1. NACOG Fall tourism forum the talent challenge
Wanda M. Costen, Ph.D.
School of Hotel & Restaurant Management

2. Today’s agenda
The numbers
The cost of turnover
Retention
Millennials
Strategies
Leadership qualities
Most effective strategies

3. Hospitality industry turnover-2016
The Numbers
Hospitality industry turnover-2016
72.9%
Private sector = 46.1%
Quit rate = 53.5%
Layoffs/discharge rate = 16.7%

4. Cost of Turnover
Total cost of turnover = $5693 (low complexity) & $9932 (high complexity)
Poor labor pools mean managers spend more time trying to identify acceptable applicants.
More difficult for budget hotels to attract quality applicants.
Independent hotels T/O = $7612; Chains = $6957
Recruitment expenses & lost productivity are greatest costs.
Lost productivity accounts for 67.6% of T/O costs for high complexity jobs.
Lost productivity accounts for 55% of T/O costs for low complexity jobs.
Costs almost twice as much to replace a competent employee in a complex task, than one who has mastered simple tasks.
Turnover costs reduce when supervisors prepare for, and conduct exit interviews.
Time spent interviewing applicants lowers turnover costs.
Time spent with peers during training lowers turnover costs.

5. Management Retention
Intrinsic rewards more important than extrinsic rewards.
Challenging work & learning-oriented relationships with managers are highly valued.
Job must be interesting.
Desire opportunities to develop new skills & participate in decision-making.
Open communication
Trust one another
Actual work experience training (OJT) more valued than formal, isolated training.
Competitive salary, promotion opportunities, & medical benefits most important extrinsic rewards.
Expect organizations to provide opportunities, but ultimately accountable for their own career growth.

6. MILLENNIALS
76% want to be own boss; don’t like taking orders; need to understand the purpose for their jobs.
79% want a coach/mentor. 42% want weekly feedback.
Desire customization; limited bureaucracy & hierarchy; want to work in communities.
88% prefer to work in a collaborative environment, not competitive.
92% believe business success should be determined by more than profits.
60% indicate sense of purpose is why they work at their organization.
71% unhappy with their work-life balance.
76% desire a good relationship with their colleagues.
74% desire a fun work environment.
72% desire a good relationship with their supervisors.
Prepared for future workplace (e.g. uncertainty, complexity, digital).

7. NOW WHAT?

8. Critical Areas Personal growth & fulfillment
Develop ability to work independently, & responsibility.
Education benefits
Promotion from within
Rewards & recognition
Awards banquets, spot awards, trips, $, break times, adequate pay
Workplace relationships
Positive relationship with managers, kindness, sense of belonging, address concerns
Performance expectations
Aware of manager’s expectations & role in accomplishing organizational goals, meaningful feedback on performance, pride.

9. Effective communicator
Leadership Qualities
Team builder
Foster cohesive team climate/environment, group rewards & recognition
Empower employees
Job enrichment, provide job & leadership training, progression.
Effective communicator
Create an inclusive environment, good listener, empathetic, authentic, transparency

10. Most Effective Strategies
Communication
Open & authentic feedback, transparency, empathy.
Employee development
Intentional processes, widely communicated, follow-through on commitments.
Recruiting & selecting best talent
Identify essential KSAs; align questions with critical KSAs, core competencies, & desired outcomes.

11. Thank you! Questions? Answers?