How to Retain Hospitality Staff

by Alex A. Kecskes

Even in these poor economic times, hospitality staff turnover can be a nagging problem.

According to the U.S. Department of Labor, replacing a hospitality employee typically costs one-third of a new hire's annual salary. Direct costs include advertising, sign on bonuses, headhunter fees and overtime. Indirect costs include recruitment, selection and training and decreased productivity while current employees take on the work of those who have left.

Some suggestions for staff retention include:

It's not always about money. Staff working in hotel jobs, resort jobs, restaurant jobs and other foodservice jobs need constant nurturing and attention. Money is important, but if the wages are competitive, other factors come into play.

Busy workers are happier. Hotel managers repeatedly note that to retain staff requires a busy workplace. The goal is to offer a balanced mix of advancement potential, communication and feedback, and, of course, promptly addressing employees' needs and concerns. One should also try to establish a certain esprit de corps and pride in the workplace.

It's the little touches. Recognize individual achievements and make rewards public. Offer to help with training and reward each employee with "milestones" achieved. Relate praise any from customers and upper management.

Create a Comfort Zone. Make the workplace a pleasant place to be. Rest areas should be cheery and stocked with refreshments. Create a family atmosphere. Listen to your workers' dreams, goals and troubles (even if there's not much you can do).

For an additional perspective, check out this video: