Inconsistency in the guest experience means guest satisfaction plummets. Even before Covid-19, staff retention was a significant problem in hospitality, but the pandemic exacerbated the issue. A steady stream of turnover rates causes disruption in operations, and investing the time and money to train new employees is burdensome. Now more than ever, hospitality leaders need to fine-tune their retention strategies to adapt to the changing needs of employees as well as fostering an employment environment that has staying power.
Root Causes
The reasons for the high turnover trend can be multifold, ranging from limited growth opportunities, low pay/no benefits, inadequate training, inflexibility, an absence of transparency in communication, and a lack of recognition or rewards.
“Policies initiated by the ownership or management group [often] do not facilitate long-term commitment, from not providing training and support to benefits," said Heidi Wilcox, president of First Call Hospitality. "You have to engage your staff and be able to motivate [staff]; you can’t expect that without some kind of commitment from them."
Industry experts agree that there are initiatives that can be put in place to slow down the turnover rate, which hovers between 70-80 percent annually, according to the U.S. Bureau of Labor Statistics.
Investing in Employees
While fair compensation and financial incentives and other perks are important, offering professional development and learning opportunities to inspire growth potential is a priority for many brands.
“We make a conscious effort to provide resources that serve employees and their needs at every stage of their career through a huge emphasis on training and development, and our goal is always to promote talent from within,” said Kymberly Kuebler, Aimbridge Hospitality vice president of talent. In 2023 alone, she reported that over 5,000 associates received promotions and that feedback from the company’s leadership pathway program has been overwhelmingly positive.
Caribe Royale in Orlando added 900 employees during the pandemic. “When you hire someone, you’re investing in them and in that individual from a training perspective. We give them all the tools necessary to do the best job possible because there is nothing that we like more than to be able to grow people,” said Managing Director Amaury Piedra. To that end, the company makes sure that new hires have a good foundation at the outset with an associate development program. “The biggest thing is providing people the right training to do their job before they hit the floor; that goes a long way toward job satisfaction,” he added.
Wilcox agreed that training is key. “We have a specific training plan for each position. Things have changed from a guest expectation standpoint, and understanding how to deal with that is probably the biggest thing we had to provide support on,” she said.
Engagement with Staff
Part of being engaged with employees is hearing them and providing a safe space for them to share what is on their minds, which fosters a sense of empowerment and that they have a stake in the company.
Piedra emphasized the importance of creating a culture that flows from the top management to all employees, as well as making sure that employees are heard. “We do monthly roundtables with associates from each of the departments and have a smaller one-on-one with myself. We take notes on what is happening, what is not working, what questions do you have. The most important thing is, we follow up on it. There is two-way communication, and they know they are not wasting their time sharing that information with us,” he said.
Caribe Royale conducts town halls at least twice a year, updating associates as to what is happening at the property and future plans. They also provide interpreters for those whose native languages are not English.
This strategy works well for Valor Hospitality as well. Regional Director of Human Resources Balencia Thomas said that her company engages in ‘listening circles’ when they visit properties. “The purpose is to listen as they share their feedback and concerns, and we act on the information we are receiving,” she said. They’ve also formed a culture committee that consists of hourly team members from different departments to discuss issues and find solutions. “That has been really helpful, as they have a sense of pride and take ownership in coming up with these resolutions.”
Aimbridge offers another example of a successful initiative. “What hospitality associates are looking for today above all else is flexibility, and employers need to adapt to understand and address this need so that retention doesn’t become a larger issue," Kuebler said. "We’ve implemented solutions like flex scheduling, shift sharing and daily pay to ensure our associates have flexibility with their work location, hours, pay or benefits."
Sidebar: Top 8 Tips for Retention
- Listen to your employees, as their needs may have changed over the years. Provide outlets for sharing problems and being part of the solution.
- Offer training across the organization, including professional development and leadership opportunities with the long-term goal of being promoted from within. View your associates as long-term hires versus temporary fixes.
- Value your employees, either with a formal or an informal rewards initiative. “Feeling that they matter and are heard are the keys to retention,” said Piedra. Showing them respect and making sure they feel that as if they are part of the decision-making process also goes a long way. It takes effort, and this should come from the top down. “We’re not seeing people leave for a quarter increase in a wage anymore. It comes down to how you treat them and how you support them and the training, beyond the wage and competitive benefit,” added Wilcox.
- Transparent communication is critical, particularly as staff tends to feel more invested in their jobs if they feel as if they know what is going on. “I’d rather over-communicate than under- communicate. Keeping the staff apprised of what is happening, the direction of the property, what the next year could look like is very important. No matter the news, you’re sharing with them, and I’ve found its very appreciated by the team,” said Piedra.
- Compensate associates fairly.
- Support the team by providing the requisite tools and resources they need to succeed.
- Valuing the whole person by offering programs for mental or financial health needs, something that Valor Hospitality has implemented.
- Recognition and rewards go a long way, as does both private and public recognition of a job well done. For example, Caribe Royale has programs such as ‘star of the month’ or ‘quarterly manager of the year,’ and the like; top rewards include a week-long cruise.