On 26th September, respected industry publication Hotelier Middle East hosted the 8th edition of its popular Great GM Debate at Le Méridien Dubai. With more than 200 general managers and corporate hoteliers in attendance, the event was an opportunity for these stakeholders to discuss the challenges in hospitality industry in the UAE.
Mariano Faz, TFGAM’s Head of Asset Management, was invited as a featured speaker this year to share his insights on a rising threat in the UAE’s hospitality industry, the lack of employee engagement. After publishing TFG Asset Management’s latest research paper, “The Impact of Staff Turnover” earlier this year, Mariano explained to the audience the importance of having an engaged workforce. The research paper puts a monetary value on the impact of staff turnover on a hotel’s top and bottom lines, with direct impacts on sales and expenses and an indirect impact on the hotel’s service standards. With this empirical evidence, hoteliers can ascertain the huge impact high staff turnover has on their business.
Through this research we were able to conclude that the average staff turnover rate in Dubai’s hospitality industry is 30% per annum. Surprisingly, only 21% leave for increased pay. The remaining majority of employees (79%) choose alternative employment seeking career advancement, job security, training programmes, etc. In other words, if companies can effectively engage their employees, they can reduce turnover and in turn reduce expenses and increase profits.
Mariano concluded by outlining the rising challenges facing general managers, such as digitalisation, pressure from stakeholders, and the retention of millennial staff. He urged companies to redefine employee engagement and ensure they actively measure and reward high engagement. Overall, the presentation was very well received and gave general managers a break from the discussion surrounding price wars, giving them another important issue to consider.
The event itself was a great success and provided delegates with an opportunity to learn from one another and plan for the future. TFGAM was pleased to see many of our general managers in attendance and looks forward to participating in next year’s event.
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