Hotel Employees are Assets

In many hotels, staff members are viewed as a necessary evil – payroll is a liability that is necessary to be in business. Unfortunately, this attitude usually harms the business by increasing turnover, deflating morale, complicating hiring, and increasing staff training costs. These problems often create dissension between salaried managers and non-salaried employees. A better way to view staff members is as assets to your hotel.

Training Costs Money!

All new team members, even experienced ones, must be trained for your hotel’s operation. Staff should be trained in the corporate vision, customer service, and the details of their specific job. Duties that each team member is responsible for performing should be demonstrated by a member of the management staff or a competent trainer, and then must be repeated by the newly hired employee. Training entry-level workers will often take more than a week of manager time, and training full-time managers may occupy many months. In addition to the manager time used while training employees, new hires have to be paid during their training. Make sure that your hotel is streamlining the training process and that hiring practices are refined to reduce the costs associated with hiring new team members. Consider using Internet based tools to assist staff training, if appropriate.

For Example: Assume that a new front-desk operator is hired, at an hourly rate of $10 per hour. A senior front-desk operator, earning $12 per hour, trains the new team member for two weeks before the new hire is allowed to work with customers independently. The front desk manager, a salaried manager earning more than $50,000 per year, interviewed some twenty applicants before hiring the new operator. At the start of the third week, more than $2,240 as been invested in the newly hired front-desk operator!

 

Employees Become Assets Over Time

Staff members are required to learn new skills while working at your hotel, often referred to as “on-the-job training“. Many work-related skills can be learned on-the-job, including new equipment skills, customer service skills, and business skills. These skills are passed to employees through interaction with managers and other team members at the hotel, and is the foundation of internal promotions. Wage earners can grow into Assistant Managers. Assistant Managers become General Managers. General Managers turn into District Managers, or Vice Presidents. Each team member becomes a trusted asset of your organization, and finding a replacement for a disgruntled staff member will always cost more than the direct financial salary of that person.

For Example: An assistant manager at a 10-unit hotel chain submits her resignation, and is leaving in approximately two weeks. She has been with the hotel group for more than 5 years, and started as a front desk associate. Her initial training took more than 60 hours of store management time, and every year the hotel reinvested in training for her. An additional 40 hours each year has been devoted to training this Assistant Manager. Assuming that she makes $40,000 per year, more than $2,500 has been invested in direct training costs. Additional costs are going to be incurred after she leaves, because another manager will need to cover her shifts until a replacement manager is located and trained as her replacement.

Use TimeForge Scheduling and labor management software to monitor and track employees at your hotel.  Sign up today for a free trial of our hotel scheduling software!

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