How to improve hospitality staff retention

What’s the level of employee retention in hospitality?

Hospitality is the sector with the highest staff turnover in the UK, with an attrition rate of 52%, according to analysis of ONS data by the Chartered Institute of Personnel and Development (CIPD). 

The CIPD looked at the Office for National Statistics’ Annual Population Survey from January 2022 to December 2023, which found that 40% of hospitality employees moved to another employer in the same sector after less than a year, while 12% left the industry altogether. This is despite the data showing that one-third of employees had worked in hospitality for less than 12 months at the time of the survey. 

Meanwhile, equity management platform Vestd’s Employee Retention Report 2024 showed that the hospitality industry had the second-lowest tenure of all UK sectors. According to this report, staff only stayed working in hospitality for three years on average, behind only marketing, which had a median tenure of 2.8 years. 

Vestd also found that 41% of hospitality employers had taken steps to improve their approach to employee wellbeing over the last five years. However, 29% of employees said they’d had no communication from wellbeing leads about available support in this area.

All of this data indicates that the hospitality sector is not making a good first impression with new staff and isn’t doing enough to retain skilled talent. But why is this the case, and what can be done to improve hospitality staff retention?

Challenges facing hospitality staff retention

The seasonal nature of the industry, comparatively low pay, and demanding shift patterns are just some of the factors influencing high employee turnover in hospitality industry roles. Read on for a closer look at some of the challenges impacting retention in the sector.

1. Wages

The average salary in the UK as of April 2024 was £37,430 for full-time employees, ONS data shows. However, the average salary for hospitality staff is considerably lower, coming in at £25,000. The comparatively low pay of the sector means workers may only stay in their roles for a short period before seeking higher wages elsewhere. Amid the rising cost of living, workers need financial stability, and this is just one of the reasons why retention in hospitality can be such a challenge.

2. Seasonality of work

Hospitality work is often seasonal, with the summer and Christmas seasons typically requiring a higher volume of staff than at other times of year. Many businesses only employ hospitality workers on temporary contracts, which creates uncertainty around the stability and longevity of employment. As a result, staff may seek more permanent opportunities elsewhere. 

The seasonal nature of the industry impacts its high turnover figures, as staff are often forced to move on after a short period of employment. However, seasonality remains one of the key challenges facing hospitality staff retention.

3. Local competition

Hospitality businesses typically face a high level of local competition when filling roles, which can impact employee turnover. Restaurants, cafes, hotels and other industry employers are often in close proximity to each other, meaning the local talent pool is split across different companies. If one employer is known to offer higher pay or a better employee benefits package, word will get around, and competitors’ employees will be more likely to look for work there in the future, impacting their current employer’s retention levels. 

4. Lack of flexibility

Shifts in the hospitality industry can be long and physically demanding, and workers are often required to work evenings and weekends. This can impact employees’ work-life balance, making it challenging for those with parenting, caring or other commitments to stay in the industry long term. 

The lack of flexibility offered by many hospitality employers may be more likely to lead to stress and burnout among workers, impacting overall team morale and retention.

5. Perception of industry

The often negative perception of employment in the sector also has an impact on low levels of retention in hospitality. Many workers view hospitality jobs as temporary and unstable, with unsociable hours. It’s also seen by some as an industry that offers little or no career development opportunities, with workers unaware that the skills gained during hospitality employment will be valuable throughout the rest of their professional lives, regardless of sector.

6. High pressure

Hospitality can be a high-pressure industry to work in due to its fast-paced, customer-facing nature. This can create added stress and impact workplace culture and employee morale. Some workers may prefer to seek similar pay in a less pressured environment, making this another key factor influencing hospitality staff retention.

7 strategies to improve staff retention in hospitality

So, what can employers do to tackle each of the challenges above? From offering more flexibility and career development opportunities to building an open, communicative culture, below are some of the different steps employers can take to improve hospitality staff retention.

1. Offer more competitive benefits

The first step to improving employee retention in hospitality roles is to offer more competitive pay and other employee benefits. Research what your competitors pay and find out what benefits they offer to make sure your package is in line with, or surpasses, the competition. 

Wages are just one aspect of this; consider offering additional workplace benefits, such as childcare support or discounted gym memberships, too. These will help your staff to stay flexible and achieve a better work-life balance, while demonstrating that you care about employees’ health and wellbeing. These measures can provide workers with more financial stability and boost team morale, creating a stronger, more permanent workforce.

2. Greater flexibility

While the nature of the hospitality industry means evening, weekend and overnight shifts will always be required, employers can do more to provide workers with greater flexibility. Measures that can improve flexibility, prevent burnout and make the sector a more attractive one to stay in long term include:

• Schedule shifts well in advance to reduce unpredictability 
• Make sure everyone only works a set number of evenings or weekends per month to make shift patterns fair and supportive of everyone’s work-life balance
• Schedule breaks in advance of shifts and ensure everyone takes theirs in full
• Encourage staff to use all of their annual leave

By offering enhanced flexibility, hospitality employers can attract a more diverse, skilled workforce. What’s more, it shows staff that their time and wellbeing is valued and respected by the company, which may help to improve hospitality staff retention.

3. Recruit the right talent

Making the right hiring decisions first time can go a long way to improving employee retention in hospitality. By defining your employee value proposition (EVP) and showcasing your employer brand from the first touchpoints of the recruitment process, you’re more likely to attract candidates who are a better fit. Tools such as automated CV screening can also help with this, ensuring job applicants have the skills and experience you’re looking for from the very beginning of the hiring process.

Finding candidates who are an ideal fit, in terms of both skillset and culture, can help businesses to save money on future recruitment costs, while creating a strong team bond and reducing high attrition rates.

4. Offer career progression

A lack of career development opportunities is one of the biggest factors influencing high rates of employee turnover in hospitality industry roles, so offering clear progression paths can help to improve retention. Highlight the opportunities you offer, as well as any success stories of employee development via your careers site, to make candidates aware of the support available from the start. 

It can also help to emphasise how the skills gained during their time with you will benefit the rest of their careers, from dealing with customers to juggling priorities and thinking fast. 

Investing in employees’ development supports hospitality staff retention by demonstrating a commitment to your people, and it rewards their loyalty, creating a dedicated workforce. 

5. Develop seasonal staff

One way that employers can improve retention in hospitality settings is by keeping on and investing in seasonal staff. These workers are one of the biggest contributors to high attrition rates in the sector, so moving them to permanent contracts and spending quieter periods investing in their development can benefit the wider business, as well as individual members of staff. 

By training and upskilling these staff, hospitality employers can save money on recruitment costs the next time the peak season comes around, and create an experienced team who know the business inside out. This is important for teamwork, morale, delivering the highest standard of customer service, and reducing overall employee turnover levels.

6. Listen to your people

Creating a culture of open communication and listening to your staff is vital for supporting staff retention levels. There are different ways hospitality businesses can do this, including:

• Employee engagement surveys to discover the changes staff would like to see
• Hosting regular team meetings
• Ensuring transparency around any organisational changes
• Introducing an anonymous suggestions box that’s reviewed regularly
• Conducting exit interviews to find out why staff are leaving
• Acting on feedback to create tangible changes

When employees feel listened to and can see that you value their opinions, this helps to foster loyalty, increase job satisfaction, and support hospitality staff retention. Read more about how to build a magnetic workplace culture. 

7. Build a supportive culture

Workplace culture is one of the most important factors behind long-term employee retention. In hospitality industry settings, the culture needs to be open and inclusive to create the best possible environment for customer satisfaction and to support overall business reputation. Creating a supportive culture will help employers attract and retain the most talented workers, again reducing recruitment costs.

A key part of implementing a positive workplace culture is to recognise and reward top-performing employees, demonstrating that hard work is valued and appreciated. This can be an effective motivating factor for employees, and promotes a feeling of belonging and purpose within the company – vital factors for supporting staff retention in hospitality.

Improve hospitality staff retention with Talos360

Support your hospitality staff retention strategy with Talos ATS. Our award-winning applicant tracking system helps you promote your employer brand throughout the recruitment process, find the best-matched candidates for your roles, and effectively manage high-volume hiring. 

Talos ATS features that can help to support retention in hospitality environments include:

• Access to multiple hospitality sector jobs boards
• Careers site builder to showcase your employer brand and unique proposition
• CV screening tools to help you identify the best talent faster
• Automated reference checking to save you time, admin and money
• Employee onboarding suite to give new recruits the best first impression of the sector

Get your free demo today to see how Talos can transform your employee retention figures.