Impacting Turnover in Hospitality

Recognizing Bryan Drackett’s extensive expertise in talent acquisition and his deep understanding of workforce dynamics in the hospitality industry, this exclusive feature offers invaluable insights into the challenges of mitigating high employee turnover and strategies for enhancing engagement and retention.

I recently read that 41 percent of all hospitality workers changed jobs within their first year. The article highlighted that the hospitality industry recorded the highest employee exit rate—three million people left their jobs between January and April 2024, a staggering 204 percent above the national average quit rate. This article aims to delve into the critical issues of talent retention within the hospitality industry and explore proven strategies to enhance employee engagement. By building a more stable and committed workforce, the hospitality industry can ultimately drive long-term success and customer satisfaction.

Over the past 30 years, the hospitality industry has consistently grappled with high turnover rates, influenced by economic recessions, labor shortages, technological advancements and the COVID-19 pandemic. These external factors have undeniably shaped workforce dynamics. However, effective leadership within the industry can make a substantial difference in mitigating turnover. By fostering a supportive work environment, leaders can enhance employee satisfaction and loyalty, ultimately stabilizing their workforce despite external challenges.

Strategic Approaches to Talent Retention in Hospitality

Employee dissatisfaction often stems from common issues, including low wages, limited career development opportunities, burnout and inadequate work-life balance. These challenges are compounded by industry-specific factors such as seasonal fluctuations, long hours and the physically demanding nature of the job. Additionally, generational differences play a significant role, as younger employees—Gen Z and Millennials—often seek more purpose-driven work and greater flexibility compared to previous generations. Addressing these factors requires a personalized approach to improve retention and create a more supportive and engaging work environment.

To reduce high turnover rates in the hospitality industry, companies should focus on several key areas that benefit individual hotels in the long run. Beginning with the goal of attracting and retaining top talent, it is crucial to identify a strong Employee Value Proposition (EVP) that encompasses both, compensation and non-monetary benefits, such as career growth opportunities, a supportive work culture and flexibility. By tailoring the EVP to meet employees’ needs and emphasizing a positive, inclusive company culture, hospitality businesses can attract candidates who align with their culture while fostering a loyal workforce by reinforcing the EVP throughout the employee lifecycle.

Investing in employee training and development is another essential strategy. Continuous upskilling and reskilling keep employees engaged and prepared for higher-paying roles, while leadership development programs promote internal growth and loyalty. Personalized learning paths based on individual needs and aspirations can further increase engagement and reduce turnover. Additionally, promoting internal mobility through career mapping tools allows employees to envision their growth potential and build a clear plan to achieve it.

Since dissatisfaction often stems from benefits or pay, companies must evaluate what they can offer in terms of total rewards. In an industry where work-life balance has always been a challenge, offering solutions like flexible scheduling can make a significant difference. Flexible scheduling not only helps meet the varying needs of employees but also ensures business demands are met. By prioritizing work-life balance alongside competitive pay and benefits, companies can enhance employee satisfaction and foster a more engaged and loyal workforce.

Labor management tools can also play a key role in improving employee satisfaction. These tools offer automated shift scheduling, real-time labor tracking, and labor cost insights, which streamline workforce management and reduce administrative burdens. By ensuring fair and efficient scheduling, minimizing conflicts, and providing transparency in work hours and pay, these tools help employees feel valued and supported. Additionally, the ability to track and adjust labor needs in real time allows managers to create a more balanced and responsive work environment, ultimately boosting morale and retention.

Compensation remains a critical factor for employees. Competitive pay and benefits packages, including nonfinancial perks like health benefits and retirement plans, play a pivotal role in retaining staff. By implementing these strategies, hospitality companies can build a more stable and committed workforce, ultimately benefiting individual hotels and the industry.

Enhancing Employee Engagement and Satisfaction

However, what can leaders at the hotel level do differently to further enhance employee retention and satisfaction? Let’s explore some actionable steps hotel managers can take to make a significant impact.

It comes down to fostering an environment where employees feel heard and valued. Leadership that is empathetic, transparent and communicative can significantly reduce turnover rates. Early in my career, I read The 3 Most Important Questions You Can Ask Your Employees by J. T. O’Donnell. In this book, the author outlines three key questions to ask employees regularly: “How are you?”, “How’s the team?” and “How can I help?”

I applied this approach in my first role as a Front Office Manager in the mid-1990s. Within two months, my associate satisfaction scores shot up to 98 percent, my Guest Arrival Scores increased to 95 percent and over five years across three different hotels, I identified ten associates who grew into leadership positions within the company. These three simple questions, when asked consistently, can improve communication, strengthen relationships and enhance overall team performance.

Encouraging regular feedback from employees helps identify and address issues before they escalate. The Three Questions approach is an effective way to gather feedback and ensure employees feel heard, but it is not the only method. Tools like pulse surveys or suggestion boxes provide additional avenues for employees—especially new team members who may not yet be comfortable expressing concerns openly. However, the key to making these tools effective is transparency. Since surveys and suggestion box comments are often anonymous, it is difficult to respond to individuals directly. Instead, leaders must communicate responses publicly to the entire team. As the saying goes, if one person voices a concern, multiple people are likely thinking it.

As leaders in the hospitality industry, we face significant turnover challenges. However, by actively engaging with our associates, we can build a more stable and committed team. Although industry-specific challenges persist, leaders at the hotel level play a crucial role in enhancing the engagement of associates. By fostering a supportive and communicative environment, they can make a substantial impact on employee retention and satisfaction.