Reduce Hotel Employee Turnover

In many hotels, team members are viewed as a necessary evil – payroll is a liability on your P&L that is necessary to be in business. Unfortunately, this attitude usually harms your business by deflating morale, increasing turnover, complicating hiring, and increasing staff training costs. A better way to view your team members is as assets to your hotel.

Remember Your Assets While Scheduling

When you are scheduling team members, remember that staff are business assets necessary to help your business grow and profit. Staff members with special skill sets should be scheduled where they can improve the hotel’s profitability. However, managers still need to juggle staffing requirements with requests for time off and necessary fluctuations to the hotel schedule. ¬†Additionally, your hotel should establish standard operating procedures to enable easy communication between managers and team members.

For Example: Several managers at a hotel make the schedule … a front-desk manager and the general manager. Staff members can be easily confused about which manager has the right to approve requests for time off. Alex, a night auditor, is given time off for January 1st to go on a trip with his wife. Unfortunately, managers also approved time off for another team member, leaving the hotel short staffed for the new year. Alex’s dedication to the hotel and his frustration over this management situation will determine if Alex shows up for work. The entire situation was entirely preventable with good communication among managers and team members.

 

Staff Turnover Will Cost You – A Lot!

Turnover is never, ever cheap. Many hotel managers and owners under-estimate the expense of turnover and the learning curve of working in a new hotel. About 30% of the cost of turnover is the direct cost – ie, the costs directly required for hiring a new team member. The rest of the cost of turnover, the remaining 70%, is the loss in productivity of the team member before they leave the hotel, as the employee’s attitude toward the business becomes negative and customers are not serviced properly. Turnover in hospitality-related industries (hotels, restaurants, bars, clubs) averages more than 100% annually – meaning that a hotel with 100 team members has hired 100 team members in the last twelve months! Using a low cost of only $1,000 per staff member, that is an annual expense of more than $100,000 in turnover! Reducing turnover at the hotel would improve the bottom line by $100,000.

Internet-based tools for hotel scheduling, such as TimeForge, can assist the entire management team when building and maintaining team member schedules. Modern labor management tools can allocate labor for your hotel, track employee availability and time off requests, automatically assign and track meal and break periods, and notify team members when their scheduling needs are met. Your hotel will not always be able to cater to the team member’s requests, but uninterrupted communication between management and team members will lower the turnover at your hotel and preserve the value of your employee assets. Payroll is definitely a liability, but employees are definitely business assets.

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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