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How to reduce staff turnover in the hospitality industry 

The hospitality industry offers excellent prospects for talented and dynamic individuals. From management to operations, to finance and marketing, there are plenty of exciting career paths available in the industry. Yet hospitality is still viewed by many as a stopgap career option. This attitude is just one of many factors which lead to higher turnover in the industry.   

Hospitality currently has the highest staff turnover of any industry in the UK at 52% and the cost of that turnover to hospitality businesses is huge. If the industry is to improve staff retention levels and shake off its reputation of being a short-term career option, hospitality operators need to take certain steps. 

6 mins

Written by Jen Grenside.

As an established and trusted provider of a wide variety of software solutions to the hospitality industry, we work with hundreds of hospitality operators across the UK and have seen first-hand the significant challenges that high turnover can have on their businesses. That’s why we’ve spent time developing solutions to help, and in the process, we’ve picked up a few insights. 

In this article, we’ll look at the importance of staff retention, the key reasons behind hospitality’s historically high staff turnover rates, and what you can do to increase retention rates in your business. 

The impact of turnover on team performance  

As well as impacting your bottom line, high levels of turnover in your business can play havoc with team dynamics, which can quickly lead to issues with productivity across the entire team, not just the new team members.  

You will likely have heard of Tuckman’s stages of group development, which tells us that a team goes through a series of steps during formation (this includes changes to the team when new employees join).  

These are known as Forming (low productivity), Storming (low productivity and sometimes low morale), Norming (increased productivity), and Performing (reaching maximum potential).  

Every time an employee leaves or a new one starts, your teams will begin this process again. This means that when staff turnover is high businesses may find themselves stuck in a perpetual cycle of ‘Forming’ and ‘Storming’, very rarely reaching the ‘Norming’ stage where productivity increases, and the business can prosper.  

This significantly affects the level of service your employees are offering guests, potentially damaging customer perception and brand loyalty. With this in mind, let’s explore the reasons for high turnover, and what you can do about it. 

What causes employee retention issues in hospitality? 

As of January 2026, employee retention issues in hospitality are being driven less by any single factor and more by sustained pressure across pay, workload and wellbeing. 

Understaffing is now the most cited workplace challenge, with 57% of hospitality professionals saying it is their primary concern and 52% reporting excessive workloads - conditions that translate into longer hours, missed breaks and rising burnout.  

Poor work-life balance remains a major driver of exits, with around half of workers reporting difficulty switching off and limited flexibility around evenings, weekends and family commitments continuing to push people out of the sector.  

Pay pressure has not eased either: nearly half of hospitality workers are estimated to be earning at or near the minimum wage, while 76% reported mental health struggles linked to financial stress in 2024, reinforcing the link between pay, wellbeing and retention.  

Limited progression and inadequate training further accelerate churn, particularly where onboarding is weak; around 30% of hospitality workers now leave within their first 90 days because the reality of the role does not match expectations.  

Combined with the ongoing pull of more stable or better-paid roles elsewhere, cited by around a quarter of leavers, these factors help explain why hospitality continues to record one of the lowest average employee tenures in the UK.  

Strategies to reduce staff turnover 

It can be challenging to calculate the exact cost of staff turnover to your business, because as well as the price of recruitment and training, there’s the significant impact that high turnover has on productivity, operations and customer service. It’s estimated that replacing an employee can cost anywhere from 30%-150% of their wage. That’s a sobering statistic which clearly indicates the importance of retaining existing staff. 

So, what can you do to improve employee retention in your organisation? 

Choose the right people 

It may seem like common sense, but when you recruit a candidate who isn't suitable for the role, the chance of them leaving rises sharply. It follows then, that the first thing to do is to review your recruitment and selection practices. From accurate job descriptions that set expectations at the outset, to thorough screening processes, and even trial shifts, there are lots of measures you can take to make sure you’re bringing the right people into your organisation.  

Offer a great onboarding experience 

Not only does a good onboarding process help you to standardise training across your business and ensure that compliance training is carried out properly and in good time, it also helps with staff retention. When onboarding is consistent, well-paced and easy to access, employees are more likely to settle in quickly, understand what’s expected of them and feel confident in their role.

Employees are 69% more likely to stay with an employer for 3 years or more following a positive onboarding experience, so clearly it’s important.    

Make training and development accessible 

According to Harvard Business Review, 55% of people choose peer-to-peer learning over asking a manager for help. So it might be a good idea to set up a formal peer-to-peer learning programme in your business.  

When staff are given access to online learning tools and encouraged to collaborate and learn together, they are more likely to make the effort to learn in their own time. In hospitality settings, where staff are on their feet most of the time, digital learning which is accessible from a mobile device is a must.  

Offer Career Pathways 

Identify your future leaders and give them access to personalised career pathways that show them how to get there. 

Your best people will never be happy feeling like their development is stagnating. Turning up and doing the same thing, day in, day out, without the prospect of learning and progressing will likely make them feel demotivated and send them racing to the job ads. Instead, make sure that there’s a clear career pathway in place for every team member.  

By showing that you are invested in helping them achieve their aspirations, you let them know that they are valued and needed. It also makes them feel as though they have a proper future with your business.  

Carry out regular workload reviews 

Make sure that the workload is spread fairly, and make this a transparent process, so that everyone knows what is expected of them, how they contribute, and how that fits into the bigger picture.  

Focus on wellbeing and staff happiness 

When it comes to reducing staff turnover in hospitality, wellbeing has to be a key consideration. Happy staff are motivated and productive staff, and when employees feel valued and content, they are less likely to leave. Fostering a positive culture of support and communication will make it easier for you to understand and meet staff needs.  

  • Consider offering flexible working and shorter working weeks where possible.  
  • Appointing wellbeing ambassadors can help to support your employee’s mental health, and shows them that you are serious about looking after them.  
  • Even simple acts like ensuring team members take proper breaks during busy shifts, and that they get fed can offer a huge boost to morale levels. 

Read more about the importance of wellbeing and mental health in the hospitality industry. 

Offer meaningful benefits   

While salary remains the single most important factor for most hospitality employees, recent data shows that pay alone is no longer enough to drive retention. 

Our 2026 Hospitality People Survey shows that 56% of employees rate a fair salary as very or quite important, but holiday entitlement (53%), training and development (52%) and flexible hours (51%) are now close behind. With financial pressure still high, benefits that support wellbeing, development and work–life balance are playing a much bigger role in job satisfaction and retention. .  

Be consistent 

Inconsistency is one of the quickest ways to undermine trust. When employees see different rules, processes or expectations applied across teams or sites, it can create frustration and a sense of unfairness, particularly in multi-site hospitality businesses. From rotas and pay to training and time-off requests, employees want to know they’re being treated fairly, wherever they work. 

Using a connected people management suite helps ensure policies, processes and communications are applied consistently across locations. For employees, that means clearer expectations, fewer surprises and greater confidence that decisions are being made fairly, all of which play an important role in engagement and retention. 

Work on improving overall job satisfaction 

A lot of the work that goes into improving staff retention is about perception and transparency. Almost as important as creating a positive and supportive workplace is making sure that all staff can see what you are doing so that they know that you are invested in them. 

Engage your employees, communicate with them, and listen to them. Support them to do their best work, so they can feel good about what they do and derive more satisfaction from their job. By giving them a brand and a company mission that they can be proud of, you will foster loyalty. 

How software can help with employee retention in hospitality 

 Clearly, long-term success for hospitality businesses relies heavily on finding and retaining quality employees. In this article, we’ve explored why retention is so important in hospitality. We’ve looked at some of the reasons for high staff turnover in the industry, and we’ve discussed some strategies to improve retention in your business.   

More and more hospitality businesses are adopting tech to help them take the right steps toward higher staff retention with ease. A connected people management suite allows you to standardise processes and remain consistent, even across multiple sites. 

An integrated people suite supports retention by helping you: 

  • Set clear expectations from day one - Consistent onboarding, training and communication help new starters understand their role, settle in faster and feel supported early on. 

  • Create fair and predictable schedules -Better visibility of rotas, workloads and availability helps reduce burnout, last-minute changes and frustration around shifts. 

  • Apply policies consistently across sites - Standardised processes ensure employees are treated fairly wherever they work, building trust and reducing resentment. 

  • Support learning, development and progression - Structured training pathways and ongoing development give employees a clearer sense of growth beyond their current role. 

  • Strengthen engagement and communication - Regular feedback, recognition and clearer communication help employees feel heard, valued and more connected to the business. 

  • Spot retention risks earlier - Bringing people data together makes it easier to identify patterns in absence, turnover and engagement, so issues can be addressed before employees leave. 

By managing the entire employee journey, from recruitment through to exit, in one connected platform, you can gain clearer insight into what’s driving retention and where improvements will have the greatest impact. 

To find out how a people management suite can support employee retention in your hospitality business, speak to our team.