The turnover rate in the hospitality industry is one of the highest of any industry: in 2016, the overall turnover rate in the Accommodations and Restaurants sector was 72.9% (up nearly a percent from 2015 and steadily increasing since 2010.) With such a high turnover rate, hotels, casinos, resorts and other hospitality venues are spending millions of dollars hiring the right number of and providing consistent training to their employees. The obstacle to hire employees is compounded with the current employment climate. With an unemployment rate of 4.4%, the lowest rate seen since 2008, low wage staffing has become increasingly more difficult. Not only do hoteliers, casinos and resorts need to spend more money and time sourcing, hiring and training the right candidates, but high turnover threatens their ability to deliver a high quality of service and guest experience. At The Service Companies, we call this the “War on Talent”.
Our leaders have noticed this War on Talent intensify over the last few years and, in 2016, The Service Companies invested a significant amount of time and capital to understanding the underlying issues that drive turnover of hourly workers and developing solutions to these obstacles. The first step in this process was partnering with Navigate Corporation, a premier human resources management consulting firm in Philadelphia, to dive deep into the drivers of associate engagement and retention. We also created a dedicated team, our Associate Success and Retention team, to work with Navigate, analyze trends, develop solutions and execute them across The Service Companies portfolio.
Our Associate Success and Retention team have taken a data-driven approach, looking at job types, days of tenure, accounts with highest turnover, reasons for termination and regions, and created cohorts to identify trends on why associates depart after a specific amount of time. From there, we have developed customized solutions for each cohort, analyzing the efficacy of each solution as they are implemented across each of our customers’ properties nationwide. The solutions include the launch of new engagement programs, a new training and onboarding experience that creates consistency across all properties and services, and new tools that encourage collaboration and communication among our various teams.
The War on Talent will not solve itself. In fact, it will only become more difficult for hospitality companies to find the right talent. With turnover costs steadily increasing, we see tremendous value to solving these problems and we have taken on the responsibility to fix these issues for our customers. If you’d like to learn how we can solve this problem for you, contact us here and one of our team members will contact you right away.