According to the U.S. Bureau of Labor Statistics, the average 2021 turnover rate in the leisure and hospitality industry was 84.9% compared to the overall rate of 47.2% nationally. While high turnover rates in the hospitality industry are not a surprise, it doesn’t mean that companies can’t shift the trend.
It’s no secret that your employees are the face of your organization. Happy employees don’t just result in saving you money and keeping the company profitable, they enhance your customers’ experiences. And, when customer expectations are met and/or exceeded, that boosts your bottom line.
So how do you keep your employees happy and reduce turnover? Here are four suggestions on how you can create room for them to grow internally:
1. Offer training programs
Are you presenting your employees with the opportunity to up-level their skills? When you invest in your employees, they feel valued and remain loyal to your company because you helped them develop and strengthen their talents and abilities.
After Starbucks began offering learning and development programs to their employees, they found that those who took advantage of the programs were twice as likely to stay with the company and four times more likely to receive a promotion.
Consider creating an internal professional development program(s). Or invest in your employees’ future by covering their expenses for attending a degree program or certification expenses such as those available in hotel management, hospitality management, or food industry compliance management.
2. Establish employee engagement strategies
Did you know that at Hyatt the average housekeeper employee stays with the company more than 12 years? Their success is accredited to Hyatt’s excellent engagement strategy. According to HubEngage.com, the company offers outstanding training, hires and promotes from within, and is committed to employee diversity. In addition, Hyatt includes ALL employees in their engagement strategy, not just those at managerial or executive levels.
At In-N-Out, employees say the company takes excellent care of them. In addition to higher-than-average pay, In-N-Out offers their employees the flexibility to do family-related activities, enjoy paid vacations (for both FT and PT employees), participate in ongoing training and more. They also treat entry-level employees with the same care as those at higher levels, which results in low turnover for the company.
3. Nurture a culture that emphasizes collaboration
It may sound cliché, but team work makes the dream work. If you don’t already do so, consider planning company retreats that feature team-building exercises. When you open the door for them to explore commonalities they have with their co-workers, employees feel more connected and therefore, are more enthusiastic about collaborating on projects together. They have an increased tendency to confide in and support one another in accomplishing team projects as well as encouraging one another in the achievement of personal, professional, and/or company goals.
4. Open the door to discussion about career paths and goals
Ask your employees what their goals are. A clear sense of direction helps them stay focused and helps you guide them in the right direction. If you know what they’re seeking you can support their efforts by recognizing and staying open to opportunities that may help them along the way.
Like many in the hospitality industry, if your company is one that has experienced high turnover rates, you can shift the trend by helping your employees to grow internally. Consider the four recommendations above and see what a difference they can make in your employees’ loyalty in the long run.