Jan M. Smith
Inland Management Group
Barry Manilow’s song, “Looks Like We Made It” is blaring somewhere in the background as I eat my lunch at a local restaurant…
The song makes me think about how our hospitality community has made it through the first half of this year. That’s a decent accomplishment we should all be proud of! Part of making it can be attributed to your great employees; the service ambassadors for your organization.
As we enter the second half of 2010, I’d like to challenge you to think more about your employees. As we start to see a plateau in the economy, with most signs pointing up, a key issue for hospitality organizations will be the retention of key talent.
Battle-fatigued employees who have long felt underappreciated and underpaid are already starting to exit employers at record numbers in search of a better situation. Most have held tight to their jobs until the availability of others surface.
Each day, increased numbers of hospitality jobs are becoming available, so here are a couple of things to ponder:
· In a recent poll by Right Management, 60% of workers said they intended to leave their jobs when the market got better.
· This past May, the number of employees voluntarily quitting surpassed the number being fired or discharged for the first time since October 2008.
There has been a lot of talk recently about “Talent Wars,” where an increasingly competitive landscape for recruiting and retaining talented employees is starting to appear. It probably sounds crazy for an era with high unemployment figures, but the reality is YOUR talent might be already looking elsewhere and taking all the training, expertise, and knowledge you have provided them, as they skip over to your competitor. Yikes!
Here is a look at some important ways to keep your best talent:
· Re-engage & re-establish trust. Holding regular company-wide informational meetings and one-on-one “stay” interviews with employees where they can offer ideas, ask questions, and air grievances without fear of repercussion.
· Pay fairly & offer competitive benefits. Being cost-conscious and thrifty on salaries, health insurance, paid leaves, 401K plans and other benefits was necessary for many of you to keep your business going during the past several years, but this is a key reason valuable talent is moving on. Keep on top of regional salary averages and benefit packages.
· Recognize & reward good performance. Consider relaxing the noose on employee’s pay. Celebrate when major goals are reached. Bonuses are great for morale, and workers who feel appreciated work harder.
· Share Company mission. Communicate mission statement to help employee connection to the organization’s goals and keep employees mentally and emotionally tied to your company.
· Communicate openly. Allow employees to have a say in major decisions that affect them, such as the direction of the company and changes within their department. Listen to and respect their ideas and opinions with an open mind. When an employee has an “ownership mentality,” they are often more apt to stay with an organization and serve the guest more effectively.
· Provide perks. Offer company discounts, free product, and perks that make your company stand out over your competition. Be flexible about your employees' schedules whenever possible. Today's workers want a work/life balance. Flexible starting and ending times for shifts can help employees get important personal tasks done. They’ll appreciate it and may be more likely to stay with your company.
· Provide opportunities. Give employees a clear path of advancement. This will eliminate frustration as they will see a clear future for themselves at your company. Offer cross-training, workshops and presentations, and encourage mentoring within the company. Get managers involved to spend time coaching employees, helping good performers move to new positions and minimizing poor performance.
· Communicate expectations. It may seem basic, but often in companies, employees have a wide breadth of responsibilities. If they don’t know exactly what their jobs entail and what you need from them, they can’t perform up to standard, and morale can begin to dip.
· Give honest, constructive feedback. Good efforts should be commended, or employees may feel you haven't even noticed their hard work. If there's something you feel they can work on, let them know in a way that doesn't imply that they've done something wrong.
An increase in turnover can be costly for companies. The average cost of turnover for a minimum wage hospitality worker could be as high as $11,609.00. (based on research conducted by Cornell University)
So where do you go from here?
· Pay attention and get a pulse on your employee morale.
· Listen to what employees are saying about you and your organization.
· Ensure you offer the best pay, benefits, and opportunities.
There’s something to be said for retaining great employees who can absorb the brand and communicate it effectively. More then ever, as the economy starts to turn around, it will be essential to keep your talented and trained employees to exceed guest expectations.
Jan M. Smith is the Founder and Principal of Inland Management Group, a Human Resource Consultancy located in Temecula, specializing in the Hospitality and Entertainment industry. You can contact Jan at (951) 302-6483, email at jsmith@inlandmgtgroup.com, www.inlandmgtgroup.com, or follow her on Twitter at Temecula_HR, and Facebook: Inland Management Group
Inland Management Group
Barry Manilow’s song, “Looks Like We Made It” is blaring somewhere in the background as I eat my lunch at a local restaurant…
The song makes me think about how our hospitality community has made it through the first half of this year. That’s a decent accomplishment we should all be proud of! Part of making it can be attributed to your great employees; the service ambassadors for your organization.
As we enter the second half of 2010, I’d like to challenge you to think more about your employees. As we start to see a plateau in the economy, with most signs pointing up, a key issue for hospitality organizations will be the retention of key talent.
Battle-fatigued employees who have long felt underappreciated and underpaid are already starting to exit employers at record numbers in search of a better situation. Most have held tight to their jobs until the availability of others surface.
Each day, increased numbers of hospitality jobs are becoming available, so here are a couple of things to ponder:
· In a recent poll by Right Management, 60% of workers said they intended to leave their jobs when the market got better.
· This past May, the number of employees voluntarily quitting surpassed the number being fired or discharged for the first time since October 2008.
There has been a lot of talk recently about “Talent Wars,” where an increasingly competitive landscape for recruiting and retaining talented employees is starting to appear. It probably sounds crazy for an era with high unemployment figures, but the reality is YOUR talent might be already looking elsewhere and taking all the training, expertise, and knowledge you have provided them, as they skip over to your competitor. Yikes!
Here is a look at some important ways to keep your best talent:
· Re-engage & re-establish trust. Holding regular company-wide informational meetings and one-on-one “stay” interviews with employees where they can offer ideas, ask questions, and air grievances without fear of repercussion.
· Pay fairly & offer competitive benefits. Being cost-conscious and thrifty on salaries, health insurance, paid leaves, 401K plans and other benefits was necessary for many of you to keep your business going during the past several years, but this is a key reason valuable talent is moving on. Keep on top of regional salary averages and benefit packages.
· Recognize & reward good performance. Consider relaxing the noose on employee’s pay. Celebrate when major goals are reached. Bonuses are great for morale, and workers who feel appreciated work harder.
· Share Company mission. Communicate mission statement to help employee connection to the organization’s goals and keep employees mentally and emotionally tied to your company.
· Communicate openly. Allow employees to have a say in major decisions that affect them, such as the direction of the company and changes within their department. Listen to and respect their ideas and opinions with an open mind. When an employee has an “ownership mentality,” they are often more apt to stay with an organization and serve the guest more effectively.
· Provide perks. Offer company discounts, free product, and perks that make your company stand out over your competition. Be flexible about your employees' schedules whenever possible. Today's workers want a work/life balance. Flexible starting and ending times for shifts can help employees get important personal tasks done. They’ll appreciate it and may be more likely to stay with your company.
· Provide opportunities. Give employees a clear path of advancement. This will eliminate frustration as they will see a clear future for themselves at your company. Offer cross-training, workshops and presentations, and encourage mentoring within the company. Get managers involved to spend time coaching employees, helping good performers move to new positions and minimizing poor performance.
· Communicate expectations. It may seem basic, but often in companies, employees have a wide breadth of responsibilities. If they don’t know exactly what their jobs entail and what you need from them, they can’t perform up to standard, and morale can begin to dip.
· Give honest, constructive feedback. Good efforts should be commended, or employees may feel you haven't even noticed their hard work. If there's something you feel they can work on, let them know in a way that doesn't imply that they've done something wrong.
An increase in turnover can be costly for companies. The average cost of turnover for a minimum wage hospitality worker could be as high as $11,609.00. (based on research conducted by Cornell University)
So where do you go from here?
· Pay attention and get a pulse on your employee morale.
· Listen to what employees are saying about you and your organization.
· Ensure you offer the best pay, benefits, and opportunities.
There’s something to be said for retaining great employees who can absorb the brand and communicate it effectively. More then ever, as the economy starts to turn around, it will be essential to keep your talented and trained employees to exceed guest expectations.
Jan M. Smith is the Founder and Principal of Inland Management Group, a Human Resource Consultancy located in Temecula, specializing in the Hospitality and Entertainment industry. You can contact Jan at (951) 302-6483, email at jsmith@inlandmgtgroup.com, www.inlandmgtgroup.com, or follow her on Twitter at Temecula_HR, and Facebook: Inland Management Group
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