How to Retain Your Best Hotel Employees

In a changing and highly competitive market, where a hotel’s competitive edge is often defined by its people, retaining the most valuable employees is more important than ever. Good employees are hard to find; in fact, good people willing to work are hard to find, so it makes sense to do everything you can to hold on to the ones you have. The cost of losing an employee is often underestimated. The obvious costs are recruitment and training, but there are also lost opportunities, reputation, customer relationships and other intangibles that are harder to measure.   The replacement cost is even higher when you lose a good employee. It is said that 5% of the workforce generates 26% of an organisation’s total output. The top-performing 5% produce 400% more than would be expected (26% rather than 5%). That means top employees produce more than four times as much, so the average cost of replacing a good employee is also four times higher. While strategic employees are difficult to retain, they tend to be promoted, attracted by better opportunities and often have higher expectations. What can you do to minimise the chances of losing your best employees for no apparent reason?:

1. Retention begins with the recruitment process.

Hiring excellent employees is not just about finding people with the right mix of skills and experience. It is important to find out what motivates an employee, what satisfies and dissatisfies them in a job, what their short- and long-term career goals are, the type of manager they like to work for, and how to assess cultural fit. You need to go beyond the CV and LinkedIn profile, and delve deeper during phone screenings and in-depth interviews.

2. Build a successful hotel and team.

That is your top priority as a leader. Nobody likes playing on a losing team or being on a sinking ship. Poor employees will stay and suffer; great employees will eventually leave. If you face this kind of challenge, do not let your Human Resources Director convince you to conduct an employee satisfaction survey. Invite them to step up and help you turn the business around. That is the most important thing you can do to satisfy your employees.

3. Provide a positive onboarding experience.

We all remember our first weeks at work, whether good or bad. Good onboarding sets the tone and lays the foundations for retention. Make sure your new employees receive the training, coaching and support they need to succeed.

4. Offer competitive pay and benefits.

Use pay and benefits as a baseline, and build meaningful benefits from there. While a manager’s hands may be tied when it comes to how much they can pay, flexibility and the working environment can often help compensate.

5. Trust the team.

Give your best employees the opportunity to use their unique strengths every day. Many of the best ideas flow upwards from the bottom, if this is allowed and encouraged. Otherwise, employees may become bored or frustrated, and will not do what they do best.

6. Provide career development opportunities.

Have career conversations with employees, allow them to explore options, provide information about opportunities and help them make connections. Help them achieve their career goals, and do not stand in their way.

7. Build a relationship with every employee.

Get to know each of your employees; learn about their personal lives, interests, values, hopes, fears and desires. Show them that you care about them, that you have their best interests at heart and that you want them to succeed. Take the time to have regular, uninterrupted conversations.

8. Say thank you.

In creative and informal ways, recognise the significance of employees’ various contributions. When top employees leave, they will often say they never felt appreciated. Praise is inexpensive; use it generously.

9. Take action against underperforming employees.

Good employees do not like working with slackers. Coach and counsel underperforming employees out of their roles, or dismiss them, consistently and with dignity.

10. Respect individuality.

Not all employees are created equal. Recognise their individual needs and tailor tasks, benefits and recognition accordingly. Loosen outdated policies and let them soar.