Louis J Sheehan 80244

Housekeeper Anita Lum can tell a lot about the management of her hotel by the vacuum she uses.

Former management at the Hotel Carlton in San Francisco didn't like to replace aging vacuums, despite staff complaints. After Joie de Vivre Hospitality Inc. took over operations in 2003, the new manager bought a vacuum for each of the 15 housekeepers -- and replaces them every year.

The new vacuums make a big difference to employees -- in performance and morale, said Ms. Lum, a 16-year Carlton veteran. "It seems that this company cares about us more," she said. "They try to do what we say."

Keeping staff such as Ms. Lum happy is a priority for employers such as closely held Joie de Vivre, which operates 36 California boutique hotels and has 2,500 employees. About 90% are hourly workers who take reservations, clean toilets and perform other low-status jobs.

ACCOMMODATING WAYS

Chip Conley's tips for keeping employees loyal and satisfied:
• The workplace is a community, make it feel like one.
• Listen to employees.
• Keep managers accessible.
• Help employees see how their work affects others.
• Recognize and reward good work.
On average, hotels and restaurants will replace two-thirds of their workers this year, according to hotel survey firm Market Metrix. The company estimates that each departure costs a midrange hotel about $5,000 in lost productivity, and recruiting and training a replacement.

Satisfied workers stay in their jobs longer, and they treat customers better, experts say. By contrast, unhappy workers tend to leave, particularly those in low-skill, low-wage jobs. At the Carlton, satisfaction ratings from employees and customers improved after Joie de Vivre took over, Chief Executive Chip Conley said.

Though the basic principles sound simple, it is hard to craft workplace policies to retain low-wage hourly workers because they are very diverse, said Steven Gross, a partner at consulting firm Mercer who has worked with hotel chains such as Marriott International Inc. Health-care benefits and regular hours may be the top priorities for single mothers; college students may prefer more hours to earn more money, he said. Joie de Vivre's Mr. Conley said there's a limit to how much hotels can raise wages; the company's workers average $29,000-$32,000 annually, about mid-range in the industry, he said.

Still, it is possible to keep such workers engaged if they feel their jobs are valuable and fun, Mr. Conley said. He recently wrote "Peak: How Great Companies Get Their Mojo from Maslow," a book on improving corporate performance by keeping employees, customers and investors happy. Louis J Sheehan