Just in March of 2022, roughly 810,000 hospitality employees quit their jobs, signaling massive challenges for organizations in every area of the hospitality sector. The hospitality industry faces annual turnover rates of 70-80% according to the Bureau of Labor Statistics. This rate is leaps and bounds more than the average rate of 10-15% across all industries.
As tourism and hospitality begin to recover from pandemic fallout, employers have to address employee retention issues head-on, or the survival of their business will be at risk. Luckily, there are many creative ways to boost retention numbers, many of which can be implemented immediately. Whether organizations are in the restaurant business, hotel sector, or even lead tours and other excursions, following the below methods to engage and retain employees can completely change the direction of a company – for the better.
The Power of Effective Onboarding
An employee’s first day is a powerful way to communicate how important they are to your team. The manager has this one chance to communicate their culture and expectations. Since the first 45 days of employment is responsible for 20% of employee turnover, it’s imperative that organizations get the onboarding process right. Onboarding done well can introduce new employees to the culture and norms of their new company, while helping them feel more confident in what they do. Onboarding processes should be engaging, informative, and have regular check-ins with the employee throughout onboarding.
Jerry D'Acquisto, A&R Group's Director of Human Resources
Robust Feedback Loops
If an employee is ever surprised by corrective feedback, it means their manager isn’t maintaining regular feedback loops with them. Dialogue around employee performance should happen often; only providing feedback during annual performance reviews is never enough. The manager should be touching base with all new employees at least once a week. The manager should be doing 1-on-1s with all employees monthly.
The Role of Mentorship
A good mentor program can make even the best onboarding processes more effective and be a great way to maintain a regular feedback loop after onboarding is complete. By pairing each new hire up with a more seasoned employee, you give new employees a chance to learn about the organization from someone who was once in their shoes. New hires will likely feel more comfortable asking questions and seeking help if there is an easy-to-navigate mentorship program in place.
Training and Development Opportunities
Employees that are bored or aren’t learning new skills will become disengaged and unmotivated. Training and development opportunities are one of the top items employees consider when looking for jobs. In fact, according to a 2021 Gallup poll, 66% of workers from 18-24 see learning new skills as the third-most-important factor when looking for a job, only behind health insurance and disability benefits. These opportunities can range from formal certifications to cross-training and informal upskilling. Lunch & Learns, for example, should be a deliberate action. Reflect on what issues you have been experiencing, then create a training plan around that. If you invest in your employees, they’ll invest back into your business.
Culture of Teamwork
People spend more time at work with their coworkers than they do at home with their loved ones. Because of this, it’s critical to maintain a sense of teamwork and camaraderie from the top down. Everyone should feel valued, supported, and seen, no matter what professional challenges are present. One great way to foster a healthy culture is to recognize and celebrate life achievements such as birthdays, engagements, work anniversaries, and more.
Retention is Always Better Than Replacement
For example, when employees leave A&R Group, it can cost $3,500 – $4,600 of their annual salary to replace them. Investing in your employees to ensure they are happy, satisfied, and fulfilled, will almost always pay off, even if it has a high price tag. The hospitality industry is facing an uphill battle when it comes to post-pandemic recovery, but by prioritizing the success of your employees, your organization can come out on top.
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