Selection and Measurement of Hotel Human Resource Metrics

By Robert M. O'Halloran Professor & Director, School of Hospitality Leadership, East Carolina University | March 05, 2017

In a world of assessment and evaluation, the questions are clearly, who, what and how are operations measured for success and what data are needed to make the optimal decisions in a business? There’s a business saying “if you can’t measure it, you can’t manage it”? Real responsive management needs reliable and truthful figures on which decisions can be made (profitablehospitality.com, 2016).

What are Metrics?

A metric is a standard of measurement by which efficiency, performance, progress, or quality of a plan, process, or product can be assessed (Business Dictionary, 2016). In the hotel world there are numerous examples of data and or metrics that lodging operators use or can use to make decisions on a daily basis. Most hotels use performance indices such as occupancy, average daily rate, revenues per occupied room, revenues per available room (REVPAR), and segment share, such as mix of demand for commercial, group and tourist or leisure businesses. STR, the industry leading source of lodging metrics provides operators across the country with metrics to assist in decision making. The STR Share Center (STR, 2016) provides hotel managers and operators with performance data, (occupancy and ADR), profit and loss data (accounting), pipeline data (under construction), census data (hotel attributes) forecast information property and room counts, sales transaction data, hotel company statistics, and industry reference information (Share Center, 2016).

Hotel operators use these data to make the best decisions they can for their businesses. If we specifically focus on human resources, what are the metrics and measures one would want to use to assess if a hotel’s or hospitality business’s human resource practices are efficient? As we know not all hotels are the same or even similar in size and service hotels might make different selections and decisions for which metrics they want to measure and use. HR metrics are a vital way to quantify the cost and the impact of employee programs and HR processes measure the success (or failure) of HR initiatives. A metric is an accountability tool that enables the assessment of a function’s results (Dulebohn & Johnson, 2013). Metrics enable a company to track year-to year-trends and changes in these critical variables (Wikipedia, 2016).

The task, as a hotel human resources manager is to assemble the metrics needed for your property. These metrics will enable HR personnel to communicate with hotel decision makers in a fashion somewhat similar to the hotel metrics discussed above. The question is, what are the metrics for each HR function? In that effort, the following is a brief outline of a sample of HR topics and functions:

Typical Human Resource Functions:

Choose a Social Network!

The social network you are looking for is not available.

Close

Hotel Newswire Headlines Feed  

Sherry Heyl
Sherry Heyl
Michael Schubach
Carlo Cisco
Jay Hartz
Sherri Merbach
Robert M. O'Halloran
Bernadette Scott
Gaurav Varma
Coming up in June 2018...

Sales & Marketing: Opinions Matter

Hotel Sales and Marketing Directors manage a complex mix of strategies to attract and convert customers into guests. Part of their expertise includes an awareness of customer behavior during the reservation process, so they can make sure their hotel is favorably positioned. One such trend is the growing popularity of travel review sites. According to one recent survey, 61% of prospective customers consult online reviews in order to validate information about the hotel before making a purchasing decision. Another survey found that the average hotel customer reads between 6-12 reviews across 4-10 properties before making a final decision on where to stay. Similarly, other studies have shown that consumer reviews are a more trusted source of information for prospective customers than other kinds of marketing messaging. In fact, reviews are often considered to be as influential as price regarding whether a customer decides to complete a purchase or not. Plus, travel sites with the most reviews - including recent reviews from satisfied customers and thoughtful responses from staff - were also found to be the most appealing. So having positive reviews on a travel website is essential and can help to increase a hotel's conversion rates dramatically. Of course, there are all kinds of additional marketing strategies for sales and marketing directors to consider - the importance of video and the emergence of live streaming; the implementation of voice search; the proliferation of travel bots; and the development of Instagram as an e-commerce platform. The June Hotel Business Review will report on some of these issues and strategies, and examine how some sales and marketing professionals are integrating them into their operations.