By Gary Hogan
Employee retention is a crucial factor in the success of any hotel or resort. Surprisingly, hotel management does not always devote as much time to understanding this issue as it should, and there are many misconceptions, even among seasoned executives.
Following are the Top 5 myths about employee retention that frequently result in catastrophic miscalculations on the part of management. Banish these fallacies and prepare for stellar performance and loyalty from your staff!
Compensation is only about base pay Certainly base pay is an important driver of employee satisfaction, but it’s far from the only component. Many hotel operators fail to realize that companies that employ rich benefits packages and a positive work environment can have better retention than those that are focused merely on competitive base pay. A comprehensive collection of other components such as: a safe workplace, a positive and rewarding environment, opportunities for advancement, high morale, visible and open leadership, and other non cash benefits such as an employee cafeteria have a tremendous impact on achieving positive employee satisfaction. Also, individuals have different priorities, and it is worth figuring out what is most rewarding for your valuable employees.
Loyalty doesn’t exist Workplace loyalty must be earned and it starts with trust and mutual respect. Employers that demonstrate minimal loyalty with their staff can expect even less in return. Employees are your greatest assets. You aren’t just hiring them as short-term resources; you are choosing them because you believe in the critical role they’ll play in the long term despite the economic fluctuations in between. Loyalty is a two way street and if you recognize the value of investing in human capital, then you’ll retain your most valuable assets that will result in your hotel prospering over time.
Creating a company culture isn’t worth it An organization's culture is the foundation of an effective employee retention program. Treating all employees, regardless of hierarchy, with sincere respect creates trusting relationships and heightened work performance. Inviting their input and ideas through an open and productive management style is also crucial. Part of respecting employees is allowing them the opportunity to do their jobs, because this is how trust develops. Employees need to feel good about their contributions to the success of the business and that they have been appropriately rewarded for their work. People like to be part of a winning team. When morale is high, so is retention.
Employees are just employees Wrong. Employees are part of the team. Maybe the most important part as they are on the front lines with guests. The only non-duplicable asset that any property has is its people. The people who are creating the unique services and fostering guest relationships, which can help a property stand out from the competition. It is worth investing in employees. This may mean career development and employee training, opportunities for promotions and advancement, and career stability. Tuition reimbursement and certification courses are another form of investment that goes a long way towards building morale and a positive environment.
Continuity of service is insignificant Continuity of service is paramount. Retention must be a top priority. The amount of time, energy and money spent on attracting, hiring, and training new hires is substantial. More importantly, a loyal team of well-trained and happy employees delivers superior guest service and satisfaction. And, in turn, it delivers positive financial performance for the business. This continuity of service pays huge dividends because it affords for the creation of meaningful relationships with guests. Happy repeat visits and extraordinary word of mouth marketing are the holy grail of hotels. This is particularly true in this era of social media. This culture creates opportunities for lifetime employees, as well as multi generational repeat guest families, who will visit annually for 30+ years. We have all visited properties or dined in restaurants with career service employees who have been there for 20, 30, even 40 years. 99% of the time it’s a good experience because of those employees.
Conclusion As we continue to observe low unemployment rates across the nation, employee retention will become a critical component separating hotels that succeed with properties that struggle to maintain its talent levels. Employees want to believe that their involvement is meaningful. Establishing a productive and positive work culture inspires the belief that this is more than just a job. The effort is well worth it as your hotel is only as good as your team.
