Employee Engagement and Six Critical Strategies for the Hospitality Industry

Employee engagement is important in any industry, but it is vital in the people business of the hospitality industry. It directly affects guest satisfaction, employee retention, and overall business success.

This article will explore the significance of employee engagement and its impact on various business aspects. We will also outline strategies for improving employee engagement and discuss common challenges the hospitality industry faces. HospitalityLeadership.coach aims to provide valuable information to help hospitality leaders and drive better business results.

Employee engagement refers to an employee's investment and commitment to their job and the organization for which they work. Engaged employees strongly connect to their job and the company, increasing job satisfaction, motivation, and a sense of purpose.

Employee engagement is particularly critical in the hospitality industry as it impacts the guest experience. Happy and engaged employees are more likely to deliver exceptional service, resulting in higher guest satisfaction, repeat business, and positive word-of-mouth recommendations. Furthermore, engaged employees are less likely to leave their jobs, reducing the organization's turnover costs and training expenses.

In essence, employee engagement is a crucial factor in determining the success of a hospitality business. A company with engaged employees can provide better service to guests and maintain a stable workforce, leading to increased profitability and success.

The impact of employee dis-engagement on the hospitality industry is substantial and far-reaching, including:

Low guest satisfaction: This cannot be understated. Engaged employees are more likely to provide exceptional service, resulting in higher guest satisfaction. Period. As we know, this is the most important aspect to drive repeat business and positive word-of-mouth recommendations, helping grow the business. We all have experienced the disengaged server, or the manager that hangs out in the back office.

Reduced employee retention: Engaged employees are more likely to stay with an organization for extended periods, reducing turnover and related training expenses. This leads to a more stable workforce and lower employee-related costs for the company. Most importantly in this post-Covid environment, we are seeing that it’s easier to keep the current staff than find new ones. Supervisors and front-line staff are can be subject to dis-engagement.

Productivity and profitability loss: Engaged staff is more attentive and productive, resulting in increased efficiency and profitability for the organization. They take care of guests. See issues before they happen. They worry about their leadership’s initiatives. Even cost controls are watched in ways that disengaged employees could seem to care less about.

Poor Reputation management: The reputation of a hospitality business is almost wholly influenced by employees that face the guest. You can have the best training in the industry, but if the staff member doesn’t care, it does not matter. Guests are more likely to have positive experiences and recommend hotels and restaurants with engaged employees, helping to enhance the organization's reputation.

The specific challenges to staff engagement in the hospitality industry:

Despite the clear benefits of employee engagement, achieving it in the hospitality industry can take time and effort that some leaders may unconsciously feel as though they don’t have the space for it in their day.

Higher turnover rates: The hospitality industry often experiences high turnover, making building a stable and engaged workforce challenging. The loss of a newly hired and promising server, sous chef, or front desk agent can feel demotivating to the department supervisor.

Seasonal fluctuations: Seasonal business changes can lead employees to feel overworked or underutilized, reducing engagement. And with the mediocre labor pool available, the supervisors have another reason not to work with existing staff to promote engagement.

Low pay and limited benefits: The hospitality industry is known for low income and limited benefits, which can contribute to low employee engagement. We have all heard the stories that “across the street, they are offering X dollars per hour more.” Maybe you have even tried to pay more, but we know that money doesn’t buy happiness (or engagement.) Money can oftentimes get staff in the door, but to keep them engaged, they need something else.

Burnout: The fast-paced and demanding nature of our industry has always been a cause of burnout. Especially understaffed operations where our hourly folks sometimes are working six or seven days a week. Inevitably this will lead to employee burnout, reducing engagement and increasing turnover, starting the vicious cycle again. This holds true for salaried supervisors, especially, because oftentimes there does not look like there is a light at the end of the tunnel. They do not get paid more, they just work more.

Limited professional development opportunities: Many hospitality employees need more opportunities for professional development and growth. Whether they are front-line people aspiring for more job-specific training or are looking for promotions, staff feel cared about when they are being developed. Supervisors often feel they do not have the time, if they indeed have the skill, to develop their people. (Shameless promotion… leadership coaching is an excellent and appreciated development tool!)

Lack of recognition and appreciation: Employees who do not receive regular recognition and appreciation for their hard work may become disengaged. As leaders, we need to see opportunities for recognition. Unfortunately, something that once was appreciated like coming in for an extra shift becomes normalized and the leader fails to show appreciation.

By recognizing these challenges in your operation, you can take action to address them. This can lead to a more motivated and dedicated workforce. But how do you do it?

Six Critical Strategies for Success:

We can see a hotel or restaurant’s success depends on its employees' engagement and motivation. To ensure high levels of employee engagement, leaders in the hospitality industry must make a deliberate and consistent effort.

Here are some proven strategies to improve employee engagement:

Professional Development: Offer employees opportunities for professional growth and development. This enhances job satisfaction and engagement. Be creative! Cookie-cutter programs might work for newer employees but established staff have different needs. Find out what your people want. Talk to them. Does your star front desk agent want a leadership course? Does your best server aspire to be a sommelier? Does your GM want some executive coaching?

Employee Feedback: Regularly seek and act on employee feedback to identify areas for improvement and show a commitment to engagement. Foster an open-door policy of feedback. One example of this can be done easily, with a solid appearance of caring, is to make it known a supervisor or GM will be sitting at THAT table every other Thursday from 3:00 to 4:00 PM. But it’s important to listen, keep notes and act on the feedback. Keep the staff up to date on progress if it’s a process so they know they are not being ignored.

Work-Life Balance: Create a culture that supports work-life balance and helps employees maintain it. We have for too long in our industry celebrated or even expected ridiculous amounts of hours from our people. Those operations that make this part of their philosophy in this new labor environment will win the game with staffing. This reduces burnout and increases job satisfaction. Creates goodwill with staff and promotes engagement rather than burnout. It’s hard sometimes, but not impossible. The right leaders will make this happen because it’s the right thing to do for the employee and the business.

Meaningful Work: Ensure employees have meaningful and fulfilling roles within the organization. This increases job satisfaction and engagement. Sometimes this is not possible, maybe a dishwasher or night bellman does not see their importance. But what if you could tie them into your organizations non-profit work and engagements? Giving your people an opportunity for meaningful work does not mean they need to write the strategic plan for the year. It means figuring out a way to get your people to see how much they contribute in important ways.

Recognition and Rewards: Recognize and reward employees for their hard work and contributions. This increases motivation and job satisfaction. But this has to be done right. Without a transparent program that specifically states what the superstar did, and without the right person presenting publicly, the recognition and the program could amount to a waste of time.

Communication: And the best way to get your employees engaged…TALK TO THEM! I cannot share how many of my clients feel they do not have time to engage their staff in meaningful conversation. This is not chatting with one eye on the front desk or floor. This is meaningful communication and coaching while looking the employee in the eye across from them. Encourage open and transparent communication between supervisors and employees. This builds trust, fosters a sense of belonging, and boosts transparency. Learning how to relate to your staff in a professional and personal way is a skill that will return an immeasurable ROI. This is the absolute best way to engage employees.

Employee engagement is critical for the hospitality industry, impacting customer satisfaction, employee retention, productivity and profitability, and reputation.

The common challenges to employee engagement specific to the hospitality industry listed above are not insurmountable. By addressing these challenges and implementing effective strategies such as those listed above for employee engagement, hospitality businesses can create a motivated and dedicated workforce, leading to enhanced customer satisfaction and increased success.