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How to Reduce Staff Turnover in the Hospitality Business: Keep Employees Happy and Appreciated

Staff turnover is at an all-time high in the hospitality industry, but there are ways to change this with both subtle and big changes!

By Theresa Bontempo

When it comes to the hospitality industry, there are many job positions and places of business. The hospitality industry consists of many types of businesses that we frequent every day from bars, restaurants, hotels, motels, resorts, travel agencies, theme parks, and even cruise lines. All of the people that work the many jobs that come from these types of businesses are important—they keep it up and running and  provide customers with excellent service, but the staff turnover rate is at an all-time high.

Many businesses within the hospitality industry struggle with a high staff turnover rate for a multitude of reasons, which could come down to the way they are treated by customers or even the business itself. It can be a tough job working in the hospitality industry and making sure that employees’ voices are heard and taken into consideration is important. 

There are many ways to reverse the curse of the high staff turnover in the hospitality business, so learn more about why this is happening and ways to keep your employees happy and satisfied with their job!

Why is the Staff Turnover so High in the Hospitality Industry?

Understanding why the hospitality staff turnover is high is the first step into making a change!

The hospitality industry can be challenging, and it’s oftentimes one where staff are not heard or respected enough. Image courtesy of Livelihood Law.

When it comes to the hospitality industry, many staff come and go and lots of businesses don’t understand why. No matter if it’s due to  the business practices itself, customer feedback and frustrations, not feeling appreciated, or being overworked, there are many reasons why the staff turnover rate is so high.

Low Wages

One of the top reasons why many staff are frequently leaving their job position in the hospitality industry is due to the low wages. Depending on the job position and the business, many hospitality workers often start out at minimum wage, and while federal starts out at $7.25, many states can vary depending on how much it costs to live there. Lots of entry positions start out making $13 to $14 an hour, mid roles range from $50,000 annually, and senior level roles–such as general managers, chief engineers, and other high positions–can make upwards of $100,000. It is common to start from the bottom and work your way up, but it’s with the more demanding, hard-working positions that people quit frequently.

Struggle to Manage Work-Life Balance

Another reason why many people often quit their hospitality job is due to the lack of personal life outside of their demanding position. There is often a lot of inflexibility when it comes to their schedule and each week can be unpredictable. Whether you’re scheduled for a day you requested off, have to cover for someone who suddenly called off, or work a double shift, entry-level hospitality jobs often have little room to enjoy life outside of work. 

Toxic Work Environments

Many employees often leave their job position in the hospitality industry simply because of the work environment. Sometimes a hospitality position can feel like being in high school again with the petty drama, bullying, and harassment that one can experience. Along with the treatment from other employees and  managers, individuals in these job positions can also stress about the excess work that they have to get done with lack of support or encouragement, which can feel demoralizing for many people. 

Little to No Benefits

Lots of job positions throughout the United States offer benefits that can range from paid sick and vacation time, retirement plans, and even health insurance, but for many hospitality positions, this isn’t the case. It is a struggle if a sudden medical issue comes up or you can’t get paid for a week off for vacation, and this makes employees feel less valued at their job leading to many quitting. 

Lack of Recognition and Poor Management

Both lack of recognition and poor management go hand-in-hand when it comes to why the staff turnover is so high in the hospitality industry. Employees feel as if all of their hard-work, long hours, and dedication to their job goes unnoticed by poor management–which could also be due to managers being overworked too. It is a known fact that if employees are recognized for the hard work that they put into their job, they will continue to stay and put in the dedication for their role in the company. Making sure your employees feel appreciated is something that management should always consider since it keeps employees in the field, limiting the need to constantly train new ones.

Top Ways to Reduce Staff Turnover in the Hospitality Industry

Make your employees feel appreciated everyday when they come to work with these simple and effective methods!

Appreciating your employees in the hospitality industry is crucial to keep staff and avoid a high turnover from unsatisfied ones. Image courtesy of HSI.

For management that is trying to make a difference in their business when it comes to recognizing employees and how they treat them, there are many different and simple things to do to make a difference. The staff turnover rate for the hospitality business is extremely high, but it’s not doomed. Employee recognition is extremely important in any field, especially in the hospitality industry, which includes some of the hardest jobs.

Check out some of the best methods to reduce the staff turnover in the hospitality industry and make a difference!

1. Use an Employee Engagement System

Shift is an example of an employee engagement system that works to recognize your employees for the great job they do on a daily basis. Image courtesy of Shift

One of the best things that you can do to eliminate the high turnover rate in the hospitality industry is by simply implementing an employee engagement system, such as Shift, in the workplace. These systems are known for boosting engagement in employees in this type of industry with technologically-advanced, bright, and colorful visuals that help managers communicate better with their staff. Some of the most well-known franchises use this as it helps to gauge how employees feel about their job, learn of any issues or concerns, and even help with onboarding and training of newcomers.

Shift is a popular option for employee engagement systems because they have a ton of key features that many managers love to incorporate in their business:

  • Improves employee retention
  • Increases company revenue
  • Boost employee engagement
  • Shows company logistics
  • Helps with new employee onboarding and training
  • Increase productivity
  • Includes culture for inclusivity and diversity

2. Encourage Career Development

Climbing the job ladder with promotions and encouraging your employees to work hard and apply for them is key to preventing staff turnover. Image courtesy of LinkedIn.

Another way that you can boost employee engagement is by offering career opportunities for those who are willing to stay with the company long-term and want to advance within the field. Career opportunities in the hospitality industry can consist of shift leaders, general managers, or even event planners. By promoting employees who are showing hard-work and dedication for their job and working to make sure that every customer or client is taken care of with top tier customer service skills can make for a better manager. Many of these higher paying positions in the hospitality industry also include better benefits and pay too. 

3. Offer Proper Employee Trainings

Providing your employees proper training in the hospitality industry is crucial for effective customer service and direction in their position. Image courtesy of Hotelier India.

One of the many downfalls of the hospitality industry is the lack of employee training. Oftentimes these positions are short-staffed–plus the staff turnover rate doesn’t help–and making sure that each employee has had the proper training can be tough. It is crucial to ensure that your staff has the proper training for how to properly clean hotel rooms, provide sanitation, greet customers when they enter a restaurant, or even how to make the best latte. With the proper training, your employees can become more engaged in their job and take the skills they learn from training and implement that in their daily tasks. 

4. Promote Work-Life Balance

Work-Life balance is important for any type of job, but especially in the hospitality industry where the lack of it raises staff turnover. Image courtesy of HR Certification.

One of the major reasons for a high staff turnover rate in the hospitality industry is due to the lack of a work-life balance for any position–no matter if it’s a barista, hotel clerk, waiter, general manager, or even an event planner. This can cause many people to leave their job and try to find better opportunities where they can have paid time off, a retirement plan, and better benefits. 

A simple and easy way that many higher-ups in the hospitality industry can help to promote a better work-life balance for their employees can comprise of the following:

  • Implement flexible scheduling
  • Encourage wellness and sick days when staff are ill
  • Prioritize self-care days
  • Provide remote work opportunities if optimal
  • Set boundaries from employee and manager standpoints
  • Learn to communicate effectively with staff
  • Offer training and/or workshops for time management

5. Celebrate Work Milestones

Celebrating staff for work milestones or giving out awards for extra effort is a way to make the workplace more positive for employees. Image courtesy of Cooleaf.

There is no better way to reduce staff turnover within the workforce than by recognizing your employees for the hard work that they put into their job. Many companies and businesses offer extra effort prizes recognizing a staff member for the dedication that they put into their work recently, or managers can celebrate milestones for their staff. Some milestones can include job anniversaries and doing a company shout out for earning a job promotion. Something as simple as giving your staff a pat on the back can make a huge difference in the turnover rate and make staff want to stay knowing that they are recognized and appreciated.

6. Company Parties or Treats

Company parties can be a great way to get together with everyone after work hours and celebrate holidays or work milestones. Image courtesy of Work It Daily.

When you want to show appreciation for your staff and the work that they do, treating them to something that they will enjoy is key. There are many ways to treat your staff to something special, which can include a work party for Halloween, Thanksgiving, Christmas, or even a company milestone–or you can simply bring them their favorite type of Starbucks coffee in the morning to surprise them. Doing simple gestures like hosting a work party off-the-clock, or treating them to donuts, a paid lunch, or even little gifts will show your staff how much you care about the hard work that they put in.

Treat Your Employees With Respect and Change the Staff Turnover Rate in the Hospitality Industry

Staff turnover is at an all-time high in the hospitality industry, which is a shame because it’s an industry that relies on people heavily to keep hotels, restaurants, bars, and  coffee shops moving. Respecting your staff by recognizing their achievements, giving them the proper training, encouraging career development, and promoting a better work-life balance are some of the key ways to reduce the staff turnover in the hospitality industry and make  happier employees.

Consider making the changes needed in your business with these best ways to reduce the staff turnover in the hospitality industry!

Trusted by industry-leading enterprises
An Invaluable Tool
"At Wingstop, we're always looking for innovative ways to meet our Team Members where they are. The integration between Schoox and Shift has truly elevated how we engage our restaurant teams. By embedding our Flavor Lab LMS into the Shift platform, we've made it easier than ever to spotlight training completions, share key updates, and celebrate performance—right in the flow of their day. Training is now more visible, more accessible, and even a bit competitive—and that's exactly the kind of energy that drives results at Wingstop."
Izzy Martinez

Manager, Operations Integration
Wingstop Corporate

Foster a friendly, competitive environment
“The affordability of [Shift] is incredible, and the sky is the limit for the effect it’s having on our culture... I feel really confident our work environment improves for our team members when they feel as though they’re being highlighted and appreciated. You can hear it as you walk through one of our stores. There’s somebody being wished a ‘Happy Birthday,’ or somebody saying, ‘I didn’t know that about you.’”
Jason Zieman

Owner/Operator

An Invaluable Tool
“Since we began using the Shift platform, we’ve seen a significant boost in team engagement across all our locations. The ability to connect with our teams through contests, goal-setting, and localized opportunities has been truly impactful. What stands out even more are the personal engagement features—like shoutouts and the ever-popular pet photo posts—which have created a fun, inclusive environment that keeps our team coming back to the platform. These features have helped build a strong sense of community and excitement around our internal communications. Shift has become an invaluable tool for enhancing our team culture, and we’re thrilled with the positive response from our staff. It’s more than just a platform—it’s become a part of our daily routine.’”
Sara Kokx

Senior Manager of Training and Development, Patton Wings, Buffalo Wild Wings

Easy to use!
“We have been using QR campaigns to gether submissions from employees... so we can showcase what's going on at each facility. This has dramatically increased our company-wide culture & communication. The platform is easy to use with branded templates that allow quick announcements. We're really happy with [Shift] - nothing but positive feedback from facilities too!"
Spencer Trefzger

Director of Marketing Avamere Living

More effective suggestive sellers
"[Shift] enables our cashiers to be more effective ‘suggestive sellers,’ with sales leaderboards on our back-of-house TVs. Our cashiers naturally want to be at the top of the leaderboard to be recognized and rewarded, which results in them selling more than they typically would.”
Russ Lo Bello, COO

Burger King Franchisee, COO Phoenix Organization

It's a very powerful tool
"It's a very powerful tool. It can work either for a single restaurant owner or for a multi-unit owner and also for a restaurant group... I see it as a more modern, contemporary tool to communicate with your employees. Our Gen Z and Millenial employees especially love to interact with our [Shift platform]."
Jose Vazquez Barquet, VP

Subway

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