Employee retention: how technology helps hotels reduce turnover costs

Reduce one of your biggest expenses by supporting your staff with the right resources.

By:

Sonja Swanson

One of the biggest challenges hotels face is employee retention. Here’s the scope of the situation: as of 2024, the average annual turnover in hospitality is a whopping 73.8%. That is a significant difference from the overall workforce average of 12-15%. Not only does a heavy turnover negatively impact your service, team efficiency, and satisfaction scores, it negatively affects your revenue, too. According to a Cornell University study, replacing one hospitality worker can cost a hotel about $5,864. When adding up the total cost for every employee replacement, that is a heavy dent in your revenue stream. 

This is why employee satisfaction is an imperative part of your bottom line - because employee retention is an imperative part of your bottom line. In order to keep operation expenses low and profits high, your employee satisfaction will be crucial to your success.

So, how do you make them feel good and make them want to stay? Hotels have been optimizing their tech resources as small yet effective tools to curb turnover. Kipsu’s hospitality solutions have proved to be a key factor in employee retention, including this hotel keeping every employee for at least three years. Here’s how our hotel tech improves employee retention:

Makes onboarding easy

Being the new kid is hard! You don’t know where anything is, you don’t want to step on anyone’s toes, you feel stupid, and you have no friends. But with the right tools, new staff can make easy transitions into the workplace. 

Kipsu’s guest messaging platform, Engage FCX, includes automated and AI-suggested replies to guests. How does this help the newbies? Your newest hire may not know how to wield their words around a guest’s need or concern. With automated & suggested replies, they have a built-in teacher they can learn from. It will be a quick way for them to learn brand language and the appropriate responses to guest requests.

For the back-of-house staff, new hires might feel overwhelmed with the number of tasks to complete during their shift. But with Kipsu Exceed FCX, you can leverage resources like shift checklists and hotel logs! This will empower new hires to work independently sooner, as they have a guide to go back to and status updates as they start their shift - all in one centralized location.

Provides tools for seamless communication

Sometimes, a catch-22 can be your greatest ally. Happy employees  = happy guests = happy employees…and so on and so forth. Employees that feel satisfied at work provide positive experiences for guests. Satisfied guests treat employees positively. It’s an endless cycle. Kipsu provides a medium for efficient and effective communication between both parties, promoting a supportive environment for everyone.

Leverage guest messaging to create personalized and efficient communication between staff and guests. The front desk is able to create unique moments for guests through a text conversation. Guest requests can be fulfilled promptly by turning a guest message into a ticket for the BOH staff. Not only does this seamless communication provide an elevated experience for your guests, it is an effortless experience for both your FOH and BOH teams, reducing their overall stress.

Creates a supportive work environment 

Cultivating a positive work culture consists of many elements. This includes supportive leadership, friendly coworkers, well-maintained facilities, and well-structured workflow—among other things. If your staff don’t feel supported or appreciated, how do you expect them to stay? 

Kipsu’s features organically and holistically create a domino effect for all aspects of your property — helping you cultivate well-rounded success in every area. Our guest messaging platform supports the success and satisfaction of your staff, from onboarding and beyond. 

Additionally, you can use our operations platform to boost employee morale. Its internal communication feature is a great opportunity for employee recognition. You can also reduce misunderstandings between staff with our language translation feature, leading to fewer conflicts to resolve.

Investing in tools for your employees to succeed directly influences the quality of your workforce and their ability to deliver. And retaining your staff boosts your ROI, saves you thousands of dollars, and keeps your guests happy! 

Schedule a conversation with Kipsu today to learn more about Kipsu’s hospitality solutions and how it can help support and strengthen your staff!

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Curious to learn more about Kipsu and digital messaging? Connect with a member of our team to get all of your questions answered.