As a manager of a hospitality operation what are your greatest fears, or worries on a daily basis? Is it turnover and not having enough people to operate your establishment effectively? Is it cost management and the balance of expenses needed to run your property? Is it service and what appears to be a decline around the industry in service standards and expectations? Or, is it sales and revenue generation and how to meet and exceed budgets and forecasts? 

There are many fears that managers and leaders face on a daily basis. There is, however, one solution that is common to each of the following questions:

• How can you reduce turnover?
• How can you control costs more effectively?
• How can you improve service?
• How can you increase sales?

The answer is not new. The answer is not revolutionary. The answer is:  TRAINING!

How Can You Reduce Turnover?

TRAINING! Training requires the communication of information and the development of skills. When employees are comfortable and confident in their jobs, and they can perform at or above standards consistently, they will stay longer on the job.

Numerous studies show how much it costs to replace an employee. There are separation costs (administrative functions related to termination, severance pay, and increased unemployment compensation), vacancy costs (overtime pay for other employees completing the tasks of a vacant position), and replacement costs (recruiting, management time for interviews for example). By training our employees effectively, they will be employed for longer periods of time. This equates to lower human resource costs, management freedom to deal with other issues and operational concerns, and improved employee morale.

How Can You Control Costs More Effectively?

TRAINING! Effective training means employees are performing their duties correctly and efficiently. They will know what supplies to use, when to use them, and how to make fewer mistakes. When procedures are followed, costs are minimized as waste is reduced.

For example, a line cook in a restaurant must know what ingredients to use and how much of it to use. If not trained properly, the excessive waste will occur - either too much of one ingredient will be used or the menu item will be made poorly and discarded by the server, or possibly returned by the guest. In both cases, waste has occurred. In both cases, effective training would have prevented the waste and costs would not have increased.

In housekeeping, the same principles apply. If a housekeeper is not trained properly on how to clean a room, it will take longer to clean the rooms and fewer rooms will be cleaned. More labor dollars will be expended to clean the rooms. Or, if not trained properly, the cleaning solutions may be mixed improperly resulting in more chemicals being purchased. Effective training allows for rooms to be cleaned to standard, an adequate number of rooms to be cleaned per room attendant, and the correct amount of supplies to be used in the process. Whether it is labor expense or supplies, training can help control costs effectively.

How Can You Improve Service?

TRAINING! When employees know how to perform their duties correctly, service standards can be achieved and exceeded. Employees can be trained on how to greet guests, serve guests, solve problems for guests, and interact with guests. Every employee in your organization may come into contact with guests and should be trained to handle an interaction appropriately. Great guest service requires training.

Employees need to know proper service procedures so consistent experiences are provided to all guests. Employees must be trained not to discriminate between guests for any reasons. Do you have a standard greeting for those who answer the phone? Are employees empowered to know how to solve problems? Do they know and understand the steps in solving a guest complaint? Most service problems that occur in restaurants or hotels could be avoided through proper training.

How Can You Increase Sales?

TRAINING! Every employee should be a part of your marketing effort. In the SHM/Innovision training program "Four Walls Marketing," we show how every employee, from the front desk to housekeeping and engineering, contributes to the marketing and sales effort of a hotel.

Front desk employees and reservation agents need to be trained on how to effectively upsell a room. By doing so, a greater ADR can be achieved. Servers need to be trained on suggestive selling techniques by encouraging patrons to order more profitable menu items. By selling appetizers, desserts, and even additional beverages, average checks will increase resulting in more money for the server and the restaurant.

If your organization is larger, cross-selling other revenue centers is a must! Does your restaurant have a gift shop or store where guests can purchase items? Are guests encouraged and invited to take something home? In a hotel, are employees trained in how to sell the property's revenue centers: restaurants, bars, activity centers, and services. When guests leave your property, so does their potential for spending money with your organization.

Training clearly can increase sales and improve profits for any organization.

Reduce Your Fears

How can you solve your problems?  How can you reduce your management fears? The answer is TRAINING!

Questions for your consideration:

1.       Figure out how much it is costing your organization when you lose an employee. Do this as a team. Calculate the cost of turnover for your organization.

2.       Determine, with the assistance of your team, the greatest areas of waste or potential waste. Analyze each expense and then check to see if employees are properly trained in how to use the item or process. Consider supplies, energy and utilities, and operating procedures. Every saving is profit!

3.       Review each step of the guest cycle for your organization. For each moment of truth (each moment of guest contact), do employees know how to act? Do housekeepers acknowledge guests as they pass? Does the bussing staff understand their role in guest service and interaction? Are all employees trained in what to say and how to say it?

4.       Suggestive selling, upselling, and cross-selling are great ways to improve profits. Examine your opportunities for each and train employees on how to become great revenue generators. Don't let the money leave when the guest leaves.

Chris Longstreet is President & CEO of the Society for Hospitality Management.  He also serves as a visiting instructor for the Hospitality & Tourism Management Program at Grand Valley State University. 

For more information, visit the SHM website at www.hospitalitysociety.org or contact Chris at clongstreet@hospitalitysociety.org.

For a free subscription to the SHM Training Bulletin, visit www.hospitalitysociety.org or email info@hospitalitysociety.org.

© Society for Hospitality Management, April 2005