Improve Employee Retention in The Hospitality Industry

Improve Employee Retention in The Hospitality Industry

Hospitality jobs typically have a reputation of low pay and insufficient benefits, and inflexible working hours.1 However, it’s not all doom and gloom. 

More flexible working conditions and competitive benefits may help hospitality companies overcome these stigmas. Enticing job incentives may increase employee satisfaction, which may help improve employee retention and motivate employees to deliver outstanding customer service.

The average 2021 turnover rate in the leisure and hospitality industry is 84.9% compared to the overall rate of 47.2% nationally.2 Hospitality companies can work to reduce turnover and increase retention rates to improve guest experience and reduce unnecessary hiring and onboarding costs associated with replacing employees.

High turnover rates among hotel and hospitality staff may have damaging effects on a team’s morale, reduce the company knowledge base, interfere with customer service, and burden remaining staff.

Interactive Calculator: Find out how much your company can save by reducing your turnover rate

Improve Staff Retention With On-Demand Pay 

Low pay and insufficient benefits are among the most common causes of low employee retention.5 Employee benefits, like on-demand pay, may facilitate employee retention and job satisfaction by giving employees greater control over their finances and faster access to their earned pay. 

In turn, more satisfied employees could deliver better customer service, contribute to higher workplace morale, and result in cost savings associated with filling vacant positions. 

In addition to offering an on-demand pay benefit, the hospitality industry can offer more flexible hours and shifts in an effort to improve the employee experience — all with the goal to improve the guest experience and drive repeat customers.

DailyPay research has shown that on-demand pay can lead to higher job satisfaction, improved productivity, and faster hiring. 

According to a DailyPay survey, there are various benefits of offering on-demand pay to employees: 

  • 73% of employees have an improved opinion of their employer because of DailyPay.6
  • 56% of users say DailyPay motivates them to pick up more shifts and 59% of users say DailyPay motivates them to go to work.7 
  • Businesses with job listings that mention on-demand pay through DailyPay fill open positions in half the time as those that don’t.8 

To learn how DailyPay may assist the hotel and hospitality industry work to address poor employee retention, schedule a demo today.

This post is part of a larger series, so check back soon for more insights into Travel and Hospitality.

Read part 1: Reluctant Labor Pool 

All information herein is for educational purposes only and should not be relied upon for any other use. The information herein does not constitute the rendering of financial advice or other professional advice by DailyPay. No fiduciary obligation or duty exists, or is created, between you and DailyPay. DailyPay does not warrant the completeness or accuracy of any information provided to you.

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