The hospitality industry has one of the highest turnover rates compared to other sectors of the economy. Frequent turnover imposes a high financial cost on companies, and it’s a sign that employees aren’t finding jobs where they can thrive and be happy long-term. Turnover can also affect the guest experience because a new employee who’s still getting their bearings may not provide the same level of service as someone who has spent more time in their current role.
In other words, when companies find ways to reduce turnover, everybody wins. Here are some of the best strategies businesses can use to tackle the problem.
Offer training
Training and professional education help employees improve their skills and can also boost loyalty. A team member who can access adequate learning opportunities at work will likely feel supported by their workplace and may feel more motivated to stay and contribute well into the future. They also have less reason to look elsewhere for professional development. And training encourages workers to focus on career growth in their company rather than viewing their job as a short-term gig.
Employers have many options when it comes to providing training. They can offer online certification or coursework, such as AHLA Foundation certificates or the Cornell Certificate Program in Hospitality Management, design their own training modules, pair employees with mentors, or reimburse workers for tuition at local colleges.
Provide benefits like parental leave
Sometimes employees need to spend time away from work, either because they’re welcoming a new child or because they’re dealing with an illness or family emergency. People may simply quit their jobs if paid leave isn’t an option, so businesses that don’t offer any leave risk losing workers in those situations. Plus, major hospitality employers such as Hilton and Marriott offer parental leave and other types of paid time off, so companies that want to compete for talent will likely need to provide similar benefits.
Increase pay
Raising wages can be a relatively expensive way to improve retention, but sometimes it’s the only option. If your competitors are all offering $14 an hour for entry-level positions and you’re paying $12, employees are probably going to flee to the higher-paying jobs. Keep an eye on the starting wages at other comparable properties in your city, and make sure that you aren’t paying significantly less than other businesses. Raising compensation may actually save money in the long run if it allows you to spend less recruiting and onboarding new workers.
Create pathways to promotion
Employees are more loyal to a business when they’re working toward a goal there, which might be better pay, a more interesting job, or the chance to influence the company’s direction. Employers can help by stating clear prerequisites for different roles to take some of the guesswork out of promotions and providing regular performance reviews and guidance for team members who want to ascend the ranks.
Stand by your values
Articulating what your company believes in can create a sense of community and shared purpose, and team members may be more loyal when they know their employer is having a positive impact on the world. You can show that your company cares by holding service days, evaluating business practices for sustainability, and supporting charities.
Make inclusion a priority
A welcoming, diverse work environment where everyone feels respected is more likely to foster loyalty. To achieve that ideal, it’s often necessary to audit recruitment stats and make sure marginalized groups aren’t being overlooked. And once you’ve hired diverse talent, you’ll likely want to promote inclusion through practices like offering access to diverse mentors, establishing affinity groups for peer support and networking, and incorporating feedback from diverse stakeholders into business decisions. And of course, inclusion is only possible with equitable systems to determine pay and promotions.
Listen to employees’ concerns
If conventional approaches to building loyalty aren’t succeeding, it may be that issues specific to your workplace are driving people away. In this case, it might be best to investigate the problem and find out why employees aren’t sticking around. You may want to conduct exit interviews with workers who resign, solicit anonymous feedback from current employees, and hold community discussion forums where people are encouraged to speak candidly about their work experience.
Once you’ve identified your workforce’s pain points, create a plan to make things better. For example, if employees say that last-minute scheduling switches are destroying their work-life balance, you could implement a system that locks in shifts two weeks in advance. After you make changes, continue gathering feedback to see if you’ve found a good solution or if further adjustments are needed.