September 1998 - While reviewing an employee turnover/benchmarking study conducted by the Educational Institute (EI) of the American Hotel & Motel Association and KPMG Peat Marwick, I was not surprised at the annual percentage rates listed: Line employee-158%, Supervisors-136%, and Managers-129%.  Year after year these seem to be acceptable numbers to some employers, but the question is why?  (The benchmarking study was completed on full-service, deluxe and luxury hotels. However I believe that the same type of results would be found in all brand segments of the industry if researched).

Information collected regarding top reasons for voluntary turnover included opportunity for career advancement, better career advancement, raise in personal income, importance of family/personal life, intracompany transfer/promotion, and a change from the industry altogether.  Reasons sited for involuntary turnover: unacceptable job performance, frequent tardiness, excess absenteeism, issues involving theft or job abandonment, and guest complaints.

The past decade has posed a distinct staff retention challenge for many hospitality organizations, and with the new millennium knocking at the door, it will undoubtedly bring more of the same. Organizations that have downsized, reorganized, right sized and frankly "cut their manpower to the bone" now struggle to rebuild the respect, trust, and confidence levels from it's remaining workforce. (Some have shaved so deep that they have damaged the marrow, the life within the organization itself.)

The focus has been so intense on hitting the bottom line and securing the profit margins, that there has been an oversight of the company's greatest asset, the employees themselves.  What some management has forgotten is that if you want to take care of the bottom line you must take care of those who are taking care of the bottom line.  Common Sense Management 101.

Rapid expanding organizations are moving at such a frantic pace, they literally drop the ball and only focus on the present, without planning for the needed talent in the right proportions to accommodate tomorrow's needs.  Whether it is a 300 room beachfront resort, 2500 room convention center/complex or a 15 room roadside motel, the need to recruit and retain quality workers and their skills is one thing they all have in common.
 
It was only yesterday that the hospitality industry had the luxury of maintaining a more casual approach to employee retention; but the fact of the matter is those days are no longer available.

The companies that will successfully flourish in the industry's every changing unpredictable market will be those that: 
 

Projections for the largest numerical growth by occupation in the hospitality industry tell us that there will be a need for 637K new waiters & waitresses, 548k maid & housekeeping attendants, 524k food preparation workers, 470k marketing & sales workers/supervisors, and 380k general managers. Remember these numbers do not reflect area, regional, corporate management and personnel. 

What are They Thinking?

The mindset of today's workforce is nothing like it was a decade or two ago.  At one time an employee would think, "I need to be cautious, and not take chances.  I will do what I am told. I will learn all of the rules and obey them.  I will be compliant to authority figures and not question their decisions. And above all I will be loyal and make the boss look good".  But new culture thinking has changed all that.  Today's work environment thinking includes, "I'm going to be innovative and creative.  I want to be asked, not told.  I want the responsibility for making the decisions that will affect my job, my life, myself.  I seek risk and live with consequences.  I will form alliances, partnerships, and networks with whom ever I please.  I will be the source of my own satisfaction."

Hospitality management faces the retention challenges of an increasing competitive environment, daily acquisitions, mergers, and buyouts, shortages of good workers, and dealing with a liquid labor market. So how do they become the employer of choice while statistics inform us that 20% of hospitality employees are careerists, 38% are undecided about staying, 22% are just passing through, and 20% are misplaced?   Recognize the values of the changing workforce.

We are dealing with mixed cultures beliefs and traditions.  Employees expect more of the company or organization they work for than ever before.  If the organization cannot satisfy their needs, they're likely to make a change.  Some of the expectations held by today's workforce include:

The Expectancy Factor:   Management has a responsibility to be clear and concise when explaining to employees just what is expected of them in terms of accountability and performance. Common sense tells us that you can't hold people accountable for things they did not know they were being held accountable for.  In the past, once management communicated its expectations to the employee, the conversation was over.  Company goals had been identified, but what about the employee goals?  Workers today want to see a tie-in between the company's mission and their own personal missions.  An honest look reveals that today's workforce is focusing first and foremost on personal goals, and secondarily on company goals.  Their expectancy factor translates into:  "If I, as an employee, live up to or exceed the company's expectation of me and my performance, what can I, as the employee, expect back in return from my company?"

Quality Treatment:   The day of autocratic "My way or the highway" style of management is unacceptable to today's workforce.  Now employees require a participative management style from supervisors.  Employees want to be part of the decision-making process, and to have a voice in policies that will affect them.  They want a work place that offers fair competition and provides outlets for personal creativity.  They are attracted to environments where camaraderie with all levels of co-workers is the norm.  Hierarchical rank systems, which exclude interactions, are seen as undesirable; systems that encourage and reward teamwork are applauded.  Autonomy, dignity, self-esteem, and respect are critical ingredients in today's workplace.

Lifetime Skills Training:   Today's workers expects support for personal development and long term growth.  Many workers want to be prepared to run a career "marathon", not just a career "sprint".  They seek on-going training that focuses on lifetime skills, and mentors who will contribute to their individual growth.  Let's begin by saying that each manager plays an important role in shaping the work environment.  Managers must be well rooted in the company's philosophy and must understand the company's value system.  Not only must they know them; they must believe in them and support them enthusiasially. How else can they communicate them effectively to their staffs.  The way managers communicate and direct their staff will strongly influence the organization's culture and climate.  Even when employees base their service attitudes on personal commitments, they are influenced by the prevailing environment established by management.

Key Management Principles for Retaining Employees

#1 Management is a Role Model

 The impact a manager has on an employee's perception of the work is everlasting.  Either the manager is held in high esteem or he/she is not.  It is remarkable to think that to employees, a manager can be the greatest mentor they have ever known, or, at the other end of the spectrum, the worst.  Managers must realize that they are being evaluated by the employees they supervise.  It is important to understand that what managers DO often communicates values more strongly then what they SAY.  If the company endorses one set of values, managers must not function under another.

#2 Create an Work Environment Where Workers Feel Secure

 Establish a work atmosphere that builds synergistically.  You know--1+1=3, where the sum of the individual parts is greater together then if they stood alone.  Workers today have a desire for fewer social divisions by rank.  The most successful work area are those in which workers feel a common bond with others in their peer group.  Workers tend to migrate toward those individuals who possess or share similar interest feelings, opinions and attitudes. To be secure in their work environment, people need personal contact, friendship, and the feeling of belonging.  If they feel they are a third party outsider or don't belong, they don't stay.  A team structure supervised by participative management is the answer.  Interactions within a groups strengthens the group.

#3 Treat Workers With Dignity
 
 Every employee in your organization is worthy of your respect. Each deserves to be treated as an adult and not as a piece of equipment.  Management must be familiar with each staff member in order to know what makes each of them tick, how to activate their "on" bottom, and what will bring satisfaction to them in the workplace (rewards other than pay).  All this, while maintaining a professional image themselves!  Sensitivity is a must characteristic for the supervisor of the future; the norm will be for managers to be sensitive to workers needs, wants, and personal expectations.  A positive side effect of sensitivity, both for management and employees is the identification and maximization of employees' special talents.  Knowledge also allows managers to support workers' creativity and resourcefulness as well as respecting  employees cultural and personality differences.

No doubt, the greatest gift managers can give their staffmembers is a healthy dose of self-esteem.  Workers need to be convinced that whatever position they hold, whether bartender, guest service representative, front desk agent, housekeeping inspectress, maintenance engineer, AV operator or general manager, THEIR POSITION is important to the success of the organization.  They must also come to believe, through strong orientation/reinforcement programs, that THEY as individuals are important to the organization's success.  The mindset of the worker should be one of pride in position and in self.  They must not feel like interchangeable clones "just doing the job".

If you truly have the desire to create a work environment that will let your employees know that you value them, and want them around for the long hall, you might consider adding the following characteristics to your daily operations:
 

Dr. Marc Clark, CHA is President of M. Douglas Clark & Associates which provides services & resources in areas such as Asset Management, Electronic Media Production, Public Relations, Internet/Intranet Websites (and support tools) and Employee Enhancement Workshops to the hospitality Industry.