It's no secret that many hospitality industry employers
struggle with employee retention. For decades, a high turnover rate has been
one of the chief challenges facing the industry as a whole.
In the past, many employers regarded this high rate of
turnover as an unavoidable fact of life in the hospitality industry, and as
such, most restaurants, hotels, and other properties opted to offset high
turnover with a constant stream of new hires.
Today, however, most hospitality industry employers take a
more nuanced approach to the problem of turnover. It's now widely recognized
that the cost of recruiting and training an adequate replacement can cost
anywhere from one time to three times the original employee's annual salary.
When you add to this figure the accumulated hidden costs of
recruitment and training, such as undue stress on other workers when the team
is short-handed and the possibility of a drop-off in service and customer satisfaction,
it comes as no surprise that efforts to retain qualified team members has
emerged as a top priority for hospitality industry managers.
Navigating the Crowded Field of Employee Retention Programs
Perhaps the best indicator of the importance that is
afforded to the issue of employee retention these days is the staggering number
of retention concepts, strategies, and programs that have been developed over
the course of the last several years. An entire cottage industry of employee
retention experts, firms, and consultants has sprung up to serve the needs of
employers anxious to earn the lasting loyalty of their best employees.
Indeed, there are now so many employee retention programs
that it can be difficult to determine which one may be the best fit for your
organization. Let's take a look at a few of the most popular approaches to
employee retention.
Offering Competitive Compensation.
It's true that money isn't everything -- but when it comes to
employee retention, it counts for a lot. Time and time again, "money"
is the top response in surveys geared to assess why employees left a previous
position. Considering the high costs of recruiting and training a suitable
replacement, it's well worth it to make certain that your compensation and
benefits package is as competitive as possible. Just remember that generous
compensation is only one component of a comprehensive retention strategy.Fostering Career Development.
Another major source of the job dissatisfaction that can provoke
an employee to leave is the sense of being stuck without opportunities for
growth or advancement. To counter this, many companies have attempted to build
career development into every element their organizational culture. This
includes promotion opportunities, management training, steady and consistent
advancement, mentoring, career coaching, education, and cross-functional
training, among many others. Providing Recognition and Incentives.
Employees who feel that their performance is recognized and
rewarded report much higher levels of job satisfaction -- and much lower rates
of attrition. In recent years, some companies have sought to create incentive
programs that target employees' tenure with the organization. Reward your
employees generously and even aggressively, and you'll likely reap the benefits
in terms of employee loyalty. Just try to steer clear of empty-gesture awards
with little worth or impact.Focusing on Flexibility.
Increasingly, the concept of "flexibility" is showing up
on employee surveys as a factor in deciding whether to leave a position.
According to Leigh Branham, author of The
7 Hidden Reasons Employees Leave: How to Recognize the Subtle Signs and Act
Before It's Too Late, flexibility is particularly important to younger
workers. Popular options like job sharing and telecommuting don't really
translate in the context of the hospitality industry, but flexible scheduling,
an open policy on shift swaps, allowing transfers between locations, and other
similar perks are gaining popularity. Establish a set of clearly-defined
policies and then allow as much flexibility as possible within those
boundaries. Making Work More Meaningful.
Fostering that elusive sense of job
fulfillment can be challenging, especially in an industry in which serving the
customer's needs trumps all other considerations, but experts say it can be an
enormously important factor in an employee's decision to stay or leave. Some
ideas that can help make work more meaningful include starting seasonal or
annual traditions, encouraging employees to organize charity campaigns and
volunteer work, creating opportunities for on-the-job friendships and social
connections, and showing genuine appreciation for employees' contributions at
every opportunity.
Now it's up to you to decide which
of these popular approaches to employee retention offers the best match to your
organization's unique needs. A comprehensive strategy that blends together
multiple employee retention techniques is likely to be most effective. Feel
free to combine or modify one or more strategies, and keep experimenting until
you find a system that works for you.