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The Importance of Employee Recognition in Hotels

Luke Kreitner
9/26/23 8:00 AM

The hospitality industry plays a vital role in today's interconnected world. It not only generates local employment opportunities but also stimulates new business ventures and tourism. Additionally, it contributes approximately 10% to the global GDP. However, it is essential to acknowledge that this industry can be demanding and high-stress due to irregular schedules, long working hours, and a lack of recognition.

Consider the following statistics:

  • Employee turnover rates for hotels and other hospitality organizations are nearly twice as high compared to other private sector jobs.
  • There exists a strong correlation between hotel employee engagement and the likelihood of guests recommending a hotel to others.
  • Only 55% of Millennial hospitality workers indicate satisfaction and express the intention to stay within the industry over the next five years.
  • 42% of hospitality workers identify a lack of recognition and advancement opportunities as the primary obstacle to career growth.

The Solution: Employee Recognition

Thankfully, an effective method has been proven to improve turnover rates, elevate engagement levels, enhance morale, and foster a sense of purpose - employee recognition. This form of acknowledgment and appreciation acknowledges an individual's contributions within a group and is crucial for promoting a positive company culture within the hospitality industry. 

Moreover, employee recognition can positively impact various aspects of a business.


Are your Team Members Feeling Recognized?

Companies that establish a "recognition-rich culture" experience 31% lower turnover rates compared to their counterparts. Furthermore, employee recognition increases engagement levels by up to 60%. By expressing gratitude towards your hotel staff, their morale improves, and they recognize the significance of their contributions.


Implementing Employee Recognition Effectively

While some companies may have their own recognition programs, not all of them achieve optimal results. To ensure successful employee recognition, it is recommended to follow best practices, including being specific, timely, frequent, visible, omnidirectional, and values-based.

Specific recognition allows individuals to understand how their particular actions have contributed to their group's goals. Timely recognition occurs at the moment, promoting repeated success. Frequent recognition celebrates small victories on a regular basis, rather than waiting for significant milestones or achievements. Visible recognition amplifies the impact of successes by showcasing them to a wide audience. Omnidirectional recognition creates an environment where everyone can appreciate and recognize each other's efforts, eliminating the limitations often associated with top-down recognition. Lastly, values-based recognition emphasizes core team values and reinforces positive behaviors.

By implementing effective employee recognition programs, hospitality businesses can achieve better outcomes for their employees and the overall success of their organization.


A Little Appreciation Goes A Long Way

Recognition plays a crucial role in addressing common issues like anxiety, turnover, and burnout within the hospitality industry. While it may not solve all problems, acknowledging and appreciating employees is a step in the right direction. If you're concerned about your team's satisfaction and engagement, it's worth considering the impact of recognition.

Rewardian is a comprehensive recognition and rewards program that fosters a positive company culture and enhances employee engagement. By allowing everyone in your organization to publicly recognize their peers through small bonuses, Rewardian creates meaningful rewards. Furthermore, Rewardian empowers HR, team leads, and business owners to cultivate an engaging environment by decentralizing recognition. With its wide range of digital rewards, Rewardian reduces the administrative time required to convert recognition into tangible perks.

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