Every week we comb through the news to find employment trends affecting the hospitality industry so you don’t have to. This week’s hospitality in the news topic: how to increase staff loyalty to mitigate turnover.
As seasoned experts in the employment industry, we understand the importance of fostering loyalty amongst your team. When employees are loyal to your business, it increases retention rates, improves engagement, and reduces turnover. These things have always been vital when managing a team, but their importance has grown over the last couple of years.
Before we talk about how to increase staff loyalty, we need to differentiate it from retention. Though this definition speaks to customer loyalty vs. retention, it’s helpful in understanding the key differences: “Retention is a measure of whether an existing customer continues to do business with you. Loyalty measures a customer’s predisposition to select a business entity as a preference, and indicates a certain resistance to competitors.”
Thinking about that definition in terms of workers, we can understand that retention speaks to whether an employee chooses to continue working with your business; but loyalty speaks more to how they feel about working at your business, especially over working with a competitor. Both loyalty and retention are crucial for managing your team. Here are 3 actionable ways to increase staff loyalty to mitigate turnover, particularly in the hospitality industry.
Include them in decision-making processes
One of the best ways to foster loyalty with your team is to include them in decision-making processes. This allows them to have a stake in the business without having physical ownership. It may be easier said than done to include employees in certain decision-making, especially if your orders are coming straight from corporate; but finding small ways to involve your team can help build their loyalty and show you take their opinion seriously.
If possible, consider including employees in decision-making processes like:
- Updating the menu – They know what customers like and may have vital input from interacting with them every day!
- Social media posts – Need help freshening up your company’s social media pages? Employees may be the best people to ask.
- Employee training process – What would make onboarding and training easier? They have firsthand experience.
Provide feedback and recognition
In order to be engaged, workers’ efforts need to be acknowledged by management. Sharing constructive feedback and showing recognition are two great ways to do that. When employees don’t feel appreciated by their leaders, they’re apt to go find someone who will appreciate them. As the adage goes, “people don’t leave jobs, they leave bosses.” Be the boss workers don’t want to leave by showing how invested you are in their success.
Another popular saying to remember in this situation: “Praise in public, criticize in private.” When doling out constructive criticism, do it thoughtfully and in private. Workers should be able to take this feedback and use it to improve. By praising in public, employees will get recognition for working hard and it shows their coworkers that you acknowledge a job well done.
Remember that recognition doesn’t just have to be verbal. Consider giving recognized employees a “reward” or a perk to thank them for their efforts. Small things like a free meal or $5 coffee gift card can go a long way.
Take their concerns seriously
When employees feel like their concerns aren’t being heard, they’ll look elsewhere for that need to be met – maybe with a competitor. They need a way to share their workplace concerns in a safe environment where they’ll be listened to. Not only that, but these concerns need to be acted on. Showing genuine concern for the wellbeing of your workers is impactful and will continue to build that loyalty you need.
Looking for a few extra hands? LGC has employees ready to fill in open spots on your team. Contact us today to learn more.