Employee Churn Rate in the Hospitality Sector: Facts, Issues, and Solutions via Digital Transformation

posted by Daniil Tarakanov on 14.08.2020

Employee retention is a major problem in the hospitality sector. According to Deputy data, the employee turnover rate in the hospitality sector is above 31%. This figure by itself is alarming, seeing that it doubles that of the UK average. Sadly, it doesn’t stop there. This figure is predicted to increase even more with the continuation of the “Brexodus” of many EU workers.

Will there still be more turnover? Probably!

In a YouGov report, 42% of Great Britain employees have worked in hospitality at some point. That’s a rather fair stat, right? However, over 40% reported to only work in the hospitality industry as a last resort. A large number also had these jobs as their 2nd or 3rd job.

About 69% of the respondent voiced that they left the sector because of the unsociable working hours, 63% for low pay and employee benefits, and 35% for lack of future career prospects. If you’re a hotel executive, you’ve got a lot of work to do.

Why is Employee Churn a Problem?

Research shows that the employee turnover rate in the hospitality industry is staggering – between 31% to 34%. This large volume of churn is often caused by low wages and the inability to keep up with the overwhelming demands to deal with a lot of customers.

Although some might opine that employee churn takes out the bad apples; getting rid of under-performing employees and giving you room to hire better people. However, employee churn brings several negative aftermaths to your company.

Apart from costing you a lot of money, a huge employee churn rate could be a major pointer to a much bigger internal structure problem within the workforce. Employees are the heartbeat of every business, and this infers that you cannot do without them.

Initiating replacement plans can be very time consuming and might prevent you from focusing on more productive things. Consequently, this would cause a lag in the company’s growth.

Improving Employee Retention in the Hospitality Industry

Nothing brings joy to any organisation than experiencing a high retention rate. Face it, no company will turn down an opportunity to enjoy a high employee retention rate. This is because employee retention has always been a major challenge for many human resources departments, especially in the hospitality industry.

Technology is a great enabler for hotels to improve staff retention and customer experience. With the use of mobile and web applications, hotels can create apps that make it much easier to track employee performance, work rate performance as well as employee sign in and sign out.

The use of cloud-based SaaS tech has also become quite an innovative tool for many hotels and hospitality organisations. With these technologies, hotels can become more cost-efficient and take on a more flexible work system without the need to belabour your team with managing your own software.

Another way to boost staff productivity is by incorporating CMMS into your workflow. With this, you can foster better task management and distribution, enjoying overall maintenance management via a simplified process. Using this, you can redirect the time and energy investment of your staff into more productive tasks and necessities. This would also optimise efficient communication system by providing a central digital interaction platform, killing the amount of time spent on making reports, and making several phone calls.

Bringing the right digital tools and automating your processes are not just to fancy-up your working conditions, they are, in fact, key necessities for the ever-growing demands in the hospitality industry.

The right use of technology can increase work conditions, consequently increasing staff and customer happiness and reducing employee churn rate.

At levels.digital, we offer digital services with high-level expertise in designing and developing market-leading digital strategies and products. Over the years, we have provided digital product services to industry leaders globally. In recent times, we have tackled employee churn problems using first-rate digitalised solutions and strategies.

How can we help you? If you would like to discuss prospective solutions for your organisation in detail, make sure you contact us.

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