Do you analyze your employee turnover?

Historically, employee turnover in the hospitality industry has always been high, around 70-75% annually. That's a lot of people!

As you probably know, the pandemic has made those numbers even worse. People are questioning why they should commit to an organization where pay is low, career development is uncertain, recognition is sometimes non-existent, and schedules are all over the board...

It is even more concerning when it comes to management. With very little support from their leadership, working 12-14 hour days, dealing with cranky customers, it's no wonder we see so much burnout and employees quitting.

Besides talking about turnover, organizational leadership must zero in on this issue and constantly analyze it. As the legendary Peter Drucker said, "What gets measured, gets managed."

Just imagine: You are running an 800-room hotel or a 230-seat fine dining restaurant. Every single guest feels welcome in your establishment, well taken care of, and has long-lasting relationships with your staff, which they built over the years. Because of that, you are always fully booked and have a long waitlist. All your guests are loyal to you and will never stay or eat anywhere else unless you are fully booked. To achieve that, it requires a few things like stellar training, proper management support, and more. But, you need to have employees who stay with you for a very long time to build those relationships with your customers. It will not save you to have the best training program if your staff constantly changes.

With that said, here are a few thoughts on where to start when analyzing employee turnover and correcting the course of your organization towards the above scenario.

Get the Data: Numbers don't lie, my friend. Start by gathering data on your employee turnover rates over a specific period. Understand the reasons behind their departure, whether it's for better opportunities, workplace dissatisfaction, or personal reasons. This data will be our compass to navigate through this challenge.

Crunch the Numbers: Now that we have the data, let's do some math (don't worry; I'll keep it simple!). Calculate the overall turnover rate, the percentage of employees who left voluntarily, involuntary turnover, and tenure-based turnover. These figures will give us a clear picture of what we're dealing with. What is your percentage? Worst thing you can do - lie to yourself.

Listen to Departing Employees: Conduct thoughtful exit interviews with employees who are leaving. They hold the key to valuable insights that can help us improve our work environment. Ask open-ended questions and encourage honest feedback about their experiences while working with you.

Employee Satisfaction Surveys: Okay, this one is a personal favorite! Regularly conduct employee satisfaction surveys to gauge the pulse of your team. Ask them about their job satisfaction, work-life balance, and whether they feel valued and appreciated. Their input will guide us toward areas that need some TLC. There are tons of available online resources (free and paid) you can use for this. I've seen too many times where those type of surveys will start, but then gets forgotten over time. Your employees will notice it! Consistency is the key.

Spot the Patterns: Now that we have data and feedback, it's time to connect the dots. Look for common trends among departing employees. Are specific departments or job roles more affected than others? Identifying patterns will give us a head start in finding solutions.

Let's Compare: Hey, you know me – I'm all about friendly competition! Let's compare your turnover rates with industry benchmarks. Knowing how you stand against others in the hospitality sector can help us set realistic goals.

Monitor KPIs: Key Performance Indicators (KPIs) are like the secret sauce to success. Keep an eye on recruitment time, training investments, and productivity levels. These metrics can reveal crucial insights about employee satisfaction and performance.

Training and Development: How about nurturing your employees' growth? Evaluate the effectiveness of your training programs and invest in continuous development. When employees see opportunities to climb the ladder, they'll be more likely to stick around.

A Sweet Deal: Money isn't everything, but it sure does matter. Review your compensation and benefits packages. Are they competitive enough? In a tight job market, offering attractive perks can make a significant difference.

Celebrate Your Heroes: You know the saying – "People don't leave jobs; they leave managers." So, let's make sure your managers are doing a stellar job. Promote employee recognition and engagement to build stronger bonds between the team and their leaders. I will even take it a step further - recognize your managers! Way too often we are fully focus on hourly employee recognition (which is extremely important, of course), but we completely neglect salaried managers. Here a novel idea - they are humans too and love to be praised!

Work-Life Harmony: It's a juggling act, I know. But supporting work-life harmony can work wonders for employee retention. Offer flexible schedules and support for personal time, and your employees will feel more valued.

Cultivate a Positive Culture: Positive vibes only! Foster a work culture that celebrates teamwork, open communication, and employee well-being. When your employees enjoy their time at work, they won't be in a rush to find the exit door. Do you have any programs where employee can recognize each other? Do you host occasional food truck party? Those are not big investments, but yield huge results.

Time for Tea/Coffee with Managers: Encourage open and honest communication between employees and their managers. Frequent check-ins can catch potential issues before they escalate. I love doing those! You can learn so much!

The Stay Interview: We've got the exit interview; now let's welcome the "stay interview." Have friendly chats with existing employees to understand why they choose to stay and what they love about their job. This insight will be pure gold for our retention strategies. This can be incorporated into your employee surveys.

It seems like a lot, but so is 75% employee turnover... Each hourly employee turnover in food and beverage industry cost around $5K (and that is being conservative); Salaried Manager - on average 30% of their salary (if they make $60K, that's $18K!! Now multiple it by the number of managers/employees you loose in a year...

Your employees are the foundation of your business. Take care of them!

I hope this article brought some value for you and gave you an idea on the course of action. I specialize in reducing employee turnover, so don't hesitate to reach out with any questions! Would love to help!

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