Fairness, Rewards for Performance and Training: Among Key Success Factors in Tight Labour Markets
People management practices can have a profound impact on attracting and retaining staff in tight labour markets. Firms who are able to hire and retain qualified employees should do better. They reduce hiring costs, get more in return when they invest in training, and have more engaged and service-oriented staff who in turn help create a loyal customer base.
A recent study among more than 400 tourism and hospitality firms examined the effect of employee engagement and performance management practices in the tourism sector. Among other findings, the study revealed that rewarding employees for performance and providing them with relevant training can reduce staff turnover. This is especially important during a labour shortage. High performing employees will simply work elsewhere if they are not trained and rewarded for performance, even when employee engagement practices are present.
The study was executed by the University of Saskatchewan on behalf of the Canadian Tourism Human Resource Council. Presented at the Academy of Management conference held in Boston on August 6, 2012, the full report can be accessed on the Council’s Compensation and Benefits page.
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