It’s no secret that the hospitality industry has had one of the highest employee turnover rates — since well before the pandemic.

High turnover rates in any industry are a big cost to the company, and in a high-pressure sector like hospitality, the associated costs can be huge. Not only tangible costs, such as the expenses of recruiting and training new employees, but also the substantial cost of lost productivity among staff. In fact, reduced productivity costs the global economy around 1 trillion dollars each year.

Luckily, recent research shows that concentrating on the mental health of your talent can not only increase staff productivity and reduce staff turnover, but also enhance the guest experience with a proven effect on your bottom line. Here are a few strategies to help you achieve that:

A little goes a long way to cultivate an engaged company culture

Improving company culture is a change that takes place within the heart of an organization. It can be as simple as thanking employees for their hard work or opening a line of communication between leadership and staff.

When employees feel heard and understood by leadersthey are more likely to become advocates for positive company cultureand of course, less likely to want to leave. Effective communication strategies that encourage transparency — without a culture of fear — are essential to strengthen company culture. For example:

  • One-on-one meetings between leaders and employees to offer support and solutions
  • Department meetings to discuss progress and address any challenges
  • Interdepartmental meetings that encourage participation and collaboration on projects

Happier employees mean a better guest experience

Leaders who know their employees are able to empower them to utilize their strengths and talents.

When employees feel valued and heard, their enthusiasm for what they do will be evident in the way that they interact with guests, as well as their team members, to create an exceptional guest experience. People who are passionate about what they do, in turn, have higher job satisfaction and, as a result, are more engaged and productive at work.

On the other hand, low employee engagement can spread dissatisfaction among staff and lower morale. According to a Gallup study, employees who aren’t thriving in the workplace are 61% more likely to experience burnout as a result of feeling overwhelmed and stressed.

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