reduce-employee-turnover-hospitality-industry

The Hotel Manager’s Guide to Reducing Employee Turnover

Almost 3 million people in the U.S. quit their jobs in leisure and hospitality during the first four months of 2024. A July 2024 report from Schmidt & Clark highlights this alarming trend—a quit rate 204% above the national average. With numbers like these, it’s no surprise that many hotel managers constantly recruit, train, and onboard new team members. When turnover spikes, it can create extra costs, disrupt your team, and often lead to a dip in the guest experience.

Here’s the good news: turnover doesn’t have to feel like an uphill battle. There are real steps you can take to keep more of your team. This guide is packed with practical tips to help you retain your top talent.

1. Improve Your Onboarding and Training Processes

When they feel supported and see you are well-prepared, they’re far more likely to stay.

  • Consistency in onboarding: Create a comprehensive onboarding checklist to ensure consistency and reduce confusion for new hires.
  • Invest in training programs: Provide structured training that prepares employees with the skills they need in your workplace. Encouraging employees to take on different roles not only builds their skills but also keeps their work interesting.
  • Leverage technology in every role: Consider tools like Learning Management Systems (LMS) to give your team easy access to training they can revisit anytime. A great example is TalentLMS, which offers customizable training modules and easy integration with existing systems, ensuring staff can learn and grow effectively.

2. Foster a Positive Work Environment

Creating a supportive workplace culture isn’t just nice to have—it’s essential. When employees feel valued and respected, they’re far less likely to walk away.

  • Recognize achievements: Implement a recognition program to celebrate team members for their hard work, whether through awards, shoutouts, or small incentives.
  • Encourage open communication: Regular check-ins and team meetings help address concerns before they become larger issues. Use these opportunities to solicit feedback and show employees that their input matters.
  • Prioritize inclusivity: Foster an environment where everyone feels welcome and appreciated, regardless of their role or background.

3. Offer Competitive Compensation and Benefits

Compensation is important, but perks like flexible schedules or wellness programs often make the biggest difference in keeping employees happy and committed.

  • Benchmark salaries: Check that your wages stack up against industry standards. Tools like Salary.com make it easy to compare local and national benchmarks so you can stay competitive.
  • Provide non-monetary perks: Flexible schedules, wellness programs, and free meals during shifts are small gestures that can make a big difference.
  • Promote career growth: Offer tuition reimbursement, mentorship programs, or leadership training to show employees you’re invested in their future.

4. Utilize Technology to Simplify Workflows

Day-to-day tasks can feel overwhelming, but simplifying workflows gives employees a sense of control and makes their work more manageable.

  • Automation tools: Focus on simplifying repetitive tasks like scheduling or housekeeping assignments. For example, Flexkeeping helps manage tasks and monitor progress, making workdays smoother and more efficient for your team.
  • Predictive analytics: Workforce management systems, such as Deputy, use data to forecast staffing requirements, ensuring employees are neither overworked nor underutilized, particularly during peak seasons.
  • Employee portals: Platforms like When I Work enable staff to access schedules, request time off, and communicate directly with management. This fosters better transparency and reduces miscommunication across teams.

5. Conduct Exit Interviews and Act on Feedback

Exit interviews give you a chance to hear honest feedback and uncover ideas to improve your workplace for everyone.

  • Ask the right questions: Focus on understanding why the employee is leaving and what could have made their experience better.
  • Observe any trends: Look for recurring themes in feedback to identify systemic issues.
  • Take action and repeat: Use this data to implement changes that address common concerns and improve retention for current staff. Use a continuous feedback loop to implement suggestions from outgoing employees. 

Monitoring Progress and Measuring Impact

To evaluate the success of your retention strategies, start by setting clear goals (KPIs) and tracking them consistently. Focus on key metrics like turnover rate, employee satisfaction, and time-to-hire. Anonymous surveys can also help you gauge morale and pinpoint areas for improvement.

Tracking these metrics reveals what’s working and highlights areas where small tweaks can lead to even better results. Retention isn’t just about numbers—it’s about creating a workplace where employees feel valued and supported. Start small, measure your progress, and watch your efforts make a lasting impact on your team and your business.