How Employee Retention Plays a Role in Shaping Guest Experiences
By Bob Adams and Joe Ruzicka | August 25, 2023
In today’s business climate, retention is essential. And in a sector as dynamic as hospitality, service excellence and retaining skilled, motivated employees is of paramount importance. Beyond a hotel’s ornate décor and luxurious amenities, it is the dedicated staff that shapes the guest experience and crafts lasting memories. As an added benefit, research shows it is less expensive to keep old patrons than attract new ones.
In theory, a loyal customer base unlocks easier cross-selling and upselling opportunities. Taking it a step further, properly collecting and harnessing data can help focus hotels’ approaches to high-quality leads – letting them compare and contrast potential customers with existing ones to refine marketing, advertising and promotion strategies.
These principles broadly apply to employee retention, too. Sustaining a consistent team not only fosters a positive work environment but also ensures a seamless and personalized guest journey. Here are three core ways to use data to get started.
Because the cost of turnover will vary between establishments, calculate exactly how much you are, or could be at risk of, losing. The calculation for replacing a single, departing employee includes things like advertising the job opening; labor time that is spent interviewing new candidates, as opposed to other managerial duties; and any time or equipment required to train new hires.
With this in mind, examining your retention benchmarking is a key first step. Without clear or defined goals, it will always be difficult to tell what progress your hotel is or is not making. It can be as simple as determining that the location currently retains X number of employees, and it needs instead to retain Y each year to stay close to its financial goals and long-term planning.
Once this is in place, the second step is to bolster internal data collection. This often means performing exit interviews, encouraging candid discussions about what went right during the employee’s tenure, what could be improved upon, and their reasons for leaving. Stay interviews, conducted while still on the job, keep a pulse on what they value and where there could be improvement. Make it clear that you are interested in their feedback and will harness it to create a better and stronger workplace.
The third step is to embrace some form of predictive analytics. It is likely the hotel already has internal data on its employees that can tell a bigger-picture story about their working journey and that of their peers. It’s important to harness that information in a way that allows managers to understand their workforce in a clear way. Take a snapshot of the industry at large, too. It can be fairly easy to find out what your competitors are paying, what benefits they have, and even what others are saying about them.
Employee retention stands as an essential linchpin in the success of hotels. The commitment and expertise of staff members have the capability to build on exceptional guest experiences. By using data to make investments in team well-being, growth, and job satisfaction, hotel executives can cultivate a workforce that is not only dedicated but also empowered to exceed expectations. The ripple effects of employee retention resonate throughout the establishment, creating a welcoming atmosphere that resonates with both guests and staff alike. As the hospitality landscape continues to evolve, the value of retaining skilled and passionate employees remains unwavering, contributing immeasurably to the enduring prosperity of hotels.
