The math is simple but often overlooked: retaining an experienced hotel employee is almost always more cost-effective than recruiting and training a replacement. In 2025, with the hospitality industry experiencing 70-80% annual turnover rates, this principle has never been more relevant.
The costs of turnover are staggering. Beyond the direct expenses of recruiting, hiring, and training—which can run thousands of dollars per position—there are hidden costs: the burden on remaining staff, potential service quality issues during transitions, and the loss of institutional knowledge that experienced employees carry.
So what keeps hotel workers from leaving? Compensation matters, but it's not everything. Surveys consistently show that workers value respect, reasonable schedules, opportunities for advancement, and positive workplace culture alongside their paychecks.
Leading hotel operators are getting creative with retention strategies. Some offer earned wage access, allowing workers to access a portion of earned pay before the regular pay cycle. Others have invested in career development programs, showing employees a clear path from housekeeper to supervisor to department head.
Scheduling practices have become a major differentiator. Predictable schedules, adequate notice of shifts, and the ability to swap shifts easily all contribute to worker satisfaction. Technology plays a key role here, with scheduling apps that give workers more control over their time.
Recognition and appreciation, while intangible, yield tangible results. Simple practices like acknowledging good work, celebrating milestones, and seeking employee input on decisions all contribute to a culture where people want to stay.
For hotel operators, the retention focus requires a shift in mindset. Rather than viewing labor as a cost to be minimized, the most successful properties view their workforce as an asset to be developed and protected.