Strategies for Building Lasting Relationships with your Staff in the Hospitality Industry:
A Hotel Manager’s Guide to Improving Housekeepers’ Retention.
Written by Fernanda Beltran
High Staff Turnover: A Costly Problem
Employee turnover continues to be a significant and costly problem in the industry. The challenging and demanding nature of these functions, combined with factors such as lack of job growth, ineffective communication and long working hours, contribute to an annual turnover rate that ranges from 70-80%, exceeding the healthy 10-15% seen in other industries.
How much money does turnover cost in the hospitality industry?
Replacing an employee can cost up to 9 months of their salary, according to a Cornell University study, replacing a front-line employee in hospitality costs an average of $5,864, which translates to $146,000 annually.
Causes of Turnover:
High industry turnover rates are primarily based on unclear job expectations, relatively low pay, limited growth opportunities, business organizational issues, and the inability to work remotely. These high turnover rates have consequences such as increased labor costs, declines in productivity, and potential loss of guests.
Strategies for Employee Retention: How Costco and Trader Joes Keep Their Employees
Costco and Trader Joe’s have achieved remarkable employee retention rates, Costco’s turnover rate stands at 6% and Trader Joe’s at a remarkable 10%. far exceeding the industry average. Their strategies, which can be adapted by other businesses, include:
- Competitive Compensation and Benefits: Both companies offer generous pay and comprehensive benefits packages, demonstrating their commitment to employee well-being.
- Emphasis on Employee Development: Investing in employee training and development fosters a sense of growth and opportunity, boosting employee engagement.
- Positive Work Environment: Fostering a welcoming and supportive work atmosphere, where employees feel valued, encourages loyalty and retention.
- Promoting from Within: Providing opportunities for internal advancement motivates employees and promotes a sense of ownership within the organization.
- Task automation: Simplifying repetitive tasks through automation can free up employee time to focus on higher value-added activities, improving productivity and satisfaction. This includes using tools such as Lilo to automate procurement and accounting processes, freeing employees and hotel managers to focus on customer service and other priorities.
Hotels can learn a lot from the strategies that Costco, Trader Joe’s and other companies use to retain their employees, allowing them to achieve better turnover rates and save time and money.
Specific Focus on Housekeeping Staff:
- Competitive Wages:
Offer competitive salaries to attract and retain qualified cleaning professionals. The average salary for a housekeeper per year in the United States for someone with less than 1 year of experience is $26,281, whereas a housekeeper with 11+ years of experience earns $35,299 on average.
- Career Growth Opportunities:
Provide clear opportunities for professional advancement within the organization. By showing housekeepers that they have the potential to grow within the company, you can increase their job satisfaction and reduce turnover.
- Flexible Schedules:
Adapt flexible work schedules to improve the balance between work and life. We recommend using workforce management applications such as 7Shifts, Hotel Effectiveness, or When I Work to streamline the processes of scheduling, timekeeping, shift swapping, communication, and analysis. These tools can help you create and manage schedules, track employee time and attendance, facilitate shift swapping, communicate with employees, and gain insight into labor costs and productivity.
- Address Employee Concerns:
When employees feel that their concerns are heard and addressed, they are more likely to be satisfied with their jobs and less likely to leave.
- Create a Culture of Recognition and Reward:
Recognizing and rewarding employees for their good work can help to boost morale and motivation. This can also help to create a more positive and supportive work environment.
Conclusions: Effectively promote staff retention.
When a hospitality company prioritizes employee retention, it establishes the foundation for a dedicated staff that will consistently offer excellent customer service. Lilo recommends that you implement strategies focused on engagement, training, feedback and a positive work environment. This ensures continued productivity, cost savings and a positive customer experience.
For you, what is the most relevant reason for turnover? What have you done to solve it in your hotel or business? We would love to read from you, write us here or to our email hello@lilohotelsupplies.com
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