Hotels suffer from staff turnover perhaps more than any other business. According to the Bureau of Labor Statistics the hotel industry has an annual employee turnover rate of 73.6%; compare that to an industry like finance and insurance, which has an annual turnover rate of 1.7%.
As the hotel general manager, or hotel assistant general manager, your duties and responsibilities will only be completed with the help of a stable, capable and productive team, and therefore your hotel will only succeed with one.
The effects of high employee turnover include:
- High recruiting and onboarding costs
- Drops in service levels
- Low workplace morale
- A lack of company culture
And all of these effects equate to a hit to the hotel’s bottom line.
But there are ways to stem the flow of employee turnover as a hotel general manager, creating a healthy and happy work culture while simultaneously increasing that bottom line.
How? Simply follow these 10 tips.
1. Hire the right employees
Investing a bit of time at the start of the process can save you endless amounts later. Hospitality recruiting can be quick and impersonal – hotel general managers can fall into the trap of assuming the employee will leave sooner rather than later, and therefore not put effort into the recruitment process, resulting in a bad fit (and a self-fulfilling prophecy!)
Partner with a good recruiter, and take the time to find the very best candidate for the job, no matter how inconsequential that job might seem to be. For hotel general managers, resume samples should be studied, not flicked through.
2. Show your employees appreciation
Never underestimate the power of a pat on the back. A manager who shows appreciation for a job well done will be far more likely to retain their employees, as those employees will feel as though they’re making a difference.
In the busy world of hospitality, it can be easy to forget to show appreciation, so set up a formal, structured way to do so, like a weekly awards meeting.
3. Value your employees and include them in decision making
“What do you think is the best way forward?” This simple question can turn a jaded employee with one foot out the door into a motivated and active team member who is eager to see how they can change their workplace for the better. Invite more team members into meetings, and let them have their say. You might be surprised at their ideas.
4. Give your employees the opportunity to grow
No one wants to feel like they’re stuck in the mud. Employees will be far more likely to hang around if they feel as though they’re developing professionally. Offer education, be it internal or external. Match ambitious employees with a mentor who can guide them through their professional journey.
5. Pay your people well
Your hotel general manager salary may be a generous one, and you’ve earned every cent of it by working your way into the position. But if your attitude is one of “I did it the hard way, and so should they,” you’ll likely experience staff turnover rates that are even higher than the already high industry average.
It’s vital that you pay your people a competitive base wage, particularly the backroom staff who may not enjoy access to tips. You don’t need to match the wages of hotel resort general manager jobs, but you should be paying the same or more than your main competitors in like-for-like positions.
6. Manage your managers (including yourself)
Employee/manager rifts are perhaps the number one reason for hotel staff turnover. People don’t quit jobs, they quit managers, as the old saying goes.
Keep track of manager performance – including your own – by seeking feedback from employees, and use training to arm your managers with the soft skills they need to successfully lead their teams. Hotel general manager jobs are extremely interpersonal, so you need to ensure you have excellent communication and social skills if you are to keep your employees around.
7. Put a focus on company culture
How would you describe your company culture? If you can’t answer that question, it’s time that you develop one.
A company culture defines your brand’s values and mission, and articulates how employees are expected to act. While it may sound like a loose and ambiguous term, the best company cultures are those that truly resonate with employees, and are tangible enough to be printed on a poster and stuck up around the office. It’s then up to the hotel managers to ensure this culture permeates within the workplace.
8. Be the best
People gravitate towards success. It’s nice to feel like you’re a winner, and the mood around the workplace is all the better for it. If your business is doing well, your employee turnover will be lower. If your business is doing badly, your employee turnover will be higher. It’s as simple as that.
But in a classic case of chicken and egg, improving your bottom line is often only possible with the help of a stable, capable and productive team. To enjoy one, you first need to secure the other.
Thankfully, by employing these tips you’ll be far more likely to get that stable team that you’ve been dreaming of, as well as all of the perks it can bring.
Contact Sean today to discuss how you can continue to find and attract the best talent in the hotels industry.