BA memo

MEMORANDUM

TO: James Richardson, General Manager

FROM: Student Name, Front Desk Manager

DATE: September 26, 2018

SUBJECT: Implementing Incentive Program for Front Desk Employees

Since AFHSB opened one year ago, employee morale and motivation have decreased significantly leading to untouched profit potential in the front office. In the last six months, we experienced higher employee turnover, which increased our employee training costs. Therefore, I recommend implementing an incentive program for all front desk employees that will increase sales and hotel occupancy, while also motivating our staff and boosting employee morale.

KEY ISSUE: REDUCED EMPLOYEE PERFORMANCE AND MORALE

Although management provides verbal appreciation and recognition to the staff, we continue to experience employee discontent. Over the last nine months, employee morale and performance have steadily declined based on anonymous staff surveys. Additionally, Figure 1 illustrates that our online customer experience scores (reviews on TripAdvisor, Hotels.com, etc.) fell below that of our local competitors, which affected our occupancy rates.

Figure 1. Customer Experience Scores

Specifically, the front desk staff voiced the most discontent. They feel underappreciated because we do not offer any kind of commission or recognition. A reward system to motivate our employees would increase performance and hotel revenue while showing our employees how much we value their hard work.

SOLUTION: IMPLEMENT EMPLOYEE INCENTIVE PROGRAM

My solution is to develop an incentive program that provides direct benefits to our employees who successfully up-sell and provide great customer services. I conducted an anonymous survey at our last monthly staff meeting to assess what incentives our employees are interested in receiving. According to the survey, the most desired incentives are cash/gift cards, paid days off, and free hotel stays at other Away from Home hotels.

Our passionate, customer-oriented staff is our strongest asset. Thus, to provide positive reinforcement and continue to strengthen our team, we should base rewards on a point system or the amount of money gained from up-sells, as explained below.

Up-sell Compensation. For every up-sell employees make, they will receive a commission of ten percent of the total amount made from the upgrade after the revenue is actualized. We will ask employees to complete a form, have it signed by the guest, and submit the form to their manager the same week to receive compensation.

Point System. For every positive name mention employees receive, either face-to-face or through verified online reviews, they will receive one point. Employees must redeem their points before the period ends. Unused points will not roll over to the next six months. The point system will operate over a six-month period. I suggest the following point redemption scale:

• 10 points: $20 pre-paid visa gift card

• 20 points: Paid half day off of work

• 50 points: Free two-night stay at the W Fort Lauderdale

We will recognize the employee who earns the highest dollar amount in up-sells each month and the employee who earns the most points at the end of the six-month period. The front desk manager will post weekly points rankings in the back office to motivate our staff and keep them up to date on the program. The front office manager will also set monthly goals for total revenue through up-sells and total customer service points to work towards. Finally, the front desk manager will track sales goal results and changes in online customer satisfaction surveys to assess the success of the employee recognition.

IMPLEMENTATION

With the holiday season approaching, we should move quickly so we can take advantage of a heavy travel season. We will provide training during the November staff meeting so that our staff knows how to properly execute an up-sell and to fully prepare our staff for the program. I propose the following timeline in Figure 3:

Figure 3. Timeline

BUDGET

The initial cost of $630 includes 12 three-hour training sessions and photocopying. Depending on the success of the program, we also need to budget for rewards. If all 12 front desk employees all earn each reward, the total cost is $4,320, as shown in Table 1.

Table 1. Budget

Moreover, improving employee morale and increasing hotel revenues will significantly offset the minimal cost of implementing this program.

BENEFITS OF THE PROPOSAL

This employee recognition program will strengthen employee morale while motivating front desk employees to take on sales related targets and increase customer satisfaction.

Increased Employee Morale. The training workshops will increase employee morale by offering employees support to succeed. The incentive program is geared to motivate front desk employees to achieve company goals by recognizing individuals who display notable customer service, leadership and high sales capacity. Friendly competition combined with measurable success can increase morale that will contribute to higher customer experience scores online.

Increased Revenues. By rewarding front desk performance, we can earn higher revenue when employees up-sell our hotel rooms and services to guests upon check-in. Higher customer experience scores can help AWHSB capture more market share. If we do not take action, we risk higher employee turnover rates, which will lead to high costs for training new employees. Consequently, this program will provide preventative maintenance to ensure that our employees are motivated and happy.

CONCLUSION AND RECOMMENDATIONS

Away From Home Hotel, South Beach, should implement the front desk staff incentive program to recognize employees who go above their normal work responsibilities to provide excellent customer service and increase the sales occupancy of the hotel through up-selling. This program will resolve our declining employee morale and untapped profit potential at the front desk.

With your approval, I will introduce this incentive program to our staff at the November staff meeting and begin training on November 15, 2018. As a result, AFHSB will maintain quality leaders, diminish turnover rates, increase revenue, and bolster the morale of its team.

REFERENCES