Turnover, Costs, Consequences (and How to Fix It!)

In the hospitality industry, high turnover remains a constant struggle. The National Restaurant Association (NRA) puts the average at about 62.4%, however, from 2013 to 2014 the overall turnover rate jumped up to 66%. Although there are many parts to this percentage, the quit rate alone in 2014 was 47% — putting hospitality managers in a very vulnerable position.

Why is this?
• The hospitality industry is one of the few that has seasonal staffing spikes throughout the year – taking place in January, June, and October. These spikes add to the normal turnover numbers.
• Overall, 31% of the hospitality workforce work only part-year (a form of temporary part time employment), compared to 19% of the total U.S. workforce.
• The existence of multiple competitive establishments in almost all communities gives employees additional opportunities in a competitive environment.

Consequences. The financial impacts of high turnover rates cut deep into budgets. Here are some factors to consider:
• Cost of job listing services
• Cost and time it takes to train new employees
• Cost of new uniforms
• Time it takes to find new employees
• Time it takes to interview candidates
• Time it takes to coordinate with hiring managers
• Time it takes to schedule around losing an employee

These are all issues of the past. ZippyApp faces many of these challenges head-on by providing you with the following:
• Job listing services: We post your jobs to the most popular local job boards, offering the largest job distribution network.
• Train new employees: View the candidate’s skills and experience in one easy-to-follow common employment application. Hire those with the qualified experience to keep training to a minimum.
• Find new employees: Our unique algorithm brings you the most qualified applicants for your jobs.
• Interview candidates: Use the tags provided in our Applicant Management System to communicate with other managers at your establishment. Be sure the candidate interviews with a few different people to ensure they fit well with company culture.
• Schedules: View a candidate’s availability in their Common Employment Application to ensure seamless scheduling.

Ways to fix it. Experts agree; the single best way to reduce employee turnover is to hire the right people from the start. We understand hourly hiring is a local practice, and we provide you with only local, qualified applicants – ones that have less risk of a higher rate for turnover. Our team is dedicated to making sure your job descriptions include the proper SEO keywords to help get your jobs in front of the right candidates.

Strategies. Although there are factors out of your control that can affect your turnover rate – like the local economy and seasonal spikes – there are strategies you can put into place to keep your employees happy and loyal.
• Create the right culture: 49% of applicants say work culture is important in a job. Create an environment that is open and welcomes and appreciates feedback. Schedule one-on-one meetings or create anonymous surveys to find out how employees feel about their role, and what might need to change.
• Provide a clear career roadmap: 45% of applicants say growth opportunities within the organization is important when deciding if they want to take a job or not. Map out a clear path for advancement, making sure you understand the goals of each employee. Try your best to get them on that path, or be prepared for them to go somewhere else that will give them the opportunity.
• Be fair with schedules: 41% of applicants say the hours they are expected to work are an important factor in their job. Employee favoritism kills morale. Be fair by not playing favorites. Don’t be unfair by always giving certain employees better schedules and shifts than others. Be sure to pay attention to schedules to make sure you don’t burn employees out.
• Be competitive: Offer competitive wages and benefits. Providing incentives, like scheduling team outings outside the workplace and providing meals to your employees, are ways to keep employees happy.
• Show them you care: Be supportive through school and personal times. Providing flexible schedules will help build the loyalty needed to keep them happy.
• Take criticism: Employee insight can help fix your turnover. If they are unhappy, find out why. Even if it is too late and they moved to another job, this advice can be valuable in reducing your future turnover.

Have any turnover strategies to share, or want to learn more about reducing your turnover? Post a comment here!

*Statistics taken from the National Restaurant Association.

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