Hospitality staff turnover is an expensive issue. In fact, research indicates that turnover in the hospitality industry is higher than retail and construction, costing businesses thousands of dollars to replace each outgoing employee. The industry experiences high turnover due to three primary reasons.
- Large percentage of younger staff members in their first years of working
- Large proportion of students who don't work a full year's schedule
- Seasonal staffing resulting to cyclical turnover
Turnover comes at a high price for all venues, but there are some effective strategies to create an environment employees love. Here are 10 ways to reduce employee turnover.
Strategies to Reduce Hospitality Staff Turnover
1. Hire the Right People
Employee retention starts at the interview stage. You have to ensure you are hiring people who are committed to the industry, and avoid those with a habit of hopping from one job to another. Employees who are empathetic, team-oriented and committed to customer service are well-suited to hospitality jobs, and have a lower chance of discovering down the track that the job doesn’t suit their personality.
2. Give Positive Feedback
Hospitality businesses aim to deliver consistent high standards to provide the best customer experience possible. However, having employees maintain this consistency can be a challenge. Employees require feedback and constructive advice to improve, just as they need positive feedback to stay motivated.
3. Let Your Employees Grow
People often enter the hospitality industry without formal training, but encouraging upskilling programs can be a great way to show employees you’re committed to their professional growth. Without this forward momentum, employees may feel stagnant or bored, and seek a fresh challenge elsewhere.
Providing opportunities for ongoing education by implementing training programs or workshops and online courses creates a powerful incentive for employees to stay in the long haul.
4. Challenge and Support Your Employees
By the same token, rewarding jobs are those that challenge employees while offering consistent support. Boredom and apathy lead to dissatisfaction, which is why strategic managers look for ways to push their employees out of their everyday routine to improve.
Hospitality jobs can be demanding, and many venues require employees to put in irregular and extended hours. But for employees, this can mean less time with their families and for leisure activities. While these demands can go hand-in-hand with the industry, encouraging a healthy work life balance should remain a priority for management.
6. Offer Competitive Wages
Pay in the hospitality industry is diverse. However, there is a correlation between compensation and employee retention. All employees want to receive competitive pay like others in the industry. Offering higher wages may seem cost-prohibitive in the short term, however considering the high cost of replacing employees, it’s often the best strategy in the long run.
7. Encourage Feedback from Employees
Sometimes employees feel they are not being heard and assume that management isn’t interested in their ideas. Strive to provide regular opportunities for feedback and encourage suggestions from employees, like stay interviews. Allowing staff to share their opinions makes them feel valued.
8. Monitor Your Management
It’s often said that employees don't quit jobs, they quit bad managers. If your managers are hostile, don't communicate and give direction, or disregard employee ideas and concerns, you are likely to experience a turnover problem. Just as your employees are expected to demonstrate effective soft skills, so is your management team.
9. Include Employees in Decision Making
Every hospitality employee wants to feel that they play a key role in the venue and are contributing towards the achievement of its goals and objectives. You can foster this by allowing employees make low-level decisions and trusting them with some authority.
10. Be the Best
People want to work for the winning team. Being ahead of the competition not only ensures employment longevity, but also instills a sense of pride in your employees. While you look at ways to improve staff turnover, also look at ways to build a company that employees are proud to work for.
Hospitality staff turnover is expensive for businesses, leads to poor performance and management frustration. For more information on how BENCHMARQUE’s HR Services can save your business time and money, click below to redeem your free consultation, valued at $350.