How employee and guest happiness drive profits
The hospitality industry is in a unique position in that in addition to offering core products – at its essence, a clean room and bathroom at a hotel or a meal at a restaurant – it also creates experiences. There’s the guest experience, which is often discussed these days, and the employee experience. The latter can be less of a focus but be just as important, as employee satisfaction can directly influence guest satisfaction and, subsequently, profitability.
THE FOUNDATION OF EMPLOYEE SATISFACTION
In the service industry, particularly in casinos and resorts, employee satisfaction is vital. It’s through happy and healthy employees that guest needs are not only met, but also exceeded with enthusiasm and a genuine love of service.
Various factors contribute to employee satisfaction, including fair compensation, a positive work environment, recognition, and growth opportunities. Interestingly, employee satisfaction is increasingly linked with guest satisfaction. Experience platform Medallia recently published a whitepaper on this link, highlighting how a unified view of customer and employee experience contributes to revenue growth.
In fact, a recent Harvard Business Review study of a global retail brand where employees were heavily customer-facing showed a clear link between the employee experience and the company’s revenue. As the authors wrote, “Employee experience drives customer experience, which in turn drives revenue growth.” This builds on a previous HBR analysis into the service-profit chain, which “establishes relationships between profitability, customer loyalty, and employee satisfaction, loyalty, and productivity.”
MEASURING SATISFACTION THROUGH SURVEYS
The natural question then leads to how satisfied employees contribute to a positive guest experience – and one key answer is through both guest and employee feedback.
“As an operator, I’ve seen firsthand the transformative impact of conducting both guest and employee surveys,” said Eric Segreti, vice president of rooms at Fontainebleau Miami Beach. “These tools allow us to listen actively to both our guests and our team members, providing invaluable insights that drive our operational decisions. When employees feel heard and valued, it positively influences their interactions with guests, enhancing overall satisfaction. This holistic approach not only boosts our service levels but also contributes significantly to our profitability and industry reputation.”
It’s important to gauge employee and guest satisfaction, and one key way to measure both levels is through regular surveys. Once conducted, the surveys then need to be analyzed and, most importantly, acted on, to address issues, make improvements, and reinforce successful practices.
INTEGRATING EMPLOYEE AND GUEST SATISFACTION INTO BUSINESS STRATEGY
It takes time and a concerted effort over time to develop a culture that prioritizes satisfaction – including leadership practices, communication strategies, and incentive programs. Leaders and managers must put into practice actions to maintain the positive work culture they’ve worked so hard to build.
To effectively bring feedback into daily operations, consider a multi-faceted approach. First, at regular times – weekly or monthly, for example – discuss survey results and plan for improvements during team meetings. Second, incentivize staff to engage with feedback by linking participation to rewards or recognition programs. Third, create a routine for managers to follow up on survey insights, translating feedback into actionable steps that address areas of concern and opportunities for improvement.
To balance the needs of employees and guests, prioritize communication, regular employee training, and comprehensive feedback capture. Recognize and reward employees for great service to boost morale and motivate high standards, while adapting service offerings based on feedback and trends. This integrated approach ensures an environment that values continuous improvement and the well-being of both staff and guests.
Once a system is in place, it’s important to remember the interconnectedness of employee and guest satisfaction and its impact on profitability. It is in an organization’s best interest to recognize the strategic importance of investing in the happiness of both employees and guests as a long-term business model for success in the hospitality industry.
