The Maidian Research Institute’s survey shows that among the current talent issues most hindering hotel development, the foremost is difficulty in retaining talent. Indeed, hotel recruitment is not only about attracting talent but more importantly about cultivating and retaining it. Susan Ng, Vice President of Human Resources at InterContinental Hotels Group, stated that there are three main factors in retaining employees: career development, compensation, and the level of attention given to talent. A recent Maidian survey also showed that, from the perspective of those in the hotel industry, there are two key factors that can effectively retain talent: salary and career planning.
Compensation
Compensation, as one of the most basic motivational tools, plays a key role in motivating employees. In the highly competitive environment of the hotel industry, when hotels face challenges, only those that are not only good at operational management but also adept at internal management—especially at using limited compensation resources to motivate staff—can achieve better development. Currently, the overall compensation level in China’s hotel industry lags behind other industries and remains relatively low on an international scale, which hinders the healthy and sustainable growth of the entire sector. The issue of employee compensation in hotels must be taken seriously. On this point, research suggests that in addition to focusing on employees’ economic income and other material rewards, hotels should also pay attention to their psychological rewards.
These psychological rewards can include job security, career advancement, recognition of performance, training programs, flexible working arrangements, and more. In reality, there are many reasons why employees leave, and not all are due to compensation. More often, they are influenced by their work environment and various other factors. Therefore, hotels need to pay attention to employee needs and help them understand that beyond wages, there are many non-material returns. By clarifying these concepts, employees can develop a more scientific understanding when evaluating their contributions and rewards, thereby reducing feelings of unfairness. This enables them to maximize their potential through work, fully demonstrate and gain recognition for their abilities, and realize their own value through each success. As a result, they can find joy and fulfillment in their work, rather than working solely for higher pay.
Career Development
Career planning for employees is crucial, especially during a hotel’s development phase. According to Maslow’s hierarchy of needs, material needs are lower-level human needs, while self-actualization represents the highest level. Career development falls under the category of fulfilling self-actualization needs, thus generating greater motivational impact. However, data shows that nearly half of those in the hotel industry still do not know how to approach career planning. Some say that personal career development mainly depends on one’s own efforts. But at the same time, if a hotel can plan careers for employees based on its own needs, and effectively develop its human resources, the resulting motivation will be immensely beneficial to the hotel and ultimately lead to a win-win outcome.
However, many hotels currently face significant issues in employee career planning. For example, some hotels do not have any career development plans for employees at all, showing insufficient attention to such planning. Others may only pay lip service to career planning without taking any substantive action. Then there are those hotels that do engage in career planning but fail to effectively align employee needs with the hotel’s needs. In this regard, international hotel groups have more experience that local hotels can learn from.
In short, whether it’s compensation or career planning, the goal is for hotels to help employees, increase their sense of belonging, reduce turnover rates, and thereby achieve sustainable development and the ultimate goal of survival. Especially for local hotels, human resource issues will be increasingly prioritized. The domestic hotel industry also needs to gradually enhance and refine its management, place greater emphasis on talent, and strive to compete with international brand hotels.