How Employee Referral Bonus Programs Can Help Your Hotel Business

By Megan Schuyler Director of Strategic Accounts, Adecco Staffing USA | June 25, 2017

Traditionally, the hospitality industry has been prone to high employee turnover. In fact, according to the U.S. Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover report, in February 2017 the accommodations and foodservice industry experienced 6.2 percent employee separation -- meaning quits, layoffs and discharges, and other separations from their employer -- a rate much higher than the overall average of 3.5 percent experienced across all industries. Each of these separations can cost a company, on average, $6,000. According to Adecco Staffing's turnover calculator, when looking at national averages, this means it can cost a company upwards of $18,600 - $43,800 to replace 50 employees being paid between $10.50 - $14.00 per hour.

By nature of the hotel industry, it can be challenging to find and keep talent. There are many overnight and hourly positions to fill, both year-round and during peak travel season. However, when considering the high rate of turnover and the high cost of that turnover, it is apparent that hotels should, not only develop a solid pipeline of candidates, but fill that pipeline with the potential employees who fit into the organization.

As the war for talent continues, hotels and other business must get more creative in their recruiting and retention efforts. According to a recent Adecco study, 37 percent of Best-in-Class employers -or those with low turnover rates, sizable revenue growth and annual decreases in time to hire- are using Employee Referral Bonus Programs as part of their recruiting practices.

These programs continue to gain popularity in part because they are a low-risk solution that can be tailored to fit the needs and budgets of companies across a range of geographies and sizes. A chain hotel or independent boutique, for example, can customize and scale their program to fit their needs. Such programs can be an effective way to overcome the challenges of finding candidates with specific skill sets and quickly ramping up seasonal hiring.

Benefits of Employee Referral Bonus Programs

Employee Referral Bonus Programs can help hotel businesses not only find and attract best fit talent, but also retain top performers and improve employee morale.

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Coming up in January 2019...

Mobile Technology: The Future is Now

Mobile Technology continues to advance at a relentless pace and the hotel industry continues to adapt. Hotel guests have shown a strong preference for mobile self-service - from checking-in/out at a hotel kiosk, to ordering room service, making dinner reservations, booking spa treatments, and managing laundry/dry cleaning services. And they also enjoy the convenience of paying for these services with smart phone mobile payments. In addition, some hotels have adopted a “concierge in your pocket” concept. Through a proprietary hotel app, guests can access useful information such as local entertainment venues, tourist attractions, event calendars, and medical facilities and services. In-room entertainment continues to be a key factor, as guests insist on the capacity to plug in their own mobile devices to customize their entertainment choices. Mobile technology also allows for greater marketing opportunities. For example, many hotels have adopted the use of “push notifications” - sending promotions, discounts and special event messages to guests based on their property location, purchase history, profiles, etc. Near field communication (NFC) technology is also being utilized to support applications such as opening room doors, earning loyalty points, renting a bike, accessing a rental car, and more. Finally, some hotels have adopted more futuristic technology. Robots are in use that have the ability to move between floors to deliver room service requests for all kinds of items - food, beverages, towels, toothbrushes, chargers and snacks. And infrared scanners are being used by housekeeping staff that can detect body heat within a room, alerting staff that the room is occupied and they should come back at a later time. The January Hotel Business Review will report on what some hotels are doing to maximize their opportunities in this exciting mobile technology space.