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Chapter 2: The Case for Employee Engagement – The Evidence
Case Study
Malmaison
MWB, the owner of Malmaison, acquired Hotel du Vin in 2004, bringing
together the two hotel chains under the same ownership. Although the brands
remain separate, the company was keen to initiate greater integration of the
workforce and support services. The two hotel chains had very different
cultures which had to be brought together, while maintaining the engagement
of staff during a period of expansion. Good people management and practices
were seen as key to maintaining good service standards.
The hospitality sector has traditionally suffered from a long hours culture and a
high turnover of staff, which can be barriers to engagement. As part of the
acquisition and expansion plans, the company put in place new performance
management systems, greater learning and development opportunities, new
management development programmes, employee recognition schemes, and
new rotas and flexible working practices.
The result has been increased retention and more senior positions being filled
from within, which has also reduced costs for recruitment; 70 per cent of
general managers have made their way through the company’s ranks, as have
90 per cent of head chefs and deputies. The average working week has been
reduced and staff turnover has reduced significantly. These changes have led to
steadily improving scores in the employee survey, and sales and profit targets
at each chain have been achieved for the last two years.
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