Employee Retention in the Hospitality Industry: A Turning Point for Meaningful Change

Employee retention has been an enduring challenge in the hospitality industry, with turnover rates often higher than in most other professions. 

But have we been tackling the issue from the right angle? 

As a sector that's all about service, experiences, and human connections, the key to retaining staff might not be found in compensation packages and perks, but in building an organisational ethos that resonates at a deeper level. 

A Personal Touch on Employee Retention 

During a recent Hospitality Titans ™️ Panel, the insights shared were not just the musings of industry leaders, but real narratives of struggle, transformation, and hope. Organic’s own Matthew Cameron's story holds a mirror up to the industry and challenges traditional views on what it means to retain employees. 

Matthew's vantage point is unique—he was once the employee who seemingly 'had it all', yet the systems that were meant to support him failed, and his life was profoundly impacted as a result. 

Today, he stands as a beacon of change within the industry, striving to build workplaces that are not just profitable, but also nurturing and life-affirming. His message resonates with a call to action: Retain employees by being a workplace worth staying for. 

The Paradigm Shift from What to Who

In the traditional sense, employee retention strategising often revolved around the 'what': What can we offer to make employees stay? 

But the 'who' in Cameron's message brings a paradigm shift. Introspection is required to ask fundamental questions about the identity of a business and how it aligns with the values and well-being of its workforce. 

By focusing on the 'who', hospitality businesses can delve into their core to articulate an identity that employees don't just spend a workday at, but want to champion and build with. 

This approach moves the role of HR from that of a damage control unit—preventing employee departures—to one of cultivating an environment where departures are the anomaly rather than the norm. 

Craft a Culture of Care 

On the panel, other industry stalwarts articulated their approaches to employee retention, each layering the conversation with valuable insights. Miriam Varoli shared her unique method for fostering a culture of care at Andaz London Liverpool Street . This extends beyond standard HR practices to empowering managers to be the front-line advocates for their teams' well-being. 

Tim Etherington-Judge of Healthy Hospo brought to light the critical need to not only acknowledge mental health in the workplace but to construct environments that support and uplift it. 

Adam Dilks of Nightcap Plc (and Matthew) spoke on the need to understand and resonate with younger generations in hospitality, suggesting that the cultural shift is not just a preference but an imperative component of business success. A culture that inspires and aligns with the values of the younger workforce can boast of lower turnover rates and higher employee satisfaction scores. 

Recognising the Varied Aspirations of Short-Term Staff

Adam also contributed to the panel an interesting perspective that is often overlooked in the hospitality sector—the varied aspirations and expectations of short-term staff. 

Unlike their long-term counterparts, these employees often seek immediacy in their rewards and benefits, as their career paths may be less linear and more opportunistic.

This transitory workforce looks for flexibility, diverse experiences and the ability to maximise income over shorter periods. Recognising and catering to these distinct desires is essential.

The Data Speaks for Itself 

An interesting nugget from the CODE Hospitality Happiness in Hospitality Survey was the clear indication that what attracts and retains staff is often not monetary. 

The data revealed that development prospects, brand strength, and team dynamics were the biggest draws for employees, whereas grievances with development opportunities, lack of support from employers, and incompatibility with management were cited as primary reasons for attrition. 

These insights align with the call to action for a more human-centred approach to retention. 

It suggests that employees are looking for an emotional investment in their workplace, one that transcends the financial transaction. The challenge for the hospitality industry is to evolve its practices and values to meet this emotional need. 

Embracing the Demographic Changes 

As the demographic landscape of the hospitality industry skews towards Millennials and Gen Z, an overdue cultural recalibration becomes requisite. These generations bring with them unique aspirations and a distinct set of values that demand a rewrite of the employee retention handbook. 

Studies reveal that younger employees seek purpose, autonomy, and belonging in their work settings, and they're quick to distance themselves from organisations that fail to offer these intrinsic rewards. To retain talent, hospitality businesses must become adept at catering to these emotional desires, thus forging a cultural environment that is as enriching as it is professional. 

Unpacking the Paradox of Money and Meaning

While the pursuit of purpose and value alignment is a significant motivator for the younger generations, we cannot discount the nut-and-bolts issue of financial stress and its far-reaching implications.

Philip Briffett from Wagestream elaborated on this during the panel discussion, underlining the often underestimated effects of financial concerns on cognitive function and workplace productivity. 

It is a paradox where salary may not rank as the top driver of employee satisfaction, yet the repercussions of financial instability can profoundly undermine mental capacity and job performance.

Employers must recognise that alleviating financial stress is crucial not just for the quality of life of their employees but also for maintaining a productive, engaged workforce, thereby ensuring higher levels of retention.

The Cornerstone of Culture in Employee Retention

The insights gleaned from the Hospitality Titans Panel illuminate a profound narrative; incentives alone are not the panacea for employee turnover. 

The conclusion that crystallises from our discussions is one of culture’s paramount roles in the retention equation. It's about embracing a culture that resonates with employees' desire for recognition, growth, and a sense of belonging.

As industry leaders, we must foster an environment where employees feel integral to the company's mission, and where their contributions are not just acknowledged but celebrated. This strategic pivot towards a more emotionally intelligent workplace culture holds the promise of not only reducing turnover rates but also amplifying service standards to our guests.

By championing a people-first approach, we lay the foundation for a sector that values its most significant assets—the employees—as the essence of true hospitality. This cultural renaissance in hospitality is not just a goal; it is our responsibility, with the potential to craft legacies that extend well beyond the reach of our dining rooms and hotel suites.

In recognising the value of a nurtured workforce, Organic Recruitment introduces our groundbreaking Retention Workshops. 

Spearheaded by the esteemed Matthew Cameron, these interactive sessions will empower you to unravel the complexities of employee loyalty, infusing your workplace with a vibrant, retention-focused culture.

Interested? Email Matthew directly at matt@organicrecruitment.com