The hospitality industry is notorious for high employee turnover rates. According to recent U.S. Bureau of Labor Statistics data, the quit rate in the leisure and hospitality sector is 204% above the national average. If the business is tough on employees, it’s just as tough on management that has to constantly backfill those positions and train up the replacements.
The associated costs will vary by region and role. But the costs don’t stop there. The additional strain on the remaining employees while the property is understaffed can breed more departures sooner. Lower morale watching colleagues leave can have the same effect. And if guest service is affected and the guests become unhappy, the whole negative dynamic is multiplied.
Some of this is just the nature of the business. For that reason, it’s no secret why people quit these jobs… or what it takes to keep employees on staff. The secret is in how to implement the necessary adjustments. By thinking outside the box, your properties may be able to reduce employee turnover and the costs that come with it.
The Main Reasons for Hospitality Staff Turnover
The most common reasons for high turnover in the hospitality sector are, in many ways, unavoidable. These include:
- Low wages and limited benefits
- A demanding work environment
- Lack of career growth opportunities
- The seasonal nature of some positions
Some other commonly cited reasons for high attrition can be mitigated with a little extra effort:
- Poor management and lack of recognition
- Long hours and lack of predictability with scheduling
Any combination of these factors can induce the stress and burnout that ultimately drives a resignation. In fact, these dynamics are so common that management may assume that nothing can be done to address them.
But only a few of these are truly part and parcel of the business. The nature of the work will always be demanding, with the toughest demands coming from guests. Likewise, the cycles of the business will always be seasonal and the number of open positions will necessarily fluctuate.
All the other drivers of employee discontent are matters of resource allocation: of time and money. So, let’s see where we can find more of each to reduce the hardship and expense of hospitality employee turnover.
Nearshoring, a Strategic Solution for Long-Term Staff Retention
You may already handle some of your properties’ back office functions remotely, like reservations, customer service, and bookkeeping. Nearshoring is a remote support capability that combines the convenience of regional proximity with the cost-effectiveness of a nationally outsourced workforce.
The key in this case is the cost-effectiveness. By lowering the cost of your back-office operations, you have more resources to address economic strains in the front of the house. This can counter the toughest challenge in hospitality staffing: the pay rates.
If you can shift costs from the back of the house to the front, you can offer higher base pay. Instantly, you are the greener grass that keeps personnel from looking elsewhere and lures the best employees from other properties. These savings can also fund discretionary or periodic recognition bonuses that boost employee compensation while lifting their morale.
Savings from nearshoring some functions can also be plowed back into additional nearshore capabilities. Online training programs – developed and administered by nearshore resources – regarding guest relations and the hospitality business generally can help employees manage their roles better and provide a sense of professional growth.
Property management can also benefit from such training to develop managers’ supervisory skills. If managers can also offload adjusting work schedules to accommodate illnesses or other absences, the schedules can benefit from the dedicated attention, and managers will have more time to tackle the necessary activities in the front of the house.
All these adjustments can add up to a more satisfying workplace. In addition to improving staff retention, the guests will feel the difference. This promotes more positive stays, better reviews, and reduced vacant rates.
Achieve Customer Service Excellence with Nearshore Talent Solutions
If you’re not familiar with nearshore back office resources, you owe it to your staff and your guests to learn more. The best of these operations offer articulate, experienced personnel who work exclusively for your business. They are provisioned with state-of-the-art technology which is securely integrated with your in-house systems to serve as a virtual extension of your team.
Solvo is among the leaders in this category, providing high-quality nearshore talent solutions for businesses across various industries, including hospitality.
If you’d like to see how Solvo might fit your needs, check out Back Office – Solvo Global. And if you’d like to explore how much Solvo can save you in staff turnover costs, Contact Us – Solvo Global for a consultation today.
