How the Hospitality Industry can overcome Unprecedented Recruitment Challenges in 2022!

Close your eyes and go back to the times you’ve opened resignation emails from your most productive bunch. Remember those specific instances and try to recall the emotion that first cropped up. No, this isn’t a guided meditation. But, your trip down memory lane will lead to some conclusive revelations about you and your company’s talent retention ideologies.

Understanding your Attrition Control Strategy

Assuming it was your top performer who decided to call it quits. Yes, the same one who shouldered the team’s targets and ensured KPIs got met by averaging the team’s productivity at acceptable thresholds. What is your instant reaction? Do you:

1. Counter their new proposed remuneration till you get a favorable outcome?

2. Entice them with a role or designation swap?

3. Treat them like a traitor with poor work ethics and/or arrange for a loyalty convention program?

4. Respect their decision and let them know their contribution will be cherished?

What’s your Retention Strategy?

So, what did you choose? Would you snoop around precariously to figure out the benefits of their new offer letter? What's important to them and which of their priorities are being addressed by their desire to switch? If it's all about better pay, did it occur to you that maybe you should top that? If they want more flexibility such as work timings, shifts, or location-wise, are you willing to offer suitable options? Or maybe you could arrange for internal projects and upskilling programs that will enlarge their professional portfolio and quench their thirst for noteworthy experience. Or perhaps it's time to show them who's more powerful, the organization and the management or the ones serving at the organization? Connivingly put them on a guilt trip regarding dedication and loyalty, maybe? How about introducing a loyalty bonus for top-performing employees?

Sure, you have a plethora of other options too. But, these would have been the most likely ones. There's no wrong answer so please be as honest as possible when you introspect. It's normal and sane to wish your effective workforce stays with you. There is productivity-based loss, time-related losses, and you also have to factor in the costs of hiring and training newly onboarded employees to desired levels of competency. Yes, a big fat loss is lurking over the horizon! So, there's nothing wrong with wanting them to stay. Talent retention and attrition control are vital to an organization’s sustenance and growth. But, if you react in a way that upholds their dignity and respects their decision after previously exhausting the other options, you're probably a Type 1 company.

Type 2 organizations tend to make decisions based solely on the effect on their organization. Bottom line and the company matter alone. Nothing else matters. Jobs get done by hook or by crook. But, if your answer was option 4, you’re a Type 1 organization. Type 1 organizations understand the value human capital brings in and prioritizes employees. They craft policies and workflows while considering the well-being of their employees. They're not necessarily charitable institutions; it's just that they realize the competitive edge and value that skilled and proficient labor carries. Not just that, they act upon that realization and proactively formulate employee retention strategies to hold on to their competent staff.

Also Read: Negative Attitude in the workplace? Effective HR Solutions That Work!

Effective Employee Retention and Attrition Control Strategies

So, back to the example we began with, why would Type 1 companies do nothing significant and let their staff walk away? The answer is very simple. Type 1 companies pay their employees based on the prevalent market rate and their specific individual market value. Unlike most companies that offer compensation based on what a professional was earning in their previous organization, a Type 1 organization factors in other computable factors affecting KPIs apart from an employee’s last drawn CTC.

Every company has an appraisal limit. This usually averages around 10-20%. But, the hiring policy allows for an increment varying from 30% to a steep 100% hike. Instead of being rigid about these policies, Type 1 companies factor in productivity and profitability-based values that individual employees bring in. This keeps the workforce highly motivated, engaged, and loyal to the company. Employees understand although they're working for a salary, that salary is based on their potency and contribution, and their company values their efforts proportionately. If any employee still finds a reason to leave the organization, Type 1 management must move past talent retention and respect that decision.

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