10 ways to boost your retention with HR in hospitality

If you've been in the hospitality industry for a while, you know —high turnover rates are a constant struggle. In 2024, the hospitality sector had the highest turnover rate of any industry, sitting at 15.7%. That’s not just a headache, it’s a massive cost in both time and money. So, what’s the secret to keeping your best team members around for the long run? It’s all about effective human resource (HR) management.

HR has the power to play a pivotal role in improving retention rates. By implementing a few simple, yet effective strategies, HR can make sure your employees feel valued, engaged, and ready to stick around for the long haul.

Why is retention so important in hospitality?

In the hospitality industry, keeping your best people around is so much more important than you might think. High turnover isn’t just frustrating, it’s costly. Every time an employee leaves, you’re not just paying for recruitment ads and interviews; you’re also spending time and money on training someone new to get them up to speed.

But the costs don’t stop at money. High turnover can affect the quality of your service. When experienced staff leave, you lose the knowledge, skills, and rapport they’ve built with your customers. In an industry like hospitality, consistency is key—and that means having a team that knows the ropes and keeps things running smoothly. Plus, a revolving door of staff can make things feel unstable, which isn’t great for team morale. Happy employees stick around, and that creates a more positive and productive work environment.

In short, focusing on retention isn’t just about saving money. It’s about building a stronger, more reliable team that customers can count on, which, in turn, boosts your business in the long run.

Now, with that in mind, let’s explore some practical HR strategies to help you keep those great team members around for the long haul.

1. Foster a positive workplace culture

No one wants to work in a negative or toxic environment. A positive workplace culture is key to making employees feel supported and appreciated. HR should be at the forefront of creating a space where employees feel like they belong, where diversity is celebrated, and where everyone’s voice is heard. When people feel valued, they’re much more likely to stay.

• Employee-led initiatives: Allow employees to lead initiatives. This could be monthly activities to bond the team together.
• Feedback loops: Implement regular "pulse" surveys where employees can anonymously share their thoughts on the work environment.
• Diversity Days: Celebrate different cultures by hosting “Diversity Days” where employees can share their culture through food, music, or dress.

2. Invest in employee training and development

Nothing makes employees feel more valued than knowing there’s room for them to grow. Whether that’s upskilling employees to be baristas or training them for management through workshops, mentorships, or online courses, HR can ensure that employees have the tools they need to grow and advance in their hospitality careers.

• Upskilling programs: You could introduce a barista training program for waitstaff to give them more responsibility and the opportunity to learn a new skill.
• Leadership development: Create in-house leadership courses for promising employees.
• Individual development plans (IDPs): Implement IDPs for employees to outline their career goals and skills they want to learn.

3. Offer competitive compensation and benefits

Let’s face it—money talks. If you’re not offering competitive salaries and benefits, your employees may start looking elsewhere. HR plays a huge role in ensuring that your compensation packages are in line with industry standards. Also, ensure that you review employees' pay as they progress through the company.

• Benchmark regularly: HR should regularly review industry salary data and adjust compensation to ensure it remains competitive. 
• Review pay progression: Set clear milestones for pay raises or promotions and review employees’ compensation regularly to ensure their salary reflects their role and contributions.

4. Focus on work-life balance

In hospitality, the pressure can be intense, and burnout is real. HR should implement policies that give employees the flexibility to balance work with personal life. This could mean offering flexible hours, ensuring adequate time off, or providing support for mental health. When employees feel they can manage their personal lives alongside their work, they’re more likely to stick around for the long term.

• Flexible working hours: Implement flexible schedules where employees can choose when to work (e.g., start early, finish late).
• Encourage time off: Make it a policy to encourage employees to use their annual leave. Make sure employees know they won’t be penalised for taking time off.
• Mental health support: Offer access to mental health resources, such as an Employee Assistance Program (EAP), where employees can seek confidential advice or counselling.

6. Recognise and reward employees

Everyone likes to be recognised for a job well done. HR can set up reward and recognition programmes that celebrate employee achievements—whether it’s through employee of the month awards, shout-outs at meetings, or even small tokens of appreciation. Regular recognition boosts morale and makes employees feel valued.

• Regular recognition: Celebrate employee achievements on a regular basis, both big and small. This could be through shout-outs in team meetings, or special awards at the end of the month.
• Peer-to-peer recognition: Create a culture of recognition where employees can recognise each other’s great work. Implement a system where staff can nominate peers for shout-outs.

7. Strengthen communication channels

Transparent communication is the backbone of any successful hospitality business. HR should facilitate regular check-ins with employees to gather feedback, address concerns, and provide updates. When employees feel like their voices are heard, they’re more likely to stick around.

• Regular feedback loops: Set up regular one-on-one catch-ups between managers and employees to discuss their progress or concerns. 
• Transparency in decision making: Be transparent about business decisions, especially those that directly affect employees, such as changes to benefits or job roles. 

8. Encourage employee engagement

Engaged employees are more committed and productive. HR should focus on creating a work environment that encourages engagement through fun activities, events, and opportunities for employees to contribute ideas. When employees are emotionally invested in their work and the company’s success, they’re much less likely to leave.

• Involve employees in decision making: Involve staff in decisions that affect their roles or the business. For example, ask for input on new processes or products and ensure their feedback is taken seriously. 
• Employee feedback on engagement: Regularly assess how engaged your employees feel through surveys or feedback forms and act on what you gather. 

9. Improve onboarding processes

The first impression matters. An easy onboarding experience helps new hires feel welcomed, informed, and excited to be part of your team. HR should make sure the onboarding process is thorough, friendly, and engaging. A great first week can make all the difference in employee retention, so ensure they feel at home from day one.

• Structured onboarding program: Develop a structured onboarding programme that includes not only training but also time for new employees to integrate into the team. A well-structured introduction can make new hires feel more confident and supported.
• Buddy systems: Pair new hires with a buddy or mentor for their first few weeks. This helps them navigate their role and the workplace culture more smoothly and gives them someone to ask questions.

10. Implement fair and predictable scheduling

One of the biggest frustrations for hospitality workers is unpredictable or last-minute shift changes. HR can improve retention by ensuring fair and transparent scheduling, giving employees adequate notice and not cancelling shifts last minute. When staff have stability in their work hours, they’re more likely to stick around.

• Consistent shift patterns: Establish predictable shift schedules where possible. For example, try to maintain the same shifts each week for employees to avoid confusion and make it easier for them to plan their personal lives. 
• Give adequate notice: Aim to provide at least two weeks’ notice for schedules, ensuring employees have enough time to make personal arrangements or commitments.

By implementing these practical, actionable suggestions, you can build a work environment that prioritises retention and creates a more engaged, happy, and productive workforce.

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