Do you know the true cost of staff turnover in your hospitality business?
In this video I’m going to tell you – and I bet you’ll be shocked just how much you’re losing every time you have to replace a staff member.
(You can also check this out in video form here if you prefer to watch than read.)
Hospitality has a notoriously high turnover rate of between 30 – 75% – so on average at least half of your team is leaving your business every year…
Is that true for you?
That’s at least double the 15% norm across all industries.
And replacing staff costs you between 50 and 100% of their annual wage (depending on skills, with management at the higher level).
Find that hard to believe? Consider;
- Termination administrative costs
- Loss of productivity in final stages of employment
- Covering and/or replacement for interim period
- Hiring costs
- Training/induction costs
- Loss of productivity in early stages of employment
So you’re looking at around $30 – 80,000 for every full-time staff member you have to replace!
But you can minimise this problem. And reduce your staff costs with a productive and committed team.
For example, we have a hospitality client who were able to appoint the last 3 Venue Manager positions internally – so even with having to replace the line staff, they saved around $100,000 in recruitment costs!
So if high turnover is a problem for your hospitality business, how can you fix it?
It’s actually quite simple;
- figure out why people are leaving, and
- figure out how to get them to stay
Simple right? But not necessarily easy…
The best way to find out why staff are leaving is to ask them…
But I can tell you what the research indicates;
- poor working conditions (low pay, lack of communication, team tension, hours, inflexibility)
- lack of career opportunities
So how can you address these in your business?
1. Provide a good work environment – it’s not rocket science, stick to the award, provide reasonable breaks, pay people promptly, foster communication and a team culture, put systems and procedures in place.
2. Provide training for your staff in your systems and procedures. Make sure staff are aware of the progression opportunities in your business – and don’t forget to provide training to staff as they are promoted, consider accredited training to support your internal training and bring in new skills and knowledge to the team.
If you’d like to book your own Training Strategy Session where we can look at your existing workforce and develop a plan to turn them into your dream team – click here.
PS – You can check this out in video form here if you’d prefer.