Motivation in Hospitality
E XECUTIVE WHITE PA P E R
A new study on employee motivation and performance lays the groundwork for creation of the SITE Foundation Motivation Index .
MOTIVATION
In The Hospitality Industry
Introduction
About the Research
The CANE Model
Implications for Employers
About the Researchers
Where to Get the Study
INTRODUCTION
E
mployee turnover within the U.S. fast-food and hotel industries costs those industries in the neighborhood of $140 billion annually. In more bite-sized terms, it will cost roughly 100% to 200% of an employee’s base salar y to recruit and train a replacement.
Although the turnover rate for these industries hovers between 78.3 percent and 95.4 percent on a national basis, some fast-food restaurants and hotels experience much lower rates, and have significantly greater success retaining employees. Overall, higher levels of motivation and motivated performance translate into a 53 percent reduction in worker turnover.
It is generally understood that employment in these industries is often considered to be temporar y, or stop-gap employment, with workers leaving eventually for what they will consider “greener pastures.” And certainly, different economics are at work depending on the region, the type of establishment, etc.
However, turnover rates also vary within
the same economies, the same chains, the same cities, and the same regions. All things being equal, then, what accounts for the differences in turnover rates? And more importantly, what can managers do to reduce turnover at their properties?
The Site Foundation is seeking to answer those questions by studying employee motivation and performance in the fast- food and hotel industries. The study - Motivation in the Hospitality
Industry - measures key indices of motivated behavior using the widely recognized CANE (Commitment And
Necessary Effort) Model of Motivation.
The following describes key findings from research to date and offers
A new study on employee motivation and performance lays the groundwork for creation of the SITE Foundation Motivation Index .
MOTIVATION
In The Hospitality Industry
Introduction
About the Research
The CANE Model
Implications for Employers
About the Researchers
Where to Get the Study
INTRODUCTION
E
mployee turnover within the U.S. fast-food and hotel industries costs those industries in the neighborhood of $140 billion annually. In more bite-sized terms, it will cost roughly 100% to 200% of an employee’s base salar y to recruit and train a replacement.
Although the turnover rate for these industries hovers between 78.3 percent and 95.4 percent on a national basis, some fast-food restaurants and hotels experience much lower rates, and have significantly greater success retaining employees. Overall, higher levels of motivation and motivated performance translate into a 53 percent reduction in worker turnover.
It is generally understood that employment in these industries is often considered to be temporar y, or stop-gap employment, with workers leaving eventually for what they will consider “greener pastures.” And certainly, different economics are at work depending on the region, the type of establishment, etc.
However, turnover rates also vary within
the same economies, the same chains, the same cities, and the same regions. All things being equal, then, what accounts for the differences in turnover rates? And more importantly, what can managers do to reduce turnover at their properties?
The Site Foundation is seeking to answer those questions by studying employee motivation and performance in the fast- food and hotel industries. The study - Motivation in the Hospitality
Industry - measures key indices of motivated behavior using the widely recognized CANE (Commitment And
Necessary Effort) Model of Motivation.
The following describes key findings from research to date and offers