The Hospitality Retention Crisis—And How to Fix It
You’ve spent months—or even years—building a top-tier leadership team at your hotel, resort, or private club. Operations are running smoothly, guest satisfaction is soaring, and your property is thriving. Then, one by one, your best people start leaving.
Sound familiar?
If you’ve been in hospitality leadership long enough, you know the pain of high turnover. It’s disruptive, expensive, and can quickly spiral out of control.
Here’s the hard truth:
- Replacing a mid-level manager earning $30,000 to $50,000 a year costs roughly 20% of their salary—meaning a $40,000 manager walking out the door immediately costs you $8,000 in recruitment and training.
- According to the Society for Human Resource Management (SHRM), the average annual turnover rate across all industries is about 15%—but in hospitality, it skyrockets to 35%.
- SHRM also estimates that each employee departure costs about one-third of that worker’s annual salary when factoring in recruiter fees, temporary staff, training costs, and lost productivity.
Now, multiply that across an entire property—and you’ve got a financial drain that’s completely avoidable.
The Good News: Turnover Can Be Reduced
At Doyen Search Group LLC, we’ve spent the past year speaking with dozens of HR executives, VPs of Operations, and General Managers—both from the perspective of new hires navigating their first months and operators struggling to retain top talent.
What we’ve learned is clear: while turnover is an ongoing challenge, it’s not inevitable. There are concrete strategies you can implement today to not only retain your best people but also build a culture where employees want to stay.
Our editorial team has put together these eight powerful strategies based on industry data, expert insights, and real-world results.
Let’s dive in.
1. Build a Culture People Actually Want to Work In
Hospitality is tough—long hours, demanding guests, high expectations. But great workplaces don’t just keep employees—they energize them.
- Empower managers to lead with support, not stress. Micromanagement and constant criticism drive great people out the door.
- Make recognition a daily habit. A simple thank-you, a quick team shout-out, or a surprise reward keeps morale high and commitment strong.
- Foster camaraderie. Strong teams stick together. Encourage team bonding—whether it’s post-shift drinks, group outings, or internal competitions.
A strong workplace culture doesn’t just retain employees—it turns them into loyal brand ambassadors.
2. Pay People What They’re Worth
Let’s be honest—if your competitors offer better wages, you’ll lose your best people.
- Conduct regular wage assessments to stay competitive in your market.
- Incorporate performance-based raises and bonuses for exceptional work.
- Offer creative perks—extra holiday pay, tuition reimbursement, travel discounts—things that make a real impact on an employee’s life.
Compensation isn’t just about keeping people—it’s about showing them they’re valued.
3. Perks: The Secret Weapon for Retention
Think beyond paychecks. The right perks make employees feel like VIPs—and keep them engaged long-term.
- Comp meals, hotel stays, or travel discounts create instant goodwill.
- Performance incentives—like gift cards, extra PTO, or cash bonuses—turn daily work into something employees want to excel at.
- Unexpected appreciation—small, meaningful rewards build long-term loyalty.
A little generosity can turn a good employee into a lifelong ambassador for your brand.
4. Safety and Well-being Are Non-Negotiable
Nothing drives employees away faster than feeling unsafe or burned out. Make it a priority:
- Invest in top-tier safety training and protective equipment.
- Provide mental health support—whether it’s an Employee Assistance Program (EAP) or simple wellness initiatives.
- Enforce clear policies to protect staff from guest harassment and workplace hazards.
A safe, healthy team is a long-lasting team.
5. Work Smarter, Not Harder: Leverage Technology
Hospitality moves fast, and technology can make employees’ lives easier—which means they’ll stick around longer.
- Use scheduling software that allows employees to manage shifts on their own terms.
- Implement AI-powered chatbots to reduce front-desk workloads.
- Adopt performance tracking software that helps recognize and reward top performers.
Technology isn’t just about efficiency—it’s about employee satisfaction.
6. Work-Life Balance: It’s Not Just a Buzzword
Employees aren’t machines—they have lives outside of work. Respecting that keeps them loyal.
- Limit excessive overtime and avoid overloading shifts.
- Offer flexible scheduling options—swappable shifts, compressed workweeks, remote work (for eligible roles).
- Ensure employees actually take their breaks—no one should be running on fumes.
The happier your employees are outside of work, the more committed they’ll be on the job.
7. Recognize and Reward Your People
Employees don’t just work for a paycheck—they want to feel valued.
- Celebrate milestones—work anniversaries, birthdays, promotions.
- Make “Employee of the Month” meaningful—attach a real reward to it.
- Recognize small wins daily—a quick “great job” in the moment is more powerful than an annual review.
Employees who feel appreciated stay longer and work harder.
8. Give Them a Future: Career Growth & Training
Many hospitality workers leave because they don’t see a career path. If they feel stuck, they’ll move on.
- Create leadership training programs for high-potential employees.
- Offer tuition reimbursement for hospitality-related degrees.
- Promote from within whenever possible—show employees there’s a future at your property.
When employees see real career growth, they won’t need to look elsewhere.
Final Thoughts: Keep Your Best People, Build a Stronger Business
Turnover is not an unavoidable cost of doing business—it’s a problem with a solution. At Doyen Search Group LLC, we specialize in helping hospitality businesses find, hire, and retain the right leaders.
Investing in retention isn’t just about keeping employees happy—it’s about improving service quality, guest satisfaction, and profitability.
Curious about how your company stacks up in retention? Let’s do a quick audit of your hiring and retention strategies—no strings attached.
📩 Contact DSG today to explore recruiting strategies or schedule a talent acquisition consultation.
Or Schedule a complimentary Discovery Meeting HERE.
