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How Can Companies Decrease Employee Turnover? (By Aaron Roh)

The hospitality industry is known for its fast-paced and ever-changing nature, but one of the biggest challenges it faces is high employee turnover. With long hours, demanding customers, and relatively low pay, many employees in this field leave for other opportunities, leading to significant costs in hiring and training new staff. This blog post will explore the critical role Human Resource (HR) Management plays in improving employee retention and engagement in hospitality. By looking at successful HR practices used by leaders in the Hospitality industry, we can see how focusing on employee satisfaction can reduce turnover and improve customer service and business outcomes.  

Further, employee retention is not just about keeping staff around; it's about creating an environment where employees feel valued and supported. In the hospitality industry, where service is the core product, employee turnover can directly affect the guest experience. Constantly training new employees who may not yet be familiar with the company’s standards can lead to inconsistent service, affecting the business’s reputation. 

Marriott International is a great example of a hospitality brand prioritizing employee retention through comprehensive HR strategies. Marriott’s approach revolves around creating a strong company culture that values employee growth and recognition. Through its “Spirit to Serve” program, Marriott acknowledges and rewards employees for their hard work. They also offer opportunities for career advancement, which helps employees feel they have a future with the company. This has led to Marriott consistently ranking as one of the top places to work in hospitality, and their employee retention rates are much better than the industry average.

Employee engagement also plays a key role in retention, especially in hospitality. Engaged employees are not only more likely to stay with their employers, but they’re also more motivated to provide excellent customer service. I believe engagement refers to the emotional connection an employee has with their workplace, and when employees feel engaged, they are more invested in bringing success to the company.

For example, the Ritz-Carlton Hotel Company has developed a culture where employees are given autonomy to make decisions that benefit the customer experience. Empowering staff to resolve issues independently, without waiting for approval from management, creates a sense of ownership and pride in their work. This kind of engagement leads to happier employees, which in turn leads to better service and more satisfied customers.

Despite the best efforts of companies like Marriott and Ritz-Carlton, turnover in hospitality is still a significant issue. According to the American Hotel & Lodging Association, the hospitality industry has a high turnover rate of around 73.8% for hotels, which means that businesses need to be creative in their HR approaches.

One way to address turnover is to improve work-life balance. Many hospitality employees face long shifts and irregular hours, which can lead to burnout. Companies can make a big difference in employee retention by offering more flexible schedules or better shift management. For example, many companies now offer mental health support programs or counseling to help employees cope with the stress of the job. Additionally, offering paid time off and holiday pay can give employees the time they need to recharge, reducing the likelihood of burnout.

Ultimately, the success of a hospitality business is tied to the satisfaction and engagement of its employees, who can create that same satisfaction for customers. HR practices that focus on retention such as, offering career growth, flexible schedules, employee recognition, and wellness programs can help reduce turnover and improve employee morale. Companies that invest in their employees are not only helping their workforce feel valued but also creating a more stable and productive environment that benefits both the employees and the guests they serve. 

What low-cost strategies could smaller hospitality businesses implement to improve employee engagement and reduce turnover? How can HR practices in the hospitality industry evolve to better support employees' mental health and well-being, especially in a post-pandemic world?

About the Author

My name is Aaron Roh. I am a third-year student at Cal Poly Pomona, majoring in Hospitality Management with an emphasis on lodging. I am also interested in human resource management. Through Dr. Kwok's HR class and my personal work experience, I have learned how HR practices can directly affect employee engagement and retention. I am excited to apply this knowledge in real-world situations. I am also interested in how businesses can improve employee satisfaction to reduce turnover and create more productive and positive work environments. My goal is to work in HR, where I can help companies develop strategies that improve employee experiences and contribute to long-term company success.

Note: The picture was downloaded from NowSta.com.

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