Employee Engagement Equals Profitability
By Ken Edwards Owner and CEO, HMBookstore and Tristar Hotel Group | April 24, 2016
Hiring and retaining great talent is by far one of the most challenging aspects facing businesses today. Hotel owners or operators know all too well that employee turnover in hospitality is high – and it can cost your property 100-200% of an employee's total compensation. In fact, the U.S. Bureau for National Affairs estimates employee turnover costs U.S. businesses $11 billion annually. So, what can you do to lessen turnover and keep those dollars flowing through to your bottom line? Focus on employee engagement.
Employee engagement is the practice of influencing employees to be fully involved in performing their job and contributing to business success. It entails creating a corporate culture and work environment where employees think and feel positively about their role, duties and the organization. Enthusiastic employees care more about their employer and are naturally inclined to perform their duties better and interact with people in an uplifting, optimistic way. According to the Corporate Leadership Council, highly engaged employees were 87% less likely to leave their companies than their disengaged counterparts. It's proven that engaged employees are more apt to go above and beyond what's required of them, more pleasant to work with, tend to inspire those around them and are equipped to act in line with the best practices for providing top experiences for guests while also considering business implications. In hospitality, great talent who loves what they do leads to what owners and operators seek in their staff: an increased quality and level of guest service that ultimately leads to the holy grail of creating a greater amount of revenue that flows through to net profit. In fact, a recent study from the Hay Group estimated companies with engaged employees made 2.5 times more revenue than those with low engagement levels.
Tips for Creating a Win-Win Corporate Environment
For any employee engagement movement to make traction within your hotel property, everyone from the top of the management chain and throughout the organization must recognize value of engagement. Working together is a win-win relationship - the organization wins through enhanced organizational performance, and the employee wins through heightened personal well-being. While increasing opportunities for engagement, organizations need to educate employees highlighting the benefits while offering incentives for training and engagement activities.
Key conditions for creating engagement include capability, the big picture, and employee motivation.