According to the Bureau of Labor Statistics, the turnover rate within the hospitality industry continues to land in the 70-85% range, shocking in comparison to the average turnover rate across all industries of generally 12-15%. High staff turnover is expensive in any industry as companies must constantly invest in recruiting and training new employees. Compared to simply keeping solid employees in an organization, it’s often costly.
What causes a high turnover rate within an organization (or industry) and what impact – other than cost – can it have on that organization’s success? Learning what causes high turnover and the effects it can have on operations and guest satisfaction is critical for hotel leaders to manage effectively and learn how to keep their quality staff members on the roster.
How Does High Turnover Affect Guest Satisfaction?
A revolving door of employees is obviously an expensive situation to maintain, but how does having new employees all the time impact the guest experience? It can do so in many ways. There is a learning curve with any new position, even for the most experienced professionals. Having new employees consistently means those earlier on that curve are performing key operational duties – potentially at a lower quality as well. Even one unsatisfactory stay at an establishment where a customer receives slow or low-quality service can deter them from booking again in the future.
Common Causes of High Turnover within Hotels
Many variables factor into an employee’s decision to leave an organization. Whether it’s unhappiness around compensation, issues with management, or a lack of feeling valued, regularly losing employees because they choose to leave likely means there’s something awry with the organization internally.
- Unclarity Around Role Expectations
In order for an employee to be successful at their position, they need to fully understand what’s expected of them in the role and how to perform the necessary duties at a high level. Having unclarity regarding what managers expect from them is a huge trigger of employee dissatisfaction. So, it’s important that hotels create a comprehensive onboarding experience for new hires – beginning with clear and accurate job descriptions prior to even recruiting candidates. When employees feel uninformed or not supported enough to perform their jobs successfully, they tend to find new opportunities.
- Poor Organizational Culture
Organizational culture refers to the feeling a company creates for their employees, often then reflected in their work and interactions with customers. Within hotels, it’s critical for leaders to intentionally build a positive culture among their employees and the work they take on. Hospitality teams generally contain a large range of personalities, communication preferences, and experience levels. It’s up to leadership to be dynamic enough to provide a wide range of support to all on their team.
That includes providing mental health support, coaching and mentorship, and the best tools and resources for employees to be able to thrive in their roles and grow into others. Strong communication from leadership, transparency around expectations, and encouragement to seek out advancement within the industry are all important in creating a positive space for employees to work (and one where they want to remain).
- Lack of Room to Grow
While some members of the workforce are happy maintaining the same role within an organization for most (or all) of their careers. More often, however, employees aim to grow over the course of their time in the workforce. That means seeking out new positions, taking on leadership responsibilities, and moving up within the industry. If opportunities through which to do that aren’t available at an employee’s current organization, they will likely look elsewhere. Growth-oriented individuals are the ones that hotel teams want to keep on board, so failing to give them the space and encouragement to grow is a costly mistake.
Tips for Hotels Battling High Turnover Rates
Actively investing in employees and taking steps to avoid the above-mentioned reasons sets hotel employers up for success when it comes to staff retention. Creating clear channels for communication, supporting staff towards their goals for growth, and listening to employee feedback (and responding appropriately) will create an atmosphere within the workplace where employees feel heard, valued, and supported. That is critical for maintaining low turnover rates and keeping good employees long-term.
On the employee side of things, there are proactive steps they can take when seeking out opportunities in the industry as well. In looking at current job opportunities, seek out employers that explicitly demonstrate a positive workplace. Look for clear and comprehensive job descriptions and hiring managers that express a genuine interest in your growth trajectory as an employee. This may require asking questions during an interview, so come prepared with those if there is anything unclear about the position or the organization as a whole.
We strive to continuously create a culture of support and growth throughout our locations nationwide. That means prioritizing employee satisfaction as much as we do with our guests. It’s likely no surprise that we remain an employer of choice within the extended stay hotel industry. Along with a small, family-like culture, we offer advancement opportunities, extensive benefits, and leadership teams that are trained in effective management approaches. Sound like a good fit? We encourage you to check out our current opportunities!