‘Equity’ refers to the value of your business and acts as a key value metric for your business. As the Industry faces employee shortages, it’s important to measure and improve your ‘employee equity.’
Two strong indicators of excellent ‘employee equity’ are low turnover and high productivity.
The best hospitality businesses have low employee turnover rates in comparison to industry averages (especially with mid and senior managers) and high levels of productivity. An outstanding Hospitality business surpasses competitors in revenue produced per employee.
Here are TWO steps to take to improve your ‘employee equity’:
1. Start to measure your employee turnover rate, and if it’s not well below the industry average, ask the people in your business why?
2. Start measuring your ‘revenue per employee’. Set some goals, measure those goals weekly. Discuss, with your entire team, what leadership can do to create a culture and environment that will support productivity.
Low turnover and high productivity are closely related. Low turnover rates create experienced and invested employees, which translates into higher productivity. Both indicators are best supported by a Revenue Share Programme*
By James O’Connell – Hospitality Business Educator
*Contact us if you’d like more details on how to set up a Revenue Share Programme.