The hospitality industry has been grappling with high turnover for years.
According to industry reports, the average turnover rate in hospitality hovers around 70% globally.
The future of the hospitality industry relies on the hiring and retaining of their staff. So we explored what’s causing these high turnover rates, the impact and strategies to flip turnover rates on their head.
Causes for employee turnover
Employees often face long hours, high pressure, demanding customer interactions and more; leading to burnout and disengagement.
Lack of predictability
Seasonal work, non-standard hours and shift patterns can often drive employees away.
Many hospitality jobs are entry-level, requiring minimal experience. This can mean they’re either viewed as a stepping stone, or lack growth opportunities that will keep them there.
Not knowing what you’re meant to do, or discovering a role doesn’t align with what you were hired to do will lead to frustrated new hires
Hospitality roles are often demanding so poor management, toxic cultures and lack of recognition is likely to make them leave pretty sharpish.
The impact of turnover
Hiring and retraining
The process of hiring and training new employees incurs substantial costs and resource.
Continuously training new staff pulls experienced employees away from their primary responsibilities.
Inconsistent staffing leads to inconsistent service. This in turn can lead to negative reviews and reduced revenue.
The revolving door of employees can impact the morale of existing staff. Leading them to feel overworked, unappreciated and uncertain about their job security.
Why onboarding matters
Onboarding is a bit of a secret weapon against employee turnover. It’s a crucial process that sets new employees up for success.
Good onboarding has a treasure trove of benefits when it comes to retention, such as:
- Improved job performance
- Reduced turnover costs
- Increased employee engagement
- Enhanced employee confidence
- Employee loyalty
- A strong employee brand
Tips for onboarding success
Consider setting up a pre-boarding process happens before your employee joins and gives them the opportunity to find out more about the company they’re about to join.
Although an obvious one, it’s a step that’s often forgotten about. Ensure you carve out time to give a tour of the workplace and introduce them to different departments to provide some wider context.
Collate role-specific resources
Information overload is one of the biggest frustrations during the onboarding process. By collating role-specific content that can be easily accessed, it ensures new hires have access to what they need, when they need it.
Assign a Buddy or Mentor
This ensures your new hire has someone to talk to that isn’t their manager. Meaning they have the opportunity to create relationships and ask questions they wouldn’t feel comfortable asking their manager.
Running some fun team-building activities helps calm the nerves and introduces new staff to the team – helping to raise energy and make it easier for the new employee to adjust to a new environment.
Personalizing the experience makes your new hire feel special and can really provide the wow factor. Consider sending a personalized welcome video or some branded swag with personal message.
Set clear expectations
Keep expectations attainable and realistic using a SMART framework so its clear what they know what is expected of them and their goals as well as what support they can expect from you.
Your energy around new team members can affect their first impression of the company and the job. Get other team members on board to make them feel welcome and immerse your employee in an energetic environment.
Make sure you provide regular feedback and celebrate a job well done. Hospitality can be demanding, so its important to share your appreciation regularly.
Consider adopting digital tools that can streamline the onboarding process and make it a seamless experience that provides the wow-factor.
Remember, onboarding is not just a one-time event but an ongoing process.
Providing continuous support and guidance during the early stages of employment sets the stage for long-term success and employee retention in the hospitality industry.