The hospitality industry is one of a number that attract large numbers of part-time, seasonal and casual employees, particularly at lower grades, and this tends to exacerbate the high level of staff turnover. This can add to pressure on management in terms of recruitment and training, maintaining product and service quality standards and keeping employment costs at an acceptable level.

With that in mind, and using the information and formulae found in Davis et al (2018) Food and Beverage Management Ch 10, address the following case study:

The 'Rat and Toad' is a large pub situated on the outskirts of a busy suburb. Revenues are down on the previous year despite longer trading hours and overall profitability has reduced even more dramatically. The pub manager believes that the decline is the result of excessive staff turnover, which has slowly worsened since the brewery failed to increase basic pay rates or to address issues of late night working since new licensing allowed the pub to trade later into the night. The manager had previously worked in a hotel bar which had also had staff turnover problems estimated at 25% per year, but this had not unduly affected the hotel bar revenue or profits. The 'Rat and Toad' has a total annual workforce of 22 people. They work as follows: 12 part-time staff working an average of 12 hours per week, six full-time staff working 40 hours per week, and four seasonal staff working 40 hours per week for 10 weeks of the year. During the past year ten staff have left, eight part-time and two fulltime.

1. Calculate the average staff turnover. (2 marks)
2. Estimate the cost of recruitment. (3 marks)
3. Discuss the issues concerning the less obvious costs identified.(10 marks)
4. Make a case to bring about change. (10 marks)