Employee Retention Strategies at Marriott International

Introduction: Marriott's Competitive Edge in Employee Relations

Marriott International, Inc. is one of the world's most recognizable brand names, both in the hospitality sector and on the corporate landscape at large. Its enormous success is a product of a number of factors, not the least of which is its unparalleled track record in employee relations. According to Waddell (2006), "the Marriott family has more than 3,000 hotels in 67 countries around the world. The largest of the 15 Marriott brands — Marriott Hotels & Resorts — has more than 500 hotels worldwide." Its remarkable scale and growth share a reciprocal relationship with its status as the foremost practitioner of employee retention in its industry and as an exemplar to other firms in this dimension of its operations.

Theoretical Understanding of Employee Retention in Hospitality

Marriott International is both one of the most successful and one of the most reputable names in the hospitality industry. Given its reputation for employee retention, this success is due at least in part to its competitive edge in the area of Human Resource Management (HRM). As Mehta (2005) points out, its success in this area is indeed unique: "worldwide researches have suggested that employee turnover is among the highest in the hospitality industry. Studies have shown that the average turnover level among non-management hotel employees in the U.S. is about 50%, and about 25% for management staff." (Mehta, p. 1)

The consequences Mehta identifies are at least twofold. One is a loss of revenue resulting from the higher expenses of recruitment and training. The other, of particular interest to this research, is the close correlation between employee satisfaction and customer satisfaction. This is of the utmost theoretical importance to the present discussion, as employee retention is understood here as a natural product of employee contentment and high company morale. The discussion that follows identifies the causes and effects of Marriott's achievements in the areas of employee contentment, morale, and, ultimately, retention.

Real Practices: Recruitment, Promotion, and the Pathways Program

One of the practices in place at Marriott is its continued emphasis on promoting from within. According to CNN Money (2010), it is common for upper management at Marriott to rise from within the company's lower tiers. CNN Money reports, for instance, that "Marriott focuses on hiring managers from within, and Erica Qualls — who started out as a switchboard operator on the graveyard shift 15 years ago — is one example of that policy at work. Qualls is now general manager of the Marriott Marquis in Atlanta, which has annual revenues of $100 million a year." (CNN Money, p. 1) By showing confidence in personnel at every level and providing clear paths for career advancement, Marriott has had great success grooming its own employees for future leadership roles. In addition to promoting greater internal consistency, this approach brings a great deal of positive morale to the company, creating an environment where personnel see clear opportunities for career growth regardless of starting position.

The confidence that Marriott places in its personnel at every level is not based on blind faith. David Marriott (2009) offers a number of recommendations to industry leaders based on the practices in place at the company. That he begins his counsel with the subject of recruitment is instructive, as this is the starting point for any firm aspiring to hire employees with long-term value. Marriott indicates that "to ensure you have the best staff, write a job description and key performance indicators before advertising the position. Think through the key interview questions and ask each candidate the same ones so you can compare 'apples to apples'. Know the type of person you are looking for, what you want them to do and their employment conditions, and you are off to a great start." (Marriott, p. 1)

A central method by which Marriott has remained at the forefront of the industry in terms of personnel consistency is the hotel chain's Pathways to Independence program, which simultaneously demonstrates the company's emphasis on employee retention and its commitment to the communities in which it operates. According to Kukreja (2011), "the Bethesda, MD-based hotel chain has developed one of the country's most successful programs in training welfare recipients for the workforce. In some locations, Pathways alumni are 50% less likely to quit than the average employee. The program's unique structure — a matrix-style combination of internal and external support for the company's welfare-to-work employees — makes it successful. Marriott supervisors help employees manage their professional lives, while Marriott 'case workers' help employees manage their personal lives. By splitting these two roles — and recognizing the necessity for both — Marriott has become an industry leader in turnover, customer service, and profitability." (Kukreja, p. 1)

This program is highly progressive in recognizing that pressures in the personal lives of employees can impact workplace performance and even the ability to remain in a position. By taking a vested interest in helping personnel balance aspects of their personal lives while still respecting individual privacy, Marriott has positioned itself as a powerful advocate for its employees. In addition to promoting heightened morale, the Pathways program dedicates company resources to ensuring that hired employees are given every opportunity and accommodation to remain with the company long-term.