Despite being one of the largest industries in the world in terms of revenue and employment, the hospitality industry has a myriad of challenges of their own.
The employee turnover rate in the hotel and motel industry itself is around 73.8%, which is dramatically high compared to the annual average of about 15%. Obviously, this means inflated training and recruitment costs which can be very difficult to retrieve.
Another huge challenge is the nature of the hospitality industry, it is seasonal in nature and usually hires part-time employees, as per the season. This is a significant contributor to the exponential employee turnover rate. So what is causing such a massive exit of employees in restaurants and hotels? And is there anything that can be done to tackle this problem? Let’s take a closer look.
Bridging the communication gaps –
61% of employees say that their new job is NOT what they expected – Glassdoor
When you are in a business that’s as rapid paced and versatile as hospitality, you need to know exactly what you’re getting into. Unclear job expectations are one of the biggest reasons why employees abandon ship. If employees find their workdays chaotic because they are not clear with their daily responsibilities and roles, they will feel unfulfilled and stress and will leave.
Enable proper communication between managers and teams
Linking back to point one, if there is a disconnect between managers and the rest of the team, your whole operation will begin to fall apart. Managers are the backbone of operations, so they need to be capable of overseeing people. Encouraging two-way feedback and having training programs for new managers is a great way to enable the best communication between managers and teams.
Make intelligent hires
Top performing employees are 50 – 125% more productive than average employees – Harvard Business Review
If you hire someone who is passionate about work or the industry, the growth will be mutual, and the company and the employee would flourish together. For example, a fresher with barely a couple of years of experience but immense and rapid growth in the ranks would be a more intelligent hire than someone who has years of work experience in the field, but a relatively stagnant and slow growth chart. Look for passionate people; chances are they’re looking for you too.
Create an inclusive work environment
63% of hospitality workers said they’ve experienced sexual harassment on the job – National Public Radio
From politics to obnoxious patrons, hospitality can be a grind if your work environment is not progressive. Do your employees feel comfortable enough to come to HR with their problems? Or do they perceive HR as someone trying to save company resources? This perception that workers have of their management is more important than you think. So make sure that your staff has a healthy and supportive work environment with approachable leaders.
Lack of a career path
The motivated candidate of today considers all options. If you want to retain the best talent, you need to give them some incentive to stay on. Give them a growth plan, paint a picture of the perks of staying on, and they will.
Reaching out to the wrong people
Sometimes, an influx of college grads who are just looking to earn some quick money for a short spell will be all over generic job portals. However, the genuine candidates will take the time to get verified and network with the right people. Sincere and qualified candidates would leverage technology to find the best employers who are seeking the best employees. Our app does just that!
It’s important to understand that most of the attributors to high employee turnover rates in hospitality can be linked to a lack of transparency, and, an absence of a good hiring strategy.
You can begin to address the problem by being clear on your end, and, by recruiting genuine, authentic candidates whose best interest lies in helping your establishment grow, and that’s where we come in! It’s the people that make an establishment what it is, here’s the most intelligent way to find them.