Talent Management Practices with Impact
By Adam Cobb Regional Manager, Halogen Software | June 12, 2011
In the hotel industry, the quality of your staff and the services they provide directly affects your bottom line. As your frontline brand ambassadors, your employees' performance is what drives your organization's true competitive advantage. To succeed, you need to attract, develop and retain competent, enthusiastic and accountable employees, and keep them engaged and motivated.
For Hotel Executives, a robust and well-managed talent management strategy delivers a proven and practical way to create a culture of high performance, ongoing development and an organization-wide commitment to high quality service. This article examines the value of talent management to the hotel industry, and focuses on three key talent management practices that have a major impact on the bottom line - goal setting, pay for performance and coaching.
Talent Management Defined
Talent management refers to the overall process of attracting, developing, managing and retaining workers. It includes a wide variety of functions including recruiting, learning and training, compensation, employee performance management and succession planning. Talent management is based on the idea that employees are an organization's most valuable asset. This is particularly true in the hotel industry where ongoing success is driven by the quality of customer service delivered to guests. Employees have a direct impact on customers' willingness to become repeat customers or to recommend the hotel to others.
Historically within the hotel industry, employee turnover rates have been extremely high with some estimates putting turnover as high as 50%. The American Hotel and Lodging Association has estimated that the turnover cost per employee is a minimum of $4100 per employee, and the American Management Association pegs this number at 30% of an employee's annual salary. Part of this high turnover can be attributed to a lack of training and development opportunities which can lead to employee dissatisfaction and attrition.
In the highly competitive hotel industry, establishing a talent management strategy with a focus on creating a culture based on performance can help drive employee satisfaction, reduce employee turnover costs and assure high customer service levels.