Hotel Risk Insights: Don’t Let Employee Turnover Cost You
A good employee is neither easy nor cheap to replace. However, some employee turnover is good and is an essential part of any business. Those who do well get promoted. Those who under-perform are let go. This type of employee movement is good for an organisation—it gets the talent in the right spots and makes room for new growth. But what happens when you start to see too much employee turnover? While not uncommon in the hotel industry, losing employees at a high rate can start to cost you.
Retaining an employee is much cheaper than hiring a new one, not only because of lost time and the cost of the hiring process, but also because new employees are inexperienced and must be trained before they can start being fully productive. With inexperience comes an increased potential for injury, which can raise the number of workplace accident claims. This can result in hefty insurance rate increases.
Cost of Turnover
Hiring processes have become increasingly complex over the years. There is a substantial amount invested in even considering an applicant for a certain position. Besides the time put in by those doing the hiring, things like criminal records checks can add to the cost of bringing on new employees. However, even though these processes slow down the progression, it is important that you hire employees who will not become liabilities for your hotel. The criminal record checks, in-depth interviews and safeguards to increase your chances of hiring a valuable employee are vital.
On the other hand, the search for suitable employees can leave positions unoccupied for a significant amount of time, causing a loss in productivity along with other general interruptions to your operations. It is important to weigh the risks of hiring a potential liability against the risks of employee shortage.
Retaining experienced hotel staff can go a long way in your cost-saving efforts. Having more experienced employees means less injuries, which can help reduce insurance rates.
Even after a new employee is hired, replacement costs may still continue. Regardless of their experience in the field, new employees must be trained in the specific requirements of the position. During this time, they will not be as productive as other employees. Since they are working in an unfamiliar environment, new employees are also at an increased risk for getting hurt at work. Jobs may present unique hazards that are unknown to the new hire, increasing the chance for an injury that will result in a workplace accident claim.
If you have productive employees who do quality work, the financial benefit of keeping them around is obvious. The key to reducing costs and keeping premiums low is hiring the right people from the start, investing money in effective training and emphasising the importance of job safety. Job satisfaction also plays a key role, so keeping employees happy will play an integral part in protecting your company’s bottom line.
Retaining an experienced staff can go a long way. Not only do you avoid hiring costs, but experienced employees allow your company to operate at a much safer level. A safer workplace means fewer injuries, which will save you money in the long run.