5 Ways your Employee Turnover is hurting you
Employee Turnover analysis is one of the most critical elements to maintaining a stable, motivated complement of employees. Nothing hurts an organization over the long term more than the inability to provide consistently top class products and services and thus earn and retain customers. In this process, the contribution of well looked after, motivated and trained employees is many times not given the importance it deserves. Unfortunately to the detriment of the organization, very often, as a priority, this is relegated to the bottom.
If you arrived at this post directly, you may want to visit Staff to Room Ratio – indicator at best, 2 Paths to Revenue Growth Nirvana, 2 Paths to Restaurant Revenue Growth Nirvana, Market Segmentation Reports – Road Map to Revenue Results and 5 Myths about Financial Analysis, to catch the thread of earlier related posts.
5 Ways your Employee Turnover is hurting you
Consistently delivering high quality service requires a energized, stable work force. Regular employee turnover hurts it like no other phenomenon.
Let us look at 5 ways employee turnover is hurting you as an organization:
Lack of consistent delivery of quality service – This is the most obvious of reasons. As said earlier, having long serving employees makes delivery of consistent service that much easier. Guest contact employees are the ones whose turnover causes maximum disruption to delivery of service but it is equally applicable to other areas also although to a lesser extent.
Increased cost of training – When employee turnover occurs, the orientation and training imparted to the employees goes away with them. The new incumbents have to be oriented and trained all over again and this costs effort, time and money.
Reduced motivation in employees – Constant movement in employees both those leaving and those coming in causes all round decrease in motivation levels. Hotel industry being a service industry, a lot of the service quality that is attained is done through team work exhibited and cooperation forged between employees. Employees tend to create rapport amongst themselves which makes their jobs that much stress free resulting in increased motivation to provide consistent quality service.
Damage to reputation of the organization – When employee turnover becomes rampant, the word spreads fast and the organization gets a very bad name as a uncaring employer irrespective of the actual reasons why employees are leaving. Very soon this reaches the customers and guests who simply move to a better hotel property where they find consistent high quality service provided by a stable work force.
Possibility of irregularities and even frauds – When employees keep coming and going, in particular those who are in guest contact areas, who handle cash or other sensitive areas like purchasing etc., there are higher chances that irregularities are perpetrated owing to break in continuity of processes. Many times hand over and take over of functions are sloppily done leaving gaps in the processes which can be taken advantage of by unscrupulous characters.
What does analysis of Employee Turnover yield?
Monthly Employee Turnover analysis is a key part of the overall human resources as well as people strategies of an organization. Having said that, what actually is this analysis all about.
Firstly, an effective employee turnover analysis system tracks reasons why employees are leaving. Typical reasons are salary and wages, too much pressure, no proper policies and procedures, bad bosses and colleagues, lack of training etc., For instance, if you discover that your employees are leaving because of a below par remuneration package, it can turn fatal for the business. A regular feedback system from employees through Employee Opinion Surveys and a Competition Market analysis of salaries are two methods to regularly address this.
Secondly, an effective employee turnover analysis system tracks which levels of employees are leaving. For example, are employees in supervisory positions leaving or in rank and file levels or the managerial level? Turnover experienced in each of these levels bring with them their own set of problems. Moreover, turnover noticed in supervisory or managerial levels may indicate more serious problems like lack of a proper set of policies and guidelines or even service philosophy.
Lastly, a good employee turnover analysis tracks the destination of employees leaving. For example, are employees leaving to join the competition? This can prove disastrous for a hotel property since this might mean ultimately that the guests also could be poached.
The Secret of keeping guests happy
There is a saying in the hospitality industry that the best way to keep your guests happy is to keep your employees happy who in turn will ensure that the guests are kept delighted too.
What are your thoughts and views on the Employee Turnover in this post?
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Employee Turnover analysis is a powerful operational analysis tool which can very well mean the continued existence of a profitable business.
