Content for Modern Hoteliers
With budget season right around the corner, leadership teams, management personnel, and executives will begin to converge on the same question that gets asked year over fiscal year. No, not the ‘how much can we cut costs this year’, rather, ‘How do we reduce employee turnover?’ As any leadership team will tell you, reducing the ultimate cost factor to an employer’s burden from the employee is paramount.
An employee’s impromptu departure can cost the employer approximately four times that employee’s salary. In some calculations, extreme calculations, an unanticipated employee’s departure can cost the employer sixteen times the salary of that employee. Albeit this scenario is quite extreme, the calculation derives from accounting every single process that is involved in the departure of the employee and recruitment and sourcing of the next candidate.
When it comes to most hoteliers they have their faithful eighty percentile workforce. This demographic represents the tier of employees whom have been employed on average more than 7 years, feels a sense of dedication to their job task, and are deeply rooted within the community that they are working. The remaining twenty percent are what I refer to the open window employees. I refer to them as such for the reason that in most establishments that utilize modern day air conditioning an open window is a budget killer, much like these employees. They are introduced to your teams by an elaborate resume, the pressure to fill the positions, and immediate availability. Once they’re onboard, they’ll perform for the first 3.5 weeks, and then the trouble starts. Whether its attendance events, workplace adaptation, or lack of qualifications, their departure will soon occur before the ninety-day benchmark. Thus creating a cyclic open window routine.
How do we prevent this? Employee engagement, and quality screening methods are without a doubt the two most immediate answers to the question. An employee that feels appreciated, engaged, and respected demonstrates tenfold survival past the ninety-day benchmark. In our own studies, we’ve seen reductions below sixty percent in turnover in our highest categories in the toughest of markets. Quality screening methods are paramount for talent to remain on the books passed sixty days, yet alone ninety. Many hospitality recruiters, hotel managers, and hospitality staffing companies are often overwhelmed by the pressure to fill a position and rush through the selection processes, in some cases we’ve seen, candidates are interviewed, hired and start on the same day. This is an unequivocal mistake. The processes that Suite Hospitality Staffing has for our talent acquisition require a prospective employee to be engaged during the selection process no less than five times. This allows us to thoroughly achieve the commitment from the candidates, inherently reducing our human capital turnover.
How does this help your budget? Simple, stop chasing the open window employees, running your operating costs through the roof, and utilize hospitality specific contingent staffing to achieve your optimum staffing index value. Utilization of a service, like Suite Hospitality Staffing, allows you to choose from a pool of candidates that have already went through the stringent selection processes that you don’t have the time to commit to. Labor and payroll expenses, on average, account for forty-three percent of a hotel’s operating expenses, when you consider the amount of time and money wasted on the cycle of open window employees the value added from hospitality specific contingent staffing is staggering.
Finally, by securing quality, qualified talent through a hospitality specific contingent staffing firm, like Suite Hospitality Staffing, you have the comfort of knowing that the leadership and recruiting team has faced the problems over and over that hoteliers face today. We leverage that very experience to bring you the best committed talent possible.