The secret to staff retention in hospitality

If you’re finding the cost of employee turnover unsustainable – you’re not alone. Hospitality employers across the country are struggling with the cost of recruitment. As the industry faces a staffing drought coupled with unwanted levels of staff turnover. In fact:

• Nine out of ten hospitality business leaders expect to face staff shortages.¹ 
• 80% of hospitality operators are reporting front of house vacancies.² 
• 42% of staff leave their jobs within 90 days.³ 
• And the sector has an employee turnover rate of 30% – double that of the UK average – and is forecasted to increase.⁴

But why is the sector facing these recruitment and retention challenges?

1. Brexit

Due to Brexit, many EU workers have returned home and employers need to recruit UK workers to fill the gap.⁵

2. Work-life balance

A lack of work-life balance in the sector is also a retention challenge. These factors contribute to staff leaving their jobs:⁶

• long shifts; 
• difficult working conditions; 
• and anti-social hours.

So let’s explore how the hospitality sector businesses are responding. Also how these strategies might help your business reduce the costs of both recruitment and employee turnover.

Closing the skill gap and minimise employee turnover in hospitality

The sector is responding by igniting (or reigniting) a passion for the industry. It is laso promoting career opportunities and investing in employment practices.

1. Innovating to find new talent streams

Businesses are using new tactics including ‘refer a friend’ schemes. Recruitment statistics show that 45% of referred employees stay with the company for over four years.7

2. Providing a better employment experience

Hospitality is not for the faint of heart. Even before the pandemic, hospitality businesses demanded employees with passion and gusto for the industry. Small acts of reward and recognition can go a long way to improving morale and staff retention. Flexibility and listening to staff preferences when it comes to shift work will show employees they are valued. Employee benefits that address stress and mental health are essential in this fast-paced environment. But above all, employers that promote positive mental health will equip their management teams to handle sensitive conversations with staff.

3. Focusing on training and development

When you invest in your staff’s professional development, you make them feel like valued members of your team. This, in turn, decreases employee turnover. E-learning, shadowing and manager coaching are some of the areas businesses are implementing.⁸

4. Differentiating compensation models

Other great incentives include:

• profit sharing; 
• tips; 
• friends and family discounts; 
• or using your business's products and services as perks. 

These strategies help attract and retain employees who work hard and serve customers with the highest standards.⁹

Calculate your employee turnover rate

Having high staff turnover can be costly. Therefore it is crucial for hospitality businesses to revisit their recruitment strategy. Enhancing their efforts to attract the best talent has become more important than ever. Use our employee turnover calculator to assess the cost of disengaged employees, and the loss of productivity. It can also help you understand the expenses involved in finding your next new recruit.

Sources

1. harpers.co.uk/Recruitment_and_retention__91huge_92_concerns_for_hospitality
2. theaccessgroup.com/hospitality-staff-and-hr-resources/tackle-staff-shortages
3. theaccessgroup.com/reduce-staff-turnover
4. ksbrecruitment.co.uk/high-staff-turnover-in-hospitality
5. standard.co.uk/hospitality-staffing-crisis-restaurants-pubs-vacancies
6. humanfocus.co.uk/the-importance-of-mental-health-in-hospitality
7. goremotely.net/employee-referral-statistics
8. innform.io/attracting-and-retaining-top-talent-in-the-hospitality-industry
9. hiring.monster.com/5-ways-to-attract-leisure-and-hospitality-candidates