Did you know that according to the Bureau of Labor Statistics, the average employee turnover rate for the hospitality industry was 6.3% in May and 6.0% in June? If that trend were to continue, that would be an annualized percentage of 73.8%. When compared to the 3.45% turnover rate for the same time compared to all industry, it’s a bit more discouraging. .
And replacing employees is costly and time consuming. According to a study from the Center for American Progress, the typical cost of turnover for positions earning less than $30,000 is 16 percent of an employee’s annual salary. It’s even higher for those earning more than $30,000.
So how can you tell if you’re paying more than necessary to train employees? One approach is using an employee training cost calculator to see if an easier to learn PMS system can help lower new hire expenses. One such calculator is available from SkyTouch Technology. The complimentary SkyTouch calculator* can help you learn how trimming training costs can convert into saved money. That’s potential saved money that could help your property elsewhere.
The SkyTouch calculator* is a snap to use. Simply enter in the daily cost of a front desk employee, average daily cost of a trainer/manager, and the shifts required to teach a new employee how to use that old PMS.
Say you pay a front desk employee $75.00 a shift, and a manager about $125.00 per shift. Then let’s say it takes an average of four shifts for a trainee to readily be able to use the system without any additional oversight. With SkyTouch’s web based property management system, SkyTouch customers report their employee learn how to use the system in as little as two or three shifts, potentially reducing training costs by hundreds of dollars.
“We could train someone within less than 3 to 5 days verses that of 2 weeks,” explained SkyTouch customer Greg Posmantur, CEO and Managing Partner, JYI Hospitality. “Training times cut in half which is money. It’s such an easy to use system. Makes sense. It flows, it’s fluid.”
Posmantur is seeing success because SkyTouch Hotel OS features a simple and intuitive user interface enabling front desk agents to learn the system, and be productive quickly.** This ease of use can reduce training expense for new hires while eliminating distractions for the GM needing to spend countless hours supporting new staff on the PMS.
And because of generally high industry turnover rates, it’s likely every hotel will be training multiple people throughout the year. That means you can potentially save big bucks, having the ability to dedicate management resources elsewhere, or a combination of both.
The innovative new employee training cost calculator can help you learn if there’s an opportunity to lower new hire expenses with the click of a button. You can find the hotel employee training calculator here.
* These calculators are for illustrative purposes only and are designed to be informational and educational tools only, and do not constitute financial or legal advice. The default figures shown are hypothetical only and may not be applicable to your individual situation. The calculations and results are based on a range of stated assumptions, as well as the figures you input, and are intended as hypothetical estimates only. Your individual results will vary. Do not rely on these calculators when you’re making decisions about financial or legal matters. Instead, we strongly recommend that you seek the advice of a financial services or legal professional. Choice Hotels International, Inc. and Skytouch Technology, and their affiliates, expressly disclaim all liability and responsibility to any person who relies, or partially relies, on anything done or omitted to be done by these calculators, as well as any decisions or actions taken in reliance upon or as a result of the information provided by these tools.
**Past performance is not an indicator of future results. Individual results will vary.