Cutting-edge research investigates financial impact of staff turnover and recruitment
Dubai, United Arab Emirates -Sunday, February 26th 2017 [ ME NewsWire ]
In an industry first, hotel asset management specialist TFG Asset Management has revealed the financial impact of high staff turnover on Dubai’s booming hotel industry.
Dubai’s hotel room supply grew five percent in 2016 to surpass the milestone of 100,000 rooms for the first time. The emirate currently has more than 20,000 rooms under construction in 69 properties, according to the latest data from industry analyst STR.
With the influx of new supply and increased competition for experienced staff, the issue of high staff turnover has become an increasing concern for Dubai’s hoteliers.
In its new industry white paper, The Impact of Staff Turnover on a Hotel’s Income Statement, which was produced in conjunction with Jumeirah Group venture, Emirates Academy of Hospitality Management, the firm reveals that hotel staff turnover in Dubai currently averages 25-30 percent per annum.
The research, which surveyed industry stakeholders including global hotel management firms with a significant presence in Dubai, revealed that a 30 percent turnover rate could potentially reduce a hotel operator’s gross operating profit (GOP) by AED6 million ($1.63 million) per annum.
Commenting on the findings, Mariano Faz, head of TFG Asset Management, described this turnover rate as a “significant figure that can be mainly attributed to deteriorating staff loyalty”.
“The challenge facing Dubai-based hoteliers to retain their best staff can be immense in the face of increasing competition from new operators entering the market and the expansion plans of existing rivals,” he said.
“In a market with such vast opportunities, job seekers have considerable options, making it challenging for hoteliers to attract and retain the best talent.”
Interestingly, financial incentives are not always the primary motivator for hotel staff seeking alternative employment opportunities.
According to the research, likely factors can range from a lack of faith in management, poor relationships with colleagues, and a lack of career development opportunities.
Entry-level staff were also more likely to switch jobs more regularly than middle- and senior-management employees.
Importantly, the white paper presents a range of strategies designed to help hoteliers mitigate these challenges.
Faz believes encouraging staff loyalty should begin at the interview phase.
“Given the fierce competition for staff, hoteliers will often rush an appointment without considering that person’s real-world qualifications for the role,” he said. “A better approach is to consider a potential candidate based not only on their experience, but their attitude and willingness to embrace the corporate culture and their perceived long-term ambition to develop their career with the operator.”
The Impact of Staff Turnover on a Hotel’s Income Statement is available to qualified industry professionals via download here: http://www.tfgassetmanagement.com/news/tfg-asset-management-library/the-impact-of-staff-turnover-on-a-hotel%E2%80%99s-income-statement.aspx
To arrange an interview with Mariano Faz, head of TFG Asset Management, please contact The First Group’s media representatives, listed below.
ABOUT THE FIRST GROUP:
The First Group is a British-owned international hotel & property development company, whose principals have built up their expertise and success in the global market over the last 30 years. The First Group management team draws from strong and diverse backgrounds in the fields of global property, finance, acquisition, marketing and product development. Its expert eye for emerging property market potential and prestigious partnerships with industry leaders means that their clients can enjoy secure and attractive returns from one of the world’s most vibrant hotel markets. With its headquarters in Dubai and global presence spanning Algeria, Azerbaijan, Ghana, India, Kazakhstan, Nigeria, Oman, Russia, Saudi Arabia and Turkey, The First Group’s client base is expanding rapidly. For more details visit www.thefirstgroup.com.
ABOUT TFG ASSET MANAGEMENT
TFG Asset Management specialises in hotel asset management and its primary objective is to maximise the hotel owner’s return on investment. The company assists with managing every aspect of a completed hotel development and acts as an intermediary between owner and operator, with a view to aligning the interests and profitability of both parties. TFG Asset Management currently manages three hotel apartments and one hotel offering a total of 1,404 keys and will add six new hotels to its hospitality portfolio by the end of 2019. The company employs an experienced Asset Management team and partners with some of the world’s leading hospitality brand operators in order to position and manage its hospitality projects with future growth in mind. For more details visit www.tfgassetmanagement.com
Contacts
The First Group
Eve Humphreys
Director of Brand & Marketing Communications, +971 4 438 7458
Eve.Humphreys@thefirstgroup.com
Permalink : http://me-newswire.net/news/3430/en
Staff turnover is necessary for the dynamism of a company but with such high ratios it's really damaging the long term vision of the project and bring daily uncertainty of brand standards and inconsistency of quality.
ReplyDeleteI think that major hotel group should look at 5 to 10 years careers plan and support transfer within company properties in order to motivate employee to stay and to trust them.
Looking for Asset Recovery UK? Legal matters can be complicated, which is why it's crucial to take an informed approach. Contact us +442080896862.
ReplyDelete