The hospitality industry is struggling to attract and retain employees as the pandemic continues to impact widespread layoffs and closures. Many hospitality workers have left the industry over the past few years and have not returned. As a result, he still has more than 500,000 hospitality roles left unfilled.
Along with this, consumer demand for hospitality experiences has also evolved significantly. Guests now expect more personalized experiences, expect seamless digital integration during their stay, are more conscious of sustainability, and value cultural competency in service. This evolution puts additional pressure on hospitality companies to enhance their offerings and adapt to diverse, modern expectations to deliver new levels of customer service.
To reduce employee turnover and meet these new standards, hospitality companies must build loyal and highly skilled teams. One increasingly popular way to achieve this is through employee education and skills development programs, or upskilling programmes. This is especially true as hospitality companies increasingly compete for talent with retail stores, quick-service restaurants, and logistics companies that offer enhanced educational benefits. Employees who participate in these benefits can not only take courses in a wide range of subjects, but also earn professional certifications, high school diplomas, and even undergraduate and graduate degrees, with their employers paying upfront tuition fees. can be obtained.
Upskilling helps employees develop the right skills so they can play a more important role in the success of the organization. Upskilling could also hold the key to regaining the talent hospitality companies lost during the pandemic. And the promise of upskilling can be a very attractive incentive for potential hires. A recent survey found that 70% of U.S. employees are considering leaving their current job for another company that prioritizes employee education and skill development. .
As upskilling programs become essential to business growth, it is essential to evaluate program results through quantifiable metrics to determine whether these programs have achieved their intended objectives. By understanding how to evaluate the results of upskilling programs, hospitality companies can determine whether their programs are worth further investment and adapt educational opportunities to the changing needs of the business and current workforce. can do. Here are some of the most important metrics to evaluate the impact of upskilling programs on business growth.
Joining and completing the program
The earliest indicator of success in a skills development program is participation. This is your first notion that you are doing something right and provides context for further indicators. Therefore, to understand the potential impact of a program on your company, you might start by measuring the program's take-up rate, which represents the percentage of eligible employees participating in the program.
A low enrollment rate (e.g., less than 2%) suggests that the organization is not marketing the program effectively or that there are too many barriers to participation (e.g., waiting list, low coverage limits). I am. Conversely, a high take-up rate (e.g., 5% or higher) indicates that the program resonates with employees and is well-positioned to achieve the intended outcomes.
However, just because employees participate in the program does not mean they are satisfied with the actual course. To answer this question, you need to determine the program completion rate, which represents the number of participants who complete the educational program. You may notice that many employees are dropping out of a particular program and want to find out why. Maybe an employee is struggling to balance work and education, or feels like their boss doesn't support their desire to develop certain skills. yeah. In either case, assessing which learning options are engaging participants is essential to improving the long-term success of upskilling efforts.
Employee retention and performance
Employee retention is one of the core objectives of upskilling. Companies that invest in the development of their employees typically experience higher retention rates, especially among program participants. It is not unrealistic to expect that the retention rate of participating employees will be over 90%.
The ideal outcome of upskilling includes not only retaining employees, but leveraging their newly acquired skill sets to the benefit of the company. This result can be measured through two key metrics. The first is participant productivity. This can be represented by sales, reservations, and other performance metrics.
You can also measure the impact of upskilling on performance through the promotion rate of participating employees compared to all employees. Organizations typically see employees who participate in upskilling programs receive two to three times as many promotions as those who don't. Companies that strive to show employees which courses will lead them closer to a particular position are more likely to have high promotion rates.
Recruitment and ROI
A successful upskilling program can serve as a highly effective recruitment strategy that greatly increases a hospitality company's attractiveness to potential candidates. To understand your program's impact on recruitment, you can survey new employees and ask them how much of a role employee learning and development played in their decision to join. Once you've assessed how potential candidates view upskilling opportunities, you can incorporate the results into your future marketing and recruiting strategies.
If you find that employee training is an important factor for new hires, it's natural to want to expand your upskilling program to keep them applying. Expanding your program will require further investment, which you will need to justify to your boss. CFO. In other words, you need to prove that your program is generating a positive return on investment (ROI).
Work closely with your finance team during program development to determine optimal internal measurements for factors such as talent retention, promotion rates, and employee performance. With these measurements in mind, we found that upskilling programs generate an ROI of approximately $3 for every dollar spent.
final thoughts
The essential role of indicators in upskilling further emphasizes the importance of developing specific goals for the program. Each company has different requirements for growth. Upskilling programs should be tailored to improve specific areas such as employee engagement, employee retention, promotions, and recruitment. By tracking the impact of upskilling through quantifiable metrics, we can get a clearer picture of how we are accelerating career advancement for a generation that prioritizes mobility among its most valued workplace benefits.
The opinions expressed by SmartBrief contributors are their own.
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