A New Model for Global Employee Engagement
By Kimberly Abel-Lanier Vice President & General Manager Workforce Solutions, Maritz Motivation Solutions | March 19, 2017
Engaging and retaining talented, trained workers is a critical component of success for any business in any sector. When employees are disengaged or turnover is high, organizations face challenges of subpar customer service, high costs, and human resource inefficiencies. Gallup estimates rampant disengagement among employees costs American businesses between $450 billion and $550 billion per year. High turnover also carries exorbitant costs to organizations, averaging approximately 1.5x an employee’s salary for replacement.
The State of Turnover and Engagement in Hospitality
In the hospitality sector, delivery of impactful customer experiences is strongly connected to employee engagement and satisfaction. Happy, engaged employees can make happy, loyal customers. Currently; however, the hospitality sector suffers higher than average employee turnover. According to the Bureau of Labor Statistics’ Job Openings and Labor Turnover (JOLTS) data, turnover in the hospitality sector grew by 10 percentage points from 56.6 percent in 2010 to 66.3 percent in 2014, compared to a 44.4 percent average across all private sector workers.(1)
Turnover is also inextricably linked to engagement, with increasing engagement serving as one of the most effective strategies to reducing churn. Analyst firm Bersin by Deloitte reported companies with programs to effectively address employee engagement saw 31 percent lower voluntary turnover.(2) That makes sense, since the number one reason employees cite for leaving their jobs, according to Gallup, is feeling unappreciated.
Understanding the impact of engagement on hospitality service and performance is a sound place to start in reducing turnover and tapping into the discretionary effort that leads to exceptional, memorable customer experiences. When employees are engaged, they are more likely to have positive opinions are their work and higher job satisfaction, which can increase loyalty and performance.
A New Model for Global Engagement
The Hotel Business Review articles are free to read on a weekly basis, but you must purchase a subscription to access
our library archives. We have more than 5000 best practice articles on hotel management and operations, so our
knowledge bank is an excellent investment! Subscribe today and access the articles in our archives.