Best practices for operational excellence in hotels

Hotel leaders are under great pressure right now. With turnover rates soaring at 40.7% and the rising costs of recruiting and training new employees placing additional strain on already tight margins, the challenges are clear.

Now more than ever, hoteliers must carefully review their operational processes, identify inefficiencies, streamline operations, and explore possible ways to automate tasks.

In this blog

Tackling operational costs through smart workforce management

Cultivating a culture of engagement and retention

Investing in employee development for long-term loyalty

Conclusion and key takeaways

Tackling operational costs through smart workforce management

According to market research firm IDC, companies lose 20 to 30 percent of revenue annually due to operational inefficiencies. One major contributor to operational inefficiencies is poor workforce management. Manual scheduling, inefficient labour allocation, and high turnover rates all contribute to increased costs.

Want to save on these costs? Never underestimate the power of workforce management. It’s all about finding that sweet spot between having just enough hands on deck to deliver stellar service, without tipping the scales into the overstaffing territory. And, companies must avoid running so lean that service takes a hit or they risk non-compliance with employment law regulations, which can lead to costly penalties and fines.

Smart workforce management strategies can address the above issues effectively. For example, scheduling staff based on forecasted occupancy can prevent both overstaffing and understaffing, resulting in optimal service levels without excessive labour costs.

Ensuring that you are scheduling staff with UK employment laws, regulations, and correct pay rates in mind can also help avoid potential compliance issues that could result in financial penalties. 

In the fiercely competitive hotel industry, where margins are tight, and success depends on providing top-notch service while keeping costs low, workforce management can be a game-changer.

With a smart workforce management system, you can easily create schedules based on your specific needs and requirements, while also taking into consideration factors like employee availability, skills, and preferences.

Cultivating a culture of engagement and retention

Did you know that the average cost of employee turnover is £30,614 per employee? This is a staggering figure, and one that should not be ignored.

In the hotel industry, where staff turnover rates are typically high, losing employees can significantly impact operational costs. Not to mention the negative effects of frequent turnover on service quality and guest satisfaction.

So, how can hotels improve employee retention? One effective way is by cultivating a culture of engagement. Employee engagement is not merely a buzzword – it’s a strategic approach that can significantly reduce turnover rates and the associated costs.

The engagement level of each employee directly impacts guest experiences and, by extension, the bottom line. It revolves around principles such as:

• Open communication – where employees feel heard and valued
• Regular feedback – ensuring continuous improvement and growth
• Recognition – acknowledging achievements and fostering a sense of accomplishment

These principles contribute to a work environment where employees are motivated, satisfied, and more likely to stay.

Technology can further enhance engagement in meaningful ways, such as enabling real-time communication. See, everything is done through the power of smart mobile phones these days. Every single one of your employees will hold one – so there is no better way than to engage them on a mobile device.

By giving employees the ability to access their working schedules, the company’s communications channels, and employee engagement surveys all through the convenience of their mobile device, you are both demonstrating your commitment to them and facilitating a more connected workforce – which is essential to employee retention.

Investing in employee development for long-term loyalty

Research highlights that a lack of perceived development opportunities is one of the contributing factors to why people leave the hospitality industry. 

The hotel industry is known for its fast-paced environment, and employees often see it as a stepping stone to other careers. However, by investing in employee development, hotels can change this perception and foster long-term loyalty among staff.

Training, career advancement opportunities, and personal growth programs show that the organisation values its employees and their future. Empower them to take ownership of their careers by offering a solution that allows them to track their career path and development plan in real time.

Not only does this demonstrate a commitment to employee growth and well-being, but it can also lead to higher levels of productivity, engagement, and job satisfaction.

You can also take the opportunity to upskill your workforce to ensure internal mobility when the need for certain skills is high, but the supply is low. For instance, cross-training employees in different departments can help fill gaps and maintain service levels during busy periods or when staff are absent.

Investing in employee development is an investment in the future of your hotel. By providing employees with opportunities to grow and develop, you are not only retaining top talent, but also creating a more skilled and adaptable workforce that can drive the success of your business for years to come.

The best results happen when your systems talk

Now, it may seem manageable enough, having separate systems that take care of your workforce planning, engage your staff, and invest in their development. But the real magic happens when these systems are integrated, allowing for seamless communication, data sharing, and decision-making.

For example, a smart workforce management system integrated with an employee engagement platform can provide insights into the teams or shifts with the highest engagement levels. This information can create staff rotas that further promote employee engagement and satisfaction. It can also identify areas lacking engagement, allowing managers to proactively address issues before they escalate.

Similarly, an integrated workforce management and learning management system can help identify skills gaps within the organisation and tailor training programs accordingly. This not only improves employee development but also ensures a more skilled and efficient workforce that allows for internal mobility when the need arises.

In today’s technology-driven world, siloed systems are simply not enough to manage a successful hotel operation. Investing in integrated solutions that work seamlessly together is key to achieving optimal results and driving long-term success.

Key takeaways

• Hotel leaders face high turnover rates (40.7%) and rising recruitment costs, making operational efficiency critical.
• Optimising staffing levels with WFM software reduces labour costs, whilst helping to maintaining high service standards.
• Investing in career growth and upskilling enables internal mobility, keeping operations flexible and cost-effective.
• Integrating your WFM, engagement, and learning systems enables seamless operations and better decision-making.

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