The hospitality industry is one of the U. K’s largest sectors. It’s common knowledge the hospitality industry has a high employee turnover and recruitment is a challenge for many businesses.
According to official data, the hospitality industry has an employee turnover rate of 70%, double that of the U.K average. Furthermore, a YouGov survey outlined that 42% of hospitality staff leave their jobs within the first thirty days. In a customer facing industry such as hospitality, having low employee retention rates can make it very challenging to meet customers’ expectations, it also effects an organisations profitability when they’re continually having to find, hire, and train new employees.
Although employee turnover in the industry is high, it doesn’t need to continue to be the norm. In this article we will outline some of the causes of employee turnover and why staff retention is such a problem for the hospitality industry. We will also advise on strategies that can help retain staff.
What are the reasons for high employee turnover? Often the case is that an employee is unsuitable for the role, something that may not become apparent until after they have been hired. Even in a happy positive workplace and the best of training, some people are unable to cope with the pace and workload of a hospitality business.
It’s well known that when most people are out visiting restaurants, cafes, bars, and hotels, hospitality staff are expected to work. Hospitality staff are expected to start work early and finish late, and are usually required to work weekends and holidays, because of this, even the most committed employees may find the lifestyle undesirable. Working hours tend to be longer than in other sectors and breaks aren’t always guaranteed. This can cause employees to become over tired, which can have a negative effect on their quality of work. Added to that, there is usually a lack of flexibility with working hours. It isn’t unusual for managers to make last minute changes to staff rotas, which can be an added stress and worry for staff. In a business that operates with a small number of staff, an employee may find it difficult to request time off without feeling guilty that their absence will have a negative impact on the business and other staff members.
Although it has improved over the years, the hospitality industry is known for its toxic work environment. A toxic work environment can cause stress, anxiety, and a bad atmosphere in the workplace, which is a major contributor to staff leaving the industry. Even today, there still exists a culture of fear, bullying, abuse, and poor leadership . There is some level of irony here; how are staff supposed to provide good cheerful hospitality when they’re being subjected to poor treatment? It will usually lead to staff not caring about their job role or position. With no uncertainty, customer service will be affected if staff are no longer feeling engaged with their role. Employees who work in toxic environments experience detrimental effects on their emotional and physical wellbeing.
Now that we have covered some of the main causes of high employee turnover, we will outline some effective strategies business owners and managers can implement to reduce staff turnover.
Retaining employees begins before hiring starts. By clearly defining the job role, a business can ensure that it’s attracting the right candidates for the business. It’s important for owners and managers to take the time to detail what the business requires from candidates. This will result in a more suitable pool of applicants. Hiring the right candidate means, finding a person with the most suited skill set and personality, and who best fits into the job role and the organisations culture. When conducting interviews, make sure the right questions are asked. Take the time to craft job-specific interview questions. When a business finds itself understaffed, operators may be inclined to rush the interview and hiring process. We recommend operators take their time when going through the recruitment process to ensure that the best possible candidate has been chosen to fill the position. This will decrease the need to have to advertise the same position further down the line.
Once a candidate has been selected, focus on properly integrating the employee into the company culture; this can be part of an induction day. An employee is less likely to leave a business if they feel like they are part of a professional team setup. Openly welcome a new recruit into the business and have existing team members interact with them. Introduce the new employee to the relevant managers and supervisors so they have a clear understanding of the organisational structure, and who to reach to when help and guidance is needed. When a candidate excepts a position, establish any rules and regulations that are followed in the business. Make it clear to prospective employees what is expected of them before they start their new role.
Offer relevant training as soon as possible, regardless of their past experience. Make sure the new recruit learns the practices and procedures he or she should follow relevant to their job. Give plenty of opportunity for questions, and except mistakes will be made. If an employee feels as though they are unable to freely ask questions or make some mistakes, they are more likely to feel unnecessarily stressed.
Although it can be tempting to reduce costs by underpaying employees or paying them the market rate, staff are more likely leave an employer if the pay is poor. Business operators need to offer staff a competitive rate of pay. Good pay is a sign to employees that an employer respects and values their work. Employers that offer good rates of pay usually have lower rates of staff turnover. People work to live and should be able to afford to.
Employees perform better and more efficiently in their roles if they feel secure, valued, and supported by their employers. Taking the time to ask about an employees welfare or putting their mind at ease over any concerns they might have can contribute to an employee’s happiness in the workplace.
Reward employees for a job well done. A thank you at the end of their shift can go a long way to making a staff member feel appreciated. The occasional drink at the end of a shift can also create a feeling of good will and gratitude. Give praise when praise is deserved, this will boost employee’s morale. It’s important to recognise an employee’s contribution. In addition to good rates of pay, consider employee benefits, especially for those employees who have served for a specific length of time. Pay raises and bonusses, paid time off, staff discounts, profit sharing, maternity and paternity leave, free food and drink when on shift. To have a good hospitality business, an employer must have the best talent in order to get that, an employer also has to offer more than just a basic wage or salary.
Being part of a happy and healthy work environment can be very beneficial to a person’s phycological and emotional wellbeing. There is a common misconception that all jobs and workplaces have levels of stress and that it increases productivity, however studies show that this is not the case, and that stress is counterproductive. Employers should go out of their way to create and maintain a culture of mutual respect and support. Promoting open communication and having a zero tolerance for bullying and gossiping will protect employee welfare; this will increase productivity and decrease staff turnover.
According to a YouGov survey, 3% of people entered the hospitality industry for the career prospects it offered, and 35% are leaving because of the lack of them. It isn’t unusual for young people to enter the hospitality industry and do well, but many leave to further their careers due to the minimal growth and career advancement opportunities available to them. As an employer, regardless of the size of a business, it’s important to offer careers not jobs, and create a culture of continuous learning and development. Hospitality businesses that offer good employee training programs increase employee engagement and retention. If employees feel they are not fully supported and trained to do their job, they are more likely to leave an employer. Training in customer interaction, new skills, and new systems and procedures can help employees feel more confident in their performance. Employers can provide in-house training or enrol employees on relevant short courses or management training. Providing training and development to staff shows that employers are interested in their development and growth.
The hospitality industry needs to and can improve its reputation as being an undesirable industry to work in. Hospitality businesses need to establish a positive work culture and show commitment to training; it’s the best strategy of retaining employees and reducing staff turnover.
For more help and guidance please contact us at enquiries@create-hospitality.co.uk.