The Top 4 Principles in Retaining Hotel Employees
By Erik Van Slyke Managing Director, Solleva | June 02, 2016
Most hotel executives have long understood the value of retaining top notch employees. Countless studies have linked high employee retention to vital results such as improved service quality and operational effectiveness, reduced overtime and hiring costs, as well as increased customer satisfaction and guest experience ratings. Strong retention is highly correlated with strong company performance.
To provide further evidence of this link, the hotels consistently appearing on the lists of most admired companies and best places to work report an average annual turnover rate of 9% compared to industry averages of 27-37%. This difference results in a significant and immediate benefit to the bottom line, especially considering that the American Hotel and Motel Association, Cornell's Hotel School and the Society of Human Resource Management report that the average turnover cost of a frontline hotel employee ranges from $3,500 to nearly $6,000.
But the drivers of retention are about much more than the glamour of appearing on a Top 100 list. Sure, having an admired brand, consistently solid financial performance and best practice HR programs do indeed help companies achieve desired retention results. The more critical impact on retention, however, is made in the trenches when managers at all levels embrace four key principles for retaining employees.
The starting point for improved employee retention is based on the simple premise that the best way to increase retention is to hire the right people for the job. And that requires understanding the criteria for success on the job in the specific context of your organization. This goes beyond a basic understanding of the tasks, duties, and methods necessary to do the work. Those only provide the basics.
Knowing thyself requires the deeper understanding that comes from examining a broad range of factors that are ultimately more critical to success. These include honest assessments of company culture, managerial style and organization values-both the idealistic objectives listed on company posters and ad campaigns and the demonstrated behaviors of managers and employees. It also requires understanding the unique criteria found in engaged, top performers-such factors as competencies, strengths, behavioral style, values, attitudes and ambitions.