Why HVMG's Employee Turnover Runs 21%
Below the Hospitality Industry
By Sue Sanders, EVP and Chief
Administrative and Strategy Officer
In
hospitality, we spend a great deal of time thinking about what makes a building
successful. We evaluate its location, design, physical condition and financial
performance. But even the most impressive hotel depends on something less
visible: the people who bring it to life every day.
The same
principle applies to building a successful hotel management company. Strong
performance requires a solid foundation, and that foundation is our associates.
At HVMG, we
are projecting an annualized associate turnover rate of 52% for 2026, compared
with a projected hospitality industry rate of 66%, based on recently released
Bureau of Labor Statistics data. That's a 14-percentage-point advantage, or
approximately 21% lower turnover than the industry benchmark.
In a
business where turnover is often accepted as an unavoidable cost of operating,
we believe that difference is meaningful. It reflects years of intentional
decisions about how we recruit, develop, support and listen to our associates. There
is no single program responsible for our results. Instead, we've built a system
of interconnected practices that reinforce one another.
Start
With the Foundation: Hiring the Right People
When I
joined HVMG more than 16 years ago, we operated 19 hotels without a centralized
corporate human resources or talent function. Much of my work since then has
involved developing the infrastructure needed to support our associates as the
company grows.
One of our
most important investments is the Talent Acquisition Center of Excellence
(TACOE), which centralizes candidate sourcing and screening for our hotels.
This allows property leaders to focus on qualified candidates while creating
consistency in communication, screening, reference checks and hiring.
When
hospitality leaders ask me where to start if they're struggling with turnover,
I recommend examining three things:
- Attraction: How are you presenting your
company and its culture to prospective associates?
- Selection: How are you evaluating
candidates for the position and the organization?
- Consistency: Are candidates receiving the
same quality hiring experience across properties?
Retention
begins long before an associate's first day on the job.
Build the
Structure: Make Every Associate's First Days Count
Once an
associate accepts our offer, our attention shifts to onboarding. We provide our
hotels with standardized onboarding resources while allowing each property to
execute the process according to its operational needs. New associates receive:
- Property orientation and
introductions to department leaders and colleagues
- Training specific to their
brand, systems and responsibilities
- Monthly corporate orientation
that connects them to the larger organization
These
practices aren't particularly complicated, and they aren't unique to HVMG. The
difference comes from making them a consistent priority.
When
turnover increases at an individual property, it usually leads back to hiring
or onboarding. Sometimes the issue is as basic as a new associate arriving for
orientation without someone prepared to welcome them. The small moments
matter. An associate's earliest experiences set expectations about
communication, support and whether the organization delivers on its promises.
Invest in
Every Part of the Structure
Another
important part of our approach is ensuring that our commitment to associates
doesn't depend on their job title. We provide the same benefits, paid time
off and opportunities across positions, including frontline roles that
traditionally experience high turnover in hospitality.
We believe
the associates cleaning guest rooms, serving breakfast and maintaining our
properties deserve the same investment in their success as those working in
management or corporate positions. Every associate contributes to the guest
experience, and consistent support strengthens the entire operation.
We've also
learned that supporting associates sometimes requires challenging conventional
practices. For example, when we encouraged our general managers to take their
earned paid time off, some of them were skeptical, questioning the company's
sincerity about wanting them to step away from their hotels.
We listened
and introduced a financial incentive for GMs to use their PTO.
The program
has become a meaningful contributor to GM satisfaction and a valuable
recruiting tool. More importantly, it demonstrates a principle we apply
throughout the organization: listening only matters when we're willing to
act on what we hear.
Keep the
Lines of Communication Open
Culture is
often described in terms of what a company says about itself. A more useful
measure is what associates say about the company.
Our purpose
is "To Be Excellent in all we do so our associates, guests, and partners
LOVE us!" Excellence is something we deliberately reinforce through
hiring, training and communication.
But when we
recently reviewed our associate listening survey, another word appeared just as
often in the responses: teamwork.
That was
particularly meaningful because it came directly from our associates. Across
our portfolio, they independently identified teamwork as a defining
characteristic of their experience.
We also give
our general managers the autonomy to operate as CEOs of their hotels. Our
corporate team is made up of experienced hotel operators who understand the
challenges GMs face, and we continually evolve our services and resources based
on their feedback.
Our GMs have
the freedom to solve problems, make decisions and try new approaches. That
sense of ownership extends to how they lead their hotel teams.
Measure
the Strength of the Entire Building
Turnover is
an important metric, but it isn't the only measure of organizational health.
Some turnover is natural and necessary. What matters is understanding why
people leave.
We regularly
compare turnover to associate engagement, guest satisfaction and financial
performance. Our recent analysis revealed a pattern: the hotels with the
highest associate engagement scores have higher guest satisfaction scores,
lower turnover and greater profitability.
For hotel
owners, that relationship is especially important. Retaining talented
associates and experienced leaders delivers several advantages:
- Operational continuity: Experienced associates
understand their hotels and guests.
- Stronger financial results: Tenured GMs bring the
institutional knowledge and leadership consistency that sustain NOI.
- Asset value: Strong performance creates
successful asset sales and returns for owners.
We've seen
firsthand that investing in associates is also an investment in guest
satisfaction, profitability and long-term asset performance.
A
Foundation Worth Continuing to Build
Our
projected 2026 turnover rate is an encouraging measure of progress,
particularly compared with the broader hospitality industry. But it's not a
reason to become complacent. We'll continue to evolve hiring practices, improve
onboarding, listen to associates and look for ways to support property leaders.
Lasting
results rarely come from one dramatic initiative. They come from thoughtful
decisions, consistent execution and a willingness to improve.
A
building's foundation may not be its most visible feature, but everything above
it depends on its strength. For us, that foundation is our associates, and investing in
them is one of the most important ways we deliver excellence for our
associates, guests and owners.
