Reducing turnover across group’s 30+ hotels
In the hospitality industry, employee turnover is a constant challenge, and it’s been getting worse in the last half of 2024.
But one hotel management group with more than 30 locations throughout the South, West and Midwest is reversing the turnover trend.
A regional manager there, who spoke to Grazzy about employee satisfaction programs, said that “Our turnover over the last year has continued to decrease – we probably have some of the lowest turnover of any management company out there in the hotel industry.”
One initiative that the group implemented in the last 18 months was digital tipping with Grazzy, part of a broad effort to improve staff satisfaction and reduce turnover.
Pilot, expand and measure
The group’s Grazzy rollout began with a test phase at five hotels. Those locations went online with digital tips in April and May 2023. They quickly went from earning a few tips each week to hundreds each month, averaging several hundred dollars in monthly tips per location.
The group’s regional manager said starting from a smaller pilot made it easy to manage and learn about the elements of success. Expanding across all 34 properties, which the group completed in the last quarter of 2023, was a bigger challenge that required thoughtful setup and encouragement for housekeeping teams and hotel GMs.
For housekeepers, the group decided to pay out tips via payroll, as it simplifies group-level management. This approach makes it easier to ensure employees get their tips, and the regional manager said that many of the 500-or-so housekeepers using Grazzy were more comfortable with payroll because it made setup on their end easier, too.
However, payroll tip-outs do reduce the immediacy of the reward for employees’ hard work, and that can slow the rollout of tipping materials across a hotel. That means team leaders and area managers may need to provide additional coaching and guidance to get signage into rooms, so teams can start earning tips.
The challenge is somewhat similar for busy GMs, the regional manager said. Some of their location GMs kept pushing off setup steps, and were slow to order materials. What helped this group, the regional manager shared, were Grazzy’s monthly reports, which highlight performance by location and help the group build momentum with location leaders.
“I share monthly reports with the whole portfolio, so that everyone can see that some of our locations are pulling in a thousand dollars a month in tips,” the regional manager said. “Over time, that’s helped us build.”
Consistency helps keep recognition up and turnover down long-term
In addition to regular reporting with location GMs, the group’s approach to managing the rollout onsite has been instrumental in the program’s success.
“I check for tipping cards when I visit properties,” said the manager we spoke to. “If guests don’t see a card in the room, they can’t tip, which means employees miss out.”
They’ve even taken to live demos to get the impact across: “I’ve opened my wallet before to show a team that I’m one of those customers. I don’t have cash and I don’t see a card in the room, so I don’t have a way to tip you right now.”
This hands-on management style helped overcome initial resistance and ensured the program was consistently applied across the portfolio.
Since implementing Grazzy, the group has seen noticeable results including six-figure tip totals across all properties, an average tip value close to $10, and the drop in employee turnover, which can be attributed to the group’s comprehensive strategy for boosting employee satisfaction.
As an added bonus for locations that keep up with materials, the regional manager noted that digital tipping seems to have also encouraged more cash tips from guests.
“The tipping cards placed in rooms serve as a reminder for guests, which has boosted both digital and cash tipping,” he said.
Lessons to help other groups fight turnover
The regional manager we spoke with believes success with cashless tipping is tied to ongoing commitment.
“You can’t just set it up and walk away,” they said. “It requires regular follow-up and promotion to keep the digital tipping program top-of-mind for staff and managers.”
Touchpoints like the monthly performance reports can consistently remind teams of the value of digital tipping. And it can foster a sense of competition between teammates and properties in a group, though the regional manager we spoke with said they only hear ‘tip bragging’ in passing.
Ultimately, this team created an environment where digital tipping could thrive, and that in turn has helped employees earn more and remain more satisfied with their work. In addition to programs like Grazzy, the regional manager explained that the management group performs bi-annual employee satisfaction surveys that help them understand and address employee pain points.
It’s “hard to pinpoint” what one thing most contributes to employee retention, they said. But the total effort is definitely working.
Reduce turnover
on your teams
For hotels struggling with retention and employee satisfaction, there’s a few critical elements to keeping great teams together and happy. Strong leadership from the corporate office, regular engagement with success metrics, and an employee-focused coaching culture can turn the tide on employee turnover.
To bring Grazzy digital tipping to your properties, schedule a demo below.
