Essay: Employee retention & Hospitality
Bindiya Salat (19176)
* Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time. * Employee retention is beneficial for the organization as well as the employee. * As soon as employees feel dissatisfied with the current employer or the job, they switch over to the next job especially in hotel industry. * It is the responsibility of the employer to retain their best employees. If they don’t, they would be left with no-good employees. * A good employer should know how to attract and retain its employees. Most employees feel that they are worth more than they are actually paid. * There is a natural disparity between what people think they should be paid and what organizations spend in compensation. * Employees comprise the most vital assets of the company. * In a work place where employees are not able to use their full potential and not heard and valued, they are likely to leave because of stress and frustration. * In a transparent environment while employees get a sense of achievement and belongingness from a healthy work environment, the company is benefited with a stronger, reliable work-force harboring bright new ideas for its growth.
Table of Contents
Importance of Employee Retention5
What makes a hotel employee leave?6
Retention Success Mantra8
Managing Employee Retention9
Employee Retention Strategies9
1.1 Employee retention
It refers to the ability of an organization to retain its employees. It is the basic idea of keeping the best employees to stay with the organization. There has been many HR strategies provided to retain employees for the advantage of the organization. These strategies are implemented to avoid employee turnover. Turnover occurs when an employee leaves a specific job or organization permanently and his/her services are no longer available. 1.2 Hospitality Culture
For decades, a high turnover rate has been one of the chief challenges facing the industry as a whole. In the past, many employers regarded this high rate of turnover as an unavoidable fact of life in the hospitality industry, and as such, most restaurants, hotels, and other properties opted to offset high turnover with a constant stream of new hires. Today, however, most hospitality industry employers take a more nuanced approach to the problem of turnover. It's now widely recognized that the cost of recruiting and training an adequate replacement can cost anywhere from one time to three times the original employee's annual salary. When we add to this figure the accumulated hidden costs of recruitment and training, such as undue stress on other workers when the team is short-handed and the possibility of a drop-off in service and customer satisfaction, it comes as no surprise that efforts to retain qualified team members has emerged as a top priority for hospitality industry managers.
Importance of Employee Retention
The process of employee retention will benefit an organization in the following ways: 1) The Cost of Turnover:
The cost of employee turnover adds hundreds of thousands of money to a company's expenses. While it is difficult to fully calculate the cost of turnover (including hiring costs, training costs and productivity loss). 2) Loss of Company Knowledge:
When an employee leaves, he takes with him valuable knowledge about the company, customers, current projects and past history (sometimes to competitors). Often much time and money has been spent on the employee in expectation of a future return. When the employee leaves, the investment is not realized. 3) Interruption of Customer Service:
Customers and clients do business with accompany in part because of the people. Relationships are...