Overcoming the Two Most Pervasive Challenges in Hospitality: Hiring and Turnover
- By Harri Insider Team | May 16, 2024
In a recent episode of “HRTechTalks,” Quincy Valencia, Harri’s SVP of Innovation, unveiled fresh perspectives on how technology can redefine workforce management in hospitality— where every interaction counts and each moment on the floor is critical for operational success. With a background rich in shaping strategies for talent acquisition and management, Quincy’s insights are drawn from deep industry engagement and a forward-thinking approach to solving core challenges like hiring and turnover.
Meet Quincy Valencia, Senior Vice President, Innovation, Harri
“The pandemic showed us these frontline workers really do drive our economy and they’re often unrecognized and under-represented and the businesses that employ them are left floundering. I joined Harri, an organization that focuses on those businesses that really are driving our economy and the people that work there.”
Simplify the Hiring Process with Integrated Technology
The hiring process in hospitality can often be a gateway or a barrier.
“When the process, technology, interview, and the hiring is overly complex or it takes too long, your candidates will abandon you,” Quincy shared. “They will go down the road to somebody who makes it easier. It really is quite that simple and yet, if you go and apply for one of these jobs today, the processes invariably are long and complex.”
This scenario places a double burden on hospitality operators. Not only do complex hiring processes deter potential candidates, but they also consume precious time that hiring managers could otherwise spend on the floor, directly impacting operations. Every minute a hiring manager spends away from operational activities represents a missed opportunity to enhance guest experience and, ultimately, revenue.
Harri’s integrated technology suite addresses these challenges by streamlining the entire recruitment process and making it easy to communicate with candidates. By simplifying how job postings are created, applications are processed, and candidates are interviewed, Harri empowers managers to invest more time in what truly matters: delivering exceptional guest service.
Understanding Turnover and Retention in Hospitality
Employee turnover, which can range from 130 to 150%, is the single most prevalent problem for operators. It’s not only costly and time-consuming to find the right candidate, but the stark reality is that up to half of all hires may leave before hitting the 90-day mark, often before becoming fully productive. This results in a net loss for businesses after investing significant resources in their onboarding.
Interestingly, the main reasons employees leave aren’t necessarily related to pay, as might be commonly assumed—since compensation is often comparable across the board. Instead, issues such as unsuitable schedules, not receiving the expected hours, or poor relationships with managers are significant factors. Employees need to feel heard and valued, and their engagement is closely tied to how well these expectations are met.
Leveraging Technology for Enhanced Communication and Feedback
To address these concerns, Quincy recommends offering employees a forum to safely express their dissatisfaction and interact positively with management. However, the challenge lies in the availability of such forums and the technology to facilitate timely feedback. Traditional methods like annual surveys, which may take months to act upon, are no longer sufficient.
Erosion of workplace trust can significantly impact employee satisfaction and retention. Often, employees have concerns they wish to express but find it challenging to reach or receive timely responses from their managers. To bridge this gap, implementing a structured system for data collection is important.
Harri leverages the routine interaction of clocking in and out to gather feedback efficiently. This process begins at the time clock, where initial engagement occurs, and is seamlessly continued through Harri’s communications portal. This portal is part of the app used for various other functions, such as viewing pay stubs, ensuring that employees can provide detailed feedback without significant disruption to their workday.
Moreover, by analyzing interactions and feedback data collected, patterns that could lead to turnover can be detected early. For instance, after implementing a structured feedback system, one Harri client saw the rate of terminations within the first 90 days drop dramatically from 68% to 19%.
This approach underscores the importance of collecting data but also acting on it effectively. Gathering vast amounts of information is futile unless it is meticulously analyzed and distilled into actionable insights tailored to specific needs. The effort invested in data collection directly contributes to resolving the core issues affecting employee retention and compliance, ultimately safeguarding against potential financial and reputational damages from non-compliance and high turnover rates.
Streamlining recruitment and enhancing communication are essential steps towards building a vibrant and engaged hospitality team. With the right tools, the entire experience from hiring to daily operations transforms, creating an environment where every employee thrives and directly contributes toward a better guest experience and higher sales.
Discover Harri’s solutions for turning these insights into action and mastering your turnover and retention challenges.
