Don't Let Your Systems Drive Your Customers Crazy! - Hospitality ...

HUMAN RESOURCES
Much has been touted about Retention Strategies, Cost Containment
and Talent Management. Some companies are at the forefront
of change and enlightenment; most are not, accepting the
“revolving door” of staff as the cost of doing business. Will this
picture change? Probably not, for the subject has a redundancy
and a long history. When business is good and growth is booming,
few really ever take a long, strategic look. Turnover at an unearthly
rate takes place during upturn as well as downturn. Sadly,
it is part of our Hospitality psyche.
But, to affect change, one needs to consider three factors, which
should dictate a retention strategy:
The cost of Turnover
The Labor Pool realities
What your Brand represents
The Cost of Turnover:
Time is money, and your costs accelerate, based upon the level
of the open position and the size of the organization. Let’s just
start with the basics. For recruitment, there is the cost of advertising
to begin an applicant flow. The selection process includes
culling through applications, several “cuts” to decide who will
be interviewed, often two to four interviews for the hire decision,
processing time, new hire orientation, and then sufficient on
the job training (which is also down time for the trainer and the
operation). The higher up in the organization the vacancy is, the
greater the cost for the process. For the sake of this example, let’s
use $300 for entry level, $2,500 for Salaried/Middle Management,
and $10,000 for Senior/Executive Management. Do the math on
your own operation, appreciating that the above costing assumption
is very conservative. That is money walking out the door!
Labor Pool Realities:
Consider first the Generational Differences. There are the Matures
(1909-1945), who used to believe in “cradle to grave” employment,
now totally disillusioned. Then the Boomers (1946-
1964), beaten up by the marketplace, transitioned, downsized,
darkly skeptical. Next, the Generation X’ers (1965-1978), who
want a balance in their lives, crave good communications, and approach
work like 1099’ers. Lastly, there are the Millenials (1979-
1988), who want it their way, now. The “onion” layers are just
beginning, for a hard look at the further demographics show, for
the bulk of the Hospitality Workforce, a heavily female population,
mostly immigrant with different cultures and languages,
less educated, feeling quite disenfranchised. What a tough market
from which to draw!
What Your Brand Represents:
Well, we are in the Experience Era, and we know that our Guests
and patrons look for value, uniqueness, high level service, a quality
product and exceptional delivery. Our Brand is our story, and
we promote ourselves like crazy to entice that wary Consumer.
And, we depend upon our Ambassadors, our worthy staff, to
make the Experience memorable. They represent our interests
and dictate our success. But, wait a moment, there is a disconnect.
Fifty percent of our people are leaving, their departure is
costing us money, and the replacement effort is ever more challenging.
If this does not move Hospitality Businesses to establish
a forthright Retention Strategy for 2006 and beyond, we deserve
the reputations we invite and the devaluation of our product and
service. Most bemoan the obvious; few take the initiative. But,
for those who see the situation as critical, consider some of the
following components for a successful Retention Approach.
Retention Strategy:
“A fair days work…” This simple phrase has immense implications.
To perform, our employees need the tools, the direction,
the encouragement, and the environment in which to achieve.
1.
2.
Why are people leaving? Your Human Resources offices
should be doing Exit Interviews. The information gleaned
from these exercises often demonstrates problems and
reasons with an easy fix apparent.
What do your current employees feel about the organization?
Employee Surveys do surface information about the
organization and items which are actionable. Do not survey
if you are not prepared to address the issues.
3. Communication. Your workforce is diverse, and your
communication systems and mechanisms must recognize the
audience.
4.
5.
6.
Work environment. A quick look at your employee locker
room is often indicative the value you place on the staff.
Your employees want and deserve respect, involvement and
particularly leadership.
Training and Development. We must provide the necessary
tools to perform the current job and opportunity to improve
the skill set and ability to move onward in the organization.
“…for a fair days pay”.
Retention is impacted by reward, and this starts with a
meaningful compensation package, both wage/salary and
benefits. You get what you pay for! Additionally, there is a
requirement for recognizing and rewarding performance
excellence.
“ Why are people leaving?
Your Human Resources
offices should be doing
Exit Interviews. ”
Conclusion
This is not rocket science or even Best Practices — this is just
common sense. The answers have been around for generations,
however, the impetus, always hovering, was seldom grasped. Your
employees are just as discerning as your Guests. We have been
smacking crocodiles, and the swamp becomes deeper, murkier
and more deadly. The numbers do not lie; matter of fact, a good
Retention Strategy is more than supported by the money saved
on Turnover. We all tend to look over that fence, admire the
landscaping and the greener grass we assume is the better alternative.
Tend to your own yard properly, and you can put the neighborhood
to shame!
John Hendrie, is CEO of Hospitality Performance, Inc., a full-service hospitality
consulting company. With a strong background in Hospitality, Human Resources,
Organizational Effectiveness, and Communications, John has devoted his career to
establishing Standards of Excellence across varied businesses. For more information,
please visit www.hospitalityperformance.com
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 47