Investigating the causes and consequences of high employee turnover at a New Zealand caf: A case study HRM302

Research Title: Investigating the causes and consequences of high employee turnover at a New Zealand caf: A case study

Abstract

This research explores turnover issues in New Zealand cafs, with this research investigates factors influencing employee turnover in New Zealand cafes through thematic analysis of semi-structured interviews with six employees and two managers, to gain insight into the demographic factors and work-related challenges that influence turnover intentions. Through thematic analysis of semi-structured interviews with six employees and two managers, the research identifies key themes such as compensation dissatisfaction, leadership gaps, and workload stress. The findings highlight a lack of career progression, insufficient recognition, and physical job demands, especially among long tenured and older employees. Gender dynamics also play a role, with female employees, particularly those with caregiving responsibilities, facing work-life balance challenges. Younger employees seek better pay and career advancement, while long-tenured staff often experience burnout.

The consequences of high turnover include increased recruitment and training costs, a decline in employee morale, and a loss of organisational knowledge, which impacts overall productivity and service quality. Managers noted the difficulty of retaining younger employees who are motivated by higher pay and more career mobility, while older workers face physical strain in performing caf duties, leading to higher turnover rates among this group.

Based on the findings, the study recommends tailored retention strategies, such as flexible working hours for female employees, mentorship programs for younger employees, recognition and reward systems for long-tenured staff, and opportunities for professional development. These strategies aim to address the diverse needs of the workforce and reduce turnover, ensuring long-term employee satisfaction and organisational success. The findings of this research help enrich the existing literature on hospitality industry turnover with context-specific considerations in New Zealand (for example, the changes in the economic climate, labour market regulations and post-COVID issues). In doing this, the results may not only guide caf owners but speak to policy makers and industry regulators about structural and systemic issues they may need to address, such as labour protections being out of touch with global changes in economy and labour, or career pathways within hospitality needing more appropriate systems or recognition. Identifying these underlying causes can allow the study to advocate for greater policies and strategies to be implemented within small cafes in New Zealand that supports its workforce to be both healthy and thriving.

Table of Contents

Abstract 2

Chapter 1: Background, Problem Statement, Research Gap, Objectives. 6

1.1. Research Background. 6

1.2 Problem Statement 9

1.3. Research Question and Objectives. 10

1.4. Significance of study. 12

1.5. Scope and Limitation of study. 13

Chapter 2 Literature Review.. 16

2.1 Introduction. 16

2.2 Employee Turnover: Definition and Facts in New Zealand. 17

2.3 Issues of Rapid Pre-Covid Growth, Labour Problems, and Post-Covid Disruption. 19

2.3.1. Economic Sensitivity of Turnover Rates. 21

2.3.2. Career Adaptability and Turnover Intentions. 21

2.3.3. Organisational Culture and Employee Satisfaction. 22

2.3.4. HR Practices and Employee Retention. 23

2.3.5 Cultural and Demographic Factors. 23

2.3.6. Impact of Economic Pressure on Organizational Culture and Employee Turnover 24

2.3.7.Consequences of High Turnover 25

2.4 Previous Studies. 25

2.5 Research Gap. 26

2.6 Conclusion. 28

Chapter 3 Research Methodology. 29

3.1 Research Design and Research Philosophy. 29

3.2 Population and Sampling. 30

3.3 Sampling Strategy. 30

3.4 Sample Size Justification. 31

3.5 Measurement Instrument: Semi-Structured Interviews. 31

3.6 Data Collection Process. 33

3.7 Data Analysis Technique: Thematic Analysis. 33

3.8 Inclusion and Exclusion Criteria. 34

3.9 Validation and Reliability. 34

3.10 Ethical Considerations in Data Collection and Analysis. 34

Chapter 4: Results and Discussion. 36

4.1 Theme 1: Organizational Culture and Workplace Environment 36

4.2 Theme 2: Compensation, Benefits, and Local Market Competition. 39

4.3 Theme 3: Leadership, Team Dynamics, and Workplace Support 43

4.4 Theme 4: Demographics and Tailored Retention Strategies. 46

4.5 Theme 5: Evidence-Based Strategies for Retention. 50

4.6 Discussion and Analysis. 52

4.7 Comparison of Themes between Employee and Manager Perspectives. 58

Chapter 5. Conclusion and Recommendations. 60

5.1 Summary. 60

5.2 Recommendations. 63

5.2 Future Research Directions and Academic Rigour 65

References: 67

Chapter 1: Background, Problem Statement, Research Gap, Objectives

1.1. Research Background

Employee turnover is a common problem which affects many companies in all sectors of activism but mainly the service sector, where the nature of human capital represents the main factor for customer satisfaction and operational effectiveness. Employee turnover remains a pressing issue in the food and beverage sector. High turnover rates can lead to disruptions in service, inflated operational cost and reduced morale among teams (Gupta, Bhatia and Bhagat, 2022). The Work Institute (2021) reports that replacing an employee costs companies approximately 33% of that employee's annual salary, considering recruitment, onboarding, and lost productivity. According to the Society for Human Resource Management (SHRM), the cost to replace an employee can range from 16% to 20% of their annual salary for hourly employees, escalating to 213% for executives, factoring in recruitment, training, and lost productivity (SHRM, 2022). New Zealand caf, a vibrant hub for offering favourite coffees and embracing social interaction has recently struggled with an unusual epidemic of employee turnover. Such a phenomenon is not only an issue for the caf in question but also indicative of wider trends affecting businesses like this one. As small food chains are becoming more and more common and the expectations of an employees are beginning to change, it is imperative that caf owners understand what lies at the heart of turnover if they wish to ensure continued operations and competitiveness in the market.

Working in a caf involves hectic environment and the need to deal with unpredictable customer demands which can usually lead to poor worker satisfaction. Things like low pay, poor benefits and no upward mobility have often been pointed to as causes of employee turnover. Studies show that voluntary and involuntary exits put a lot of stress on the surviving employees, leading to burnout and reduced productivity (Turkmenoglu, 2019). New Zealand caf is still new in the caf landscape, but it must compete with quite huge competition so the time for investigation of what are the causes turnover at New Zealand caf is high.

Turnover triggers a chain of negative consequences on an organization. Studies show that the cost of turnover for recruiting, training and lost productivity adds up quickly. A great example of this is a study from Sapovadia and Patel (2013) where it shows that organisations may incur 1.5 to 2 times the salary of the employees in turnover costs. However, this goes beyond financial implications, as the emotional impact of losing a colleague takes effect too, especially for those left behind who are often overworked and frazzled, causing morale to plummet further and attrition to spiral downwards.

Employee turnover can occur due to various internal and external factors, from individual restraints to organisational drivers. Many pieces of research have consistently identified job satisfaction, pay, management practices and organisational culture as key predictors of turnover intentions. For instance, Medina (2012) stated that job satisfaction is negatively related to turnover intentions which means that with decrease in job satisfaction, there is increase in the probability of employees tend to leave.

New Zealand caf is a unique eatery, but like most rooms where people swap opinions over food and drinks the turnover rates are higher than some areas listed on this site. Employees often point to poor working environment lack of managerial encouragement, low salary and absence of promotion opportunities as the biggest reasons. Managerial practices and organisational dynamics have been shown to play a key role in regulating employee experiences as well as the subsequent repercussions such as retention, thus we believe that turnover cannot merely be tagged frontline employees (Gupta et al., 2022, Chiat and Panatik, 2019).

Additionally, the high level of competition in the food and beverage sector adds to the high turnover issue. Due to an overabundance of job options, employees might lean toward competitors that present better pay or working circumstances. Employee Satisfaction and loyalty are built on a solid foundation of organisational culture. According to Medina (2012), organisations with conducive culture foster job satisfaction thereby reducing intentions of turnover. New Zealand caf is the kind of place that fosters a strong culture; people have each other backs, they share laughs and make friends.

Xue et al. (2022) reflected on two distinct variables relevant to turnover intention (trust; recognition; managerial support. However, especially transformational leadership seems to foster an environment where leaders work toward the creation of strong bonds and communication channels from management to employees in turn cultivating a more engaged workforce. If New Zealand caf took such leadership practices, they would resolve some of the very reasons for turnover at the employee level.

When dealing with the high staff turnover rates at New Zealand caf it is necessary to gain an insight into why employees are leaving as well as the wider impact this has on both viability of business operations and employee satisfaction. The purpose of which is to be able to offer insight to help inform management practices and organisational policies for retention rates and stability in the future.

Integrating Herzberg's Two-Factor Theory and Social Exchange Theory can be very helpful in providing greater academic robustness and depth to the analysis of employee turnover in the hospitality sector, specifically for New Zealand caf context.

In the context of job satisfaction and dissatisfaction, Herzbergs Two-Factor Theory (1959) differentiates between hygiene factors (e.g., salary, working conditions, security of employment) and what he calls motivators (e.g., recognition, responsibility or personal growth opportunities). To use the example of New Zealand caf, hygiene factors like low wages and bad benefits and career progression would not necessarily result in job satisfaction or retention unless they are addressed well. On the other hand, motivators like praising employee efforts or providing opportunities for development may lead to higher job satisfaction and loyalty, which seems to reduce turnover (Larkin, 2015).

The social exchange theory (SET) models the employee-employer relationship as an exchange which is been used to provide additional understanding of turnover. The notion embodied in the SET is that when employees experience support and felt value from their organization (fair reward, managerial support, growth opportunities etc.), a high-quality relationship with their workplace leads to favourable attitudes in turn resulting loyalty intentions which ultimately tends to reduce intention-to-leave behaviours. For instance, in high-turnover fields such as hospitality where plenty job alternatives are available, an enhancement of the perceived value of employment at New Zealand caf by means of supportive practices can provide a possibility to create loyal workforce which will be less inclined for leaving towards competitor offerings.

Thus, by applying the knowledge gained from these theoretical models pertaining to why employees choose to stay or leave in New Zealand caf it can create more specific strategies that tie together both hygiene factors (salary, benefits) and motivational (recognition, career progression) factors which will be critical for sustaining employee retention within this relatively volatile field of work (Bradley, 2020).

This study will be a qualitative study using structured telephone interviews with current employees and managers further develop understanding of the experience and perceptions of individuals. The thematic analysis will identify patterns and themes in the data associated with turnover, providing a more nuanced exploration of relevant factors. This study will provide additional insights to the existing literature on turnover intention in relation to the food and beverage sector.

1.2 Problem Statement

New Zealand caf is facing a critical challenge with high employee turnover, a prevalent issue in the hospitality sector where the continuity of customer service and operational efficiency relies heavily on staff consistency. New Zealand's National Staff turnover rate confirms surprising stability, with rates increasing from 20.5% to 21.3% in 2022 and again slightly increasing to21.4%in 2023 (Lowson Williams ,2024). Employee turnover in the hospitality industry, particularly in cafs, poses significant challenges, including financial losses, diminished customer satisfaction, and reduced profitability. Common reasons for staff departures include dissatisfaction with pay, an unfavourable work environment, inadequate training, lack of management support, negative customer experiences, long hours, and better pay opportunities elsewhere. Retaining employees may be improved by fostering an interest in coffee culture, addressing social challenges, offering flexible hours, providing on-the-job skill development, and ensuring fair compensation. A survey by the Restaurant Association revealed that over 80% of New Zealand restaurants face understaffing, with 62% temporarily closing in August due to staffing shortages (Tan, 2022). According to figure NZ, in 2023 the worker turnover rate was 27.9% in cafes, restaurants and takeaway food services in New Zealand (NZ, 2024). High turnover leads to disruption in caf operations which affects the quality of service and breeds a sense of insecurities among employees as well as customers. Every turnover incurs expenses associated with recruitment, onboarding and training diverting financial resources that could be invested in augmenting growth and enhancements to the service. New Zealand caf skilled employees needed for maintaining reputation in a local saturated market (Dwesini, 2019). The high turnover rate in these establishments incurs significant financial costsrecruitment, training, and onboarding can increase operational expenses by up to 30%. Moreover, turnover disrupts team cohesion, undermines morale, and leads to inconsistent service quality, which ultimately harms customer satisfaction.

Given the supportive nature of small cafs, where employees often play multiple roles, frequent turnover can also create a sense of instability that impacts both the staff's productivity and the customer experience. This disruption is especially detrimental in small-scale settings where staff turnover can exacerbate the challenges of maintaining a consistent and engaged workforce. Additionally, high turnover in staff can lead to a deterioration of customer confidence and satisfaction as regular customers see changes in the service received and lack of a familiar facea major consideration within the hospitality sector (Emiroglu et.al., 2015). The purpose of this study will be to examine the reasons behind turnover at New Zealand caf and to find measures that may assist in increasing employee satisfaction and retention resulting in a more resilient caf business within a competitive environment.

1.3. Research Question and Objectives

Primary Factors Contributing to High Employee Turnover

"What are the primary internal and external factors contributing to high employee turnover at New Zealand caf, including elements such as job satisfaction, workplace environment, and local market competition?"

This question intends to expose a wide variety of elements that could affect turnover at NZ caf and differentiates internal problems (e.g., working conditions, career opportunities) and external pressures (e.g. competition from other cafs, availability of alternative work). The leaving consideration question provides a comprehensive lens on what might motivate employees to leave by addressing influences from both groups, which can drive targeted mitigation strategies.

Influence of Organisational Culture

Revised Question: "How do specific aspects of organisational culturesuch as leadership style, team dynamics, and workplace supportaffect employee retention at New Zealand caf?"

Employees who feel the impact of organisational culture and make decisions based on it: whether to stick around at a job or move on. This is a very focused question in terms of cultural dimensions such as leadership style and teamwork that may affect turnover. Cafs in New Zealand can benefit from understanding how these factors affect retention, which can further help the caf to create an environment that fosters commitment and positive interpersonal relationships within the workplace thus increasing overall retention.

Role of Management Practices

Revised Question: "What role do specific management practices, including feedback mechanisms, career development support, and communication strategies, play in influencing employee turnover intentions at New Zealand caf?"

The nature of management can influence employee job satisfaction and turnover intentions. This question can provide actionable recommendations on which management areas might be improved, by identifying what practices for example proximity to constructivist feedback, access to growth opportunities and/or transparent communication are most impactful. By narrowing the definition of turnover, the caf can implement targeting managerial policies to address reasons for leaving.

Turnover Patterns Among Demographics

Revised Question: "How do turnover rates at New Zealand caf vary among employee demographics such as age, gender, and tenure, and what tailored retention strategies can be implemented to address these differences?"
There is a lot of research that looks at turnover by demographics, with examples such as the higher level of turnover among younger employees who are exploring their career options. This question explores these demographic trends at New Zealand caf to explore whether specific demographics are more susceptible to reporting exits. This analysis can become the basis for customised retention plans, formulated around differing employee needs by cohort groups.

Implementing Changes to Enhance Job Satisfaction

Revised Question: "Based on the identified factors contributing to turnover, what evidence-based changes can New Zealand caf implement to improve job satisfaction and employee retention?"

This is the final question deriving from my previous lines of questioning aimed at synthesis to change with practical and newly evidence-based solutions recommendations. It enables the construction of strategic recommendations based on identified drivers of turnover, giving New Zealand caf a clear plan for action to improve job satisfaction and decrease turnover. The ultimate question connects the research findings to what can be done about it, reinforcing why this study matters and how the caf might implement these recommendations moving forward.

1.4. Significance of study

This study holds substantial relevance in the context of New Zealands caf industry, as it addresses a significant, ongoing issue: high employee turnover. Turnover in the hospitality industry especially in cafs affects more than just caf, as it has a ripple effect through the whole industry, impacting reputation, teams morale, and the quality of service. This research could help business owners, managers, and human resource practitioners to understand the core underlying issues of turnover in cafs and distinct reasons for turnovereconomic, cultural, organisational, or personal. Ultimately, identifying and examining these determinants would imply a better understanding of the strategies that might work in retaining employees in a competitive, fast-paced environment with a varied workforce with high turnover rates and poor work conditions (Turkmenoglu, 2019).

Such research may contribute to developing sustainable methods for retaining staff in the caf sector and provide insights to help redefine organisational practices that encourage long-term retention. In particular, the findings from this study could be applied in formulating specific human resource polices that are tailored towards mitigating some of these challenges faced by the caf workers like irregular schedules, little career advancement opportunities, stressful working conditions. That is, armed with the knowledge of the influence of organisational culture and HR practices, cafs may create more supportive and inclusive work environments that have the potential to keep employees. Such changes would result in lower turnover and therefore lower hiring and training costs along with greater consistency in service and customer satisfaction.

In addition, this research helps enrich the existing literature on hospitality industry turnover with context-specific considerations in New Zealand (for example, the changes in the economic climate, labour market regulations and post-COVID issues). In doing this, the results may not only guide caf owners but speak to policy makers and industry regulators about structural and systemic issues they may need to address, such as labour protections being out of touch with global changes in economy and labour, or career pathways within hospitality needing more appropriate systems or recognition. Identifying these underlying causes can allow the study to advocate for greater policies and strategies to be implemented within hospitality sector in New Zealand that supports its workforce to be both healthy and thriving.

Most importantly, the implications of this study go beyond the workers. This study seeks to put a spotlight on their struggles and viewpoints with a view to lobbying for fairer practices that might help improve their quality of life and job satisfaction. In doing so, it helps build an understanding of the people working in hospitality that is more inclusive than the common idea presented in the media, and more conducive to policies that better align the performance objectives with staff welfare, career progression and engagement.

1.5. Scope and Limitation of study

Scope of the Study

The objective of this questionnaire study is to identify variables associated with turnover thoughts of employees in the caf industry and to report them with implications for owners, managers, HR professionals and some policy makers within New Zealand. The breadth of organization, economic and personal turnover-related factors covered in reviewed studies gives a great insight into turnover in the hospitality sector, particularly with regards to cafs.

The study seeks to determine the controllable and uncontrollable turnover factors. There are factors that are controllable; these are the ones that can be directly influenced by management and HR, which include the work environment, compensation packages, opportunities for career advancement, return policy, management style and location. The study aims to explore these possible factors and their effects on turnover by identifying a few guidelines that cafs can adopt on how to better manage the variables to diminish turnover. Irresponsive factors ease some of the blame off cafs in that these include factors such as economic conditions, labour market trends and other social phenomena that cafs must deal with considering turnover.

To have a well-rounded viewpoint, the data collection will consist of different population such as employee, managers and industry expert in the caf. Data on employees will enable the exploration of turnover from the employee point of view including job satisfaction, work-life balance perceptions, career development, workplace culture and impact on retention. Managers and HR practitioners can provide insight into organisational policies and management practices that may help retention. We will give a wider view from industry experts, which will assist in putting New Zealand cafe turnover trends in the context of the local hospitality industry and worldwide norms.

Its geographical limitation only to New Zealand is another key part of the study. While New Zealands hospitality sector is not immune from the national and global trends, it has its own unique situation such as individual labour laws, social norms and post COVID economic environment that influences turnover. By focusing specifically on New Zealand, the findings are highly relevant directly to stakeholders in New Zealand and allow for a more tailored consideration of the context.

The study adopt qualitative method and phone interviews with employees, managers, and HR professionals will shed light on their experiences, the challenges they face in managing retention, and the ways they strategise retention or turnover management, providing a unique insight into the turnover dynamics in the caf sector.

Limitations of the Study

The limitations in this study highlight several key challenges that could impact the interpretation and generalisability of its findings. The limitations include sample size and data collection methods, the context of the post-pandemic, economic and regulatory factors, psychological and individual factors, complexity of turnover factors and limited comparability with other sectors.

One potential limitation of the research is that given the nature of sampling within cafes, there may be an inherent practicality challenge based on time, budget and geographical logistical difficulties, along with limited access to a wider pool of caf employees or managers. Given that this research is focused on New Zealand cafs, it may not represent the full variety of northern and southern New Zealand cafs and their experiences of COVID-19. Family-owned cafs may have varying attendance or turnover compared to chain restaurants. Moreover, migrant workers form a sizeable part of the hospitality workforce and yet, due to language issues, visa constraints, and fears of job security, it might prove challenging to secure their total buy-in. These parameters may impact the generalisability of the study, as the findings may not adequately represent the demographic diversity and range of experiences of the caf workforce.

Additionally, data collection methods can be a source of potential limitation, as the study is relied on phone interviews that are prone to response and recall biases. If confidentiality is not guaranteed, employees would tend to underreport negative experiences, influenced by social desirability bias or fear of repercussions. On the flip side, some may exaggerate dissatisfaction due to negative recent experience, which may misrepresent the long-term perspective in the results. Third, qualitative data gained from interviews may be biased through the degree of comfort that participants have had in talking about sensitive topicsfor example, management practices or personal challenges. We will try to keep the identities anonymous but cannot fully rule out this bias.

This is particularly important since the study can illustrate the post-pandemic context, and through time, the relevance of the study could gradually turn unreal. According to Davahli, et.al.,2020, the survey was conducted in a post-COVID world that has significantly affected hospitality and may represent temporary conditions as opposed to long-term trends. Workers may still be subject to job scarcity, and reduced incentive to change jobs, however labour shortages plus economic pressures from the pandemic might have changed that dynamic, if jobs seem to be plentiful and they are able to command better terms, it may be easier to switch. These aspects could potentially lower turnover from observed pre-pandemic levels, so provide a short-term snapshot that could easily be become unrepresentative as the sector settles down over the longer-term (Davahli, et.al.,2020).

Caf turnover is also influenced by economic and regulatory issues but those are factors beyond the control of a single caf. The turnover of workers is affected by minimum wage laws, protections, visa policies, general economic climate, and the like factors that businesses cannot counteract themselves. For instance, the availability of migrant labour an important component of the caf workforce might fluctuate due to modifications in immigration policies in New Zealand which might in turn affect turnover. Even the inflation and living cost can change the task expectations and satisfaction of the employees no matter what workplace policies are there. Although the present study considers these external influences, predicting future economic or regulatory change remains outside the scope of this research and limits the potential applicability of these results for anticipating turnover trends.

Another limitation is that turnover is influenced by personal factors (e.g., career aspirations, personal values, and individual life-context) that may not be fully investigated within the scope of an organisational and industry level approach such as this one. However, some workers tend to see caf employment as short-term, contributing to higher turnover, while some seek stability over the long-haul. Although this study focuses on the organisational factors organisational commitment, job satisfaction, pay and HR practices, the individual psychological motivations which are necessary to explain turnover cannot be delved deeply into in this paper.

Additionally, turnover is a complex and multifaceted construct, where factors can both interact and exert influence on each other. Because of these factors, some the result of organisational culture and some economic, attribution of turnover to any single cause is an elusive goal. For example an employee may say they left because of compensation, but they were unhappy with their management or were just stuck in their career. This complexity hinders the capacity of the study to disentangle the causal relationships among the factors, leading to insight that might be vague as to why turnover occurs.

Finally, even though this study takes the caf industry as the setting, the findings may not be readily comparable with other sectors, even in hospitality. In the hospitality industry, turnover dynamics in cafs is likely to be quite different from those in restaurants, hotels or other hospitality/aspects, where the employee roles, customer touchpoint and career progression opportunities also differ. Finding a reference to place these rates within proper context, perhaps with industry turnover comparisons, would again be an interesting area of study but logistically challenging which is why it is not within the purview of the study.

Chapter 2 Literature Review

2.1 Introduction

Employee turnover represents a serious concern in the context of the hospitality industry. In cafs, this problem is particularly prevalent due to the unique nature of the work and the expectations this employment offers to the workers. Simultaneously, high levels of turnover are not merely a nuisance in terms of operations (Sainju, Hartwell and Edwards, 2021). According to authors such kind of turnover has severed implications for the quality of service, teamwork, and overall business effectiveness. This review will analyse existing research regarding the reasons and effects of high turnover rates in cafs. The paper discusses multiple important themes that have been identified in existing sources, subdividing them into those related to the state of the economy, career adaptability, an organisations culture, and human resources. These will be analysed in detail to provide a comprehensive overview of the problem and opportunities for successful management based on these analyses.

2.2 Employee Turnover: Definition and Facts in New Zealand

According to Lazzari, Alvarez, and Ruggieri (2022) employee turnover represents one of the critical concepts of every organization, evaluating the rate of employees who leave the company and need to be replaced. There are two types of employee turnover: voluntary and involuntary. On the other hand, Hongvichit (2015) explained a news aspect of turnover, which is voluntary turnover as implies employees decisions to leave, for example, due to job dissatisfaction, the search for better job opportunities, or personal reasons, involuntary turnover is decided by the employer, who either fires the worker or lays the employee off. The knowledge of the employees turnover rate is vital for the companies, especially in the hospitality industry, since high rates of employee turnover can have a tangible impact on such aspects of the organisations performance as service quality, chosen strategies, and overall efficiency of everyday operations. As per the study held in New Zealand, the hospitality infrastructure is a huge part of the countrys economy, and, according to the 2017 data, 55.7% of the workforce in New Zealand that was employed in the sector of hospitality worked in the cafs and restaurants. (The hospitality and food services industry, 2024). This statistic underscores the importance of these institutions in the hospitality field and implies that this area is especially essential for assessing the dynamics of turnover. A high level of turnover among employees is a general phenomenon in the hospitality industry, and New Zealand is no exception in this case.

Both Lazzari, Alvarez, and Ruggieri (2022) and Hongvichit (2015) agree that employee turnover is a critical concept for organizations to monitor, particularly in industries like hospitality where turnover rates tend to be high. They highlight the need to understand the causes of turnover to manage its consequences. Lazzari, Alvarez, and Ruggieri (2022) focus on turnover as a broad organizational challenge that affects performance, service quality, and efficiency. Hongvichit (2015), however, offers a more detailed explanation by differentiating between voluntary and involuntary turnover. While Lazzari, Alvarez, and Ruggieri (2022) acknowledge these types of turnover, Hongvichit (2015) elaborates on them by identifying specific causes, such as job dissatisfaction and better opportunities for voluntary turnover, and employer-driven factors for involuntary turnover.

Cafes and restaurants need to maintain qualified staff, as the high level of service quality depends directly on the employees experience and engagement in their work. In a study conducted by Haar and Brougham, (2022) economic conditions is seen to have crucial role in the increased turnover of employees in the cafs sector. When the economy grows, such companies as offices, workhouses, and others begin to open, offering a high level of wages, and the employees of cafes and restaurants seek to occupy these places, profiting from these conditions and thereby increasing the level of turnover in this institution. Simultaneously, Ariyabuddhiphongs, (2017) supported the view by stating that such jobs are often burdened with morning and evening schedules, weekends, and holidays work, which negatively affects employees and leads to burnout and reduced job satisfaction. This sphere of employment is also associated with a lack of opportunities for career growth the employees in the cafe and restaurant sector, especially young people, do not consider themselves workers of this sphere for a lifetime, orienting themselves to work temporarily before getting a more interesting job.

Both Haar and Brougham (2022) and Ariyabuddhiphongs (2017) argue that external factors, such as economic conditions and work-related stress, influence turnover rates in the hospitality industry. Haar and Brougham (2022) emphasize the effect of economic growth on employee mobility, while Ariyabuddhiphongs (2017) focuses on how the stressful, demanding nature of hospitality jobs (including long hours, weekend shifts, etc.) leads to job dissatisfaction and burnout, contributing to turnover. Haar and Brougham (2022) emphasise the role of external economic factors, such as the availability of better job opportunities in other sectors during periods of economic growth, which incentivizes employees to leave. Ariyabuddhiphongs (2017), however, places more weight on internal factors like job stress, the demand for irregular hours, and the lack of career advancement. Therefore, Haar and Brougham (2022) see economic booms as a primary driver of turnover, while Ariyabuddhiphongs (2017) views the job's inherent challenges as the main contributors.

Finally, Sapovadia and Patel (2013) have given a fresh view on employees practices of managing the caf and restaurant, which plays a role in the turnover process. Indeed, if the owners are professionals and good leaders, providing a comfortable atmosphere for their employees, the latter will not leave these places of work (Sapovadia and Patel, 2013). On the contrary, if the management is ineffective and does not require workers to be actively involved in the workplace, turnover rates will be high. Employees feel happy with their work and remain loyal when their owners appreciate them and support their employees.

The high level of turnover at the workplace in the caf sector in New Zealand has several implications for this area. Most relevant is the effect on individual enterprises that also experience the problem of turnover. According to Hongvichit, (2015) it distracts the normal working process of the caf owners and requires them to engage in the hiring of new employees. The high level of turnover increases hiring and training costs and is detrimental to the continuity and quality of service. Haar and Brougham (2022) emphasise the role of external economic factors, such as the availability of better job opportunities in other sectors during periods of economic growth, which incentives employees to leave. Ariyabuddhiphongs (2017), however, places more weight on internal factors like job stress, the demand for irregular hours, and the lack of career advancement. Therefore, Haar and Brougham (2022) see economic booms as a primary driver of turnover, while Ariyabuddhiphongs (2017) views the job's inherent challenges as the main contributors. While both authors agree on the importance of management, they differ in their focus. Sapovadia and Patel (2013) suggest that leadership and a positive work culture can directly reduce turnover. In contrast, Hongvichit (2015) does not emphasise leadership to the same extent but rather focuses on understanding the types of turnover and addressing these through specific strategies. For example, with voluntary turnover, management might need to focus on job satisfaction and opportunities for growth, whereas involuntary turnover may require addressing external factors like layoffs.

2.3 Issues of Rapid Pre-Covid Growth, Labour Problems, and Post-Covid Disruption

The hospitality industry in New Zealand has experienced various difficulties and challenges, like others across the globe. In the study conducted by Nyathela, Silo and Bob (2021) there has been a rapid growth of the sphere before the COVID-19 pandemic and the considerable labour problems have significantly affected the direction of its development. There is a huge possibility to speak about the systemic weaknesses that have been pointed out in the recent international research where a range of themes related to such issues as high turnover, poor career development, low payment, inappropriate working conditions, and little work-life balance, were highlighted (Hemmington and Neill, 2022). After the closure of international borders due to the COVID-19 situation, Hemmington and Neill (2022) supported that fact that number of migrant workers arriving in New Zealand decreased drastically, causing significant labour shortages and increasing rates of turnover in this field. Nyathela, Silo, and Bob (2021) highlight the pre-pandemic growth and how COVID-19 disrupted the trajectory of the hospitality sector, leading to labor challenges. Hemmington and Neill (2022), however, focus more on systemic labor issues, such as migrant worker shortages and increased turnover post-COVID.

Labour issues have been an enduring concern in New Zealand, as studied in study of Kelsey, (2015) Its origins may be traced to the deregulation of employment relations during the neo-liberal revolution of the mid-1980s. A turning point in the development of these trends was the introduction of the Employment Contracts Act in 1991. This was revealed to be at the root of this deregulation by Williamson (2017) that the most aggressive de-unionization, casualization, and wage cutting across any industrial sector in the country. The legacy of these changes continues to impact the hospitality industry, as evidenced in contemporary research that reflects on the ongoing challenges stemming from these historical factors. Kelsey (2015) takes a broader historical view of labor issues, focusing on the broader socio-political landscape of New Zealands neoliberal reforms. Williamson (2017), on the other hand, focuses more specifically on the direct consequences of the Employment Contracts Act, particularly the negative impact on unionisation and worker rights. While both authors agree on the root causes, Kelsey takes a more political perspective, while Williamson focuses on the legal and industrial changes.

Additionally, the workforce is particularly diverse, with a higher proportion of young, female, and migrant workers. In fact, more employees in this industry are on temporary visas when compared with any other industry. Park and Min (2020) have supported that view by explaining two concepts such as labour turnover and staffing shortages have many explanations though. In essence, they can be related to the understanding of the psychological contract. This contract is the development of both national and industrial and workplace roles and rules in the field of employers and employees rights and interests, developed by specific characteristics of the given market. As the relationship develops, some dissonance can be experienced when the employees expectations are not met by the employer practices, which may lead to the violation of the developed psychological contract. Park and Min (2020) and Rousseau and Schalk (2000) both explore the concept of the psychological contract and how misalignment between employee expectations and employer practices can lead to turnover and dissatisfaction. Park and Min (2020) discuss the psychological contract in a more broad and theoretical sense, without delving deeply into the cultural or specific workplace implications. In contrast, Rousseau and Schalk (2000) provide more empirical evidence and insights into how the psychological contract varies across different cultures and organisational contexts.

Rousseau and Schalk (2000) conducted empirical qualitative work on psychological contracts in employment. Their research examined the underlying perceptions, expectations and obligations between both employees and employers from a more subjective viewpoint, while also identifying how these differ particularly across cultures. In the similar fashion Ahmed, and co-authors (2017) supported has said that informal expectations between employees and employers. The Two-Factor Theory of Herzberg also posed the fact that while motivations may be high, lack of hygiene factors can lead to dissonance between high motivator and low hygiene leading to dissatisfaction. At the same time, Social Exchange Theory, in context to issue is explained by Haar (2006) who emphasised on how employees desire to every value through fair exchange. Failure to meet these expectations is viewed as a violation of the psychological contract, with detrimental effects on commitment and satisfaction. Employers can combat this by building communication channels, recognizing contributions, providing learning opportunities and monitoring workplace atmospheres to promote a harmonic environment that matches employee expectations with organisational practices. While both authors agree on the importance of fairness and the exchange relationship, Haar (2006) places more emphasis on the formalised theory of social exchange, suggesting that the failure to meet employee expectations leads to a violation of the psychological contract. Ahmed et al. (2017) focus more on informal expectations, emphasising how small actions and mutual understanding can foster loyalty and retention, even in the absence of formal policies. In the context of New Zealands hospitality industry, Haar and Brougham, (2022) stated that where work is perceived through the lens of reported significant non-compliance with employment law, it is crucial to recognise the nature of these perceptions. According to recent research of Haar and Brougham, this industry faces the issue of a negative image. Some of the causes for such an image relate to inadequate compensation, lack of job security, and no career progressions.

The hospitality sector finds itself at a crucial point in the aftermath of the pandemic. Not only does it need to redefine the employment relationship, but it must act to regain trust and resolve dissonance within the psychological contract. This was stated by Wen, et.al, (2020) Preventing turnover and promoting retention in the long run requires adopting comprehensive human resource strategies, which would pay attention to the psychological and physical well-being of employees, as well as their career development and compensation. Noteworthily, the replenishment of the workforce in the hospitality sector takes upon a particularly important meaning because it is highly reliant on young, mostly female and migrant workers who have been hit especially hard by the effects of the pandemic.

Haar and Brougham (2022) and Wen et al. (2020) agree on the importance of addressing employee dissatisfaction to reduce turnover. Haar and Brougham discuss the negative image of the hospitality industry, including low wages and lack of career progression. Wen et al. suggest adopting comprehensive human resource strategies, focusing on employees psychological and physical well-being to improve retention long-term.

2.3.1. Economic Sensitivity of Turnover Rates

One argument that the author made is high employee turnover, this is a well-documented reality in the hospitality sector, being cyclical with economic conditions. Dogru et al. (2023) that turnover rates have generally proven to be sensitive to broader economic activities in the sector, and cafs are not exceptions. In contrast, economic downturns tend to stabilise the rates as people concentrate more on job security than making a career move. This is particularly relevant to New Zealand, where economic downturns are followed by declines in employment in the hospitality sector.

On the other hand, Lin and Huang, (2021) revealed that customer service is the most important product in cafs and therefore having a stable and experienced staff is crucial. During the period of the coronavirus, workers and the businesses that employ them are faced with several considerations that affect their work, such as the sensitive economic implications, lack of stability in the workplace, as well as pursuing employment outside of economic necessity and more in line with personal passions or interests.

While Dogru et al. (2023) focus on the impact of economic cycleseconomic expansions and downturnson turnover rates, Lin and Huang (2021) highlight the internal, service-focused needs of cafs, emphasising that having a stable workforce is essential for maintaining high levels of customer service. Dogru et al. emphasise economic forces, while Lin and Huang focus on the operational aspect of maintaining experienced staff to improve service quality.

Therefore, in the line of such study Torlak, Demir and Budur, (2019) studied the nature of turnover with regards to economic variables is the most rational course of action, as it entails organisation-led efforts at understanding the external forces affecting the caf and the strategies to develop a more resilient workforce by increasing staff engagement, developing clear and transparent communication regarding the caf, effective staff, as well as disseminating information or other forms of support for the personnel that is susceptible to economic pressures. A caf that acknowledges the link between the economic conditions and its workforce is a caf that can mitigate the negative effects of turnover on its staff.

Dogru et al. (2023) focus more on the direct relationship between economic cycles and turnover rates, while Torlak, Demir, and Budur (2019) take a more proactive approach, emphasising how cafs can mitigate these effects by enhancing staff engagement, clear communication, and support systems. Torlak, Demir, and Budur stress organisational actions to address turnover, whereas Dogru et al. focus on observing the external economic factors that influence turnover.

2.3.2. Career Adaptability and Turnover Intentions

Collective findings by Rasheed et al. (2020) illustrated that workers with strong career adaptability skills are less likely to hold turnover intentions, suggesting that adaptability serves as a mitigating factor against the desire to exit. In the caf, the environment is fast-paced and at times unpredictable, with employees having to react to a range of situations and people, either to the changing needs of the customers or to the requirement of quick reaction and decision-making skills. The first postulate is that career adaptability is individual for each person and is linked to their personal experience and employment history. According to Jiang, and co-authors (2012) who have elaborated career adaptability via Construction theory also offered a ninth postulate suggesting that workers need to adapt to the changing job requirements and industry expectations. For caf workers, this is important because it is linked to the diverse nature of customer interaction and service trends.

Rasheed et al. (2020) focus on the practical application of career adaptability in the caf environment, specifically proposing personalised training and development programs for employees to foster career exploration, decision-making, and problem-solving skills. In contrast, Jiang et al. (2012) present a broader theoretical perspective through the lens of Construction Theory, highlighting the necessity of adapting to evolving job demands, but without specifying detailed workplace practices. Rasheed et al. suggest actionable strategies for cafs, while Jiang et al. provide a foundational theoretical framework.

It was found that Rasheed et al., (2020) that cafs can apply this finding by implementing holistic and personalised training and development requirements for workers. This training could be linked to classic career adaptability sub-scales, focusing on career exploration, plans, decision-making, and problem-solving. Caf-specific training would also include the development of decision-making skills associated with customer conflicts, service delivery, and effective problem-solving. Hence, the main finding was that when employees feel that they can grow in their current workplace, the effectiveness of commitment and subsequent turnover rates decreases. Cafs can help reduce turnover intentions and improve service quality and operational efficiency by providing employees with a structured career development pathway that enables them to visualise their future with the organisation. This may involve mentorship opportunities, cross-training experiences, and communication regarding potential advancement. Managers who promote a career-focused culture will help inspire loyalty from their employees.

2.3.3. Organisational Culture and Employee Satisfaction

Organisational culture matters in adopting and reducing employee turnover rates. A highly positive and inclusive work culture makes employees feel satisfied and engaged. Alternatively, a toxic or non-supportive organisational culture or climate drives turnover. From a more qualitative analysis of the hospitality business in the Gulf Cooperation Council, Michael and Fotiadis (2022) proven the overpowering significance of organisational-specific factors that affect the turnover as management practices and interpersonal relationships among the staff. Since hospitality is found at the business end, organisations belonging to this sector in the UAE indeed need to adopt consistent and controlling policy measures in both twain human resource practices to curb the employee turnover as substantially as possible. Moreover, since cafs in New Zealand are also a part of the hospitality business chain, generous and courageous measures should also be adopted to improve and reduce the turnover rate expensive (Michael and Fotiadis, 2022).

Anitha and Begum (2016) revealed that creating workplace culture proved to be one of the most efficient ways to reduce turnover. Employees leaving organisations with superior cultures indicated that they wished to stay with or whose work matched their needs and requirements. Michael and Fotiadis (2022) focus more on management practices and interpersonal relationships, especially in the context of the hospitality industry in the Gulf Cooperation Council and New Zealand. In contrast, Anitha and Begum (2016) stress creating a supportive workplace through team building, regular performance appreciation, and feedback mechanisms as a direct strategy to reduce turnover. While both discuss the importance of culture, Michael and Fotiadis emphasize broader organisational factors, while Anitha and Begum focus on specific practices for improving culture.

2.3.4. HR Practices and Employee Retention

Effective human resource practices are paramount in shaping employee retention strategies within the hospitality sector. Han (2020) argued that organisational-level factors are good predictors of turnover in the hospitality industry. At this point, it is possible to conclude that many HR-initiatives should be implemented in cafs as well. At this point, it is possible to speak about the fact that good recruitment models and appropriate training and development programs, performance management, etc. can benefit cafs. Specifically, Anitha and Begum, (2016) have focused on recruitment and selection of staff should be based on the identification of the perspectives whose values are compatible with those within the organisation. At the same time, employees must be offered a good wage that is illustrative of market conditions. Finally, the initiatives should include projects that would help employees develop and feel that the cafe supports their growth. On-the-job training, a series of workshops, and mentorship programs can be viewed as examples. In addition, exit interviews can be selected as a good method of learning why exactly many employees leave a caf allowing managers to identify the trends (Michael and Fotiadis, 2022).

A holistic approach to HR practices is an effective way for cafs to promote an overall environment that is conducive to employees loyalty and commitment. In other words, by adopting a proactive HR strategy based on employees engagement, personal and professional development, as well as feedback minimises turnover rates and ensures a relatively stable workforce.

All authors agree that effective HR practices, such as recruitment, training, and feedback, are crucial for reducing turnover in the hospitality sector. They emphasise the importance of aligning employee values with organisational culture and supporting professional development. Han (2020) focuses on organisational-level factors as predictors of turnover, while Anitha and Begum (2016) highlight specific HR practices like recruitment, wages, and development. Michael and Fotiadis (2022) stress the role of exit interviews and management practices in understanding turnover trends.

2.3.5 Cultural and Demographic Factors

However, as cafe employees in New Zealand are part of the countrys diverse demographic, it adds to the complexity of their characteristics, inclinations, and views on the job. Specifically, Emiro?lu, Akova and Tanriverfi, 2015) explained that cultural background influences peoples perceptions of salary packages, additional benefits, and working conditions. As a result, some employees may choose either to stay or leave cafs based on their expectations, those of their cultures as well. Medina, (2012) supported the notion that employees belonging to certain cultural value systems is essential to turnover, especially among expatriate employees.

Hence, caf management personnel should understand these nuances and design retention strategies that resonate with employees in question. For example, as far as most expatriate employees are concerned, they expect the job to ensure them with stability in terms of positions and opportunities as well as adequate remuneration (Grind, 2022). The reasons for the tendency are the challenges that the relocation to another country poses and the alienation that expatriate employees experience. On the other hand, accommodating local employees expectations is crucial for cafs to address their need for belonging through job offers catering to their beliefs in other values. Furthermore, the generations employees differ in terms of their propensity to leave the job. According to Emiro?lu, Akova and Tanr?verdi, (2015) peoples perceptions of career success are subjective and vary in accordance with their expectations, goals, and visions. The young generation, specifically, are eager to find a job that meets their expectations. Indeed, as for caf employees, receptionist staff, for example, are more predisposed to leave the job. The specific actions based on the results are to allow them to work flexible hours and facilitate their professional development and career progression within cafs.

Emiro?lu, Akova, and Tanriverfi (2015) emphasize that cultural backgrounds significantly affect employees' expectations regarding salary, benefits, and work conditions, influencing turnover. They argue that expatriate employees prioritize stability and remuneration. Similarly, Medina (2012) agrees that cultural value systems shape turnover, especially among expatriates. However, Emiro?lu et al. suggest that local employees' turnover is influenced by their cultural need for belonging, while Medina focuses more on expatriate challenges, creating a nuanced understanding of turnover across cultures.

2.3.6. Impact of Economic Pressure on Organisational Culture and Employee Turnover

Swaminathan and Rajkumar, (2010) revealed that economic pressure plays a very big role in changing an organisational culture whereby the focus drifts away from engagement and development to cost-cutting and efficiency. Altman (2020) also found that tougher economic periods may prompt organisations to adapt a more transactional culture, prioritising short-term results over the longer-term well-being of employees. These sudden paradigm shifts can create a heavy burden on work culture resulting in reduced job satisfaction and engagement.

On the other hand, Cheng, and Kao (2022) revealed that perceived undervalue, overworked, under-appreciated or lack of support will reduce the commitment to the organization and increase turnover rates. Turnover is very costly for the organization due to recruitment and training expenses, while also distorting the team composition. Furthermore, a culture of economic pressures can also create an environment where management does not trust staff and vice versa. As soon as they see that their needs are secondary to deficit objectives, morale plummets and a cycle of disinterest and turnover occurs.

Swaminathan and Rajkumar (2010) discuss how economic pressures shift organisational culture, often toward short-term efficiency over employee satisfaction, increasing turnover. Altman (2020) supports this by showing how economic challenges lead to a more transactional organisational culture. However, Cheng and Kao (2022) argue that perceived undervaluation due to economic pressures increases turnover. In contrast, Yang et al. (2021) present a different perspective, suggesting that organisations with a sensitive culture, even in economic downturns, can reduce turnover, highlighting a potential way to maintain employee loyalty during tough times.

On the flip side, Yang, Chen, Lee and Liu, (2021) found that companies continue to have a more sensitive culture (even in economic downturns) tend to build loyalty and commitment among employees, promoting lower turnover rates. The link between economic pressure, organisational culture and employee turnover is significant for organisations to retain a productive workforce and effectiveness.

2.3.7. Consequences of High Turnover

The consequences of high employee turnover extend beyond individual employees and significantly impact organisational performance. According to Guzeller and Celiker, (2020) High turnover rates can lead to increased recruitment and training costs, reduced productivity, and a decline in service quality. In the caf context, where customer experience is paramount, the loss of experienced staff can negatively affect service delivery, leading to customer dissatisfaction and potential revenue loss.

Moreover, frequent turnover disrupts team dynamics and employee morale, creating a cycle of dissatisfaction among remaining staff. As Rasheed et al. (2020) noted that a stable workforce is imperative for ensuring high-quality service, especially in the hospitality industry. The employees who have worked in a caf for some times are often more skilled and knowledgeable than those who were recently hired. Thus, when the turnover rate is high, this knowledge is lost and cannot be transferred to the new employees, who work less efficiently. This affects not only the operations but can harm the cafs reputation and customer base.

Guzeller and Celiker (2020) focus on the financial costs of high turnover, such as recruitment and training expenses, and its impact on service quality. They argue that turnover disrupts team dynamics and lowers productivity. Rasheed et al. (2020) align with this by stressing that a stable workforce is critical for high-quality service. Both authors agree on the operational impact, but Rasheed et al. add that turnover damages workplace culture, as demoralised employees may remain out of necessity, which exacerbates the negative effects of turnover.

2.4 Previous Studies

Employee turnover is a pressing issue in the hospitality industry, with coffee shops and cafs being particularly vulnerable to its negative effects on operations and customer satisfaction. Research has identified several key determinants influencing employees' intentions to leave, and various strategies have been proposed to mitigate these challenges.

Lin and Huang (2021) explored how organisational culture influences turnover intentions, suggesting that fostering a positive culture is essential for reducing turnover rates in coffee shops. Their qualitative analysis emphasises that a supportive environmentespecially in less demanding settings like cafs compared to high-pressure environments like restaurantscan significantly improve employee satisfaction and retention. This insight underscores the importance of organisational culture in smaller, more intimate settings where staff engagement directly impacts customer experience.

On the other hand, Grind (2022) highlighted the specific challenges faced by coffee shops, noting that low wages, tough working conditions, and lack of career advancement are major factors driving turnover. This study, which focuses on the unique pressures faced by coffee shop managers, calls for better compensation, improved working conditions, and career growth opportunities to reduce turnover. The research suggests that engagement and incentive programs could be effective in retaining staff, particularly in coffee shops, where the work environment tends to be more informal and relational compared to other hospitality sectors. In the similar fashion, Kaufmann et al. (2022) supported the view and said that the role of organisational rules, particularly green tape, and its impact on employee retention is explained. The quantitative study argued that well-designed, flexible policies (green tape) can help improve job satisfaction and retention. This research is relevant to cafs where flexibility in work rules can enhance employee autonomy and satisfaction, potentially lowering turnover.

In the similar fashion Kim et al. (2017) focused on influencing of supervisory relationships and organisational justice on turnover intentions. Their findings suggest that supportive leadership and a sense of fairness in workplace practices are crucial for employee retention. This is particularly significant in cafs, where team cohesion and strong supervisor-employee relationships are essential for delivering excellent customer service.

The common thread across all four studies is the importance of a positive work environment, whether through supportive organisational culture, fair leadership practices, or improved compensation and career growth opportunities. Lin and Huang (2021) and Kim et al. (2017) emphasise the impact of workplace culture and leadership, while Grind (2022) and Kaufmann et al. (2022) focus on the structural and compensation-related aspects of turnover. While all the studies agree on the importance of a supportive work environment, they differ in their emphasis on organisational rules and compensation as key factors influencing turnover. Together, they suggest that an integrated approach that includes positive culture, fair leadership, competitive compensation, and career development can help mitigate turnover in coffee shops and cafs.

2.5 Research Gap

In researching employee turnover within New Zealands caf industry, it becomes apparent that the interplay between economic pressures, cultural diversity, and organisational practices remains under-explored, particularly regarding the unique expectations and experiences of diverse employees in a high-turnover environment. While existing studies, such as those by Lin and Huang (2021) and Kaufmann et al. (2022), emphasise the role of organisational culture and HR practices in influencing turnover rates, there is limited focus on how these factors specifically interact within culturally diverse, service-oriented workplaces like cafs. This gap is critical, as New Zealand's workforce is characterised by a high proportion of emigrant and multicultural employees, who bring varied expectations and attitudes toward work and career progression. Understanding these cultural nuances is essential, as they directly impact employees' perceptions of job satisfaction, fairness, and engagement, which in turn affect their intentions to stay.

Additionally, while economic pressures are acknowledged as influencing organisational culture shifts (Swaminathan & Rajkumar, 2010), few studies have investigated how economic downturns specifically impact small service establishments like cafs. These businesses often face unique challenges, as cost-cutting measures can rapidly shift focus from employee engagement to efficiency, exacerbating turnover issues. Existing literature predominantly examines large organisations or the broader hospitality industry, leaving a gap in understanding the distinctive turnover challenges for cafs, where customer experience and employee retention are closely linked.

While these studies provide valuable insights, they are largely based on international settings and do not specifically address the New Zealand context. Recent studies, especially in the post-COVID-19 era, have highlighted new challenges in retaining hospitality workers in New Zealand. For example, the impact of economic instability and changing work preferences post-pandemic has led to increased turnover in the local caf sector. Incorporating such local studies, including those addressing the effects of COVID-19 on the workforce, would provide a more nuanced understanding of turnover in New Zealands cafs.

While Grind (2022) identifies compensation as a key driver of turnover, Kaufmann et al. (2022) suggest that organisational policies such as "green tape" can mitigate these effects. Similarly, Lin and Huang (2021) stress the importance of organisational culture in retaining employees, supporting this fact Kim et al. (2017) argued that strong supervisory relationships play a significant role in staff retention. Together, these findings suggest that a multifaceted approach, combining better compensation, supportive work cultures, flexible policies, and strong leadership, is essential for reducing turnover in New Zealands small cafs. However, more research focusing specifically on New Zealands post-COVID-19 challenges is needed to develop strategies tailored to the local context

While the broader hospitality industry has seen studies examining turnover trends, there is a limited focus on small cafs in New Zealand, where unique economic pressures and cultural diversity issues intersect to influence staff retention. The existing research often overlooks the specific factors that make turnover more pronounced in these small businesses, such as local economic challenges and the role of cultural diversity in shaping employee expectations and workplace dynamics. Limited research exists on how these factorseconomic pressures, such as the high cost of living and low wages, combined with the growing cultural diversity in New Zealand's hospitality sectorimpact turnover in small cafs. This study seeks to address this gap by exploring the relationship between these factors and employee retention in this context.

Lastly, there is a need for longitudinal research on the long-term effects of turnover on customer satisfaction and overall business performance in the caf industry. Most current studies offer cross-sectional insights, which are limited in showing how turnover trends develop over time and impact business continuity. Addressing these research gaps can provide caf managers with targeted strategies that support a stable, satisfied workforce and enhance business sustainability amid economic and demographic shifts.

2.6 Conclusion

High employee turnover in the caf industry in New Zealand is influenced by a complex interplay of economic factors, career adaptability, organisational culture, and human resource practices. Understanding these dynamics is essential for developing effective strategies to mitigate turnover and enhance employee retention. By fostering a supportive workplace culture, promoting career adaptability, and implementing comprehensive HR practices, caf managers can create an environment that encourages employee commitment and reduces turnover rates.

Future research should continue to explore the long-term impacts of retention strategies in small hospitality business. Additionally, studies examining the long-term effects of turnover on customer satisfaction and organizational performance would provide valuable insights for caf management. By addressing these issues, the hospitality industry can better navigate the challenges of high turnover and create a more stable and engaged workforce, ultimately leading to improved service quality and business success

Chapter 3 Research Methodology

3.1 Research Design and Research Philosophy

This study uses aninterpretivist philosophycombined with anexploratory research designto explore and understand employee turnover in a New Zealand caf. Interpretivism is rooted in the belief that social reality is subjective and shaped by individual experiences, making it particularly relevant for exploring nuanced workplace issues like employee retention. This philosophy priorities understanding the meanings participants attach to their experiences, allowing the researcher to uncover the complexities of staff turnover and its causes through the lived experiences of employees and managers.

The exploratory study design is ideal for investigating the dynamics of employee turnover and retention in a caf setting. The exploratory design seeks to uncover new insights by exploring the factors influencing employee experiences. This approach allows for a more flexible and open-ended investigation into issues such as organisational culture, management practices, and employee perceptions (Swedberg, 2020). The goal is to identify underlying reasons for turnover and retention challenges rather than merely describe them. By utilizing qualitative methods such as in-depth interviews, the study can capture rich, detailed data that provides a deeper understanding of employee motivations, satisfaction, and challenges. The exploratory design also enables the identification of patterns and trends that may not have been previously considered, offering valuable insights into aspects like work-life balance, communication, and team dynamics (Gericke, Kramer and Roschuni, 2016). This approach allows for the discovery of new variables influencing employee retention, which can inform future research and targeted interventions. Ultimately, an exploratory study design provides a comprehensive understanding of the cafs work environment, laying the groundwork for future, more focused studies on the factors affecting turnover and retention.

The sample size of six employees and two managers is well-suited for this approach, ensuring a balanced representation of perspectives within the small workforce. The managers contribute strategic insights into policies and workplace culture, while employees provide valuable accounts of their motivations, challenges, and experiences. This combination ensures that the data collected reflects both operational and managerial perspectives, enriching the study's findings.

By adopting an interpretivist philosophy, the study emphasises subjective understanding, while the exploratory design allows for a structured exploration of employee turnover within its real-life context. Together, these frameworks ensure that the research captures a holistic and in-depth view of retention challenges in the caf, generating actionable insights for similar small businesses in the hospitality sector.

3.2 Population and Sampling

This research focuses on employee turnover within a New Zealand caf, using qualitative methods to explore experiences and strategies related to employee retention. The population includes six employees and two managers, representing a diverse cross-section of the caf's workforce. The employees are integral to day-to-day operations, providing insights into challenges and motivations, while the managers contribute a strategic perspective on retention initiatives and workplace culture. This dual focus ensures that the study addresses the issue comprehensively, capturing both individual and organisational viewpoints. The choice of this specific population reflects the caf's small size and the centrality of these roles to its success. In a hospitality industry marked by high turnover, this localised study provides valuable insights into how small organisations can manage and mitigate retention issues.

The caf operates in New Zealands competitive hospitality sector, where employee turnover is a common and costly issue. The selected population consists of two distinct groups. Employees, who directly handle customer service and operations, provide firsthand accounts of their work experiences, motivations, and challenges. Managers, responsible for setting workplace policies and overseeing team dynamics, offer a strategic lens for understanding broader organisational trends. By including all eight core team members, the research captures a full spectrum of perspectives, ensuring a nuanced understanding of factors influencing employee retention. This holistic approach aligns with the qualitative nature of the study, emphasising depth and relevance over statistical generalisability.

3.3 Sampling Strategy

This study employs a convenience sampling strategy, which is particularly effective for qualitative research, especially when working with a small, specific population. Convenience sampling was chosen because it allows for quick and accessible data collection, enabling the research to be conducted in a practical and timely manner. This technique involves selecting participants based on their availability and willingness to engage, rather than using random selection (Golzar, Noor, and Tajik, 2022).

For this study, all six employees and two managers were selected based on their proximity and readiness to share their experiences related to the caf's operations and management. This sampling approach is appropriate given the small size of the population (the caf's core team) and the study's focus on gaining insights into employee retention challenges within this context.

Convenience sampling is also chosen to ensure a representation of different perspectives within the organization. By including both front-line staff and managers, the study captures diverse viewpoints on the factors affecting employee retention. The employees represent a range of roles within the caf, allowing for insights into different aspects of the work environment and organisational culture. Meanwhile, the managers provide a higher-level perspective on management practices and policies that influence turnover. This diversity in roles and tenure helps to ensure a well-rounded understanding of the issues.

The sample is therefore representative of the caf's core team, making it a relevant source of information on employee retention. While convenience sampling does not aim for statistical generalisability, it is particularly effective in qualitative studies where in-depth, context-specific insights are the primary goal.

3.4 Sample Size Justification

The small sample size of eight participants is well-suited to qualitative research, where the goal is to gain deep insights rather than achieve statistical generalisation. Including the entire core team ensures that diverse perspectives are captured, covering both operational and managerial viewpoints. In qualitative studies, smaller samples are often more manageable and conducive to detailed, in-depth analysis. For this research, the inclusion of both employees and managers allows for a balanced understanding of the factors influencing retention, ensuring that findings are both comprehensive and contextually relevant to the caf.

The sampling strategy used in this study is convenience sampling, targeting participants who could provide relevant data and focus on providing insight into employee turnover among New Zealand cafs. Based on the strategy of representing both operational and managerial perspectives, the sample was limited to a total of 6 employees and 2 managers in a local caf.

Factors like employee tenure with the cafe, job role, demographic makeup of employee profiles were taken as guidelines to select the employees; so that we have varied perspectives about the retention factors for the people working at this cafe. For manager interviews, these individuals were included to reveal organization strategy and leadership point-of-view. It sought to compliment the lived experiences of employees with the managerial strategies that ultimately drive turnover, providing a holistic overview of the problem.

Given the exploratory nature of the research, a small sample of eight participants was considered appropriate. This enabled the collection of data leading to a richer, more robust understanding of turnover influences without burdening the analysis with data from the larger group. Having fewer people also made the process easier, guaranteeing that interviews were detailed and in-depth.

Despite its strengths, the sampling approach presents some challenges and limitations. The small sample size limits the generalisability of findings beyond the cafs specific context. There is also a risk of bias, as participants may feel constrained in their responses due to their familiarity with one another. These limitations were mitigated through measures such as ensuring confidentiality, creating a safe and neutral environment for interviews, and triangulating data from multiple sources to enhance reliability. Acknowledging these challenges is essential to contextualise the studys findings and highlight its focus on localised insights.

3.5 Measurement Instrument: Semi-Structured Interviews

The primary data collection method used in this study is semi-structured interviews, which combine predefined questions with the flexibility to explore participants unique experiences. This approach is particularly suited to qualitative research, as it allows for in-depth exploration of the factors influencing employee retention. By balancing structure with adaptability, the method enables the interviewer to probe further into emerging themes, creating opportunities for rich and detailed responses (Magaldi and Berler,2020). For example, employees were asked about their job satisfaction, personal motivations, and workplace challenges, while managers were questioned about retention strategies, team dynamics, and organisational goals.

Key questions for employees included:

1. "What is your opinion on the compensation and benefits provided at cafe?"

1. What improvements would you suggest reducing employee turnover at cafe?"

1. "Were there any specific challenges or stressors in your role that impacted your decision to stay or leave the organization?"

Managers were asked:

1. "What do you think are the main causes employees leave your team, and how you address these challenges?"

1. "What alterations would you want to make in management in this organization, if you will get a chance?"

1. "What strategies have proven effective in fostering long-term employee engagement?"

This dual focus ensures that the study captures both individual experiences and organisational strategies, addressing the issue comprehensively.

The interview guide was carefully crafted to align with the research objectives, ensuring that all questions directly contributed to understanding employee retention within the caf. Questions were designed to be open-ended and non-leading, allowing participants to express themselves freely. For employees, additional questions explored their perceptions of management, such as, "How would you describe your relationship with your manager?" and "Do you feel recognised and valued for your contributions?" For managers, the guide included questions like, "What role do you think leadership style plays in employee satisfaction?" and "What training or support would you need to enhance your team management skills?"

Pilot testing with one employee and one manager ensured that questions were clear, relevant, and effectively elicited the desired information. Based on feedback, slight adjustments were made to refine the wording and structure, ensuring the interviews would flow naturally and encourage openness.

3.6 Data Collection Process

Interviews were conducted in settings that maximised participant comfort and confidentiality. For phone interviews, a private area was used to minimise distractions, while virtual interviews offered flexibility for participants who preferred remote discussions. Each interview lasted approximately 15-20 minutes and followed a conversational tone, encouraging participants to share their experiences and perspectives openly. The process began with a brief introduction to the studys purpose and the confidentiality measures in place, creating an environment of trust. Interviews were recorded with participants consent and later transcribed verbatim to ensure accuracy and facilitate detailed analysis (Farooq and De Villiers,2017).

3.7 Data Analysis Technique: Thematic Analysis

Thematic Analysis Process

The data collected from semi-structured interviews were analysed using thematic analysis, which is a widely used method for identifying, analysing, and reporting patterns (themes) within qualitative data. Thematic analysis was employed to analyses the interview data, as it is particularly effective for identifying and interpreting patterns within qualitative data. The analysis followed a six-step process:

1. Familiarization: Listening to recordings and transcribing interviews to immerse in the data.

1. Initial Coding: Data coding involved multiple stages: initial open coding to identify recurring ideas, axial coding to group related concepts, and selective coding to develop overarching themes such as Compensation Dissatisfaction and Workload Stress.

1. Generating Themes: Grouping similar codes into broader themes like "Retention Challenges," "Leadership Impact," and "Cultural Fit."

1. Reviewing Themes: Ensuring that themes were distinct, coherent, and reflective of the data.

1. Defining Themes: Refining themes to capture their essence and scope, supported by direct quotes.

1. Writing Results: Presenting themes with contextual insights and connections to the research objectives (Naeem, et al.,2023)

For example, responses about "limited career growth" were coded under "Retention Challenges," while mentions of "managerial support" formed part of the "Leadership Impact" theme. Direct quotes from participants, such as, I feel like theres no room to grow here, provided context and authenticity to the findings.

Identifying and Categorising Themes

• Compensation and Benefits: This theme emerged from employee dissatisfaction with pay and benefits, with many expressing that the compensation offered by the caf was insufficient relative to the physical and emotional demands of the job.

• Workload and Job Stress: This theme highlighted the physical demands of caf work, particularly for older and long-tenured employees, who often experienced burnout due to workload and stress.

• Leadership and Career Development: Employees expressed frustration over the lack of career progression opportunities, and many mentioned that poor leadership and lack of managerial support contributed to their decision to leave the caf.

• Gender and Work-Life Balance: Female employees, especially those with caregiving responsibilities, reported that rigid working hours and a lack of work-life balance significantly affected their decision to stay or leave the job.

• Recognition and Appreciation: Long-tenured employees, in particular, expressed dissatisfaction with a lack of recognition and appreciation for their work, which contributed to their desire to leave the caf.

Participant	Role	Tenure (Years)	Age Range	Gender	Ethnicity
Employee 1	Barista	2	20-30	Female	New Zealander
Employee 2	Server	1	20-30	Male	European
Employee 3	Kitchen Assistant	0.7	20-30	Female	Pacific Islander
Employee 4	Kitchen Assistant	1	20-30	Female	European
Employee 5	Supervisor	3	30-40	Female	European
Employee 6	Barista	2	20-30	Female	European
Manager 1	Manager	5	30-40	Female	European
Manager 2	Manager	5	40-50	Female	European

To code the data, here first reviewed the transcripts for recurring themes and patterns. Key topics such as job satisfaction, compensation, stress, team dynamics, and management practices were identified. Initial codes like "low pay," "stress during peak hours," and "supportive team environment" were created. These codes were grouped into broader themes, including workplace environment, employee retention, and challenges. For example, codes about pay and career development were categorised under retention factors. Here refined and named these themes to accurately represent the participants experiences, ensuring clarity and consistency across all responses.

3.8 Inclusion and Exclusion Criteria

To ensure the relevance of the findings, specific inclusion and exclusion criteria were established. Inclusion criteria required participants to have worked at the caf for at least six months, as this tenure provides sufficient exposure to the cafs culture, policies, and operational challenges. Managers included in the study were those directly involved in overseeing employee performance and implementing retention strategies. Exclusion criteria excluded new hires with less than six months of tenure, as their experiences may not reflect long-term dynamics, and temporary staff or consultants not integrated into the cafs core team. These criteria ensured the focus remained on participants with relevant and meaningful experiences.

3.9 Validation and Reliability

Several strategies were implemented to ensure the findings were valid and reliable. Triangulation compared themes across employees and managers, identifying areas of overlap and divergence. For example, employees cited "limited growth opportunities," while managers highlighted "budget constraints" as a barrier to offering career progression. By analysing these perspectives side by side, the research presented a balanced view. Member checking involved sharing summaries of themes with participants to verify accuracy and credibility, ensuring that interpretations aligned with their intended meanings.

3.10 Ethical Considerations in Data Collection and Analysis

Ethical considerations were paramount throughout the study. Participants anonymity was protected by assigning pseudonyms during transcription and removing identifiable details. Informed consent was obtained before conducting interviews, ensuring participants understood the studys purpose, methods, and their rights, including the option to withdraw at any time. Data security was prioritised by storing recordings and transcripts on password-protected devices. During analysis, researchers actively minimised bias by focusing on participants responses rather than personal assumptions or preconceived notions. In this study, informed consent was obtained from all participants, ensuring they understood the studys purpose, methods, and confidentiality measures. Participation was entirely voluntary, and participants were informed of their right to withdraw at any time. Confidentiality was maintained by anonymising responses and securely storing data. Additionally, care was taken to ensure that interviews were conducted in a manner that respected participants comfort and privacy, fostering an environment of trust and openness.

Chapter 4: Results and Discussion

4.1 Theme 1: Organisational Culture and Workplace Environment

A strong organisational culture provides the foundation for how satisfied, retained, and engaged workers are in a workplace. The collective values, standards, and actions of a given workplace can as much act as a conduct for employee engagement motivating employees to stay with the company as an impediment, motivating employees to seek other work. Results suggest that, within the New Zealand caf context, positive team dynamics, leadership engagement issues, and workplace stressors all interacted to exacerbate employee turnover. However, while some of the workplace environment was critical to employee retention, the greatest drivers of decreased job satisfaction and therefore retention came from cultural and structural challenges. In-depth analysis of employee feedback shows organisational culture the cumulative climate created by leaders, how teams and colleagues work together, and structural issues, among other factors is among the most important drivers of employee retention.

Positive Team Dynamics as a Driver of Retention

Among the many themes coming out of employee feedback, one of the most consistent and positive was team dynamics of those working in the caf. Even in the stressful environment of the hospitality field, employees consistently named their relationships with coworkers as a top reason to remain. For instance, Employee 2 highlighted, The best part of the job is my coworkers. We leaned on each other during stressful times. Similarly, Employee 3 shared, It was easier to get through the long hours because we worked well as a team. This suggests that the buddy atmosphere among colleagues is an emotional and mental relief for people struggling with the existential stresses of the role. Knowing that they belong, and team members can lean on each other built a safe ecosystem and offered the staff a buffer of resiliency while weathering storms in the workplace. Given that how well a team gets along determines employee morale and turnover intentionsthey will stay longer when they are connected to their co-workers and feel part of a wholethis type of peer support within a team-grounded environment is essential.

Nonetheless, this fantastic collaborative team culture was largely autonomous from anything that management did. Evidence of an organised effort to formalise or reinforce that team culture (building a team triangle) by or among leadership was mostly absent, though we saw peers helping each other get through the challenges of the caf environment. It demonstrates that there were no attempts made to preserve this great part of the culture through team-building initiatives and/or programs aimed at continuing to build stronger collaboration which on the face of it, indicates that the caf did not take steps to maintain this positive part of the culture. However, if left unharboured organically in team dynamics without the guidance of management, it is likely that this can turn into negative team dynamics with time, particularly in the face of chronic operational stressors or leadership avoidance.

Disconnect Between Leadership and Employees

However positive the team dynamics of the caf, a massive disconnect existed between employees and management, and it began to poison the culture of the workplace. Workers conveyed anger over the absence of managerial participation and the haze around decision-making processes. Employee 3 noted, Management rarely sought our input or made us feel involved in decision-making. This type of sentiment reveals the larger problem of disengaged leadership, in which employees felt voiceless in discussions and decisions that affected and governed their work environment and day to day activities. A lack of consultation or engagement with staff as a participatory approach to leadership resulted in staff feeling alienated and unnoticed.

Moreover, the failure to recognise employees contributions or to celebrate their achievements further contributed to dissatisfaction. Employee 4 pointed out, Breaks were scarce, and no one acknowledged our hard work. This not only demotivates the employees but also creates a feeling of being under-appreciated when the employees think that their efforts are never appreciated. That absence of management recognition dilutes the possibility of a positive workplace culture. It is a commonly accepted principle in employee engagement and retention research that recognition is one of the most important drivers, and the absence of management acknowledgement of employee efforts undermines employees in terms of morale, explains turnover intentions and reduces job satisfaction.

This gap between workers and leadership also signals a structural problem in how leadership is practiced at the caf. Management was not proactively engaged, and decision-making was top-down, leaving staff feeling disenfranchised and disconnected from the overall organisational picture. Manager 2 admitted, We aim to build a collaborative workplace, but operational constraints often limit our efforts. This admission recognises the difficulty with which managers must operate, but it also illustrates the divide between the practice of management as it should or could be and the experience of employees. This perspective by Manager 2 of operational constraints speaks to re-evaluating how the caf gives out direction as well as how management can interact with its staff within limitations of the business. A line of thinking that would be beneficial would connect into the notion of tracking above challenges, but also into empowering employees to participate in decisions that involve their work, fostering a more participative and engaged work environment.

Structural and Workplace Stressors

The disconnect between employees and leadership is one part of the job dissatisfaction and turnover tool, but other stressors -- often structural or organisational -- were among the main culprits. Staffing shortages, insufficient resources, unclear about policies, repeatedly identified as barriers to effective practice and job satisfaction. Employee 4 noted, There were no efforts to promote inclusivity; the culture felt impersonal at times. This tacit acknowledgement indicates the absence of formal policies and systematic processes aimed to foster a more inclusive and enabling environment. Not only does a lack of inclusion help to alienate individuals, but again this can prevent employees from jumping into the purpose of the organisation and taking ownership of their role.

Employees were stretched thin, doing extra work without back up at a time when understaffing was probably the worst it ever was. Employee 1 explained, We were often stretched too thin, and management did not take step for help. These staff members carrying the weight resulted in a stressful working environment, in which the employees felt overwhelmed and undervalued. Chronic employee shortages not only drive employee morale into the ground but also impact the customer experience, creating a revolving door of unhappy employees and customers.

These structural problems demonstrate an underlying absence of resource management and planning, which further burdened the workforce. Without clear policies in place and no help dealing with shortages, everything spiralled into chaos and the pressure on staff became so extreme it led to loss of morale and retention issues.

The caf should introduce a structured program for employee recognition and engagement as a key pillar to strengthen organisational culture, implementing regular team-building exercises can formalise and maintain the positive peer model that exists. To close the gap between the staff and management, leadership training programs should also include skill development in active listening and including employees. The caf is already pretty much a team-oriented organization, and the key would be to simply ensure that this is reflected in management practices as well.

Aspect	Employee Perspective	Manager Perspective
Positive Team Dynamics	Employees value strong coworker relationships.	Managers acknowledge cohesion but lack formal initiatives.
Leadership Disconnect	Employees feel ignored and undervalued.	Managers cite operational constraints as barriers.
Structural Stressors	Employees face understaffing and unclear policies.	Managers struggle with resource planning and inclusivity.
Recommendations	Suggest formalising team building and recognition programs.	Recommend leadership training and inclusive policy development.

4.2 Theme 2: Compensation, Benefits, and Local Market Competition

In a hospitality industry, which generally witnesses a high employee turnover rate, compensation and benefits play a crucial role in either retaining or losing employees. The ongoing complaints overpay and rewards of working at the New Zealand caf pinpoint a key issue employers can do better at in keeping workers. In addition to that, it must contend with the competitive dynamics of the labour market in the area, with rival firms luring away employees with better pay and other benefits. In this brief analysis of employee turnover, we examine employee attitudes towards pay, managerial attitudes towards budgets, and local business market conditions, and how they all combine to drive turnover through the roof.

Employee Dissatisfaction with Wages and Benefits

Low compensation surfaced as one of the most consistent themes in employee feedback. Employee 1 voiced clear frustration with the pay structure, stating, The wages are not sufficient for the work and stress involved. This comment highlights the perceived inequity in the job: what is required from an employee versus what he/she gets in exchange to what is asked. Often, hospitality workers face high stress due to the long hours, physical labour and dealing with customers. Individuals are natural comparators that look to their peers to determine if they are compensated fairly and when they feel that they are not, it diminishes their value in the organization, and they become disgruntled.

Employee 3 echoed this concern, stating, Even small financial incentives could have made a difference in how we felt about the job. It is not only healthier than money but also highlights the fact that workers do not really need hefty slashes in their salaries, but rather micro-payments could help boost up the mood greatly. This absence of such drivers can be perceived, in almost all cases where one works very hard, as an unappreciative attitude towards the hard work. So, employees seek opportunities elsewhere offering more attractive pay packages.

Additionally, the inability to access health insurance, paid leave, and other benefits only compounds the stress workers feel. Employee 5 highlighted, Even minor benefits like paid sick days would help. For those doing manual labour, sick leave is one of the most basic of benefits necessary for well-being and preventing burnout in an industry which relies heavily on availability. Not having these benefits available at the caf impacts the organization ability to compete with other potential local employers that have offers with a more robust benefit offering. The lack of a decent wage and benefits forces employees into the arms of better-paid positions elsewhere.

Managerial Perspectives on Financial Constraints

From a managerial perspective, the limitations on compensation policies are largely attributed to budget constraints. Manager 1 acknowledged that Pay is a common reason employees leave, but budget constraints make it hard to compete with other businesses in the area. This acknowledgement of the problem is nice to see, but it shows a reactionary approach to employee issues rather than preventative measure. Managers are aware that compensation is a major contributor to turnover but seem limited by the financial capabilities of the caf. This is a key insight as it illuminates the divide between what employees expect and what the caf can deliver. That said, simply admitting the problem without following up with tangible solutions is just a recipe for prolonged dissatisfaction and higher turnover thanks to that glib admission.

The fact that the caf does not attempt to explore other ways they could better the atmosphere of working in their caf without raising costs implies that they are unable to think outside of the box when it comes to making employees happy. For example, salary increments may be hard to come by, but other non-monetary incentives like flexible work hours or wellness/recognition programs may be provided at a substantial lower cost. Perhaps the caf's management will have to explore less-prosaic methods of compensating workers, instead of just blaming their unhappiness on the bottom line.

Impact of Local Market Competition

The competitive pressures from other businesses in the local market were a recurring theme in the feedback from both employees and managers. Manager 2 highlighted, We are often competing with cafs that have bigger budgets for compensation. That means the caf has difficulty retaining workers at all because there are much better offers at other cafs. For example, in parts of the hospitality sector, where there is an ongoing labour shortage, companies with bigger budget and more generous pay offer have a clear edge in employee retention.

With employees departing for other ventures with higher pay or a more convenient work-life balance, the turnover issues for the caf become even worse. This is particularly the case among lower-paid staff, who are far more easily enticed to other cafs or restaurants offering better wages. Employees are less likely to see the job as a career to be invested in because the caf cannot pay as well as others in the same market sector. This short-sighted approach leads to increased turnover and disengagement, as employees invest less in the company and are more open to better offers elsewhere.

Furthermore, the caf may not only be making less money than wages; the total cost of the benefit package consumer-from job safety to training over the long term to quality of life-bears a balance of equal importance. As you know, employee commitment to the organization will be higher if the competing business provides extensive benefits from companies like yours. The unavailability of these at the cafe worsens the staffing retention as employees would jump ships to others which could provide better money and activities to fulfil their basics.

Recommendations for Competitive Compensation Strategies

The caf needs a more strategic compensation approach to respond the compensation issues. One of the major suggestions being that the caf should be performing a market analysis to compare salaries against others within the area. Such information would offer the caf insight into where its compensation package lies in relation to another employerand whether adjustments are needed.

Although the caf may be limited in terms of both budget and willingness to give a pay rise to each individual member of the team, there are a myriad of other ways the caf can increase employee satisfaction and make everyone feel valued. Performance bonuses, for instance, are another way to encourage employees to work harder and stay longer at the company. Not to mention that even small, marginal annual increases to people with long-term tenure would be a huge sign that they value loyalty and appreciate the work done by staff. These monetary incentives can improve morale, lower turnover, and install an attitude of commitment in employees to the organization.

Other than monetary compensation, the caf might also provide some non-monetary benefits which are attractive to employees but cost-effective as well. Employee morale can be supported with benefits that are less expensive and still very appreciated such as flexible scheduling, wellness programs, and skill development. The additional non-monetary reward will create a more attractive working environment and will assist the caf to be out of the rivalries.

Aspect	Employee Perspective	Manager Perspective
Dissatisfaction with Wages	Employees feel wages are insufficient for the work and stress involved.	Managers acknowledge low pay as a major issue but cite budget constraints.
Lack of Benefits	Employees desire basic benefits like paid sick leave and health insurance to reduce burnout.	Managers struggle to offer competitive benefits due to financial limitations.
Market Competition	Employees are drawn to rival firms offering better pay and benefits.	Managers admit competing cafs with bigger budgets pose challenges in retaining staff.
Recommendations	Introduce small financial incentives, performance bonuses, and micro-payments to boost morale.	Conduct market analysis for pay comparison; explore non-monetary benefits like flexible scheduling.

4.3 Theme 3: Leadership, Team Dynamics, and Workplace Support

Leadership styles, team dynamics and workplace support can have a large impact within any industry but in the hospitality realm we see this significantly effecting small cafs. Through the workings of people handling customer accounts at cafs, interviews uncover the strengths and weaknesses in these areas, giving an insight into the factors affecting retention and overall satisfaction.

The way that leaders operate is important to keep employees for long term. The majority of those interviewed said their managers are accessible and willing to listen and receive criticism, resulting in trust. Employee 6 said that Our manager is receptive and always invites feedback from us. This leadership style allows the employees to feel they matter, and they are heard. Employee 2 reported that we are enjoying the freedom of a hands-off style, but other employees noted it created confusion, especially during periods of higher customer demand. An employee 3 vented: "during peak hours lack of professionalism can be frustrating. The inconsistency in decision making and in communication causes confusion making employees feel that they are abandoned when they need some guidance the most. Some supervisors, too, complained about top-down management decisions that did not reflect ground-level realities. To fill the gaps in expertise, leaders can undergo structured training, and scheduling performance reviews can help in tracking the progress. Translating this responsibility for strategic error management into employee autonomy requires equipping managers with the autonomy balancing capabilities that enhance operational efficiency, as well as employee satisfaction and well-being.

None more than team dynamics a critical factor in workplace morale. Again, whether it was working in a caf, or elsewhere, a lot of people mentioned the collaborative and supportive nature of the team, which was repeated quite often. Co-workers are frequently described as friendly and helpful, and it adds a sense of friendship thats helpful during stressful operational times. An employee 3 commented, The main reason I enjoy working here is the presence of a friendly culture among team members. These bonds foster belongingness and help improve employee retention. Yet the pace of caf life places stress on the sense of team. At peak hours, tensions sometimes build up, resulting in decreased efficiency and quality of work. Employee 4 say that the stress sometimes creates disputes among employees. This entire scenario also highlights the difficulty in being professional and a team player when things get heated. Team building exercises, conflict resolution training, etc. are required to make the team dynamics strong. Communication and problem-solving skills workshops could also help to boost collaboration, assisting employees on how to deal with stressful situations.

Workplace support emotional and tangible support

The employee 1, mentioned that the management is approachable and open to listening issues. As one respondent said, We can express our issues to our supervisors, which is comforting. That accessibility fosters a culture of openness and encourages employees to speak up about their preferences and requirements. As an employee 2 stated, "Management listens, but I feel like nothing changes after." Failing to turn employee feedback into action disengaged employees and workers cited the need for additional support in busy periods, like more staff or better scheduling to distribute workloads. Improving workplace support also means implementing a strong feedback loop ensuring that employees are aware of changes made due to their feedback. Also, stress management programs like providing flexible schedule and wellness can ease the stress people experience during busy times.

Recommendations

Multiple recommendations as solutions to tackle the above-mentioned problem. The starting point would be leadership development programs that enable the managers to have the tools to provide direction and suggest an open loop of communication. Conducting regular assessments would perform a checkup on leadership practices, preserving the performance evaluation for a degree of industry parameters. Second, many team-building activities foster a culture of collaboration that allows employees to bond better and work together as a cohesive unit under stress. Team resilience could benefit from conflict resolution protocols and targeting resilience training programs. Finally, enhancing workplace support systems. Having a transparent and tangible feedback channel would show that management is committed to addressing the concerns of its employees. More staffing during peak periods, as well as wellness programs, would help create a less stressful environment and improve retention.

Aspect	Employee Perspective	Manager Perspective
Leadership	Managers are approachable but lack clarity during peak hours.	Leadership decisions are sometimes constrained by higher management policies.
Team Dynamics	Friendly culture promotes collaboration, but conflicts arise under pressure.	Team conflicts impact productivity; need structured conflict resolution training.
Workplace Support	Open communication exists, but feedback lacks follow-through and tangible changes.	Limited resources hinder implementing employee feedback and adequate staffing.
Recommendations	Provide leadership training focused on decision-making under pressure and enhancing clarity.	Develop clear communication protocols to enhance transparency and involve employees in decision-making.

4.4 Theme 4: Demographics and Tailored Retention Strategies

The demographic factors have an impact on employee retention and turnover intentions that include age, gender, and tenure [3]. The diverse needs and backgrounds of employees in terms of their demographic characteristics (such as gender, ethnicity, generational, etc.) in the New Zealand caf has influenced their understanding of the workplace and decision to remain or depart. Comparing and contrasting employee and managerial views on these demographic trends indicates that different employee groups, whether long tenured or with much shorter careers, young employees trying to make their path in the world or female employees trying to balance family obligations and work, require tailored retention strategies.

Demographic Trends in Turnover

A particularly remarkable trend emphasized by employees appears to be how tenure impacts turnover intentions. Others, like Employee 3 had not been with the company for as long, but shared feelings of not having opportunities to grow and not feeling valued, as reasons for making the same choice to leave. Employee 3 s statement, It felt like there was no future for me here, captures the sentiment of employees who, after a brief period in the job, feel disconnected from the caf's long-term goals. Employees with short tenures are often on the lookout for career opportunities and material incentives to stay in a job and when communicated unlikely of this they seldom feel the desire to stick around. This also corresponds with studies suggesting younger employees especially those earlier in their careers are more likely to jump ship if they perceive their role does not afford clear avenues for career advancement or acknowledgement.

On the other hand, employees with longer tenures, like Employee 4, reported experiencing burnout and stagnation. Employee 3 noted that the challenges of their role, combined with the lack of new opportunities, led to a sense of being stuck. It is like a more frequent problem among people that stay in the same job for too long, and feel their work is going unrecognised or not valued, and that their job has become mundane. Experienced and long-tenured employees often leave due to burnout and minimal career growth and, as such, will require efforts that are more tailored to their demographic, aimed at career progress and recognition of long-term contributions.

Gender dynamics also emerged as a key factor influencing turnover intentions, particularly for female employees. Employee 5s comment, There were no accommodations for working mothers or those with family obligations, highlights the challenges that employees with caregiving responsibilities face in balancing their work and personal lives. In other words, without a work environment that incorporates flexible working hours or family-friendly policies, female employees, particularly those who shoulder significant caregiving responsibilities, may struggle to achieve work-life balance. The inability to adjust may be a major contributing factor to turnover, especially for windshield time-focused workers who have other, non-work activities demanding an increased amount of their attention (i.e. family) and may not be as flexible in adjusting to the demands of companies wanting them to spend more time on the road.

Managerial Observations on Demographics

From a managerial perspective, demographic trends also provided valuable insights into turnover patterns. Manager 1 observed that Younger employees often leave for better-paying jobs, while older staff may struggle with the physical demands of the role. This is the why behind targeting retention efforts to the age and experience level of your employees. Younger employees are more likely to jump ship for better paying job opportunities based on their needs at that time and if the payments are not matching their needs, they end up finding jobs that do. These workers may also pursue positions that offer greater mobility, which the caf may not always have the capacity to provide. Working in a caf is physically demanding, and as employees get older, this becomes harder, which contributes to higher turnover in older workers, too.

Recommendations for Tailored Strategies

Insights into how the demographics are shown, prove that this caf himself required to differentiate the retention strategy for all employees, based on their needs. Flexible scheduling options and mentorship programs, for example, may be useful strategies for younger employees. Most of the younger workers are in search of work-life balance and scope of career development and promotion from within the caf itself could be a reason why they would not leave. Mentorship programs should provide younger employees with guidance in their careers, as well as a sense of community and stake in the success of the organization in the long term.

If caf employs individuals who have stuck around for a long time, you should be offering them some form of a raise, promotion, or reward for sticking around. To combat the sensation of standing still and burning out, award, or otherwise recognise the contributions of long-tenured employees. If you were to include new challenges and responsibilities, you'd also be giving a sense of progression which is key in implementing retention for employees who have already spent many years in a business.

The caf needs to make policies on work-life balance, especially for female workers, particularly those with family responsibilities. Flexibility in opportunities, parental leave and maybe even offering part-time work or job share, could enable the female employee to balance her caregiving role without losing out on work opportunities. Moreover, it would also send a message to women within the workplace that the cafe values their work and acknowledges the need for a work-life balance, possibly reducing turnover among women.

Aspect	Employee Perspective	Manager Perspective
Tenure	Short-tenured employees feel undervalued; long-tenured face burnout and lack of growth.	Managers observe short-tenured employees leave for better opportunities and long-tenured employees feeling stagnant.
Age	Younger employees seek advancement and recognition. Older employees struggle with physical tasks.	Younger staff leave for better pay; older employees face challenges in physically demanding roles.
Gender	Female employees face difficulties balancing work with caregiving responsibilities.	Managers notice turnover among women due to a lack of family-friendly policies and flexible working options.

4.5 Theme 5: Evidence-Based Strategies for Retention

Addressing employee turnover at the New Zealand caf requires using evidence-based methods to raise job satisfaction and ensuring retention would be for the long haul. Using input from employees and managers, it was found that a range of factors drives employee retention, with four big themes to consider: communication, compensation, culture and development. Such practices can lead to lower turnover in employment and a more motivated and enthusiastic workforce. This essay analysis the proposed methods and warns of its effect on retaining employees.

Implementation of Feedback Mechanisms

One of the most prominent issues raised by employees was the lack of clear communication and a structured system to provide feedback. Employee 4 noted that a feedback system where we could share our thoughts anonymously would have helped a lot. This has led to the realisation of the need for a safe zone, where employees can share their views with no fear of being branded as traitors. Regular surveys, suggestion boxes, or anonymous online platforms help employees gain some ownership of their work environment while giving managers a clearer picture of what needs fixing.

Without any viable feedback channels, employees often feel like their concerns are unheard, leading to frustration, disengagement and higher turnover. Management needs to introduce regular feedback channels showing they value the opinion of employees and creating an open-door policy to address issues before resignation. In addition, having feedback channels could enable employees to speak up thus, increasing their willingness to help the organization and work satisfaction. This, in turn, fosters employee retention, as employees are less inclined to leave an organization where their contributions to the business are acknowledged and their voice matters.

But the feedback mechanism needs to be associated with activities. If one only collects feedback to never do anything with it this can lead to cynicism and disengagement. Only when employees believe that their suggestions drive real change in their working environment This could do wonders for how these feedback mechanisms are implemented with follow-up actions causing a boost for employee morale and improved retention.

Investment in Professional Development

Another strategy that can address turnover at the caf is the investment in professional development. Manager 2 pointed out that Development programs could help retain younger employees looking for long-term growth. This underlines the reality that organisations need to provide more than just a job and that especially younger employees are now treating their role in the workforce as a career to grow in. Workforce professional development programs such as upskilling sessions, leadership training, and career advancement workshops can enhance not only their work satisfaction but also the resiliency of the work culture so that both person and enterprise emerge with important skills for the future.

Employee 3 described employees who feel they are not moving forward in their careers and not getting trained on their needs as a more common issue. Creating pathways for growth gives employees a reason to picture their future at the cafand a reason to forgo looking elsewhere. Outlining ways for every employee to succeed in their career through mentorship opportunities, job rotations, and development programs targeted at specific demographic groups (like younger employees or older, long-tenured workers) can help create a clear plan for advancement.

Additionally, employees feel valued and a stronger part of the organization when professional development is given to them. When employees see their employer ready to invest in their future, it boosts loyalty and increases engagement. Yet, the caf needs to be transparent in the standards on which promotions and developmental opportunities are based. In the absence of this clarity, employees may feel these opportunities are arbitrary or impossible to achieve and this undermines their effectiveness.

Recognition and Rewards Systems

A third evidence-based strategy to improve employee retention is the introduction of a formal recognition and rewards system. Employee 6 expressed that Even small acknowledgments could have made us feel valued. It is known that one of the strongest and most effective employee retention tools is recognition; it can make a huge impact on morale and job satisfaction. Formal awards, public recognition, or small acts of appreciation: however management chooses to recognise employees for their efforts, the act itself can have a powerful impact on the employee feeling valued in the organization.

Unrecognised is frequently a contributing factor to disengagement and turnover. If your team is not feeling valued, they will seek another place of employment that will. Thus, developing a program where employees are compensated for their efforts, even if in the form of monetary incentives, gift cards, or simply recognition, will help boost morale and diminish attrition rate further. Recognition does not always need to be in the form of money, sometimes a public thank you or a note of appreciation can act as a booster pack for job satisfaction.

Apart from boosting morale, recognition programs can promote healthy competition, collaboration, and a sense of pride among a team. When these rewards and achievements match closely with the employee's professional values, he/she is more likely to be loyal to the company. Yet at the same time, the recognition system must not be skewed or biased towards recognition of the loudest voices and should ensure recognition of all types of contributions. That brings us to the last most important point: have a good system that incorporates individual as well as team performance to ensure holistic functioning.

Strategy	Employee Perspective	Manager Perspective
Feedback Mechanisms	Employees value safe, anonymous channels for sharing concerns but expect action based on feedback provided.	Managers acknowledge that a structured feedback system fosters engagement and lowers turnover.
Professional Development	Employees desire mentorship and career development opportunities to visualise long-term growth.	Managers see development programs to retain younger employees seeking career advancement.
Recognition and Rewards	Employees feel appreciated and engaged when their efforts are acknowledged, even in small ways.	Managers recognise that formal recognition programs boost morale, collaboration, and job satisfaction.

4.6 Discussion and Analysis

1. Employee Turnover in the Caf: Primary Causes and Contributing Factors

Employee retention is very complex as there are many reasons for and against retention, both within and outside the workplace, that act on the employee. With the caf, turnover can be primarily attributed to compensation, leadership, culture, and demographic specific issues. Interviews with employees revealed poor pay, and many employees said their pay was less than the stress and demands of the job. One employee explained, Well I do not think that I have any future here" demonstrating the connection between low pay and lack of opportunity, a major driver of turnover.

Employee 5 also highlighted the lack of benefits and said, Even small benefits like paid sick days would make a difference. Such lack of incentives also creates a disadvantage for the caf in local labour market. This is an issue highlighted in the hospitality workforce, where workers are less likely to stick around if an employer is not offering a complete package of benefits (PayScale, 2023).

Beyond concerns about pay, turnover was driven by staff perceptions of leadership practices at the caf. As Employee 4 reflected, Management was personable but did not consistently communicate a direction for the team. That wavering approach to leadership was cited as one of the primary reasons for sentiment confusion and frustration, especially from workers looking for clarity on what was expected of them in their jobs.

Employee turnover at the caf can be attributed to multiple factors such as compensation, leadership, organisational culture, and demographic-specific issues. Employees reported low pay as a major dissatisfaction, which aligns with Herzbergs hygiene factors, where unmet basic needs (such as fair compensation) lead to dissatisfaction and potential turnover. Employees also mentioned the lack of career growth, reinforcing the lack of motivational factors, such as opportunities for advancement. This dissatisfaction was further exacerbated by the absence of benefits like sick leave, a common issue in the hospitality industry (PayScale, 2023). As one employee noted, Even small benefits like paid sick days would make a difference, highlighting the role of basic compensatory elements in retention.

Similarly, the turnover was partly due to the organisational culture and working environment of the caf. Although Employee 2 did acknowledge positive relationships with team members: "The best part of the job was my coworkers." We felt under-appreciated and the management never formally recognised our good work. Maslach and Leiter, (2016) suggested that lack of appreciation for their contributions causes burnout and disengagement, which was echoed by all the employees in the provided text. Such as, from Employee six: Even something minor in recognition would have gone a long way in making us feel appreciated. According to Hanif et, al.,2013 it is stated that in its secondary research that employee recognition can play an important role in retention, as feeling needed and appreciated leads to a sense of belonging in the workplace, which lowers the rate of turnover (Hanif, Khalid and Khan,2013)

Younger employees were particularly responding to better-paying job opportunities elsewhere, and this demographic there was a contributor to turnover. Contributing to this observation, Manager 1 acknowledged that "a lot of younger workers leaving in pursuit of better-paying jobs" but also commented on the broader trends we see in relation to the finding by (PayScale ,2023).

2. Impact of Local Market Competition on Turnover and Employee Retention

Employee turnover at the caf largely depends on its competitive position regarding the local labour market. Manager 2: "We have at least a small competition against cafs who can afford a higher compensation budget." Thus, just like the caf, most businesses in the area will have a competitive disadvantage against others due to inability to provide good enough wages and benefits. In a labour-intensive industry such as hospitality that tends to have a low barrier to entry, firms need to pull out all the versatility to retain workers at their establishments, given that skilled labour is coveted, flipping the script of employing supply and demand to favour workers. Compensation also plays a key role in retaining employees, as PayScale (2023) found that employees are most likely to leave for a competitor offering better pay or benefits.

The competitive labour market significantly impacts the cafs ability to retain employees. Employees reported leaving for higher-paying positions elsewhere, which aligns with PayScales (2023) findings on compensation. According to Lee et al. (2008), companies in competitive industries must align their pay structures with market rates to reduce turnover. The caf's inability to offer attractive pay packages makes it difficult to retain skilled workers. Lee et al. (2008) also highlighted the importance of a comprehensive benefits package to remain competitive.

The secondary literature on labour market trends suggests that businesses within the hospitality sector are challenged with employee retention due to the highly competitive nature of the industry. According to Lee, et al., (2008) businesses that do not align their pay rates to the market find that they can suffer high levels of turnover. For the caf, employees were often leaving for higher-paying roles or improved work-life balance and other, who point out that the perceived availability of alternative jobs is an important driver of turnover decisions.

In addition, the absence of perks like paid time off and health insurance puts the caf at a competitive disadvantage. In the case of Employee 5, commenting that there are no sick days to speak of, this is commonplace in the hospitality industry, with benefits largely neglected. PayScale (2023), Industry compensation trends report highlight re-engaging competitive benefits package to hold employees in a highly competitive market. The caf fails to attract and keep staff without these perks, particularly when competitors have much more juicy offerings.

3. Leadership and Team Dynamics: Their Role in Employee Retention

Perfect example of employee engagement (or lack of). The leadership style of the caf was one of the things that employees (and ex-employees) frequently cited as the leadership is a major factor in employee happiness and desire to stay with the company. Management was personable, but we received little direction," said Employee 4 an indication of breakdown in communication and structure within the leadership. Findings on leadership in secondary sources align with this, explaining that inconsistent leadership creates confusion and disengagement. Lacking clarity about job expectations will increase frustration among employees and leave them looking elsewhere for work (Hinojosa,2019).

Leadership quality and team dynamics were central to the cafs employee retention challenges. The lack of clear communication from management created confusion, which aligns with Hinojosas (2019) findings that inconsistent leadership leads to disengagement. Hinojosa (2019) also highlighted that when leadership fails to engage employees meaningfully, it can cause frustration and increase turnover. On the other hand, employees noted strong team cohesion among themselves, which helped mitigate some of the challenges posed by management. This shows that social exchange theory supports the importance of peer relationships in employee satisfaction, especially when leadership is lacking.

Managers acknowledged leadership challenges at the caf and explained that their operational constraints often precluded meaningful engagement with staff. The comment manager 2 made was: "In our push/press to run the day to day, we lose the opportunity to really connect with the staff." De Oliveria,Cavazotte and Alan Dunzer(2019) revealed the fact that job satisfaction and turnover can be affected by this interaction between management and employee (Lu, et al.,2016). Besides, employees should be at the canter of some of the decisions made in the caf, but it focused purely on short-term operational focused needs and left little room for developing or engaging employees.

The cafe culture had its bit of balance against ineptness. A common thread that spoke employees was their coworkers, especially during stressful times. As Employee 3 commented, "The biggest upside to the job was my coworkers," and Employee 2 said, "It helped that we each other made it a little easier to hard work through the long shifts [since] we worked great as a team." Having peers to support each other made some of the burdens of management not engaging too heavily less heavy. But, as also pointed out by Employee 3, "There was no effort from the management to build the team spirit" specifying that the team dynamics were all found internally among employees and partly due to not much from the management touching on the sixth topic in the next section.

4. Demographic-Specific Challenges and Their Influence on Employee Retention

Among the demographic variables identified as essential predictors of employee turnover in the literature are age, gender and tenure. Employee 1, who worked at the caf from two year, said she felt under-appreciated and unsupported, adding, it does feel like there is no future for me here. Manager 1: "Younger employees especially were leaving for higher-paying jobs." That is consistent with a conclusion drawn from PayScale (2023) too that, younger hospitality workers frequently quit their work for higher pay or better work/life balance.

In contrast, employees like Employee 4 noted burnout and stagnation among the top contributors to their long tenure dissatisfaction. They regularly experienced little recognition for their efforts, and as a result, frustration and demotivation ensued. Holtom et al. Whether this is a blessing in disguise or undesirable, is debatable, long-tenured employees can face "job boredom" or "stagnation" which elicits lower job satisfaction and heightened turnover.

Demographic-specific challenges also influenced turnover. Younger employees left for better-paying opportunities, a finding consistent with PayScales (2023) research, which shows that younger workers are more likely to prioritise higher pay. Additionally, gender-related issues, such as the lack of accommodations for working mothers, further exacerbated turnover. Singh and Sreenivasan (2024) noted that work-life balance concerns, particularly among women in the hospitality industry, contribute significantly to retention challenges. Addressing these demographic-specific needs through flexible work policies could help reduce turnover.

Goldman also sees some challenges unique to gender, especially women employees. Employee 5 commented that There were no accommodations for working mothers or for anyone with life duties This worry is symptomatic of wider trends within the hospitality industry, with women who are workers in the sector having to juggle work and family life. The authors Singh and Sreenivasan (2024) indicated that these gender-specific issues, particularly those related to work-life balance and flexibility, are the major reasons for retention among female employees in the hospitality sector.

To mitigate the challenges posed by each demographic, the caf will need to adopt retention strategies based on its various workforce diversity. Among the younger employees, companies could introduce programmes for career development and mentorship which might improve job satisfaction and reduce turnover. Long-tenured employees may be motivated to stay on if they are rewarded with awards or giving them a rise to show appreciation for their loyalty. Offering work-life balance accommodationsflexible scheduling, parental leave, etc.would alleviate some of the burdens women employees carry and make them more likely to stay.

5. Evidence-Based Retention Strategies and Recommendations

The following evidence-based recommendations can be put into place to improve retention and minimise employee turnover at the caf based on the insights from the interviews with employees as well as secondary sources. For one, job seekers want competitive pay and benefits. Like the interviews conducted, PayScale (2023) and The Institute of Hospitality (2020) portray that attractive overall compensation packages are necessary to both attract and retain talent in the hospitality industry. The caf should perform a salary audit to determine its compensation packages relative to market rates.

Second, implement some leadership development programs to overcome the issue of disengagement and inconsistent leadership. As noted by Holtom et al. According to Kaiser, Curphy,2013 and (Maur set and Hansen,2022) leadership is the most significant fact in deciding whether employees keep staying or leave. Leaders who are trained to communicate and connect with their employees at a strategic level have the power to create job satisfaction and commitment to the organization and decrease turnover.

Third, companies should initiate employee recognition programs to validate the work done by the employees. As Employee 6 said, "Even little recognitions would have made us feel appreciated." Such programs, which may range from Employee of the Month awards to small, unexpected bonuses for exceptional performance, will go a long way toward boosting morale and minimising the turnover rate. Rizzo 2019, in his secondary research found recognition as an important contributor to employee engagement and drive.

Align pay with market standards through a salary audit (PayScale, 2023), ensuring compensation meets both hygiene and motivational needs as per Herzbergs theory. With a lacking in leadership being a key factor identified by employees, training managers to communicate clear direction and recognition will help to fill this gap. Kaiser et al. Duan et al 2013; Maurseth & Hansen 2022) identify leadership as an important factor of minimising turnover. Recognition initiatives is recognised as one of the major contributors for employee engagement (Rizzo,2019), hence implementing these initiatives. Flexibility was important for retention. Flexibility is a work-life balance issue, therefore offering flexible scheduling and parental leave would have addressed this concern raised by employees, especially women.

Finally, it should provide flexible work arrangements, with special consideration for those employees with family responsibilities. Employee 2 commented that "the rigidity of the schedule" was a big turn-off. Flexible scheduling and parental leave are options that ultimately can increase female employee and working parent retention and improve work-life balance.

4.7 Comparison of Themes between Employee and Manager Perspectives

Theme	Employee Perspective	Manager Perspective
Compensation	Low pay; dissatisfaction with lack of benefits	Awareness of market competition but limited budget
Leadership	Inconsistent communication from management	Operational constraints; lack of engagement time
Work Environment	Under-appreciated, lack of recognition	Focus on short-term operational needs
Demographic Factors	Younger workers leave for better pay; work-life balance issues for women	Recognition of younger turnover but limited options to accommodate

It compares employee and manager views on compensation, leadership, work environment, and demographics, pointing out major gaps between the two groups. Users pointed to low wages, little in the way of benefits and a lack of acknowledgment as the main causes of worker discontent and employee churn. These are consistent with Herzberg hygiene factors and show that low pay and recognition can lead to dissatisfaction and employee turnover. Managers, while also recognising competition from other markets and tight budgets, found that operational requirements tied them to a sort of "this is the way things are" mentality.

Concerning leadership, employees reported that management was communicating inconsistently, and expectations seemed vague, which caused confusion and people to become disinterested. Managers, on the other hand, cited operational constraints as the reason they felt they did not have the bandwidth to meaningfully engage with staff, once again highlighting a disconnect between staff demand for leadership clarity and managers faced with the operational challenges needing to be addressed.

Employees were under appreciated and managers were concentrating on short-term goals when it came to the work environment. This disconnects in priorities can make employee disengagement as well as attrition much worse. Both managers and managers levelled some blame on demographic factors such as younger workers pursuing greener pastures and women affected by the work-life balance issues but felt restrained in meeting those needs. These differences make evident how imperative it is for managers to ensure their operating practices reflect the expectations of employees, and to spend time and resources on retention efforts that concern more than just pay and benefits and more around the workplace environment.

Chapter 5. Conclusion and Recommendations

5.1 Summary

Employee turnover is still a big problem for the hospitality sector, and this is exacerbated by the New Zealand caf. These findings identified through the interviews with the employees and secondary research are summarised in this chapter to answer the research questions in a holistic manner. The report also provides recommendations based on evidence to reduce turnover and improve job satisfaction.

Research Question 1: What are the primary factors contributing to high employee turnover at New Zealand caf?

The present analysis identifies seven reasons leading to employee turnover in the caf. Top of the list are compensation and benefits. The explanations for workers leaving widely referenced low pay, noting the stress and demands of the job weren't worth the wages received. Not having even basic benefits like paid sick days just makes it worse. Another employee said even modest benefits help, which hints at a wider trend among the hospitality industry as insufficient pay is among the top retention barriers. This is in line with PayScale (2023) that indicates hospitality workers are very likely to switch for a better paid job with a better set of benefits.

Turnover is also heavily impacted by the leadership and communication practices. The biggest source of frustration among employees was inconsistent and unclear management, which left employees confused about their job roles and expectations. Employees felt demoralised and insecure due to lack of guidance from management. This lack of recognition and appreciation only served to further de-motivate staff. A peer-parented workplace appeared to de-value employee contributions to the bigger picture, prompting the search for a more meaningful opportunity elsewhere.

These challenges are compounded by workplace culture and environment. While employees gained some comfort from their interactions with colleagues, they still felt that the broader culture did not find them valued or supported by management. Through focus groups and surveys, employees said the experience would have been improved with a more formal team building, as well as team recognition. A big part of turnover has also been the caf not creating a workplace that employees want to be part of. Where they feel valued and engaged.

And finally, work-life balance was also highlighted as another important factor. An unyielding work schedule with little consideration for employees with personal commitments was one of the main problems. This inflexibility in scheduling proved especially difficult for female employees and employees with caregiving responsibilities. With limited ability to pivot based on employees needs and its lack of family-friendly policies, the caf saw high levels of dissatisfaction and a revolving door of staff.

Research Question 2: How do specific aspects of organisational culture such as leadership style, team dynamics, and workplace support affect employee retention at New Zealand caf?

The second variable that is very important in retaining employees is organisational culture. At the New Zealand caf, the culture largely revolved around the relationships built amongst employees, providing a framework we could lean on during tough times. One of the few bright spots in the job, according to many staff members, was a newfound sense of solidarity with their fellow workers. This peer-to-peer support helped alleviate some of the pressure of working under a challenging workload. But the caf did not have in place any real structured projects to develop an engaging and coherent culture, so the friendships being made and the connections were good, but they could only go so far.

The lack of formal recognition and appreciation mechanisms for employees left them feeling undervalued and unappreciated. There was a lack of appreciation for hard work and success within the existing culture. Through secondary sources, confirmed recognition is an important aspect of employee engagement and turnover. The caf never established an appreciation-charging culture, so workers lost loyalty and turnover mounted.

Organisational culture received additional treatment from management practices in the caf. This piecemeal and frequently detached attitude from leaders resulted in an atmosphere of confusion and a lack of strategic direction. They had not lost their sense of belonging; they just felt disconnected from the higher goals of the organization. Findings like this highlight how impactful a healthy and positive culture can lead to a higher degree of employee commitment and loyalty through communication, engagement, and recognition.

Research Question 3: What role do specific management practices play in shaping employee turnover intentions at New Zealand caf?

Employee turnover intentions are also driven by management practices. Ineffective management was the biggest reason for unhappiness among staff at the New Zealand caf. Issues around uneven communication and vague direction repeatedly came up from staff. If it became volatile from there, creating an environment of flux and instability, people were busy learning about their jobs and what they needed to do and their roles to play, which brings frustration and unmotivated state.

Another major problem was how little the managers took place. Managers were nice but very busy managing the operational demands of the day and had no time to connect with their employees in a meaningful way. With this operational focus, there would be little presence for engaging employees in a strategic way or for taking initiatives in the name of job satisfaction. The nature of the job and the necessity to manage day to-day operations felt like a distraction from connecting with staff on a more resonant level, as one manager confessed.

Naturally, there was also a thirst for recognition and appreciation among employees. A lot felt that all the hard work went unnoticeable and unappreciated this eventually led to loss of motivation and dedication to the caf. Studies have shown that employees tend to stick around organisations that value their contributions. Even basic recognition, like praising achievements or working on an employee recognition program, may be sufficient to keep morale high and turnover intentions low.

In conclusion, the caf needs serious help in improving its management practices to deal with these issues. Communication, engagement, and wellness are key to a supportive and healthy workplace.

Research Question 4: How do turnover rates at New Zealand caf vary among employee demographics such as gender, and tenure, and what tailored retention strategies can be implemented to address these differences?

The analysis identified key demographic trends in employee turnover:

1. Younger Employees: Employees who have been working in the caf for a relatively long time felt stuck and burnt out. The absence of fresh challenges or acknowledgement of their loyalty resulted in demoralisation. In that case the caf can provide few long-service awards, skill development opportunities or new responsibilities to staff who have been there for a long time to help retain and keep them feeling motivated.

1. Long-Tenured Employees: Employees who have been working in the caf for a relatively long time felt stuck and burnt out. The absence of fresh challenges or acknowledgement of their loyalty resulted in demoralisation. In that case the caf can provide few long-service awards, skill development opportunities or new responsibilities to staff who have been there for a long time to help retain and keep them feeling motivated.

1. Female Employees and Caregivers: Female Employees & Caregivers With the caf's strict schedules and limited flexibility, it was nearly impossible for these workers to balance their home and work lives. Flexible work arrangements like shift adjustments or parental leaves would combat this issue. When measures to assist caregivers and a family-friendly workplace are in place, it is likely to lead to better retention of this demographic.

5.2 Recommendations

Research Question 5: How can New Zealand caf implement changes to reduce employee turnover and enhance job satisfaction?

Based on the findings, several evidence-based recommendations can be implemented to improve employee retention at the New Zealand caf:

1. Conduct a Compensation Review:

Employee dissatisfaction with compensation was a key theme in the analysis, with many expressing that their pay was not commensurate with the physical and emotional demands of the job. This dissatisfaction was a significant factor in turnover, particularly for employees who felt they were not being fairly compensated for their efforts.

Recommendation: The caf ought to conduct an audit of compensation to confirm that salaries are competitive with comparable establishments in the area. Performance-based bonuses and paid sick days are also relatively small financial incentives, yet they can go a long way towards retention. Also, looking into thrifty benefit offerings, like wellness programs or an employee assistance program, may improve job fulfilment. Regularly review compensation packages to adjust for inflation or industry trends, and explore partnerships for discounted services, such as gym memberships or counselling, to enhance employees' sense of support and job fulfilment.

2. Implement Leadership Training:

Findings: A major issue identified was the lack of leadership support and inadequate management practices, which contributed to employees feeling unappreciated or misunderstood. Employees emphasised that feeling heard and supported by management was crucial to their decision to stay.

Recommendation: Management practices will need to be improved to facilitate a more supportive and meaningful work environment. Implementing leadership training in the areas of effective communication, employee engagement, and strategic recognition can improve managers' connections with their staff. Research suggests that people are more likely to stay with organisations where they feel listened to, appreciated and supported. Introduce biweekly team feedback sessions to enhance communication, address employee concerns in real-time, and enable managers to better align their leadership style with employee needs.

3. Create an Employee Recognition Program:

Findings: Many employees expressed frustration with the lack of recognition for their hard work. Long-tenured employees felt that their contributions were overlooked, which impacted their satisfaction and retention.

Recommendation: A formal recognition program can put a lot of support over the head to motivate them and tell them their hard work is appreciated. It can be initiatives like Employee of the Month incentives, or small rewards for a job well done, or simply recognition for a job well done. And that some form of recognition programs can have a great impact in building a culture of gratitude and help reduce turnovers by over 30%. Develop an online platform or app for peer-to-peer recognition, where employees can nominate colleagues for rewards, fostering a culture of gratitude and appreciation across the team.

4. Foster a Positive Organisational Culture:

Findings: Employees indicated that a lack of respect, teamwork, and communication was a barrier to job satisfaction. A positive organisational culture, characterised by mutual respect and open communication, emerged as a key theme for improving retention.
Recommendation: The positive organisational culture is always an asset to a caf, so together with teamwork, communication, and respect for each other, it is important to create a positive culture in the workplace. Team building exercises that give people a chance to socialise outside of their departments or regular feedback sessions to discuss how a new process is working, are ways to encourage this. And management should pursue (and act on) regularly sought employee feedback to demonstrate that their voices matter. Incorporate monthly 'town hall' meetings where employees can openly share their ideas and concerns, ensuring that management actively listens and acts on their feedback (Altman, 2020).

5. Offer Flexible Work Arrangements:

Findings: Female employees, particularly those with caregiving responsibilities, identified work-life balance as a significant factor affecting their decision to stay. Rigid working hours were a challenge for many, especially in a high-demand caf environment.
Recommendation: The caf can enhance work-life balance for its workers by offering flexible or adjusted schedules and providing allowances for employees with family responsibilities. This approach would especially assist women and caregivers who face challenges with high degree jobs due to inflexible work schedules. Offering flexibility can increase employee satisfaction and lower turnover. Implement job-sharing options or staggered shifts to accommodate employees family responsibilities, while maintaining operational efficiency during peak times.

6. Tailor Retention Strategies to Demographics:

Findings: Employee demographics played a significant role in turnover, with younger employees seeking career development opportunities, long-tenured employees needing new challenges, and caregivers needing more support.
Recommendation: To cater to different employee demographics younger employees can have improved retention with meaningful career development opportunities and mentorship. Long-serving employees need a new challenge to retain their enthusiasm, while others will have been motivated by the call for loyalty, and a vote of thanks in some form. Lastly, implementing family-friendly policies and having support for caregivers will also help in making the caf an inclusive and desirable place to work. Create personalised career development plans for employees based on their career stage and implement mentorship programs to help employees from all demographics feel supported and valued in their roles

5.2 Future Research Directions and Academic Rigour

Longitudinal studies examining retention strategy effectiveness in more diverse organisational and demographic contexts would be a fruitful area for future research on small hospitality businesses. Over time, longitudinal studies would draw the conclusions of how initiatives, such as pressure programs, flexible working practices, and job promotion, impact turnover and satisfaction are all over time. Preventive solutions and challenges could be sector-specific (Caf, Hotel, restaurant) comparative studies among the alterations.

Likewise, analysing how digital tools such as employee feedback platforms, scheduling systems, and online training may offer new ways to enhance engagement, and retention could lead to new paths forward. Cross-cultural inquiry may examine the extent to which results generalise across geographic and cultural boundaries and ultimately facilitate a more global perspective on hospitality turnover.

Further research may also quantify loss in dollars and cents from turnover in a small business setting, which would provide support for the postulated economic value of retention efforts. In addition, exploring how employee well-being and job satisfaction are related with customer satisfaction could reveal the organisational benefits of good retention strategies.

Theoretically, this study extends the existing knowledge on Herzberg's Two-Factor Theory and Social Exchange Theory by connecting employee satisfaction and organisational practices and the turnover intentions among employees. The results add to the literature on motivation and organisational behaviour in small hospitality enterprises.

On a practical note, this study offers managers actionable insights on employee retention, showing that retention strategies should be targeted based on employee demographics, including age for younger workers, tenure for long-tenured employees, and gender for female workers responsible for caregiving. A blueprint for driving down turnover and providing a more stable workforce, recommendations such as feedback systems, recognition and development opportunities are all within agencies' control.

Research in this way contributes to the academic field's understanding of the dynamics of retention, while bridging the gap between theory and practice by providing hospitality managers with the theoretical as well as practical tools to develop a well-motivated and engaged workforce.