Retention in the Hospitality Industry

Retention Retention Retention

Some numbers for you:
Cost to recruit and train one mid level manager 10K - 14K
Time to find and train on average 6 months
Current turnover average in the industry 40%

I hear from clients and contacts in the industry often about the difficuties and costs when it comes to keeping quality people, especially of late. While I have a distrinct advantage in targeting candidates in the market, it's up to the client to implement methods to retain that person. It's a real crisis in the Western Canada market right now and I don't see it getting better any time soon. You needent think you're alone in this increasingly difficult task of retaining people. Everyone in the hospitality industry feels the impact of the exodus of front-line staff and management to Oil in Alberta. BC is affected by this and is also not all that far behind with 2010 only 2 years away. So what does it take to minimilzie the impact?

As much as it seems to have come down to money, money money, the companies that are succeeding in winning over quality candidates and keeping them on board are using a few methods, including money, and are continiously seeking out alternatives to keep people.
The approaches that I see working are comprehensive and target these goals: attract, challenge, and compensate.

I don't really need to say you'll attract greater candidates using an industry focussed recruiter, right? Attract the best candidates by putting effort into presenting your company in the most favorable light possible. This is not always accomplished with a job advertisement and job fairs but they certainly make a first impression for good or bad, so take the time to explain the position and the company culture. Too many people don't consider just how much appearances mean to candidates. They want to be valued and that is first demonstrated with your putting the effort into presenting the opportunity and company well in print, web and in person.

Once you've got their attention, they will likely be thinking, "How can this company can help me build on my work experiences". For those who didn't get the memo, IT'S AN EMPLOYEES MARKET! And the candidates know the tide has turned and they're in the driver's seat. The pros and cons of that and how to deal with it may be a future topic. Most candidates I've spoken with over the years want to develop and be challenged in their work and this comes across as the number one priority above all other concerns. This is especially true with the younger workers just coming up the career ladder. The point is, you must have either a succession plan for the position to put forward or be offering a position somehow beyond their current scope.

Compensation. It's really not going to work to continue to say, "We want people who don't value money over all else". I've heard this more than a few times, but would you work for 30K? At the end of the day, we all look for a good compensation package - and yes - the fair, good and excellent candidates all consider this before taking a position. And rightly so. Anyone who thinks they don't have to respond to the increasing salary ranges the industry demands will have difficulty attracting, and most certainly retaining, great people.

Consider again the time and cost to get a new person on board along with the turnover rate in the indstry as noted above. Is it clear that those who succeed in targeting and retaining the best candidates are paying attention to how they attract, challenge and compensate people? It is to me, I've seen it working.

Happy hunting,
Colleen