Retention Strategies That Work
Industry benefits and perks have been upgraded.
The hospitality industry has traditionally been plagued by high turnover, but never more so than during the “great resignation” that resulted from the pandemic. Companies in the industry have scrambled to upgrade benefits and perks to attract and retain employees.
From offering flexible schedules and shorter workweeks to including mental health services and free Spotify subscriptions, employers have incorporated various ways to get people to apply for open positions and remain part of the team. What retention strategies are working?
According to the American Hotel & Lodging Association, 90% of hotels have raised wages and many have made additional benefits available to employees. Over the past two years, hotel wages have increased more than 17%, compared to a national average wage increase of 11%. And more hospitality businesses are offering flexible vacation plans, additional time off, maternity and paternity leave, and child care benefits.
Sign-on and retention bonuses have long been common in professional jobs, and of late, they have become more prevalent in the hospitality industry. Signing bonuses are good incentives to attract job seekers to your job openings and can be key in getting your top pick to take the job. Offering a cash incentive for job seekers helps you stand out from other potential employers.
Perks and incentives
A job in the hospitality industry can be hard work, so it’s important to offer perks and incentives to attract and retain the best employees. Free or discounted meals are a natural perk for restaurants, and this incentive has the added benefit of getting employees more familiar with the menu.
Offer employees the chance to earn some extra cash with incentives for selling certain menu items or getting customers enrolled in loyalty programs. Employees can contribute to the company’s success and enjoy extra income.
Working in the hospitality industry can be challenging and stressful, and many of today’s workers consider coverage for mental health just as important as dental insurance. Popular benefits companies are offering to address these challenges are access to free counseling sessions and subscriptions to virtual counseling services and wellness apps.
One of the best ways to encourage employees to stay for the long term is offering retirement benefits. In fact, 35% of employees surveyed for a study by Willis Towers Watson said these benefits factored into whether they accepted their position. Retirement benefits are also a powerful tool for job sustainability and longevity.
Focusing on retention strategies that work can help engage employees and lower turnover rates—which can have a lasting impact on your bottom line.