In hospitality, success doesn’t start at check-in. It starts behind the scenes, with a dedicated workforce that takes pride in what they do.
This industry runs on exceptional service, which depends entirely on the people delivering it. Human Resources (HR) plays a critical role in this process by attracting, developing, and retaining the talent.
Yet, it faces persistently high turnover. Addressing this challenge demands an approach that places employee satisfaction, career development, and operational stability at the center.
While these priorities don’t always align neatly with short-term business goals (and can be difficult to sustain financially), they’re essential for retaining top talent and building a resilient workforce that’s going to stick around.
This article examines the underlying causes of turnover and outlines proven HR practices that can help hotels, restaurants, and resorts to build a reliable workforce, improve service quality, and lower recruitment costs.
Causes of Employee Turnover
Effective HR practices in the hospitality industry must begin with a clear understanding of the factors driving employee turnover. High turnover rates not only disrupt operations but also strain budgets and erode guest satisfaction, making retention a critical priority.
Hospitality businesses lose staff faster than most industries, with hotels and motels seeing an annual turnover rate of approximately 70%, while quick-service restaurants hit 150%, according to the Bureau of Labor Statistics.
These numbers stayed high even before COVID-19, however, the pandemic definitely made things worse. Many hotels cut staff during slow periods, then struggled to rehire when demand returned.
The root causes for this are tied to the nature of hospitality work itself involving irregular hours, high stress, and physically demanding roles. Here are some of the key factors driving people away.
Work Hours and Scheduling
Work hours and scheduling in the hospitality industry present significant challenges for employees. The sector’s dependence on shift work, often involving late nights, weekends, and holidays, disrupts work-life balance and strains personal commitments.
Inflexible schedules, coupled with last-minute changes, increase stress and frustration, as employees frequently lack predictable hours or input into their schedules, leading to dissatisfaction and higher turnover.
Employees seek greater control and stability in their work hours to manage personal responsibilities effectively.
Many businesses exacerbate the issue by relying on outdated scheduling practices, such as manual rosters, which fail to accommodate individual needs or provide adequate notice.
Implementing flexible scheduling tools and offering options like shift swaps or part-time arrangements can improve employee morale, reduce burnout, and enhance retention in this demanding industry.
Compensation and Benefits
Compensation and benefits in the hospitality industry significantly influence employee retention, as low wages remain a primary driver of turnover.
Many roles, particularly in hotels and quick-service restaurants, offer minimum wage or slightly above, with scarce benefits such as health insurance, paid time off, or retirement plans.
This lack of financial incentive fails to meet employees’ basic needs, pushing them to seek better-paying opportunities in other sectors where compensation aligns more closely with living costs.
The industry’s hesitancy to provide competitive salaries, especially for temporary or seasonal positions, exacerbates turnover and creates a cycle of instability.
Employees prioritize financial security, and without adequate benefits or wage growth, they quickly move to roles offering greater stability and rewards.
By implementing tiered pay structures, performance-based bonuses, and affordable benefit packages, hospitality businesses can enhance employee satisfaction, reduce turnover, and attract talent in a competitive labor market.
Seasonal Employment
Seasonal employment in the hospitality industry creates significant turnover due to its inherent instability. During low seasons, businesses often reduce employee hours to minimal levels, leaving workers unable to cover living expenses and forcing them to seek alternative jobs.
Conversely, during high seasons, companies may hire temporary staff only to lay them off when demand drops, resulting in involuntary turnover. This cycle of fluctuating work hours and job insecurity drives employees to pursue more stable, year-round positions in other sectors.
The temporary nature of seasonal roles further compounds the issue, as many workers view these jobs as short-term rather than viable career paths. Without consistent income or job security, employees lack motivation to stay, and businesses struggle to retain talent.
Offering part-time roles with guaranteed minimum hours, cross-training for year-round tasks, or incentives for returning seasonal workers can stabilize employment, reduce turnover, and build a more committed workforce in the hospitality industry.
Career Advancement
Career advancement in the hospitality industry remains a critical challenge, particularly for part-time and seasonal workers who face limited opportunities for promotions or professional growth.
Many employees view roles in hotels, restaurants, or resorts as temporary "landing pads" with minimal prospects for long-term development, prompting them to seek positions elsewhere that offer clearer career trajectories.
This perception of stagnation, especially among entry-level staff, contributes significantly to high turnover rates, as workers prioritize roles with defined paths to advancement.
To address this, hospitality businesses must invest in structured growth programs, such as mentorship initiatives, skills training, and leadership development tracks, to demonstrate commitment to employee progress.
However, the industry’s high turnover and operational volatility often disrupt these efforts, as frequent staff changes make it difficult to sustain consistent development plans.
By prioritizing internal promotions and offering transparent career ladders, employers can foster loyalty, reduce turnover, and build a more motivated workforce.
Hospitality HR: Best Practices
High turnover in the hospitality industry calls for more than short-term fixes. It demands strategic HR solutions that tackle underlying issues while enhancing overall performance. The most effective practices strike a balance between meeting employee needs and business objectives.
So, what sets thriving hospitality businesses apart? It’s how they apply these core strategies. Smarter recruitment, intentional development, and authentic engagement set the stage for strong, motivated teams that consistently deliver exceptional service.
Here are some of the key HR practices that help make that possible.
Strategic Talent Management
Strategic talent management drives success in the hospitality industry by prioritizing the recruitment and retention of employees who align with organizational values.
Hiring through employee referrals and targeted job platforms ensures candidates fit the company’s customer-focused culture, while structured onboarding and continuous training equip them with essential skills.
Offering clear career paths, such as internal promotions and leadership development, fosters growth and reduces turnover by showing employees a future within the organization.
To sustain a high-performing workforce, businesses must cultivate a culture of ongoing development and accountability.
Aligning individual roles with company goals helps employees see their contributions to guest satisfaction, as seen in practices like Ritz Carlton’s personalized guest services, where staff send photos of a lost item enjoying hotel amenities.
Tools like Pechanga Resort and Casino’s web-based talent management system streamline appraisals and performance tracking, managing over 5,000 employees and improving alignment within a year.
By creating internal talent pools and empowering staff to deliver exceptional service, hospitality businesses enhance employee engagement and maintain operational excellence.
Employee Engagement and Retention
Employee engagement and retention are vital for hospitality businesses grappling with long hours and demanding roles. Providing competitive wages, flexible scheduling options, and recognition programs, such as monthly awards or bonuses, boosts morale and encourages staff to stay.
Additionally, investing in well-being initiatives like gym memberships, mental health counseling, or stress management workshops addresses emotional labor and burnout, fostering a supportive environment that reduces turnover.
High turnover rates, frequently ranging from 70-80% annually, pose a persistent challenge, but engaged employees demonstrate greater loyalty. Implementing tailored benefits, such as paid time off or health insurance, meets workers’ needs and enhances job satisfaction.
Creating a positive workplace where feedback is valued and emotional well-being is prioritized helps mitigate the stress of customer-facing roles.
For example, recognition programs that celebrate exceptional service, combined with flexible schedules, empower employees, strengthen commitment, and improve retention in this high-pressure industry.
Effective Recruitment
Effective recruitment in the hospitality industry ensures the selection of candidates who enhance service quality and align with organizational goals.
Focusing on cultural fit, by hiring individuals who share the company’s mission and values, reduces turnover and fosters a cohesive team environment.
Using behavioral assessments and situational interviews to evaluate soft skills, such as problem-solving, empathy, and adaptability, identifies candidates capable of thriving in fast-paced, guest-facing roles, directly impacting customer satisfaction.
To attract top talent, hospitality businesses leverage targeted strategies like job postings on industry-specific platforms and employee referral programs, which yield candidates familiar with the sector’s demands.
Structured onboarding processes further reinforce cultural alignment, helping new hires integrate quickly.
By prioritizing candidates with strong interpersonal skills and providing clear expectations during recruitment, companies build a resilient workforce, minimize early turnover, and maintain consistent service standards in a competitive industry.
Workforce Management
Workforce management in the hospitality industry requires precise coordination to handle shift-based work and fluctuating guest demand.
Leveraging technology, such as automated scheduling tools and payroll systems, streamlines operations, reduces errors, and frees up time for strategic tasks.
Ensuring adequate staffing during peak periods, like holidays or events, maintains service quality, while flexible scheduling options, including shift swaps, allow employees to balance personal commitments, improving satisfaction and reducing turnover.
Addressing the challenges of irregular hours is critical for employee retention in this demanding sector. Advanced workforce management software enables real-time adjustments to schedules, accommodating last-minute changes without disrupting operations.
Offering predictable hours or part-time roles during slower seasons helps stabilize income for staff, fostering loyalty.
By combining technology-driven solutions with employee-centric practices, hospitality businesses enhance operational efficiency, support work-life balance, and create a more stable, engaged workforce.
Diversity, Equity, and Inclusion (DEI)
Diversity, Equity, and Inclusion (DEI) are essential for hospitality businesses serving a global customer base, enhancing both employee satisfaction and financial outcomes.
Diverse teams, which reflect varied guest demographics, improve profitability by 19%, according to McKinsey’s 2020 diversity study.
Implementing inclusive hiring practices, such as partnering with minority-focused job boards, attracts talent from underrepresented groups, while clear DEI policies ensure equitable treatment, fostering a workplace where all employees feel valued and supported.
Training managers to lead multicultural teams effectively strengthens collaboration and resonates with diverse guests, elevating service quality.
Regular workshops on cultural sensitivity and unconscious bias equip staff to navigate differences, creating a cohesive team environment.
By embedding DEI into recruitment, training, and daily operations, hospitality businesses build inclusive cultures that drive employee engagement, reduce turnover, and align with the expectations of a globalized market, ensuring long-term success.
Compliance and Safety
Compliance and safety in the hospitality industry address unique risks, such as handling gas tanks, managing intoxicated guests, and ensuring workplace security.
Adhering to employment laws, including Occupational Safety and Health Administration (OSHA) standards, and navigating union activities maintain legal compliance and protect employee rights.
Implementing robust safety measures, such as emergency response training and surveillance systems, safeguards staff from industry-specific hazards, fostering a secure work environment and reducing workplace incidents.
Preventing theft, a common issue in hospitality, requires proactive strategies like employee loyalty programs and targeted training to promote accountability.
Regular safety drills and clear protocols for handling high-risk situations, such as confrontations with disruptive guests, enhance employee confidence and preparedness.
By prioritizing compliance with regulations and investing in comprehensive safety initiatives, hospitality businesses minimize legal risks, protect staff well-being, and create a trustworthy workplace, which supports retention and operational stability.
Customer-Centric HR Practices
Customer-centric HR practices position employees as frontline brand ambassadors, directly shaping guest satisfaction in the hospitality industry.
A performance-based culture that links employee satisfaction to service quality drives higher engagement and better guest experiences.
For example, empowering staff to make decisions, such as InterContinental Hotels providing personalized destination advice through videos or Gaylord Opryland Resort gifting custom alarm clocks to loyal guests, creates memorable interactions that enhance brand loyalty and elevate service standards.
Training employees to deliver exceptional experiences ensures alignment with customer service goals, reinforcing the importance of their role. Regular workshops on empathy, problem-solving, and guest interaction equip staff to handle diverse needs effectively.
By integrating customer feedback into performance reviews and rewarding employees for outstanding service, HR fosters a motivated workforce.
These practices strengthen guest relationships, reduce service complaints, and support long-term business success in a competitive industry.
Continuous Learning and Development
Continuous learning and development in the hospitality industry ensure employees remain skilled, motivated, and equipped to deliver high-quality service.
Regular training programs focusing on customer service, soft skills like empathy, and technical competencies, such as proficiency with digital check-in systems, address evolving guest expectations, with 80% of travelers preferring digital options, according to a 2023 Mews survey.
By fostering a culture of learning, businesses reduce turnover, as employees feel valued and prepared to handle diverse roles, enhancing both job satisfaction and guest experiences.
Offering career development opportunities, such as leadership programs and industry certifications, encourages talent retention by providing clear pathways for growth.
Upskilling in areas like technology, communication, and problem-solving builds agile teams capable of adapting to industry changes.
For example, training staff to use AI-driven tools or manage multicultural guest interactions strengthens operational efficiency.
These efforts create a committed workforce, lower recruitment costs, and position businesses to meet the demands of a competitive, tech-driven market.
Key Takeaways
While ongoing challenges like high turnover and seasonal workforce fluctuations remain, forward-thinking practices such as flexible scheduling, continuous skill development, and guest-focused training can turn these hurdles into strategic advantages.
Cultivating a workplace culture rooted in inclusion, recognition, and clear paths for advancement helps employees feel valued, supported, and motivated to stay.
These insights extend far beyond hospitality. Other industries can learn from its focus on aligning employee well-being with business outcomes.
As technology advances and guest expectations shift, the organizations that invest in their people will be the ones that adapt, grow, and lead.
Ultimately, strong HR practices are about more than just lowering turnover, they’re about creating an environment where engaged teams consistently deliver exceptional experiences.
Global Asset Solutions has partnered with a team of five students and one alumna from Ecole hôtelière de Lausanne, and Remy Rein (EHL Lecturer).
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