A Win-Win: How Diversity Boosts Employee Engagement, Guest Experience, and the Bottom Line

In Hotel Management, Hotel Recruiting by HMG Hospitality Team

Welcome back to our blog series about workplace diversity! We started out this series with a big-picture look at 3 main benefits that come with having a diverse workforce–that is, hiring and promoting employees based on merit, and not at all based on gender, ethnicity, age, or other personal background details.

Last week we took a closer look at how workplace diversity correlates to broader perspectives, decreased groupthink, and better decision making. This week we’ll take a deep dive into the topic of workplace diversity and employee satisfaction.

How Diversity Plays a Role in Hotel Recruitment

In 2013 the Korn/Ferry Institute found, of 400 executives surveyed, 96% thought that a diverse and inclusive workforce led to better employee engagement and business results. Let’s take a closer look at how diversity increases engagement, and how engagement increases success for your hotel.

How does workplace diversity affect employee satisfaction?

As human beings, we need to be heard, seen, and appreciated (i.e., validated and valued) in order to have successful and healthy relationships. This most certainly includes the significant relationship you have with your workplace. As we touched on in our original post, being valued and promoted based on merit regardless of background details brings a sense of accomplishment and satisfaction, encouraging even more good work. This applies to employees across all positions.

On a related note, last week’s post touched on diversity of thought in leadership positions. We suggested rethinking the idea that the A-type personality (assertive but lacking EQ) is the best fit for these positions and instead embracing the power of soft skills. Recent research has found that the key to happy hospitality employees isn’t bigger paychecks–it’s authentic leadership. Authentic leadership comprises self-awareness, balanced information processing, internal code of ethics, and transparent communication. We call these “soft” skills–but they have quite an intense impact on employee satisfaction.

Another previously discussed matter was that diverse teams are often more effective at completing tasks and solving problems than homogenous teams. This sense of accomplishment in itself leads to greater satisfaction among employees on all levels, creating a positive cycle of success and esteem.

How does employee satisfaction affect the success of your hotel?

Having a satisfied, engaged workforce doesn’t just reflect well on company culture and day-to-day workplace interactions–it reflects well on the bottom line. Employee satisfaction saves and generates money for your business in two big ways: retention and positive guest experience.

Let’s face it: hospitality has some of the highest turnover rates of any industry. Turnover is expensive. Taking time and resources to recruit, hire, and train new employees is simply frivolous spending. Taking time to value existing employees and nurture positive growth within your organization is simply smart investing.

The effects of a successfully retained team aren’t just seen in monetary savings–they’re seen in the guest experience as well. In an interview, Gallup Research scientist Jim Harter said, “Engaged employees are more attentive and vigilant. They look out for the needs of their coworkers and the overall enterprise because they personally ‘own’ the result of their work and that of the organization.” A workforce that feels motivated and accountable in any hotel is a workforce that provides excellent customer service–an absolute must in this industry. Guests simply get better service from a more engaged staff, encouraging repeat business and positive reviews.

There is simply no denying the importance of an engaged workforce to the success of your business, and it’s clear that being valued for your merit is key to being engaged at work. By investing in your greatest asset–your employees–your hotel is investing in its own success.

Learn more about how workplace diversity benefits your hotel by reaching out to HMG Hospitality

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