Hospitality Staff Retention in an Uncertain Market
By Vince Ward, Operations Director, Collins King & Associates
Employee turnover can be problematic for businesses, with a negative impact on performance, morale, and essential day-to-day operations. By making a concerted effort to understand what your employees want from their role, companies can implement tactics that reduce turnover and boost employee retention.
Staff might leave their position for a variety of reasons, and the reason they give at the point of exit interview may be different to the reality. As we enter a new year, current conditions of economic uncertainty may increase the likelihood of staff leaving for better pay and/or conditions.
Turnover in hospitality
A recent ‘The Hospitality Workforce Report’ by Fourth showed that the overall staffing headcount in pubs, bars, hotels, restaurants, and quick service restaurants (QSRs) is up 21.7% compared to June 2021. But despite this rise, 6% of the total hospitality workforce are still leaving each month. Therefore pubs, restaurants and hotels will need to tackle staff retention head on and from day one if they want to succeed.
Why do staff leave?
One of the biggest factors that affected employee retention in 2022 were counter offers from a candidate’s previous employer. Job offers are often used by employees as a bargaining chip when being underpaid, and as the cost of living increases, we are likely to see this carry on into 2023. Salaries will always play their role in employee retention.
In addition, knowing that candidates can be motivated to shop around, I suspect we will witness an increase in headhunting by agencies and direct employers in 2023 as competition for top talent reaches its peak.
What makes staff stay?
Although salary continues to be a massive factor for employees when deciding whether to stay in their current post, work-life balance is also a key issue for many. Lockdowns gave many hospitality staff – previously working upwards of 60-hour weeks – the opportunity to re-evaluate their work and consider whether a shorter working day, reduced days or flexible shifts might suit them better.
At the same time, the working environment has played a bigger role in decision making than ever before. Aspects like better facilities; nice atmosphere, having a say in the running of a department or business, and opportunities for training and progression are all taken into account by staff questioning the long term prospects of a role.
What can be done to keep staff in post?
Of course remuneration should be taken into account – it’s important to monitor pay and benefits packages, and how they compare with competitors in the sector – but staff retention goes beyond a packet.
Employers must be open with their employees: regular team meetings, reviews and one-to-ones, all provide vital temperature checks for employee satisfaction. They offer the opportunity to monitor workloads and ensure that tasks are manageable within agreed working hours. It goes without saying, but it’s essential to pay attention to employee well-being, particularly when outside factors will increasingly affect employee happiness.
Remember – staff retention starts on day one. Don’t wait until it’s too late and an employee is already unhappy and looking for a new job.
What should you do if an employee decides to move on?
When staff do leave, this is your opportunity to ascertain where mistakes might have been made, and what could have affected the employee’s decision to move on.
Hold an exit interview to discuss elements of the work environment that could be improved and again, observe the remuneration package on offer and whether it is still competitive or needs to be reviewed. As previously mentioned, exiting staff may be reluctant to share their true feelings – instead choosing to keep relations positive – so it can be productive to view these discussions as a starting point for change.
26th January 2023
