Attracting and retaining good staff members is as much of a problem for Scottish hoteliers as it is for their English and Welsh counterparts. You would therefore expect an independent hotel in the Scottish Borders to struggle as much as, if not more than, those in larger, more obvious tourism centres such as Edinburgh. However, for the 132-bedroom, four-star Peebles Hotel Hydro, this is not true.
Instead, the hotel, which has 140 full-time staff, has a multicultral mix of employees representing Scotland, France, South Africa, Australia, New Zealand and Spain, 28% of whom have been at the hotel for five years or longer.
Despite the multiplicity of nationalities - many employees have been recruited through Bigthistle.com, a Scottish Enterprise site aimed at attracting workers from abroad - the business remains reliant on the local community for the majority of its manpower.
The Hydro went back to basics and decided to attract and keep staff with its own distinctive advantages - such as space. Set in 30 acres of Scottish countryside, the hotel has for many years offered onsite accommodation to 80 full-time staff, a significant bonus that removes car dependency and the associated cost.
Helping staff wages go even further, those on duty receive meals throughout the day, and in their spare moments have access to the hotel's pool and gym facilities off-peak. "We believe in remunerating our staff properly, rather than making token gestures," personnel manager Lorna Smith says.
Harnessing the resources you have to hand is a logical move, but how many businesses actually do it? Keeping to the philosophy of avoiding incentives for their own sake, two years ago the hotel put itself through the arduous task of qualifying as an SVQ (Scottish Vocational Qualification) centre and is the only business in the area offering these qualifications.
A recent report by recruitment agency Angel Human Resources found that a third of its applicants had left their previous employers because they did not feel valued, or had no clear idea how they could continue to progress within the organisation. So being able to offer employees training while working makes sense and helps businesses retain staff.
Industry giants Whitbread and Compass Group have recently highlighted the first three months of employment as being critical to retention. Their initiatives to minimise problems in this period have been to communicate to new staff what they are as companies and where they are going. Hotels like the Peebles Hydro have the advantage of being smaller, so communication is quicker and more efficient, and a regular staff appraisal system runs throughout the year.
The important part of the appraisal process, Smith says, is that it's sincere and conducted on a regular basis, not forgotten once the honeymoon ends. "The result is an improvement in our levels of service and morale, with a marked reduction in the level of dissatisfaction at the hotel," she says.
It's not rocket science but, smoothly implemented and communicated, this package of incentives, training and personal feedback has helped an independent hotel keep its staff for longer than the industry average, with no expense or investment beyond hard work and planning.
CELEBRATING EXCELLENCE IN STYLE
The Peebles Hotel Hydro has an annual staff awards scheme and function, which may prompt the question: So what? Well, staff at the hotel argue that the important element is the commitment it engenders - the notion that, if you're going to do something, you should do it properly.
So, for one day each January, the hotel closes its doors to guests and gives its staff the day off. They are invited to bring their partners along, and even the chefs get a breather as a giant buffet is laid on, with temporary banqueting staff recruited for the night.
The best department wins £1,000, while four employees judged to have excelled in their roles throughout the year each take home £300 plus prizes.
Department supervisors round off the night by deciding on the recipients of five cups. The cups are engraved and retained, covering categories such as most promising chef and young person of the year.
But does this outlay actually benefit the business? General manager Gerald Bony would argue that it does. When he took on his role five years ago, he had to work a seven-day week. Now, though, the hotel has a £5m turnover and makes 20% return on profit. "I now get two days off a week and even a holiday," Bony says. "When I go away, the place still runs - and the staff are much happier. So, yes, it's worthwhile."
Factfile
Peebles Hotel Hydro
Innerleithen Road, Peebles, Peeblesshire EH45 8LX.
Tel: 01721 720602
www.peebleshydro.com