DMR | What We Do

Human Capital Case Studies: Marriott: Global Human Capital | Marriott: Employee Satisfaction | Philips Electronics

Marriott

Reducing Employee Benefit Costs:
While Increasing
Employee Satisfaction

Marriott Hotels is the largest lodging company in the work with almost 2.400 owned or franchised properties in 64 countries. Its’ hotel brands include:
Courtyard, Marriott, Residence Inn, Spring Hill Suites and Ritz Carlton.

Objectives
Marriott considered changing employee benefits to reduce overall costs. Prior to implementing such changes, Marriott wanted to assess the impact of such changes on employee satisfaction. The
president of Marriott Hotels asked DMR’s founder to accept the challenge.

Process
The process involved identifying the drivers of employee satisfaction and the impact of the proposed benefit changes.
The statistical methodology used in this work was cutting-edge – The Key Driver model.

Results
The results showed little variation in drivers of employee satisfaction across various employee categories identified
by job function, level, length of employment, etc.

Seven factors were identified which, if improved, would lead to the greatest impact on employee satisfaction and
reduce employee turnover. Moreover, none of the proposed changes in employee benefits showed any
substantial impact on employee satisfaction.

The benefit changes were implemented along with lower cost measures to increase employee satisfaction.

The results led to an employee-driven set of strategies and tactics for revising employee benefits and human resource
programs. As a result, Marriott achieved significant
cost savings in employee benefit programs. In addition, the results led to a surprising 12 percent improvement in employee job satisfaction satisfaction in one year.