Glowing reviews and returning customers are universal goals in hotels around the world.

But as employee turnover continues to rise and hiring becomes increasingly unaffordable, how can hospitality maintain a gold standard of service for guests? 

This article highlights the connection between happy staff and positive guest experiences, helping you make the link between investing in employee experience and improving the reputation of your hotel.

As experts in employee experience and company culture, Mo has been working with hotels for nearly a decade to improve their engagement scores and reverse employee attrition challenges. Keep reading to learn how to implement similar strategies in your team, or speak to us directly to learn how our platform can improve your engagement scores in as little as six months.

The Connection Between Employee Experience and Customer Experience

A study by Marriott International found that businesses with higher employee engagement levels see a 22% lift in profitability and a 21% increase in productivity compared to companies with lower engagement. 

The same study noted that hotels with higher employee satisfaction scores also boasted higher guest satisfaction scores. The result? An increase in revenue per available room (RevPAR) and market share.

But the benefits of a strong employee experience program don’t end with customer satisfaction. According to a study by Gallup, businesses should expect around a 40% reduction in turnover rates, helping to mitigate other costs, such as Employer National Insurance rate hikes.

The benefits of high employee engagement in hotels.

Improving Employee Engagement

What is the secret to improving your employee engagement scores? There’s no one-size solution to low engagement, but hotels and hospitality businesses share similar problems. 

Hotels have faced high employee turnover for decades. Having worked with many successful hotels, including Hotel Indigo, Atlas Hotels Group and The Grand Brighton, we know that the right employee recognition platform can bring turnover down by 17%.

Competitive compensation is only one part of the story. Here’s a hard truth: if the difference of 50p per hour is the threshold at which your team will depart for another hotel, you need to find other meaningful benefits to keep staff happy. From another perspective, the rise in Employer National Insurance contributions will make raising salaries increasingly unaffordable. That’s where a cost-effective employee recognition platform can have a major impact on staff retention. Regular recognition has been shown to improve turnover rates, while monetary rewards can improve morale before payday. Mo makes it easy via a company app.

Everyone likes to get a notification on their phone that their GM is shouting them out for delivering great customer service.

Tom Orange Hotel Indigo Case Study Mo

Tom Orange General Manager, Hotel Indigo Durham

Workplace Culture

The impact of a positive workplace culture has numerous benefits. For example, if employees feel happy in their roles, they will be more likely to stay. Higher retention directly correlates with improved customer experience because it provides continuity of service, allowing veteran employees to guide newer staff when they join the hotel.

7 Things That Improve Workplace Culture

  1. Anti-bullying policies
  2. Diversity and inclusion hiring policies
  3. Employee safety guidelines
  4. Regular feedback surveys
  5. Ongoing management training
  6. Reward and recognition
  7. A culture of trust

Staff can feel overworked in hospitality settings and may stop turning up for shifts if they sense that flexible scheduling is beyond the scope of their role. While reliability is part of the job description, it is worth meeting employees somewhere in the middle. The world has changed since the pandemic, and staff have faced the instability of mass layoffs and closures. Approach their concerns with compassion and you will begin building an atmosphere of trust.

Employee Empowerment

Ensuring that your employees feel a sense of empowerment in their roles will instil accountability and brand loyalty across your team. Nobody wants to be micromanaged. Giving your staff a place to share positive internal communications will help them process customer feedback and strive for better outcomes. 

Mo is a platform that encourages employees to share “Moments” that matter, such as small wins or hitting end-of-quarter targets. And since it’s easy and collaborative, managers can visibly share recognition for hard work, further enhancing feelings of accountability.

Through our “Boosts” feature, your HR leaders can gather feedback from employees, incorporating their opinions into the decision-making process. Beyond fair pay and simple onboarding, staff want to feel like they are being appreciated. By ensuring that they feel heard, you can create a stronger sense of “togetherness” and improve customer service.

Measuring Employee Engagement

Your Employee Net Promoter Score (eNPS) is a barometer of how engaged your staff feel at work. Measuring engagement is important for many reasons, including mitigating any instances of “quiet quitting” and preventing employee turnover.

In a recent focus group, we surveyed our network of HR and management professionals to learn about the HR trends they considered to be the most important. We found that 50% of those we asked had participated in an Employee Engagement Survey, and 30% had organised one.

Some engagement KPIs that you should consider when polling your staff, in addition to your eNPS score, include turnover rate, absenteeism and your internal promotion rate. If any of these results raise a red flag, it might be time to consider a strategic employee engagement program.

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How to Develop Employee Experience

If you have found weaknesses in your employee engagement scores, it’s time to develop a strategy to not simply plug the gaps, but transform your company culture. As we’ve seen in all the hotels we’ve worked with, improving your employee experience will help boost customer satisfaction by enhancing team dynamics and communication.

Training and Development

Career growth is an important factor for many employees. From training programs to company-funded certifications, it pays to invest in your people. A lack of career progression will make hard-working staff seek opportunities elsewhere. And even if you take attrition out of the equation, promoting personal growth across your team will create better outcomes at work. 

Investing in learning and development doesn’t have to be complicated. And if you’re serious about creating opportunities for career progression in your team, you need to support them with the right training programs. The more confident your staff feel in their abilities to create a world-class customer experience, the better your overall company culture.

The most used experiences are those in the hotel. And that makes me really happy! That someone would take the vouchers we’ve given them and choose to come here for dinner.

Andi Fletcher on Mo Case Study for The Grand Brighton Hotel

Andi Fletcher Former Group People Director, The Grand Brighton Hotel

Reward and Recognition

For many employees, salary is no longer enough. But many hotels can’t afford to raise salaries. How can you stay competitive?

Regular rewards and recognition for hard work can transform levels of motivation in your team. When your team needs an injection of energy, Mo’s instant staff rewards give them the boost they need. A custom reward strategy empowers your managers to maintain momentum throughout the quarter, just like a fitness coach during a long workout. 

Rewards should be simple to implement. Think of them as your secret weapon during a busy season, or motivation during systemic changes. Mo supports custom rewards, such as dinner in your hotel or a visit to your on-site spa.

Transform your culture with Mo

Book a free demo to learn how Mo can help you:

  • 🤝 Improve employee engagement scores
  • 🚀 Reduce employee churn
  • 😍 Build a collaborative culture

Mo Improves Employee Experience in Hotels

If you’re looking for ways to move the dial on employee engagement and retention in your hotel, take a look at our playbook on Strategies to Retain Talent, Cut Costs and Drive Guest Satisfaction. Or to see how Mo can help hospitality teams like yours build better bonds, accountability and a culture of celebrating value, check out our case studies.

Mo is employee recognition software that brings teams together to drive real improvement in engagement scores while reducing staff turnover. We strategically help people teams create great places to work through continuous, positive action.

If you’re looking for ways to take action on measuring employee engagement, learn more about how to shift the dial at the manager level and transform insights into action. To find out if you’re eligible for our money-back guarantee, book a demo with our team.

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Written by Alice Florence Orr Content Writer

Alice writes about employee experience, HR trends and engagement strategies.

All Articles by Alice Florence Orr