Ritz-Carlton's employee teamwork and retention strategy

Working in Groups: Lecture Response

Why is the brand name of the Ritz-Carlton hotel chain synonymous with luxury and quality? The surprising answer may be employee teamwork and retention, as well as a strong record of customer retention. In addition to boasting five stars for its service, the hotel chain also rewards quality employees on the basis of a star system. It has an incentive program to encourage employees to perform at their most optimum level, just as it has an incentive program to encourage return customers. The 5-Star Rewards program recognizes superior employees whose excellent performance has drawn praise from their peers as well as customers and managers. This system promotes employee retention, which is conducive to better teamwork at the organization, as well as recognizes the importance of peer input in addition to customer input when evaluating employee performance. This evaluation system rewards high standards of performance shown by employees who are 'there' for their peers every day, day in and day out.

The Ritz has a rigorous screening process to spot talented and committed people, and creates a unifying, customer-centered work ethic in its training. It also encourages its managers to try to draw forth the unique abilities and talents of workers, to create a more effective organization. It recognizes that anticipating employee needs and wants on the part of managers is just as important as anticipating customer needs. To retain a loyal customer base, good employees are required on every level of service provided by the Ritz-Carlton hotels.