Top Ways to Boost Employee Satisfaction in the Hospitality Industry

For hospitality-based businesses, positive guest experiences are the key to success. And in the hospitality industry at large, employees — both customer-facing and those who work behind the scenes — are primarily responsible for providing these experiences. Because of this, it’s incredibly important to also ensure that the experience that you provide for your employees is one that keeps them happy and engaged.

Why Is Employee Satisfaction Important in the Hospitality Industry?

To illustrate just how crucial employees’ workplace experience is, Slack’s The State of Work survey for 2023 found that for 82% of respondents, feeling happy and engaged at work was a driving force behind their productivity. Furthermore, in hotels specifically, satisfied employees contribute to a 12% increase in profitability, and properties with an engaged workforce see 24% less turnover.

The benefits of employee satisfaction in the hospitality industry are clear — when teams are satisfied in their roles and with their work environment, they are more likely to contribute to your business’s success through increased productivity, loyalty, and engagement.

Evaluating Employee Satisfaction

Recognizing the importance of employee satisfaction is only the first step in creating a positive work environment. The next item on the list is to get a sense of your employees’ current satisfaction levels. This way, you can come up with targeted initiatives and implement any changes needed to improve morale.

To accurately gauge your staff’s happiness, any (or if you’re feeling ambitious, all) of the following methods can give you the information you need:

• Distributing anonymous employee satisfaction surveys — When sent out on a regular basis (annually or quarterly, for example), it becomes easier to track changes in the data you collect and assess whether any improvement measures you’ve enacted are working.
• Holding full staff meetings or 1:1 check-ins with direct reports — Giving employees an opportunity to share their perspectives face-to-face is a great way to foster a culture of transparency while also hearing unfiltered feedback. However, keep in mind that some employees may feel uncomfortable sharing their opinions within a larger group.
• Setting up feedback or suggestion boxes — These can take the form of a physical box or an online portal and provide your employees with an opportunity to share their insights in real time. Providing an outlet for off-the-cuff feedback ensures that individuals can express their opinions as they come to mind, reducing the chances that they’ll forget to share them at a future 1:1, staff meeting, or via the next survey.

• Paying close attention to turnover trends — No matter what kind of business you run, some turnover is to be expected. However, if you notice an increase in staff leaving for other opportunities, it may indicate dissatisfaction at work. Take advantage of exit interviews to gain insight into outgoing employees’ reasons for moving on.
• Monitoring websites like Glassdoor and Indeed — Sometimes, employees feel more comfortable sharing their honest opinions about their experiences at work through a third-party medium. Workplace review websites like these are filled with valuable feedback, so it’s worthwhile to periodically take a look at what employees have to say about working at your business.
• Tracking productivity — Since happy employees tend to be more productive than their unsatisfied counterparts, productivity metrics (such as absenteeism, quality of service, and customer satisfaction reviews), can be a good indicator of overall contentment.

Boosting Employee Satisfaction: 8 Techniques To Use

Once you have the insights from your employee satisfaction evaluations, you can begin to implement changes that will foster a positive working environment. Looking for ideas? These eight techniques are a good starting point:

1. Encourage open and honest communication to build trust and a rapport between your employees and management team.
2. Offer recognition and rewards (think more along the lines of bonuses or extra time off instead of pizza parties), which can increase motivation.
3. Working within a heavily tip-reliant industry, many hospitality staff rely on their gratuities to make ends meet. Implementing an automated gratuity management system ensures that all tips are earned and distributed accurately, while reducing the effort needed from managers. It also provides tipped employees greater visibility into the management of their earnings.
4. Enable contactless tipping, which means flexibility and ease for guests, real-time payouts, and increased tip amounts for staff members.
5. Provide training and development opportunities, which shows your employees that you value their professional growth, encouraging them to stay with your company for the longterm.
6. Promote a culture of support by providing employees with the tools and resources they need to to make their jobs easier and more enjoyable.
7. Prioritize a healthy work-life balance with flexible schedules, respecting employee availability, and sufficient paid time off.
8. Give your employees an opportunity to take ownership over their work by encouraging autonomy. Setting clear expectations and goals, encouraging independent decision making, and providing actionable feedback go a long way toward helping staff members feel invested in their roles.

Ready To Improve Employee Satisfaction at Your Hospitality Business?

One way you can start improving the employee experience at your property is by automating processes like gratuity management. Tips+Gratuities from Evention helps you demonstrate your commitment to transparency and fairness, ultimately building trust with your tipped employees by facilitating accurate and timely payouts. To learn more about what automated gratuity management can do for your business, download your copy of our free eBook “The Win-Win of Automation” today.