Employee Retention: Take Care of Your Employees or Someone Else Will
It appears that the dark specter of staff shortages in tourism is once again upon us. Industry associations such as Go2hr and the Canadian Tourism Human Resource Council (CTHRC) predict a return of staff shortages as the economy stabilizes and the tourism sector starts to grow again. While hoteliers might have experienced a reprieve during the economic downturn, hoteliers will once again face the harsh reality of trying to recruit and retain employees in a competitive marketplace. If hotel leaders are to succeed in competing for talent they will need to mobilize key talent management strategies. Talent management is a series of human resource recruitment and retention processes that strategically link to organizational outcomes. Talent Managers develop and implement activities to recruit, and retain, the right person for the job. While this seems straightforward, devising these strategies can be complicated. In a 2011 article entitled Hospitality HRM: Past, Present, and the Future, Davidson, McPhail, and Barry note that we need new human resource approaches to effectively recruit and retain Gen X and Gen Y workers. They outline major differences between Gen X workers who tend to accept change, are co-operative, and see training as desirable versus Gen Y workers who tend to want change, are collaborative, and see training as necessary and expected. The differences are subtle but real. Gen X workers accept change but don’t necessary want it, are cooperative but don’t tend to seek out ways to collaborate, and while they think training is a good idea don’t see it as necessary. The following discussion highlights 7 areas that are crucial to recruit and retain Gen X workers and, even more importantly, Gen Y workers.
Focus Areas
- 1. Hiring – Hiring within hospitality is often left to managers with little experience and without the necessary skills or knowledge to effectively hire the right person. Interviews focus on skills or knowledge, not how the “whole” person will fit into the organization. Interviewers need to be conscious of the alignment of values between the candidate and the organization and evaluate how the individual will fit. This task is impossible when managers have no idea regarding the candidate’s values.
- 2. Employee Engagement – Research demonstrates that engaged employees lead to improved organizational performance. One way to increase levels of employee engagement is to build programs that involve employees in business operations or by providing tailored employee recognition programs. Leaders should look for creative options and provide a menu of recognition possibilities from which employees can pick and choose.
- 3. Company Culture – An organization’s culture is a key factor in employee retention. Managing culture requires leaders to pay close attention to the various elements of organizational culture (stories, rituals and routines, symbols, organizational structure, control systems, and power structures) and critically evaluate if the current culture helps or hinders employee retention. If your organizational culture actively discriminates against newer workers instead of helping them adapt, don’t be surprised to see them walking out the door.
- 4. Learning and Growth – Sadly, hoteliers often ignore the importance of employee training and development or give it short shrift when it comes to annual budget planning. Gen Y workers place an incredibly high value on learning and growth. This refers to formal training and developmental programs but also emphasizes mentorship and coaching programs to help increase employee engagement. Mentorship programs can be as simple as setting aside time for more experienced leaders to share their wisdom and
perspective. - 5. Embrace Technology – Technology is ever-present in our daily lives. While we increasingly text, email, and use social media, hotel leaders must embrace technologies to effectively communicate with employees. Various collaborating software programs are available and on-line training platforms help decrease costs. It is important, however, to recognize that some workers may not readily embrace these technologies and that more traditional forms of communication are still necessary.
- 6. Flexibility – Workplace flexibility is key. Be creative and adaptable with work arrangements. Provide processes that allow for flexible scheduling and adequate time off. Ensure that there are opportunities for employees to engage in meaningful social actions such as fundraising or volunteering. Gen Y employees tend to be committed to social causes and take their contributions, and their employer’s support, seriously.
- 7. A Good Wage – A good wage plays a crucial role in employee retention. A 1995 survey by Simons and Enz, published in the Cornell Hotel and Restaurant Administration Quarterly, found that the three things hotel employees most wanted were: (a) good wages, (b) job security, and (c) opportunity. The authors compared these results to industrial workers who rated good wages 5th. One of the theories advanced to explain this divergence are that hotel workers are paid less for their skills than industrial workers. While industrial workers report that performing interesting work, being appreciated, and being part of things are important to them, hotel workers do not share the same priorities. This leaves the industry, and in particular hotel leaders, in a challenging predicament: what is a good wage? While 2 or 3 star properties might not be able to offer the salaries of 5 star hotels, offering competitive wages improves employee retention. Further, hotel leaders and owners must recognize that paying a competitive fair wage is the crucial first step in employee retention. However, once employees are earning competitive market wages, other retention strategies become ever more crucial.
First Steps
Here are some ideas on how to begin putting together a talent management strategy.
- 1. Assess – Gather information such as: yearly planning budget documents, employee opinion surveys, values statements, engagement surveys, exit interviews, and wage scales. If you have not gathered such information in the past or if the information you need requires updating you can find resources at www.emerit.ca
- 2. Analyze the data – Ask your team questions. Is the organization what and where it needs to be in order to meet performance targets?Do we have the right people? If not, what do the right people look like?
- 3. Strategize – Develop strategies that respond to your needs. Use the seven points listed above as key action areas. Don’t make your plan too complicated. Devise simple strategies that have concrete doable steps. For example, if you realize that you have limited opportunities for learning and growth in your organization, then start with expanding opportunities by identifying internal mentors who want to work with staff. Perhaps enrolling in the CTHRC Employee of Choice Program will provide a focus for you team. Don’t forget to set realistic targets and accountabilities.
- 4. Implement – Start implementing your plan as soon as possible. Build a strong case for change and infuse it with a sense of urgency. Plan for early victories and communicate successes to your whole team. The looming shortage of tourism employees means hospitality leaders face the daunting task of recruitment and retention in a tight job market. If hoteliers are to avoid the nightmare scenario of lost revenue due to insufficient staffing levels the time to act is now.