Turnover refers to the rate at which employees leave a business and are replaced by new hires. In the hospitality industry, turnover rates are notoriously high, often surpassing those of other industries.
According to the Bureau of Labor Statistics, the turnover rate in the hospitality sector in the United States reached around 73% in 2022. This means that for every ten employees hired, approximately seven will leave their positions within the year.
The hospitality industry has consistently faced one of the highest turnover rates across all sectors. In comparison, the average turnover rate across all industries is approximately 47%. The constant need to recruit, train, and replace employees places a significant burden on businesses, both financially and operationally.
For hoteliers, high turnover rates can disrupt service quality, increase costs, and ultimately hurt the overall guest experience.
Understanding why turnover is so high and how it impacts both staff and guests is crucial for improving not only employee retention but also the quality of hospitality services.
Why is Turnover So High?
High turnover in the hospitality industry is driven by several factors. The demanding nature of hospitality jobs—long hours, irregular schedules, and a fast-paced environment—often leads to burnout and resignation, especially for new employees.
A lack of career growth opportunities also contributes to turnover. Many hospitality workers see their roles as temporary due to limited chances for advancement, prompting them to seek opportunities elsewhere where their efforts are better recognized.
Leadership practices play a significant role as well. Many leaders focus on efficiency and business targets but lack the soft skills needed to support their staff. Employees who feel undervalued are more likely to leave, whereas supportive leadership can reduce turnover.
Low compensation is another key factor. Many workers are paid minimum wage, making it hard to justify staying in such demanding roles, especially when better-paying opportunities are available.
The COVID-19 pandemic further worsened turnover by creating uncertainty and additional stress for remaining workers, making it even harder for businesses to retain staff.
How it is hurting the guest experience
High turnover rates in the hospitality industry have a direct and negative impact on the guest experience. Here are some of the key ways in which turnover affects guests:
Inconsistent Service Quality: Frequent staff changes lead to inconsistencies in service quality. Guests may experience varying levels of professionalism and attention, depending on the experience and training of the current staff.
Lack of Personal Connection: Guests value personalized service and a sense of connection with staff. High turnover makes it difficult for employees to build rapport with returning guests, resulting in a more transactional experience rather than a warm, welcoming one.
Increased Wait Times: New employees often require time to learn the ropes, which can lead to slower service and longer wait times for guests. This can be particularly frustrating during peak times when efficiency is crucial.
Reduced Staff Morale: Constant turnover can negatively affect the morale of the remaining staff, who may feel overburdened or unsupported. Low morale among employees can translate to poor guest interactions and a lack of enthusiasm in providing service.
Training Gaps: With a constant influx of new employees, training can become rushed or incomplete. This results in staff members who may lack the knowledge or skills needed to address guest needs effectively, leading to a subpar experience.
The guest experience is at the heart of the hospitality industry, and high turnover rates can severely undermine a business’s ability to provide the level of service that guests expect and deserve.
The role of leadership in reducing turnover
Effective leadership is crucial in reducing turnover in the hospitality industry. General Managers (GMs) need to go beyond managing numbers and focus on the “why” behind their team’s work, fostering a people-focused approach that prioritizes employee well-being.
Hospitality leaders must “sell the why” to their employees, helping them understand the purpose behind their work and creating a sense of meaning. This motivates employees to stay, fostering loyalty and reducing turnover.
Leaders should also prioritize soft skills like empathy, communication, and active listening. These skills help staff connect emotionally with guests, improving both employee satisfaction and guest experiences.
Recognizing and rewarding employees’ efforts is also key. Regular feedback, acknowledgment, and support can significantly impact an employee’s decision to stay. Leaders should create an environment where employees feel valued and encouraged to grow.
Investing in career development by providing training and advancement opportunities helps employees see a future within the organization, increasing their commitment to their roles.
In summary, reducing turnover requires leaders who genuinely care about their people. By communicating the “why,” fostering connections, and supporting growth, hospitality leaders can create a loyal and engaged workforce.