HBR’s What Happens When You Really Meet People’s Needs, explains the mechanics of Ritz Carlton’s excellent customer service, which starts with its commitment to its employees and extends to its guests. (This is a perfect follow-up to Monday’s post, Marketing is HR, HR Marketing.)
Half a dozen examples detail how the Ritz Carlton culture is reinforced, the most astonishing of which is the fact that each employee may spend up to $2,000 on a guest without managerial approval. This Forbes interview goes into even more detail and clarifies that $2,000 is merely a guideline and that the money spent is not necessarily to solve a problem, but to create an “outstanding experience” for a guest. The hotels’ General Managers often find about about these expenditures after the fact; further evidence of the trust they place in their teams. (The Forbes article describes its recruiting and training methodology as well.)
- The company’s turnover rate is a fraction of the industry average.
- Employee engagement scores are significantly above other “best in class” benchmarks.
- An increase of one per cent in employee engagement measurements translates into as much as $10M in additional revenue.