What if the secret to solving staffing challenges was hidden in a strategy you're already using every day?
I’m sure you’re very familiar with dynamic pricing - adjusting room rates based on demand to maximize revenue. But have you ever considered applying that same principle to one of our industry's most persistent headaches: staffing?
Today, we're joined by Amy Smith, owner of The Saratoga Arms Hotel, and Rachel Paley, the hotel's general manager. They've implemented a variable pay program based on the concept of yield management, and it’s already boosting staff satisfaction, retention, and operational efficiency. Read on to learn more…
Rachel Paley, General Manager of The Saratoga Arms Hotel
The big idea: Applying the strategy behind yield management to compensation boosts employee satisfaction and helps address staffing challenges.
I used to worked for a Fortune 50 retail company with 24/7 operations, and took a page out of their playbook.
Why this matters: This approach addresses the critical post-pandemic challenge of attracting and retaining talented staff, especially for less desirable shifts. It provides a powerful tool to align staffing costs with demand, potentially turning a major industry pain point into a competitive advantage. Ultimately, this can lead to improved operational efficiency, enhanced guest experiences, and higher profits while also boosting employee satisfaction.
Put this into action:
Analyze your staffing needs to identify your most challenging shifts to fill
Create a tiered pay scale with different levels based on shift desirability (e.g. highest pay for weekend overnights)
Restructure schedules to offer options for work-life balance (e.g. 4-day work weeks, alternating weekends off)
Use your new strategy as a recruiting tool to attract talent!
Listen now to the full conversation on this on the Hospitality Daily Podcast (Apple Podcasts, Spotify)
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-Josiah
