Case Report: Managing Turnover In Hospitality
THE SITUATION
Recognized as the premier health club in a large metropolitan area, this organization was beginning to struggle with turnover among frontline workers in particular jobs. Members, who expected exemplary service at the club, had been starting to complain. The club needed to respond in a solid way.
After the minimum wage in their city had increased in the past year, frontline wages at the club had not kept pace with competitors and their jobs had slowly become less attractive. But wages were not the whole story.
OUR APPROACH
After raising wages in a couple of key areas, turnover persisted. So, the Human Resource team set out to find out what was really going on by conducting interviews with team members and frontline managers in those jobs. They had good data but needed help understanding their findings and formulating a plan.
We convened the team who had conducted the interviews and facilitated a "sensemaking session" where each person reported out what they had learned about challenges and opportunities within each functional area and frontline job. Using large-scale displays, we created a rich visual data environment that allowed themes to emerge across roles, illuminating potential directions for change.
Using these insights, we helped the team craft a narrative around the themes that they used to present the findings to the club's owner, along with recommendations for changes that would have maximum impact.
THE OUTCOME
Wage bumps, job ladders, and listening exercises boosted morale.
The club's owner was convinced and wages were boosted above market levels for key frontline positions to make these jobs highly attractive. Yet wages were only one part of a wider-scope solution. Job ladders were created in some roles, highlighting paths to advancement for team members and enabling frontline managers to promote high performers immediately. Other changes resulted from the listening exercise, including the lifting of out-of-date grooming standards that raised morale.
