The cost to recruit and train each new staff member is estimated to be around $10,000 says John Primmer, general manager of Wellington’s icon James Cook Hotel Grand Chancellor. Six months is about the time it takes to find, induct and train each new staff member. During this training time there is pressure on other staff to bring the new staff member up to speed, placing pressure on service levels and staff morale and job satisfaction. When John Primmer arrived at Hotel Grand Chancellor in 2002, staff turnover was at levels of between 70-80%. Since then the turnover rate has been reduced to below industry averages of 40% in 2007. By introducing a simple strategy of communicating and celebrating, John Primmer has taken the hotel to award winning status as an employer. A staff briefing for all staff is held every two months. During these meetings everyone is brought up to date on information usually held exclusively by the top level management; revenue, occupancy, sales, competitor comparisons and even the expectations of shareholders are shared with the staff. Detailed information on performance is given to all staff to ensure they understand how they are contributing to this big picture and what they need to concentrate on during the next two months. There are no secrets, says Primmer. Rewarding staff is also important in the Primmer retention strategy. Quite apart from the usual suspects in reservations and reception, all staff are able to earn rewards. A simple system has been introduced where staff earn points and can redeem these for petrol or grocery vouchers. Housekeepers, porters and maintenance can all be seen earning $20, $50 and $100 vouchers. It’s not uncommon to find management celebrating with all staff for achieving budgets or any other KPI. This sort of celebration as a staff lunch or in a hotel suite over drinks and nibbles reinforces the sense of team effort. There are 180 staff at James Cook Hotel Grand Chancellor with a now enviable record of staff retention. No less than 50 staff have at least five year’s service, ten have at least 20 years and three have been part of the Wellington icon for over 30 years. As further recognition of the success of this simple communicate and celebrate strategy, James Cook Hotel Grand Chancellor was a finalist and the highest placed hotel in the New Zealand Best Places to Work Awards 2006. That was the first year of entry for the hotel and they will be looking for the top prize in 2007. The New Zealand government’s Department of Labour was so interested in what makes the hotel a great employer that they developed a video as part of the Workforce Productivity Agenda. The New Zealand Chamber of Commerce, New Zealand Council of Trade Unions and Business New Zealand are all partners in this initiative.5826
Click to view 'Workplace productivity video'