Does HR Know Your Value Proposition?
By Michael Hvisdos Founder & CEO, InQuizo | March 2014
As the economy improves, corporate profits increase, and the job market strengthens, employers are getting creative to hold on to key employees, including developing and articulating a distinctive employee value proposition. Retention (and acquisition) requires not only a competitive salary and benefits but also an array of non-financial strategies, including career-advancement opportunities, work-life balance and recognition from managers.
Your hotel's value proposition is the set of attributes that current and potential employees perceive as the value gained through employment in the organization. A strategically designed EVP and total rewards portfolio help attract, retain, motivate and engage employees to drive business success. The extent to which employees connect with your hotel's EVP determines the amount of discretionary effort they commit to bringing the organizational culture, mission, vision and values to life.
During the recession organizations trimmed staff, cut costs and asked every employee to pitch in to help the company through turbulent times. However, instead of creating a sense of camaraderie and teamwork, employees were left with as sense of fear they would be the next to go should the economy worsen. The very same "fear hangover" plagues a large population of employees in many organizations today.
In fact, the impact of this fear on employee moral and productivity is staggering.
Recently, Gallup released a survey finding that only 30% of Americans are engaged at work, while 50% are "just kind of present" and an alarming 20% are actively disengaged or miserable.
For hospitality these numbers are staggering. 2012 U.S. Bureau of Labor Statistics data show that the voluntary turnover rate in the lodging and food-service industry is 58.8 percent, which is 24 percent higher than retail trade and 54 percent higher than health-care services, which also employ a large number of low paid hourly workers.1 These turnover rates are accepted by many as "endemic to the industry."
Given this, knowing how to create, communicate, and uphold a strong employee value prop is not only a distinct competitive advantage; it is vital for retaining your top and core performers in today's competitive marketplace. In fact, this employee value proposition may be the only thing setting your business apart from your competition.