Given the uncertain economic climate, it would be easy to understand why the first inclination of owners would be to scale back spending in a bid to stay in the black. While a variety of creative measures can be instituted to cut costs, retaining good staff is one investment that should not be compromised. Simply put, investing in good employees translates to good economic sense.
The cost of turnover of a single frontline staff member can be as high as six months of salary when you consider loss of sales, productivity and the cost of recruitment and training. Additionally, keeping good people prevents them from joining the competition, and helps you to build a brand through word of mouth, subsequently attracting even more top talent. The following tried and true strategies will help you weather the economic rollercoaster.
Hire the Right People
Sometimes, the most obvious strategies are the most effective. The best retention plan begins with hiring the right staff in the first place. Screen your candidates carefully to ensure that they possess not only the right skills, but also the right attitude. Making sure that your new team members mesh well with current employees will result in a harmonious transition. Furthermore, creating a management team composed of good leaders and effective supervisors will help pave the way for new hires. Mistreatment from management is a surefire way to lose great staff. Look for managers who have the attention to detail and organizational skills required for day-to-day operations, but who also inspire and motivate employees to perform well.
Engage Them
Understanding the foundation of a great working environment is crucial for employee retention. Basic must-haves include strong in-house policies for responsible beverage serving, while ensuring that your staff members have both the physical and psychological tools they need to perform at their best. This means investing in tangibles, such as equipment, and intangibles, like training and skill enhancement opportunities. It is also important to remember that the components of a great working environment are likely to change over time.
For example, today’s workers are eager to improve their knowledge and become more well-rounded employees. To facilitate this goal, you might consider taking your staff to a product trial session, registering them for industry conferences or providing subsidies for out-of-house training. By offering your staff the opportunity to grow, you will find management-caliber employees within your team who can be promoted, and you will ensure that your staff members enjoy a sense of fulfillment. To round out the employee experience, invite your staff to become invested in your success.
Engage your employees by communicating business performance to them and seeking their thoughts on decisions that have a direct impact on their work, including shift schedules and company policies. Get to know your staff and learn about their extracurricular interests and family lives – you will be more aware of their diverse needs and be open to accommodate them. Encourage your staff to put forth creative ideas and solutions to help you run the business, such as how to boost sales during the current economic downturn. If they realize that their contribution to the success of the business continues even after their shift has ended, they will be more motivated on their job.
Recognize and Reward Them
Even though you may understand the depth and complexity of your compensation package, your staff members might not look beyond their weekly pay cheque. Make sure that you communicate to your staff what their total remuneration includes: wages, benefits, gratuity etc. For example, if, on top of an hourly wage of $10 the benefits package you offer costs the equivalent of an additional $5, be sure to let your staff know that their total compensation is $15 per hour, not $10. Also consider extending your benefit package to part-time staff, rather than offering it exclusively to full-time workers.
In addition to working solely for hard-earned dollars, staff also come to work in order to gain a sense of pride in their accomplishments. To fulfill this unspoken need, be sure to offer recognition and rewards to help create enthusiasm in the workplace. While the resources available vary, consider gift certificates, trial promotions, plaques, extra time off or trips for those staff members who consistently outperform. By getting to know your staff, you will come to learn what motivates each individual employee – a ski pass, a day off with family, or a dinner out. And don’t forget, above all else, a simple “thank you” often goes a long way. Remember to be generous with your praise; after all it does not cost you a penny.
Suzanne Westover is writing for go2 – The resource for people in Tourism. For more information on using human resources to improve your business’ bottom line visit www.go2hr.ca.
Reprinted from the Spring 2009 issue of the Publican magazine with permission from EMC Publications.
