fig. 11
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Fig. 12
Fig. 13
Fig.14
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MAURITIUS - OBEROI HOTELS & RESORTS
Fig.15
Fig.16
Fig.17
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SAUDI ARABIA - OBEROI HOTELS & RESORTS
Fig.18
Fig.19
OTHER HOTELS
Fig.20
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Maidens Hotel, Delhi, India
Fig.2
BOARD OF DIRECTORS
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1.) Mr. P.R.S. Oberoi
Executive Chairman
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Supervisor – Housekeeping
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2016
Ministry of Tourism,
Government of India, National Tourism Award
The Oberoi Cecil, Shimla
PART -2
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TASKS PERFORMED DURING THE INTERNSHIP
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Preparing leave cards of employees to know how many leaves have they
availed which helps in preparing Salary Slip of employees.
Preparing Employee ID Cards and issuing them to the employees.
Conducting fun activities for employees.
Scheduling of interviews of the candidates with the head of department.
Preparing list of candidates selected through campus placements.
Filling of the documents of industrial trainees, vocational trainees, patrolling
sheet, rejected candidates, employees.
Getting the IT undertakings signed by the employees.
Working on Rewards and Recognition to be given to the employees.
Updating the area responsibility register of each department in the hotel.
Introducing, show around of hotel to management trainees.
Managing online tests which were conducted for employees by the HR
Assistant.
Calculation of attrition for one month.
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To understand the overall rate of employee attrition in the hospitality industry.
It was not easy to ask the employees about the employee attrition due to busy
work schedule.
RESEARCH METHODOLOGY
Research methodology is the process used to collect information and data using
scientific methods. The methodology may include publication research, interviews,
surveys and other research techniques, and could include both present and historical
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information. Research is an original contribution to the existing stock of knowledge
through objective and systematic method of finding solution to the problem of
research.
The research which I have done here is a qualitative research. Qualitative research is
defined as a market research method that focuses on obtaining data through open-
ended and conversational communication. the qualitative research methods allow for
in-depth and further probing and questioning of respondents based on the responses,
where the researcher tries to understand the respondent’s motivation and feelings.
The qualitative technique which has been used in the research work is an unstructured
interview. Conducting in-depth interviews is one of the most common qualitative
research methods. It is a personal interview that is carried out with one respondent at a
time. This is purely a conversational method and invites opportunities to get details in
depth from the respondent. These interviews have the least number of questions as
they lean more towards a normal conversation but with an underlying subject. There
are no guidelines for the researchers to follow and so, they can approach the
participants in any ethical manner to gain as much information as they possibly can
for their research topic.
DATA COLLECTION
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predictions about future probabilities and trends. Accurate data collection
is essential to
maintaining the integrity of research.
B.) SECONDARY DATA SOURCE: Secondary data is data gathered from studies,
surveys, or experiments that have been run by other people or for other research.
For this research work primary data and secondary data has been used. Primary
data by having face to face conversations with the respondents and Secondary
data gathered to data already collected by HR Department regarding the attrition
of employees.
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these are signs of healthy employment patterns and are not indicators that the
company has a problem with attrition. However, issues can sometimes manifest in the
workplace that cause the employees to leave for other reasons.
The Employee Attrition was found to be high in The Oberoi Cecil, Shimla. This was
the problem which I could identify while I was doing Internship with the HR
Department. While interaction with the HR department and the employees I came to
know this was a major problem in the hotel. The employees left the organization at a
faster and higher rate. Around 20 people left the organization during 2019 voluntarily
due to:
Better opportunities & avenues in other organizations.
Long working hours.
Low pay packages.
Opportunity to work abroad.
Local reasons like tough living conditions & topography.
These were the main reasons for employee attrition in the hotel.
FORMULA:
Total number of separation cases / Average no. of employees *100
Data analysis is the process of evaluating data using analytical and logical reasoning
to examine each component of the data provided. This form of analysis is just one of
the many steps that must be completed when conducting a research experiment. Data
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from various sources is gathered, reviewed, and then analyzed to form some sort of
finding or conclusion.
Major Problem
10%
90%
The above chart shows that for 10% employees, Employee Absenteeism is a major
problem in the organization and for 90% Employee Attrition is a problem in the
organization.
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Recognized HR Challenge
20%
80%
Yes No
The above chart shows that 20% respondents does not recognize employee attrition as
an HR Challenge and 80% respondents recognize employee attrition as an HR
Challenge.
Q.3) What do you think are the main reasons behind employee attrition in the hotel?
20%
60%
The above chart shows that for 10% respondents Salary is the main reason behind
employee attrition ,20% respondents find better opportunities abroad to be a main
reason for employee attrition,60% respondents find long working hours to be a main
reason for employee attrition and for 10% respondents find topography to be the main
reason behind employee attrition in the hotel.
Q.4) What is the experience range of employees who leave the hotel?
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Experience Range
10%
30%
60%
The above chart shows that 60% people who leave the organization are between 2-5
years’ experience range ,30% people are from 5-8 years’ experience range and rest 10
% are from 8-11 years of experience age.
Q.5) Do you think long working hours is one of the major reasons behind employee
attrition in the hotel?
40%
60%
Yes No
The above chart shows that 60% respondents find long working hours to be a major
issue behind employee attrition and 40% respondents find long working hours is not a
major issue behind the employee attrition in the hotel.
Q.6) Do you think work load is also a reason for employee attrition in the hotel?
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Work Load:An Issue
36%
64%
Yes No
The above chart shows that work load is not a reason. For 36% it is a reason behind
employee attrition and for 64% it is not a reason for employee attrition.
Q.7) Will you leave the hotel if you get an opportunity to work abroad?
50% 50%
The above chart shows that half of the people can leave the hotel if they get an
opportunity to work abroad and half will not leave the hotel if they get an opportunity
to work abroad due to some reasons.
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IN THE OBEROI CECIL
2.) Lack of investment on the individual in terms of training and resources related to
the technical skills is also one of the primary causes.
3.) Improper communication with the employee and the head of department is also a
cause of employee attrition in the hotel.
4.) Better recognition or payment for the same job at different hotels at the same
position is also a primary cause of attrition in the hotel. People leave the hotel because
they get more pay perks at other hotels.
5.) Another Primary cause is the working hours of the employees. The working hours
are more than normal for an employee. The average working hour is 8 hours but the
employees have to work for 12-14 hours in a day.
6.) As hotels are open 24 hours a day, evening and weekend work is common.
Irregular and inconsistent scheduling increases work-related stress for employees and
they left the hotel voluntarily.
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SUGGESTIONS & RECOMENDATIONS TO REDUCE
EMPLOYEE ATTRITION AT THE OBEROI CECIL
The workforce attrition occurs when the employees voluntarily retire or leave and are
not replaced cutting the overall workforce.
Creating resolute plans for unforeseen events including managing the goals and
expectations in new roles and training of other employees can reduce the burden on
the remaining employees. Additionally, times of attrition would be diminished by
adopting more effective and faster recruiting solutions by the HR department which
could make things more manageable. The solutions which I would like to recommend
as per my own observations are:
1.) Fair compensation single-handedly will not guarantee the loyalty of the
employee, but offering salaries according to the level of work the employees
are doing can help retain the employees. The company can conduct reviews of
the salaries regularly for all the jobs like for the experienced staff, entry level
staff and supervisor level staff. The salary of the employees of the hotel can be
compared with the other hotels in the same category. If there is a lot of
difference then the company needs to consider making adjustments to assure
that this not becomes a reason for attrition in the hotel.
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2.) A good manager-employee relationship is crucial for the satisfaction and
retention of the worker. It should be ensured that the head of departments (HR,
Finance, Spa, Front office, Kitchen, Food & beverages) are able to maintain
good relations with their employees The HR can provide them with the
necessary training that is required to develop people management skills and
good supervisory.
3.) The HR department should make a formal job description for each position in
each and every department in the hotel and should ensure that the employee is
aware of what is expected from them on a daily basis, what type of decisions
they are allowed to make by themselves and to whom they need to report in
their particular department in which they are currently working in.
4.) It should be ensured on regular basis that employees are aware of what they
need to do to earn promotion. Their strong point and weakness should be
identified by conducting performance reviews regularly and then assisting
them in improving the areas that will lead them to seek promotion.
5.) Another solution could be that offer valuable rewards to employees who
perform well in their department. Retention packages should be designed to
raise the salaries of the employees.
6.) The attrition rate of the company should be measured monthly and hold
someone accountable for reducing it. When no one is held responsible when
employees leave, so nothing is done to encourage holding. The HR department
can be held accountable for it or the head of departments and supervisors.
7.) The employees should be asked for the reason behind leaving the organization
by the HR and they should be counselled if the matter is very petty for which
they are ready to leave the hotel.
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8.) The various head of departments should encourage participation of employees
even on the very first day of joining of the employee as a fresher, whether its
kitchen, spa, food and beverage, front office department. They should be
involved while making decisions related to the betterment of services for the
guests and ask them to assist and work for it.
9.) Technology should be used wherever possible rather than paperwork like
using e-machines for payments by guests, check in and check out of guests on
tablets, attendance of employees through biometric machines by Security
personnel rather than maintaining attendance registers.
11.) Reminding the Mission, dharma, golden rules and Vision of the hotel
time and again to the employees in meetings.
12.) Employees should be informed about each and every matter of their
particular department by the head of department whether it is a major or a
minor issue related to the guest services or the works they’ve been assigned.
13.) The employees should be given proper training when their departments
are changed. When an employee has to change department from front office to
kitchen, they should be informed timely and trained for at least one week.
14.) The working hours of the employees should be decreased. The people
should be given proper shifts to work.
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CONCLUSION
The conclusion can be drawn that the hospitality sector is facing a problem of
employee attrition. Through this research I came to know that was is employee
attrition. Employee attrition is when the employees leave the organization on
voluntary basis because of reasons like low salary, better opportunities in other
organizations or abroad, long working hours in hotels. Some people even want to
change their career line after they actually come to know the working of Hotels
because of the fact that hotels remain open 24 hours and they have to work in
inconsistent shifts.
The project gave me an opportunity to interact with the people working in the
organization and understand the reasons behind the employee attrition and calculation
of the employee attrition in the hotel. So, employee attrition can become a problem
for the organization, not only in hospitality but others too if proper steps are not taken
to retain the employee of the organizations. Taking appropriate steps can definitely
minimize the employee attrition in the organization. It should be given close attention
by the HR of each and every organization.
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REFERENCES
www.thehindubusinessline.com
en.wikipedia.org
www.oberoigroup.com
www.eihltd.com
www.slideshare.net
www.oberoihotels.com
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ANNEXURE
Questions asked to employees of The Oberoi Cecil verbally. The question was asked
to ten employees.
Q.3) What do you think are the main reasons behind employee attrition in the hotel?
Q.4) What is the experience range of employees who leave the hotel?
Q.5) Do you think long working hours is one of the major reasons behind employee
attrition in the hotel?
Q.6) Do you think work load is also a reason for employee attrition in the hotel?
Q.7) Will you leave the hotel if you get an opportunity to work abroad?
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