Regarding to the relationship between organisational type or category and HRM practices and turnover rate, evidence from the UK and the USA demonstrates this relationship. This evidence illustrates that profitable organisations are more likely to invest in developing good HR systems and those undergoing financial crisis are more likely to layoff employees and adopt other cost cutting measures (Lawler 2005). The argument made in this study is that five star hotels are mostly more profitable than other ranked hotels. That convention is simply because high performing organisations have the resources to divert to the development activities that low performing organisations find difficult to provide. Using this logic it is expected that profitable hotel organisations (five stars) in Jordan invest more in developing effective HRM practices thus, exposing employees to new alternatives in HRM. In that way employees in these organisations are expected to receive extensive training and have better developed skills, which makes these employees more marketable than their counterparts in other organisations. In a competitive environment, these employees from higher performing organisations, with a greater awareness, a higher expectation of development oriented HRM practices and better developed skills, are more likely to stay lastingly in these organisations. Therefore, based on this discussion the following two hypotheses are proposed