Turnover is typical in the hotel and restaurant industry. Many managers and executives don’t give it a second thought. It’s merely the cost of doing business. But this can be an expensive mistake. Those who leave the company are more likely to be among the top performers. Why?
Top performers have more options
They are desired by other companies who are happy to add them to staff or could even recruit them away. Top performers tend to go to companies with a better perception of the marketplace. They leave when they feel underappreciated or to work with other top performers. When they are putting forth their best effort, they may resent being surrounded by those with lackadaisical attitudes, especially if their efforts go unrewarded. Worst of all, if you lose a top performer, you are likely to lose them to a competitor – a double whammy.
Losing them has an impact
If you want executives to understand the impact the loss of top performers has on your business, show them the numbers. For executives, specific data will often speak louder than general ideas or impressions about what’s going on in the company or marketplace.
Share data, costs, and statistics
Point out how your company is faring against the competition, particularly those willing to invest in top employees. Provide data on the number and quality of people you are losing and where they went. Discuss the real cost of replacing the employee, including sharing the work among remaining employees and recruiting and training a replacement.
Speak to executives in dollars and cents, so they understand the value of what they’re losing:
- According to Bill Gates, superstars perform at a rate 100 times that of the average employee.
- On average, 47% of high-performing employees left their company last year.
- 90% percent or more of the value on your teams comes from the top 10%
Mention intangibles as well
While executives often focus on hard data, remind them of other factors as well. For example, top performers are often leaders as well, so their loss may be felt in a drop in morale or a team that feels rudderless.
Partner with a Specialized Hospitality Recruiter
Need help attracting or retaining top performers? At Horizon Hospitality, we are experts in recruiting top hotel and restaurant managers and executives. Contact our hospitality recruiters today to learn more.