Travel bans, limited mobility, and worldwide recessions heavily impacted the hospitality industry. Business was low, workers were laid off, and some hotels were even forced to close. Now that travel and lodging demand are returning, hotels face another problem: high employee turnover rates.
Last year’s American Hotel and Lodging Association report revealed hotel occupancy levels rose from a historically low 44% in 2020 to nearly 64% in 2022. While guests are returning, hotels are struggling to retain staff.
High Employee Turnover Rates in the Hospitality Industry
The hospitality industry suffered a large drop in revenue during the pandemic, forcing many layoffs. Today the industry needs workers, but employees are often not staying long. Economy-wide turnover rates are much lower compared to hospitality: in most industries the rate hovers just below 50%, while recent findings indicate turnover in hotels can be higher than 80%.
Turnover is costly. Every time an employee quits, a hotel may spend at least 50% of that employee’s annual salary to hire a replacement. Addressing the causes of turnover is critical for hotels trying to recover and grow.
11 Reasons Why Employees Are Leaving Hotels
Employees are individuals with emotions, ambitions, and needs. Understanding why they leave helps organizations create better workplaces. Below are 11 common causes of turnover in the hospitality industry.
Reason #1: Long Work Hours
In hotels and restaurants, long shifts are common. For example, chefs may work up to 12 hours with few breaks. Around 4 in 10 people working 8–12 hours cite long hours as a main cause of burnout.
Consider implementing swing shifts, backup staffing, and more flexible schedules to reduce fatigue and increase motivation.
Reason #2: Poor Schedules
Hospitality jobs often offer little scheduling flexibility compared to many office roles. Hourly positions typically have limited leeway for schedule changes.
Introduce flexible scheduling options where possible to accommodate employees’ unpredictable lives, improving work-life balance and loyalty.
Reason #3: Low Wages
Hospitality roles are known for low pay. About 1 in 3 hospitality workers say they plan to leave the industry within 12 months due to low pay.
Ensure fair, competitive compensation and consider the full benefits package—health insurance, vision and dental coverage, and retirement plans—to reduce turnover.
Reason #4: Toxic Work Environment
Excessive stress and toxic workplaces contribute to turnover. Chronic stress is linked to serious health problems, and many hospitality employees report experiences of bullying or sexual harassment.
Implement policies to prevent harassment, provide stress management training, and encourage open communication to create a supportive, respectful culture.
Reason #5: Poor Communication
Effective communication is essential—front desk agents, housekeeping, and managers must coordinate closely. For 4 in 10 hospitality workers, poor communication reduces trust in teammates and leadership.
Leaders should communicate expectations, needs, and changes openly and consistently to prevent disengagement.
Reason #6: Lack of Recognition from Managers
Many managers are quick to point out mistakes but slow to recognize good work. Recognition matters: organizations with recognition programs tend to have significantly lower voluntary turnover than those without.
Build a culture of appreciation—regularly acknowledge achievements and provide constructive feedback.
Reason #7: Lack of Flexibility
Employees value flexibility: more than half want more flexible options. Offering paid time off, flexible hours, or other accommodations signals care and support.
Identify flexible arrangements that match your operational needs and clearly communicate available options to staff.
Reason #8: Job Insecurity
Hospitality often relies on seasonal staffing and fluctuates with tourism cycles, creating job insecurity for many workers.
Set clear expectations for seasonal roles, and offer incentives for staff to return during peak seasons to improve retention.
Reason #9: Poor Work-Life Balance
Burnout is common when employees face sustained high stress. According to the International Journal of Psychosocial Rehabilitation, burnout includes:
- Emotional fatigue — feeling physically, mentally, and emotionally drained.
- Depersonalization — feeling detached and dissatisfied with work.
- Reduced personal accomplishment — feeling decreased competence or achievement.
Addressing workloads, schedules, and support systems is essential to mitigate burnout and improve retention.
Reason #10: No Professional Development
Career growth matters: 88% of people consider professional development “really important” when seeking employment. Lack of training and advancement opportunities drives employees away.
Provide continuous training, clear career paths, and regular feedback to demonstrate commitment to employee growth.
Reason #11: Rising Cost of Living
Higher prices and interest rates are squeezing workers’ finances. Many hotel workers struggle with housing affordability—hotels are often in expensive neighborhoods—leading to long commutes and additional strain.
Competitive pay, housing support where possible, and other financial benefits can help retain employees facing cost-of-living pressures.
How to Increase Employee Retention in Hospitality
Lowering turnover should be a top priority. Improving employee experience, strengthening relationships, and adopting supportive technology are key strategies.
Positive Relationships
Hire and train managers with strong communication and conflict-resolution skills. Open lines of communication between managers, teams, and guests foster a positive environment that supports retention.
Generous Perks
Compensation plays a central role in job satisfaction. Offer fair wages—ideally above average—and creative perks that show appreciation, such as enhanced benefits or performance incentives.
Mental Health and Wellbeing
Create a psychologically safe workplace. Establish clear policies, encourage employees to speak up about challenges, and address burnout factors like heavy workloads and irregular schedules.
Growth Opportunities
Offer training and clear advancement paths. Define expectations for managers, encourage two-way feedback, and provide continuous learning to build skills and loyalty.
Hotel Technology
Adopt technology that improves teamwork and efficiency—streamlining tasks like check-ins, housekeeping coordination, and staff communication frees time and resources to invest in employee wellbeing. Management platforms and staff-collaboration tools can help reduce friction and improve job satisfaction.
Conclusion
Employee retention is a pressing challenge in hospitality, but with targeted changes—better schedules, competitive pay, supportive culture, growth opportunities, and smart use of technology—hotels can reduce turnover and improve both employee and guest experiences.
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