Exceptional guest experiences start with strong, reliable teams. But in an industry known for high turnover, maintaining a stable staff is a constant challenge. With every resignation, there’s hurdles to consider; mainly in the form of added recruitment costs, increased pressure on remaining team members and disruptions to the service consistency your guests rely on.
That’s why leading hotels don’t wait for problems to surface — they take action to create environments where employees feel valued, supported and motivated to grow with the business. In this guide, we’ll cover 10 proven ways to do just that, so you can retain top talent and deliver memorable guest experiences.
Key Highlights:
Employee retention in the hospitality industry is a good people strategy, but it’s also a sound financial one.
Work Institute estimates that on average, the cost of all these factors is roughly $18,000 per hire (a figure that includes recruiting, hiring, onboarding, lost productivity and related costs). AHLA and Actabl have figures more specific to the hotel industry, and suggest replacement expenses can reach up to about 20–30% of an employee’s annual pay. Either way, it’s a significant line item in the budget.
When a team member leaves, the expenses add up quickly — and the multitude of ways it impacts your bottom line is not always clear. Here’s how turnover drains your resources:
Conversely, retaining experienced employees boosts performance across the board. Seasoned team members operate with efficiency, make fewer mistakes and require less supervision. They also tend to build stronger relationships with returning travelers, resulting in improved guest satisfaction and serving as a crucial differentiator in a competitive market.
So, how urgent is it to find a hotel employee retention solution? A recent Gallup report found that 1 in 2 employees are open to leaving their current roles. Dedicating resources to keeping your employees happy is not only good for morale — it’s also a competitive advantage.
Employee retention in the hotel industry takes the right systems, culture and tools to make work more rewarding. Here are 10 ways to improve staff retention and build engaged, loyal teams.
Pay remains one of the strongest drivers of employee loyalty. Competitive base salaries and meaningful benefits (such as health coverage, paid time off and retirement plans) show staff that your hotel values their contributions.
However, the world going increasingly cashless has presented a challenge to hotel employees who rely on tips. Many staff members now earn less overall, simply because guests don’t have cash to leave behind.
Canary’s Digital Tipping bridges that gap by allowing guests to leave gratuities electronically through their smartphones. This solution is a significant driver of increased take-home pay, which boosts morale and directly supports retention.
A hotel’s culture defines how employees feel about coming to work each day. Gallup found in 2024 that poor engagement and culture were the primary reasons (37%) for why employees left a previous job. So how can hoteliers get ahead of declining employee engagement?
In the hospitality industry, it’s important to encourage open communication, collaboration and recognition across all departments. Simple gestures, from daily check-ins to public shoutouts for exceptional service, create a culture of appreciation. When employees feel seen and valued, they’re far more likely to stay and grow with your property.
When you demonstrate a commitment to long-term investment in your team, it’s a demonstration of how much their continued tenure means to the business. Plus, promoting existing employees while back-filling less specialized positions lets you preserve the legacy knowledge and experience that’s so valuable in hospitality.
To do this effectively, consider how you can nurture your employees’ development. Offer structured training programs, cross-department learning and mentorship opportunities. Promoting from within reduces hiring costs while showing staff that your property invests in their future success.
Repetitive manual tasks, like data entry and answering routine guest questions, are major causes of burnout. Reduce administrative load by automating where possible — solutions for mobile check-in and AI guest messaging are great for this.
When the routine things are automated, it empowers your staff to focus on what matters most: personal, high-value guest interactions. Fewer repetitive tasks and more time for meaningful guest interactions is the formula for happier staff and standout service.
Hospitality never sleeps, but that doesn’t mean your team shouldn’t! The 24/7 nature of hotels can mean long hours and irregular schedules, especially if your property experiences a strong peak season or remains consistently busy year-round.
Flexible scheduling goes a long way to reducing fatigue and improving morale. Simple adjustments like predictable shift rotations or allowing shift swaps gives employees more autonomy over their schedules, resulting in a talent pool that’s more energized and committed.
A strong start sets the tone for an employee’s entire tenure. Comprehensive onboarding lets new hires feel supported and aligned with your brand’s service standards. Pair initial training with ongoing development to reinforce skills and demonstrate continued investment in each team member’s growth.
Few things are more frustrating for employees than outdated systems. Providing your staff with modern, efficient tools shows respect for their time and professionalism. For example, a guest management system unifies operations, making each daily task less frustrating. When staff move seamlessly through tasks, their workdays become more efficient and far less stressful.
Regular check-ins, team meetings and employee surveys create a culture of openness. But just gathering feedback isn’t enough; acting on it is what builds trust. When staff see leadership addressing concerns or implementing new ideas, they feel heard and invested in the success of the property.
Recognition doesn’t have to be grand, it just has to be genuine. Whether it’s an employee-of-the-month program, peer nominations or small team celebrations, consistent recognition reinforces positive behaviors and builds morale. Acknowledging effort publicly shows employees that their hard work has a meaningful impact on both guests and the business.
Employees perform their best when they feel safe and supported. In fact, the second most popular reason (31%) employees leave their jobs according to Gallup is wellbeing and work-life-balance.
Prioritize both physical and psychological well-being by maintaining safe workspaces, offering wellness programs and providing access to mental health resources. A healthy workforce is not only more productive but also more loyal — they know their employer truly cares.
To effectively measure your employee retention rate, hotels need to track the right metrics. The two most important KPIs for understanding workforce health are employee turnover rate and employee retention rate. Together, they tell the story of how well your property is keeping talent over time.
Your employee turnover rate shows how many team members leave your property during a specific period, and can be calculated monthly, quarterly or annually. The formula is simple:
Before introducing new retention initiatives, it’s essential to understand why employees are leaving. For a detailed breakdown of the 12 most common causes of hotel turnover, read our in-depth analysis here.
Your employee retention rate is the positive counterpart to turnover. This is the metric that measures how effectively your property is keeping its staff over a given period. The standard employee retention rate formula is:
In an industry where staff turnover can disrupt guest satisfaction and operational flow, retaining great talent is more important than ever. Hotels that invest in their teams see higher service quality, better reviews and stronger bottom lines.
The secret? Focus on the Three R’s of Retention: Respect, Recognition, and Reward.
1. Respect
Respect is the foundation of a strong workplace culture. That means clear communication, fair scheduling and treating every team member with dignity. When employees feel heard and valued, they show up more engaged and committed.
2. Recognition
A little acknowledgment goes a long way! Whether it’s a shoutout in a staff meeting, a “thank you” from leadership or direct feedback from happy guests, regular recognition builds morale.
3. Reward
Competitive pay and benefits matter, but so do performance incentives, growth opportunities and a clear path to advancement. When employees know their efforts lead to real rewards, they’re more likely to stay and grow with your team.
At its core, every great hotel runs on people. The most effective employee retention strategies in the hospitality industry are about building a culture of respect, opportunity and empowerment. When staff feel supported and recognized, they’re motivated to deliver the kind of service that keeps guests coming back.
A happy, stable team elevates every guest interaction. Investing in your employees’ experience is an investment directly in guests satisfaction — and ultimately, your property’s continued success.
See how Canary’s Guest Management System helps hotels simplify operations, reduce burnout and create a workplace where staff thrive. Book a demo to explore how modern hotel technology can strengthen both your team and your guest experience.
In the hotel industry, a good employee retention rate is anything above 60-70% annually. That means fewer than 30% of employees leave in a year. But for context, many hotels struggle to keep even half their workforce over a full year.
Studies and workforce reports from AHLA, Actabl and the Bureau of Labor Statistics show annual turnover hovering between 60% and 80%, depending on job type. That implies retention rates between 20% and 40%.
Hourly and entry-level roles (like housekeeping or food & beverage) churn the fastest, while management and administrative positions tend to retain longer. So when a hotel manages to retain 60–70% of its team, it’s performing well above average for the sector.
There are many employee retention strategies in the hotel industry. To start, focus on the employee experience from day one. Offer competitive compensation, recognize achievements and create clear pathways for growth. Modern tools like Canary’s Digital Tipping also reduces staff workload and burnout, helping teams stay happier and more productive.
No. Retention rates measure how many of your starting employees remain at the end of a given period, so they cannot exceed 100%. If you see a number above that threshold, it usually means the calculation mistakenly included new hires or used incorrect starting data.
The “3 Rs” stand for Respect, Recognition and Rewards. When you prioritize these principles by treating staff with respect, recognizing great work, you create a positive culture that encourages long-term commitment and exceptional service.
Turnover in hospitality is often driven by low wages, inconsistent scheduling, limited growth opportunities and burnout from high guest volumes or understaffed teams. A lack of recognition and poor communication from leadership can also push employees to leave.
High retention leads to more experienced, confident staff who can deliver consistent, high-quality service. It also creates stronger team cohesion and reduces the disruptions that occur when roles are frequently filled by new hires or temporary workers.
Simple, high-impact actions include giving regular feedback, recognizing good work publicly, offering flexible scheduling and providing easy-to-use tech that removes friction from daily tasks. These changes show employees they’re valued and make their day-to-day jobs easier.
