Forward thinking companies understand that engaged employees are created, not recruited. And that it's the company's job to engage employees. More hospitality companies are making their businesses more efficient, more attractive, and more profitable through new approaches to employee surveys.
In part one of this two-part post we discussed how copying competitors and replacing CEOs to improve profitability have fallen short. We explored the competitive advantage that others have discovered – employee crowd sourcing. This post focuses on the importance of employee engagement programs, and how companies like Tropicana and Joi de Vivre leverage their own employees to find new opportunities for growth.
In the old days, soliciting feedback from employees meant putting a box marked "suggestions" next to the water cooler. Although the idea is the same, new technologies to engage more people in the process, and new approaches that pinpoint the key issues impacting employee morale and productivity, are encouraging more best-in-class employers to use employee opinion surveys to generate positive changes from within.
For example, several years ago Tropicana Las Vegas was slated to be torn down. Four changes in ownership had left the property in disrepair and bankruptcy. Employee motivation was also at an all-time low, negatively impacting the guest experience. By measuring employee engagement, and specific sources of frustration, management was able to address root causes of employee dissatisfaction and begin building a strong service culture. Today, Tropicana's employee enthusiasm has become a hallmark of the Tropicana experience, and a key driver of guest satisfaction. You can read more about the Tropicana case here.
Another company, Joie de Vivre, has used employee surveys to substantially impact their business. By linking employee satisfaction data with guest feedback, Joie de Vivre discovered one critical factor that moved the guest feedback needle more dramatically than any other. When performed well, it drove guest satisfaction up, and when performed poorly drove guest satisfaction down. Joie de Vivre's culture, powered by its employees' ‘can-do attitude,' has been the greatest impact on guest satisfaction and loyalty.
Because they know which levers drive employee engagement and customer loyalty, they have also been able to accurately calculate the business value of their culture. By increasing employee commitment and strengthening guest loyalty, Joie de Vivre determined their unique culture contributes more than $14m to the bottom line each year. The complete case study is available here.
Both Tropicana and Joie de Vivre discovered that the fastest way to improve customer satisfaction and business performance is to engage employees. Outmaneuvering competition in the hospitality industry requires both innovation in processes to improve service productivity and innovation in offerings to increase revenue.
Source: Market Metrix
About the author
Dr. Jonathan Barsky is Co-Founder and Chief Research Officer of Market Metrix, as well as a professor of marketing at University of San Francisco's School of Business and Management.
