The most recent job reports show that unemployment in the United States is at a multi-year low. Concurrently, immigration (both legal and illegal) is not growing at rates sufficient to expand the labor pool. This situation can be especially frustrating for hotels that need seasonal workers during peak periods. But now it’s eliciting anxiety because management ranks are also increasingly harder to fill with qualified candidates.

The Leaky Bucket Syndrome
Think of your labor pool as a bucket of seasoned water. Your goal is to bring the water level to the top – in other words, with all organizational chart spots filled. But if that bucket has leaks, you need to keep adding more and more fresh water, thereby diluting the team’s overall experience base.

Add too much at once, and you’ll have no one left to ensuring effective continuity and to conduct the necessary onboarding of new staffers. Adding new recruits is always a good idea but it has a hidden cost in terms of occupying other veteran employees’ time to bring them up to speed. However, as new team members bring a certain degree of optimism and different thinking to your organization, keeping them is critical so that you don’t need to waste your time constantly refilling this metaphorical bucket.

Unions
I know that most people reading this column don’t see unions as supportive of their business goals. All unions want decent worker wages and better conditions for employees, with the barometer for what’s fair continually creeping upwards.

But you should also care! This common ground forms the basis of a mutual discussion. If you are a union property, now is the time to discuss with them how to better retain employees, but within the parameters of your current employment contractual agreement, of course. While challenging, the current environment is a good time to share your vision and needs. The impact of technology should form a key component of any discussions because it is changing the way we work and how our associates think.

New Compensation Ideas Are Needed
Setting aside unions and union issues for a moment, you need to find a way to protect your employee base from being poached by competitors or even from other industries. As an operator, do the math. If it costs an additional dollar per hour to keep your hourly workers happy, what are the opposing costs of hiring and what is the impact on guest experience?

A buck an hour is roughly $2,000 per employee annually based upon a 40-hour workweek and excluding overtime. With a hundred hourly employees, that’s $200,000 annually. With benefits plus social security costs, that quickly amounts to a quarter million – not exactly chump change! Clearly eyebrows will be raised if you suggest this to ownership.

Examine the offset costs, though. I have seen hotels with a 50% annual turnover on hourly wage paid staff and I’ve heard horror stories of those closer to 100%. Imagine if the buck could reduce this by half. When all costs are weighed, would you realize onboarding savings as well as improvements in guest service?

There are other ways to look at reducing staff turnaround. If you are located where there is limited public transportation, consider a monthly gasoline allowance. Use team loyalty programs such as recognizing employees for their service and rewarding them accordingly. Gift overnight stays for employees so that they can experience the property with their families. Fund staff parties. Improve the food in the employee cafeteria. These smaller, non-wage-related initiatives can go a long way.

Remember that you’re earning a significant salary multiple over your housekeepers, valet, bellmen, dishwashers, landscapers, receptionists, line cooks, bussers and porters. Can you imagine your property running well without them? Show them that you care and they will be much more likely to stay.