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: